OilVoice - Linn Energy Reports Termination of Commodity Hedges With Lehman

Linn Energy Reports Termination of Commodity Hedges With Lehman

Thursday, September 18, 2008

Linn Energy, LLC announced today that it has terminated all of its commodity derivative contracts with Lehman Brothers Commodity Services Inc. ("Commodity Services") as a counterparty and re-hedged the same volumes at identical strike prices with another participant in its credit facility. As a result of these transactions, Lehman Brothers and its subsidiaries are not counterparties to any of Linn Energy's commodity derivative contracts and Linn Energy's overall hedging positions are unchanged. The estimated mark-to-market value that Commodity Services owes Linn Energy under the terminated commodity hedges was approximately $68 million, and Linn Energy's cost was substantially the same to enter into identical commodity hedge positions today.

Linn Energy will take all appropriate steps to recover the $68 million value of the terminated commodity derivative contracts. Consequently, Linn Energy does not anticipate that the Lehman Brothers bankruptcy is likely to have any material adverse effect upon the Company.