Linn Energy To Buy Gas Wells From Devon For $2.3 Billion - Bloomberg

Linns distribution is not financed with free cash flow or earnings. Its financed with equity raises and debt raises. I think Linn Energy eventually collapses under the weight of this debt burden. Todays deal may push that day of reckoning out, Kaiser said. Linn Energy didnt immediately return a voicemail and e-mail seeking a response to Kaisers comment. The deal ends a round of asset sales announced last year by Devon, which is seeking to transform itself from a gas producer into an oil company . Upon completion of this transaction we will have reduced our net debt by more than $4 billion this year, John Richels, chief executive officer of Devon, said in the statement. The transaction is expected to close in the third quarter, with an April 1 effective date.
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