Linn Energy closes on purchase of Hugoton natural gas assets

Linn Energy of Houston, already the largest natural gas producer in Kansas, has completed the purchase of Pioneer Natural Resources’ natural gas assets in southwestern Kansas’ Hugoton Field for $340 million.

Linn Energy has aggressively expanded its natural gas operations in Kansas since 2011 and last year took over as the state’s largest gas producer, with 30.6 million Mcf, a standard measure of gas. Pioneer, of Dallas, was the state’s seventh largest gas producer in 2013, with 15.1 million Mcf, but has seen its production in Kansas steadily decline since the mid-90s.

The assets are all of Pioneer’s interests in the field, including its producing oil and gas wells, its interest in the Satanta gas processing plant and other associated infrastructure.

According to Pioneer, the sale of the Hugoton assets is expected to result in a pretax non-cash loss of approximately $20 million, which will be recorded in the third quarter.

This story was originally published September 12, 2014 at 10:51 AM with the headline "Linn Energy closes on purchase of Hugoton natural gas assets."