Upstream energy firm, Linn Energy LLC (LINE) has entered into two separate deals to sell its $2.3 billion worth oil and gas resources in Texas and Oklahoma. The proceeds will likely be used to pay back the debt that Linn Energy took to finance the natural gas rich asset it purchased from Devon Energy Corporation (DVN).  

Per the first agreement, the resources to be sold to the affiliates of private equity firm EnerVest Ltd. include all of Linn Energy’s holdings in the Granite Wash and Cleveland fields of Texas Panhandle and Western Oklahoma respectively. Linn Energy is expected to fetch roughly $1.95 billion from this transaction.  

Linn Energy’s interest in the Granite Wash and Cleveland properties include 145,000 net acres of land. As of Dec 2013, the total proved reserves from the assets was recorded at 755 billion cubic feet equivalent of gas. Currently, Linn Energy is producing 195 million cubic feet equivalent of natural gas every day from its acreage in the fields. The company is also operating 4 rigs in the resources for drilling programs.

In the other deal, Linn Energy has agreed to sell its oil and gas resources in the Permian Basin based Wolfberry field to Fleur de Lis Energy LLC – a private energy firm. From this transaction, Linn Energy will likely get $350 million.  

The interest of Linn Energy in the Permian Basin covers 7,200 net acres. The properties have 19 million barrels of oil equivalent of proved reserves. Presently, the company is producing 4.6 thousand barrels of oil equivalent every day. For drilling activities, the company is now operating 2 rigs in the Wolfberry field.

Linn Energy added that both the transactions will likely be closed by fourth quarter of this year, depending on some closing conditions.

Houston, TX-based Linn Energy currently carries a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.

Meanwhile, one can look at better-ranked players in the same industry like Northern Oil and Gas Inc. (NOG) and WPX Energy Inc. (WPX). Both players sport a Zacks Rank #1 (Strong Buy).