Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Entity Registrant Name | LinnCo, LLC | |
Entity Central Index Key | 1,549,756 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 128,544,174 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS (Unaudited)
BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash | $ 6,451 | $ 6,544 |
Income taxes receivable | 12,434 | 12,870 |
Deferred offering costs | 0 | 15 |
Deferred income taxes | 1,843 | 46,441 |
Total current assets | 20,728 | 65,870 |
Noncurrent assets: | ||
Deferred income taxes | 12,364 | 0 |
Investment in Linn Energy, LLC | 345,784 | 1,302,152 |
Total noncurrent assets | 358,148 | 1,302,152 |
Total assets | 378,876 | 1,368,022 |
Current liabilities: | ||
Accounts payable | 1,008 | 1,335 |
Income taxes payable | 7,792 | 80 |
Total current liabilities | 8,800 | 1,415 |
Noncurrent liabilities: | ||
Income taxes payable | 0 | 7,716 |
Deferred income taxes | 0 | 60,340 |
Total noncurrent liabilities | 0 | 68,056 |
Shareholders’ equity: | ||
Voting shares; unlimited shares authorized; 1 share issued and outstanding at September 30, 2015, and December 31, 2014 | 1 | 1 |
Common shares; unlimited shares authorized; 128,544,174 shares issued and outstanding at September 30, 2015, and December 31, 2014 | 3,868,322 | 3,868,322 |
Additional paid-in capital | 42,121 | 39,294 |
Accumulated deficit | (3,540,368) | (2,609,066) |
Total shareholders' equity | 370,076 | 1,298,551 |
Total liabilities and shareholders’ equity | $ 378,876 | $ 1,368,022 |
BALANCE SHEETS (Unaudited) (Par
BALANCE SHEETS (Unaudited) (Parenthetical) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Voting shares: issued | 1 | 1 |
Voting shares: outstanding | 1 | 1 |
Common shares: issued | 128,544,174 | 128,544,174 |
Common shares: outstanding | 128,544,174 | 128,544,174 |
STATEMENTS OF OPERATIONS (Unaud
STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Equity income (loss) from investment in Linn Energy, LLC | $ (663,276) | $ 172,200 | $ (835,820) | $ 74,672 |
General and administrative expenses | (965) | (644) | (2,842) | (2,046) |
Gain on transfer of Berry | 0 | 9,830 | 0 | 8,499 |
Income (loss) before income taxes | (664,241) | 181,386 | (838,662) | 81,125 |
Income tax (expense) benefit | (3,712) | (63,776) | 27,908 | (26,141) |
Net income (loss) | $ (667,953) | $ 117,610 | $ (810,754) | $ 54,984 |
Net income (loss) per share, basic and diluted | $ (5.20) | $ 0.91 | $ (6.31) | $ 0.43 |
Weighted average shares outstanding | 128,544 | 128,544 | 128,544 | 128,519 |
Dividends declared per share | $ 0.313 | $ 0.725 | $ 0.938 | $ 2.175 |
STATEMENT OF SHAREHOLDERS' EQUI
STATEMENT OF SHAREHOLDERS' EQUITY (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) shares in Thousands, $ in Thousands | Total | Shares | Share Amount | Additional Paid-In Capital | Accumulated Deficit |
Beginning of period (in shares) at Dec. 31, 2014 | 128,544 | ||||
Beginning of period at Dec. 31, 2014 | $ 1,298,551 | $ 3,868,323 | $ 39,294 | $ (2,609,066) | |
Capital contributions from Linn Energy, LLC | 2,827 | 0 | 2,827 | 0 | |
Dividends to shareholders | (120,548) | 0 | 0 | (120,548) | |
Net loss | (810,754) | 0 | 0 | (810,754) | |
End of period (in shares) at Sep. 30, 2015 | 128,544 | ||||
End of period at Sep. 30, 2015 | $ 370,076 | $ 3,868,323 | $ 42,121 | $ (3,540,368) |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flow from operating activities: | ||
Net income (loss) | $ (810,754) | $ 54,984 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Equity (income) loss from investment in Linn Energy, LLC | 835,820 | (74,672) |
Noncash general and administrative expenses paid by Linn Energy, LLC | 2,842 | 2,046 |
Gain on transfer of Berry | 0 | (8,499) |
Deferred income taxes | (28,106) | 26,141 |
Decrease in income taxes receivable | 436 | 0 |
Increase in accounts payable | 55 | 0 |
Decrease in income taxes payable | (4) | (475) |
Cash distributions received | 120,548 | 279,537 |
Net cash provided by operating activities | 120,837 | 279,062 |
Cash flow from financing activities: | ||
Dividends paid to shareholders | (120,930) | (279,537) |
Net cash used in financing activities | (120,930) | (279,537) |
Net decrease in cash and cash equivalents | (93) | (475) |
Cash and cash equivalents: | ||
Beginning | 6,544 | 1,045 |
Ending | $ 6,451 | $ 570 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation Nature of Business LinnCo, LLC (“LinnCo” or the “Company”) is a Delaware limited liability company formed on April 30, 2012, that completed its initial public offering (“IPO”) in October 2012. After the IPO, LinnCo’s initial sole purpose was to own units representing limited liability company interests (“units”) in its affiliate, Linn Energy, LLC (“LINN Energy”). In connection with the acquisition of Berry Petroleum Company, now Berry Petroleum Company, LLC (“Berry”), LinnCo amended its limited liability company agreement to permit, among other things, the acquisition and subsequent transfer of assets to LINN Energy for consideration received. As of September 30, 2015 , LinnCo had no significant assets or operations other than those related to its interest in LINN Energy. LINN Energy is an independent oil and natural gas company that trades on the NASDAQ Global Select Market under the symbol “LINE.” At September 30, 2015 , LINN Energy’s last reported sales price was $2.69 per unit, as reported by NASDAQ, and the Company owned approximately 37% of LINN Energy’s outstanding units. Principles of Reporting The information reported herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted under Securities and Exchange Commission (“SEC”) rules and regulations; as such, this report should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results reported in these unaudited financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. Investments in noncontrolled entities over which the Company exercises significant influence are accounted for under the equity method. Reimbursement of LinnCo’s Costs and Expenses LINN Energy has agreed to provide to LinnCo, or to pay on LinnCo’s behalf, any financial, legal, accounting, tax advisory, financial advisory and engineering fees, and other administrative and out-of-pocket expenses incurred by LinnCo, along with any other expenses incurred in connection with any public offering of common shares representing limited liability company interests (“shares”) in LinnCo or incurred as a result of being a publicly traded entity. These expenses include costs associated with annual, quarterly and other reports to holders of LinnCo shares, tax return and Form 1099 preparation and distribution, NASDAQ listing fees, printing costs, independent auditor fees and expenses, legal counsel fees and expenses, limited liability company governance and compliance expenses, and registrar and transfer agent fees. In addition, LINN Energy has agreed to indemnify LinnCo and its officers and directors for damages suffered or costs incurred (other than income taxes payable by LinnCo) in connection with carrying out LinnCo’s activities. Because all general and administrative expenses and certain offering costs are actually paid by LINN Energy on LinnCo’s behalf, no cash is disbursed by LinnCo for these expenses and costs. For the three months and nine months ended September 30, 2015 , LinnCo incurred total general and administrative expenses and certain offering costs of approximately $965,000 and $2.8 million , respectively, all of which had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2015 . The expenses for the three months and nine months ended September 30, 2015 , include approximately $491,000 and $1.5 million , respectively, related to services provided by LINN Energy necessary for the conduct of LinnCo’s business, such as accounting, legal, tax, information technology and other expenses. For the three months and nine months ended September 30, 2014 , LinnCo incurred total general and administrative expenses and certain offering costs of approximately $644,000 and $2.1 million , respectively, of which approximately $1.9 million had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2014 . The expenses for the three months and nine months ended September 30, 2014 , include approximately $470,000 and $1.4 million , respectively, related to services provided by LINN Energy necessary for the conduct of LinnCo’s business, such as accounting, legal, tax, information technology and other expenses. In addition, during the nine months ended September 30, 2014 , LINN Energy paid approximately $11 million on LinnCo’s behalf for general and administrative expenses incurred by LinnCo in 2013. Dividends Within five business days after receiving a cash distribution related to its interest in LINN Energy units, LinnCo is required to pay the cash received, net of reserves for its income taxes liability (“tax reserve”), if any, as dividends to its shareholders. The amount of the tax reserve is calculated on a quarterly basis and is determined based on the estimated tax liability for the entire year. The current tax reserve can be increased or reduced, at Company management’s discretion, to account for the over/(under) tax reserve previously recorded. Because the tax reserve is an estimate, upon filing the annual tax returns, if the actual amount of tax due is greater or less than the total amount of tax reserved, the subsequent tax reserve, at Company management’s discretion, could be adjusted accordingly. Any such adjustments are subject to approval by the Company’s Board of Directors (“Board”). Use of Estimates The preparation of the accompanying financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of income and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Any changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Accounting for Investment in Linn Energy, LLC The Company uses the equity method of accounting for its investment in LINN Energy. The Company’s equity income (loss) consists of its share of LINN Energy’s earnings or losses attributed to the units the Company owns, the amortization of the difference between the Company’s investment in LINN Energy and LINN Energy’s underlying net assets attributable to certain assets and liabilities, and impairments. The Company records its share of LINN Energy’s net income (loss) in the period in which it is earned. At September 30, 2015 , the Company owned approximately 37% of LINN Energy’s outstanding units. The Company’s ownership percentage could change as LINN Energy issues or repurchases additional units. Changes in the Company’s ownership percentage affect its net income (loss). Impairment testing on the Company’s investment in LINN Energy is performed when events or circumstances warrant such testing and considers whether there is an inability to recover the carrying value of the investment that is other than temporary. At September 30, 2015 , declines in the quoted market price of LINN Energy units, when considering the suspension of LINN Energy’s distribution and continued low commodity prices, were determined by the Company to be other than temporary. Accordingly, the Company reduced the carrying value of its investment to fair value by recording a charge in excess of what would otherwise be recognized by application of the equity method. The carrying value was reduced to fair value using LINN Energy’s quoted market price of $2.69 per unit at September 30, 2015 , which is characteristic of a Level 1 fair value measurement. The impairment charge of approximately $326 million is included in “equity income (loss) from investment in Linn Energy, LLC” on the statements of operations. No impairment had occurred with respect to the Company’s investment in LINN Energy for the nine months ended September 30, 2014 . At September 30, 2015 , the carrying amount of the Company’s investment in LINN Energy was less than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $472 million . The difference is attributable to proved and unproved oil and natural gas properties and senior notes, and is included in “investment in Linn Energy, LLC” on the balance sheets and amortized over the lives of the related assets and liabilities. Such amortization is included in the equity income from the Company’s investment in LINN Energy. |
Capitalization
Capitalization | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Capitalization | Capitalization LinnCo’s authorized capital structure consists of two classes of interests: (1) shares with limited voting rights and (2) voting shares, 100% of which are currently held by LINN Energy. At September 30, 2015 , LinnCo’s issued capitalization consisted of approximately $3.9 billion in common shares and $1,000 contributed by LINN Energy in connection with LinnCo’s formation and in exchange for its voting share. LinnCo is authorized to issue an unlimited number of shares and voting shares. Additional classes of equity interests may be created upon approval by the Board and the holders of a majority of the outstanding shares and voting shares, voting as separate classes. At-the-Market Offering Program The Company’s Board has authorized the sale of up to $500 million of shares under an at-the-market offering program. Sales of shares, if any, will be made under an equity distribution agreement by means of ordinary brokers’ transactions, through the facilities of the NASDAQ Global Select Market, any other national securities exchange or facility thereof, a trading facility of a national securities association or an alternate trading system, to or through a market maker or directly on or through an electronic communication network, a “dark pool” or any similar market venue, at market prices, in block transactions, or as otherwise agreed with a sales agent. The Company expects to use the net proceeds from any sale of shares to purchase additional LINN Energy units. As of September 30, 2015 , no shares had been sold under the program. |
Summarized Financial Informatio
Summarized Financial Information for Linn Energy, LLC | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information for Linn Energy, LLC | Summarized Financial Information for Linn Energy, LLC Following are summarized statements of operations and balance sheets information for LINN Energy. Additional information on LINN Energy’s results of operations and financial position are contained in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 , which is included in this filing as Exhibit 99.1 and incorporated herein by reference. Summarized Linn Energy, LLC Statements of Operations Information Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Revenues and other $ 998,304 $ 1,435,115 $ 2,236,679 $ 2,765,653 Expenses (2,623,101 ) (1,284,354 ) (4,307,846 ) (2,631,427 ) Other income and (expenses) 57,657 (155,894 ) (224,117 ) (428,859 ) Income tax (expense) benefit (2,177 ) 1,033 7,680 (2,674 ) Net loss $ (1,569,317 ) $ (4,100 ) $ (2,287,604 ) $ (297,307 ) Summarized Linn Energy, LLC Balance Sheets Information September 30, 2015 December 31, 2014 (in thousands) Current assets $ 1,860,348 $ 1,706,590 Noncurrent assets 11,718,121 14,716,919 13,578,469 16,423,509 Current liabilities 751,989 982,545 Noncurrent liabilities 10,632,175 10,897,359 Unitholders’ capital $ 2,194,305 $ 4,543,605 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is a limited liability company that has elected to be treated as a corporation for U.S. federal income tax purposes. Deferred income tax assets and liabilities are recognized for temporary differences between the basis of the Company’s assets and liabilities for financial and tax reporting purposes. At September 30, 2015 , and December 31, 2014, the majority of the Company’s temporary difference and associated deferred taxes result from its investment in LINN Energy. Based on estimates of future taxable income for the periods in which the deferred tax assets are deductible, valuation allowances of approximately $326 million and $36 million , respectively, were established to reduce the net deferred tax assets to an amount that is more likely than not to be recognized. At September 30, 2015 , the Company had a gross liability for uncertain income tax benefits of approximately $15 million . During the quarter ended September 30, 2015 , the Company reduced the balance of its unrecognized income tax benefits by approximately $5 million due to settlements with taxing authorities. The Company had accrued approximately $203,000 of interest related to its uncertain income tax positions as of September 30, 2015 . The tax years 2010 – 2013 remain open to examination for federal income tax purposes. |
Distributions and Dividends
Distributions and Dividends | 9 Months Ended |
Sep. 30, 2015 | |
Distribution Received and Dividend Paid [Abstract] | |
Distributions and Dividends | Distributions and Dividends The following provides a summary of distributions paid by LINN Energy to LinnCo and dividends paid by LinnCo to its shareholders during the nine months ended September 30, 2015 : LINN Energy Distributions to LinnCo Date Paid Distributions Per Unit Total Distributions (in millions) September 2015 $ 0.1042 $ 13 August 2015 $ 0.1042 $ 13 July 2015 $ 0.1042 $ 13 June 2015 $ 0.1042 $ 13 May 2015 $ 0.1042 $ 13 April 2015 $ 0.1042 $ 13 March 2015 $ 0.1042 $ 13 February 2015 $ 0.1042 $ 13 January 2015 $ 0.1042 $ 13 LinnCo Dividends to its Shareholders Date Paid Dividends Per Share Total Dividends (in millions) September 2015 $ 0.1042 $ 13 August 2015 $ 0.1042 $ 13 July 2015 $ 0.1042 $ 13 June 2015 $ 0.1042 $ 13 May 2015 $ 0.1042 $ 13 April 2015 $ 0.1042 $ 13 March 2015 $ 0.1042 $ 15 February 2015 $ 0.1042 $ 13 January 2015 $ 0.1042 $ 13 In October 2015, LINN Energy suspended the payment of its distribution. Since LinnCo pays its dividend from the receipt of cash distributions from LINN Energy, LinnCo will not pay a dividend while LINN Energy’s distributions are suspended. |
Supplemental Disclosures to the
Supplemental Disclosures to the Statements of Cash Flows | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Disclosures to the Statements of Cash Flows | Supplemental Disclosures to the Statements of Cash Flows For the nine months ended September 30, 2015 , and September 30, 2014 , LinnCo incurred and recorded approximately $2.8 million and $2.1 million , respectively, of general and administrative expenses and certain offering costs. Of the expenses and costs incurred, all had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2015 , and approximately $1.9 million had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2014 . In addition, during the nine months ended September 30, 2014 , LINN Energy paid approximately $11 million on LinnCo’s behalf for general and administrative expenses incurred by LinnCo in 2013. All of these expenses and costs are paid by LINN Energy on LinnCo’s behalf, and therefore, are accounted for as capital contributions and reflected as noncash transactions by LinnCo. During the nine months ended September 30, 2015 , and September 30, 2014 , the Company made cash payments for income taxes of approximately $202,000 and $475,000 , respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Reporting | Principles of Reporting The information reported herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted under Securities and Exchange Commission (“SEC”) rules and regulations; as such, this report should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The results reported in these unaudited financial statements should not necessarily be taken as indicative of results that may be expected for the entire year. Investments in noncontrolled entities over which the Company exercises significant influence are accounted for under the equity method. |
Dividends | Dividends Within five business days after receiving a cash distribution related to its interest in LINN Energy units, LinnCo is required to pay the cash received, net of reserves for its income taxes liability (“tax reserve”), if any, as dividends to its shareholders. The amount of the tax reserve is calculated on a quarterly basis and is determined based on the estimated tax liability for the entire year. The current tax reserve can be increased or reduced, at Company management’s discretion, to account for the over/(under) tax reserve previously recorded. Because the tax reserve is an estimate, upon filing the annual tax returns, if the actual amount of tax due is greater or less than the total amount of tax reserved, the subsequent tax reserve, at Company management’s discretion, could be adjusted accordingly. Any such adjustments are subject to approval by the Company’s Board of Directors (“Board”). |
Use of Estimates | Use of Estimates The preparation of the accompanying financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of income and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Any changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Accounting for Investment in Linn Energy, LLC | Accounting for Investment in Linn Energy, LLC The Company uses the equity method of accounting for its investment in LINN Energy. The Company’s equity income (loss) consists of its share of LINN Energy’s earnings or losses attributed to the units the Company owns, the amortization of the difference between the Company’s investment in LINN Energy and LINN Energy’s underlying net assets attributable to certain assets and liabilities, and impairments. The Company records its share of LINN Energy’s net income (loss) in the period in which it is earned. At September 30, 2015 , the Company owned approximately 37% of LINN Energy’s outstanding units. The Company’s ownership percentage could change as LINN Energy issues or repurchases additional units. Changes in the Company’s ownership percentage affect its net income (loss). Impairment testing on the Company’s investment in LINN Energy is performed when events or circumstances warrant such testing and considers whether there is an inability to recover the carrying value of the investment that is other than temporary. At September 30, 2015 , declines in the quoted market price of LINN Energy units, when considering the suspension of LINN Energy’s distribution and continued low commodity prices, were determined by the Company to be other than temporary. Accordingly, the Company reduced the carrying value of its investment to fair value by recording a charge in excess of what would otherwise be recognized by application of the equity method. The carrying value was reduced to fair value using LINN Energy’s quoted market price of $2.69 per unit at September 30, 2015 , which is characteristic of a Level 1 fair value measurement. The impairment charge of approximately $326 million is included in “equity income (loss) from investment in Linn Energy, LLC” on the statements of operations. No impairment had occurred with respect to the Company’s investment in LINN Energy for the nine months ended September 30, 2014 . At September 30, 2015 , the carrying amount of the Company’s investment in LINN Energy was less than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $472 million . The difference is attributable to proved and unproved oil and natural gas properties and senior notes, and is included in “investment in Linn Energy, LLC” on the balance sheets and amortized over the lives of the related assets and liabilities. Such amortization is included in the equity income from the Company’s investment in LINN Energy. |
Summarized Financial Informat14
Summarized Financial Information for Linn Energy, LLC (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized Financial Information for Linn Energy, LLC | Following are summarized statements of operations and balance sheets information for LINN Energy. Additional information on LINN Energy’s results of operations and financial position are contained in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 , which is included in this filing as Exhibit 99.1 and incorporated herein by reference. Summarized Linn Energy, LLC Statements of Operations Information Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Revenues and other $ 998,304 $ 1,435,115 $ 2,236,679 $ 2,765,653 Expenses (2,623,101 ) (1,284,354 ) (4,307,846 ) (2,631,427 ) Other income and (expenses) 57,657 (155,894 ) (224,117 ) (428,859 ) Income tax (expense) benefit (2,177 ) 1,033 7,680 (2,674 ) Net loss $ (1,569,317 ) $ (4,100 ) $ (2,287,604 ) $ (297,307 ) Summarized Linn Energy, LLC Balance Sheets Information September 30, 2015 December 31, 2014 (in thousands) Current assets $ 1,860,348 $ 1,706,590 Noncurrent assets 11,718,121 14,716,919 13,578,469 16,423,509 Current liabilities 751,989 982,545 Noncurrent liabilities 10,632,175 10,897,359 Unitholders’ capital $ 2,194,305 $ 4,543,605 |
Distributions and Dividends (Ta
Distributions and Dividends (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Distribution Received and Dividend Paid [Abstract] | |
Distributions Received and Dividends Paid | The following provides a summary of distributions paid by LINN Energy to LinnCo and dividends paid by LinnCo to its shareholders during the nine months ended September 30, 2015 : LINN Energy Distributions to LinnCo Date Paid Distributions Per Unit Total Distributions (in millions) September 2015 $ 0.1042 $ 13 August 2015 $ 0.1042 $ 13 July 2015 $ 0.1042 $ 13 June 2015 $ 0.1042 $ 13 May 2015 $ 0.1042 $ 13 April 2015 $ 0.1042 $ 13 March 2015 $ 0.1042 $ 13 February 2015 $ 0.1042 $ 13 January 2015 $ 0.1042 $ 13 LinnCo Dividends to its Shareholders Date Paid Dividends Per Share Total Dividends (in millions) September 2015 $ 0.1042 $ 13 August 2015 $ 0.1042 $ 13 July 2015 $ 0.1042 $ 13 June 2015 $ 0.1042 $ 13 May 2015 $ 0.1042 $ 13 April 2015 $ 0.1042 $ 13 March 2015 $ 0.1042 $ 15 February 2015 $ 0.1042 $ 13 January 2015 $ 0.1042 $ 13 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction | ||||
General and Administrative Expenses and Offering Costs | $ 965,000 | $ 644,000 | $ 2,800,000 | $ 2,100,000 |
Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | $ 491,000 | $ 470,000 | 1,500,000 | 1,400,000 |
Equity Method Investment, Other than Temporary Impairment | 326,000,000 | 0 | ||
FY 2013 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | 11,000,000 | |||
FY 2014 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | $ 1,900,000 | |||
FY 2015 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | $ 2,800,000 | |||
Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
Share price | $ 2.69 | $ 2.69 | ||
Equity Method Investment, Ownership Percentage | 37.00% | 37.00% | ||
Number of days after receiving cash distribution related to interest in Linn Energy units, required to pay the cash received, net of tax reserve, to shareholders | 5 days | |||
Equity method investment, difference between carrying amount and underlying equity | $ 472,000,000 | $ 472,000,000 |
Capitalization (Related Party T
Capitalization (Related Party Transactions) (Details) | 9 Months Ended | |
Sep. 30, 2015USD ($)shares | Dec. 31, 2014USD ($) | |
Related Party Transaction | ||
Capital contributed by LINN for share purchase | $ 1,000 | $ 1,000 |
Common shares; unlimited shares authorized; 128,544,174 shares issued and outstanding at September 30, 2015, and December 31, 2014 | $ 3,868,322,000 | $ 3,868,322,000 |
Number Of Classes Of Interests | 2 | |
Linn Energy, LLC [Member] | ||
Related Party Transaction | ||
Ownership percentage of voting shares held by LINN Energy | 100.00% | |
Capital contributed by LINN for share purchase | $ 1,000 | |
At-the-Market Offering Program [Member] | ||
Related Party Transaction | ||
Stock Issued During Period, Shares, New Issues | shares | 0 | |
Equity Offering Program Maximum Value | $ 500,000,000 |
Summarized Financial Informat18
Summarized Financial Information for Linn Energy, LLC (Details) - Linn Energy, LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Summarized Linn Energy, LLC Statements of Operations Information | |||||
Revenues and other | $ 998,304 | $ 1,435,115 | $ 2,236,679 | $ 2,765,653 | |
Expenses | (2,623,101) | (1,284,354) | (4,307,846) | (2,631,427) | |
Other income and (expenses) | 57,657 | (155,894) | (224,117) | (428,859) | |
Income tax (expense) benefit | (2,177) | 1,033 | 7,680 | (2,674) | |
Net loss | (1,569,317) | $ (4,100) | (2,287,604) | $ (297,307) | |
Summarized Linn Energy, LLC Balance Sheets Information | |||||
Current assets | 1,860,348 | 1,860,348 | $ 1,706,590 | ||
Noncurrent assets | 11,718,121 | 11,718,121 | 14,716,919 | ||
Total assets | 13,578,469 | 13,578,469 | 16,423,509 | ||
Current liabilities | 751,989 | 751,989 | 982,545 | ||
Noncurrent liabilities | 10,632,175 | 10,632,175 | 10,897,359 | ||
Unitholders’ capital | $ 2,194,305 | $ 2,194,305 | $ 4,543,605 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Deferred Tax Assets, Valuation Allowance | $ 326,000 | $ 36,000 |
Gross liability for uncertain income tax benefits | 15,000 | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 5,000 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 203 |
Distributions and Dividends (De
Distributions and Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2015 | Aug. 31, 2015 | Jul. 31, 2015 | Jun. 30, 2015 | May. 31, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Feb. 28, 2015 | Jan. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Dividends Payable [Line Items] | |||||||||||
Cash distributions received | $ 120,548 | $ 279,537 | |||||||||
Dividends paid to shareholders | $ 120,930 | $ 279,537 | |||||||||
Linn Energy, LLC [Member] | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Distributions Received, Amount Per Unit | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | ||
Cash distributions received | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | ||
Dividend Paid [Member] | |||||||||||
Dividends Payable [Line Items] | |||||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | $ 0.1042 | ||
Dividends paid to shareholders | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | $ 15,000 | $ 13,000 | $ 13,000 |
Supplemental Disclosures to t21
Supplemental Disclosures to the Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related Party Transaction | ||||
General and Administrative Expenses and Offering Costs | $ 965,000 | $ 644,000 | $ 2,800,000 | $ 2,100,000 |
Income Taxes Paid | 202,000 | 475,000 | ||
FY 2013 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | 11,000,000 | |||
FY 2015 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | $ 2,800,000 | |||
FY 2014 [Member] | Linn Energy, LLC [Member] | ||||
Related Party Transaction | ||||
General and Administrative Expenses Paid by Related Party | $ 1,900,000 |