By Chelsey Dulaney
Linn Energy LLC on Friday joined the chorus of energy companies
that are slashing drilling budgets in the face of plummeting oil
prices.
Houston-based Linn said it cut its oil and natural-gas budget by
53% to $730 million for the new year. Linn and its sister company
LinnCo LLC also slashed their annual dividends to $1.25 a share
from $2.90.
Shares of Linn Energy fell 9% in premarket trading to $9.22,
while shares of LinnCo fell 12% to $9.15.
Oil prices have plunged in recent months as a flood of crude
from U.S. shale disrupted the global oil market, leading a host of
energy companies to cut drilling, lay off workers and slash
spending.
Just days ago, Denver-based American Eagle Energy Corp. said it
suspended its drilling operations and likely won't resume them
until oil prices improve.
Last month, Chevron Corp. told Canadian regulators that it had
"indefinitely" suspended plans to drill for oil in Arctic waters.
Energy giants ConocoPhillips and BP PLC, along with a number of
smaller companies like Husky Energy Inc. and Penn West Petroleum
Ltd., also have said they would pare capital-spending plans, while
EOG Resources Inc. has said it would shed many of its Canadian oil
and gas fields to refocus on the U.S.
For its part, Linn said it plans to focus its budget on
lower-risk projects and expansions in California, among other
areas.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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