HOUSTON, Jan. 12, 2015 (GLOBE NEWSWIRE) -- LinnCo, LLC (Nasdaq:LNCO) and LINN Energy, LLC (Nasdaq:LINE) announced today the estimated federal income tax characteristics of its 2014 cash distributions to holders of its common shares and estimated 2014 and 2015 LinnCo cash tax liability.
The table below describes the distributions made by the company in 2014 and the estimated reporting of such payments on United States Internal Revenue Service ("IRS") Form 1099-DIV. The company is releasing information at this time to aid banks, brokerage firms, and institutional investors that are required to issue Form 1099s to their account holders. The final determination of the tax characteristics of 2014 cash distributions is not expected to be made until mid-March 2015, and at that time the company will announce the final tax characteristics and post the corrected Form 8937 (if applicable).
LinnCo, LLC – Common Shares (CUSIP: 535782-10-6)
| Record |
| Payment |
| Cash |
| Percentage |
Box 1a of
| Percentage |
in Box 1b of Form
| Percentage |
in Box 3 of
In accordance with IRS Code Section 6045B, a company is required to file Form 8937, Report of Organizational Actions Affecting Basis of Securities, following any action that affects basis. At this time, there is no estimated impact to basis, thus the Company is not required to file Form 8937.
Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of LinnCo, LLC cash distributions. For additional information, contact LinnCo's Investor Relations Department.
LinnCo Estimated 2014 and 2015 Cash Tax Liability
Due to significant estimated shield provided by LINN to LinnCo, LinnCo's cash tax liability is estimated to be zero through 2015, assuming current estimates for taxable income and capital spending.
LinnCo was created to enhance LINN Energy's ability to raise additional equity capital to execute on its acquisition and growth strategy. LinnCo is a Delaware limited liability company that has elected to be taxed as a corporation for United States federal income tax purposes, and accordingly its shareholders will receive a Form 1099 in respect of any dividends paid by LinnCo. More information about LinnCo is available at www.linnco.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to forward-looking statements about acquisitions, divestitures and trades, potential strategic alliances, timing and payment distributions, and the expectations of plans, strategies, objectives and anticipated financial and operating results of the company, including the company's drilling program, production, hedging activities, capital expenditure levels and other guidance included in this press release. These statements are based on certain assumptions made by the company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the company's financial performance and results, availability of sufficient cash flow to pay distributions and execute its business plan, prices and demand for oil, natural gas and natural gas liquids, the ability to replace reserves and efficiently develop current reserves and other important factors that could cause actual results to differ materially from those projected as described in the company's reports filed with the Securities and Exchange Commission. See "Risk Factors" in the company's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases.
Any forward-looking statement speaks only as of the date on which such statement is made and the company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
CONTACT: LINN ENERGY, LLC Investors & Media: Clay Jeansonne, Vice President - Investor Relations (281) 840-4193 Zach Dailey, Director - Investor Relations (713) 904-6547 Sarah Nordin, Public Relations & Media (713) 904-6605
Source:LinnCo LLC;LINN Energy, LLC