FollowAs a response to the declining crude oil prices, Linn Energy LLC will be joining other crude oil and gas producers in minimizing their expenses. The company is known to cut its capital budget for 2015 to $730 million, which signifies a 53 percent fall from its original 2015 capital budget.
Aside from the fact that the company reduced its capital budget for 2015, it also cut its dividend per share and distribution per unit for Linn Co LLC, a company’s subsidiary. Now, the dividend per share of Linn Co LLC falls to $1.25 each from its original dividend per share of $2.90.
Other oil and gas producers, such as Apache Corp, Conoco Phillips and Marathon Petroleum, have also minimized their expenditure because of the continuous decline of Brent crude prices in 2014’s second half.
It can be remembered that the shares of Linn Energy LLC dropped by 12 percent during the premarket trading. However, it was easily offset by the rise of the company’s shares during the afternoon trading last Friday. The shares went up by 16.6 percent. On the other hand, the LinnCo subsidiary only went up by 11.9 percent after experiencing 12 percent fall during the premarket trading.
