Houston-based Linn Energy LLC, which is acquiring Dominion Resources Inc.’s Midcontinent oil and natural gas assets for $2.05 billion (see Daily GPI, July 3), has signed hedging contracts that include a commitment for price swaps once the Dominion deal closes. The hedging contracts cover 40 Bcf of gas and 800,000 bbl of oil for 2008 through 2012, or five years, with weighted average swap and put prices of $8.50/Mcf for gas and $73.50/bbl for oil. In addition, the contracts cover 7.8 Bcf of gas and 157,000 bbl of oil for the fourth quarter, with weighted average swaps and put prices of $8.54/Mcf for gas and $73.78/bbl for oil.

ConocoPhillps has approved a share buyback of up to $15 billion through the end of 2008. The program includes $2 billion in stock repurchases under a previously announced $4 billion buyback. Based on its current commodity price and operational outlook, the Houston-based producer plans to repurchase $2-3 billion in stock in both the third and fourth quarters. It also plans to pay a 41-cent quarterly dividend on Sept. 4 to shareholders of record on July 31.

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