Supplemental Presentation Forward-Looking Statements and Risk - - PowerPoint PPT Presentation

Second Quarter 2018 Supplemental Presentation

Forward-Looking Statements and Risk Factors

Statements made in this presentation that are not historical facts are “forward-looking statements.” These statements are based on certain assumptions and expectations made by LINN Energy, Inc. (“LINN” or “the Company”) which reflect management’s experience, estimates and perception of historical trends, current conditions, and anticipated future developments. 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 anticipated in the forward-looking statements. These include risks relating to financial and operational performance and results of the Company and Roan Resources LLC, uncertainties relating to the Company's and Riviera Resources, Inc.'s ability to realize the anticipated benefits of the spin-off (as described herein), the potential negative effects of the spin-off, continued low or further declining commodity prices and demand for oil, natural gas and natural gas liquids, ability to hedge future production, ability to replace reserves and efficiently develop current reserves, the capacity and utilization of midstream facilities and the regulatory environment. These and other important factors could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Please read “Risk Factors” in the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and

• ther public filings. We undertake no obligation to publicly update any forward-looking

statements, whether as a result of new information or future events.

Reserve Estimates

The SEC permits oil and natural gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. The Company may use terms in this presentation that the SEC’s guidelines strictly prohibit in SEC filings, such as “estimated ultimate recovery” or “EUR,” “resources,” “net resources,” “total resource potential” and similar terms to estimate oil and natural gas that may ultimately be

• recovered. These estimates are by their nature more speculative than estimates of proved,

probable and possible reserves as used in SEC filings and, accordingly, are subject to substantially greater uncertainty of being actually realized. These estimates have not been fully risked by management. Actual quantities that may be ultimately recovered will likely differ substantially from these estimates. Factors affecting ultimate recovery include the scope of the Company’s actual drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, lease expirations, transportation constraints, regulatory approvals, field spacing rules, actual drilling results and recoveries of oil and natural gas in place, and other factors. These estimates may change significantly as the development of properties provides additional data.

Non-GAAP Measures Adjusted EBITDA(X)

The non-GAAP financial measure of adjusted EBITDA(X), as defined by the Company, may not be comparable to similarly titled measures used by other companies. Therefore, this non-GAAP measure should be considered in conjunction with net income (loss) and other performance measures prepared in accordance with GAAP. Adjusted EBITDA(X) should not be considered in isolation or as a substitute for GAAP. Adjusted EBITDA(X) is a measure used by Company management to evaluate the Company's operational performance and for comparisons to the Company's industry peers. Management also believes this information may be useful to investors and analysts to gain a better understanding of the Company's financial results.

PV-10

PV-10 represents the present value, discounted at 10% per year, of estimated future net cash

• flows. The Company’s calculation of PV-10 herein differs from the standardized measure of

discounted future net cash flows determined in accordance with the rules and regulations of the SEC in that it is calculated before income taxes and including the impact of helium, rather than after income taxes and not including the impact of helium, using the average price during the 12- month period, determined as an unweighted average of the first-day-of-the-month price for each

• month. The Company’s calculation of PV-10 should not be considered as an alternative to the

standardized measure of discounted future net cash flows determined in accordance with the rules and regulations of the SEC.

Recent Highlights

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 Executed on strategic plan to separate into two public companies, LINN, which owns a 50% equity interest in Roan Resources (“Roan”) and Riviera Resources (“Riviera”), as of August 7, 2018  Strong balance sheet with no debt and a second quarter ending cash balance of approximately $301 million  Returned more than $660 million of capital to LINN shareholders through share repurchases  Blue Mountain Midstream (“Blue Mountain”) successfully commissioned Chisholm Trail III cryogenic gas plant at the end of the second quarter 2018  Riviera management team to host conference call on Thursday, August 23, 2018 at 10 a.m. (Central)

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Separation Overview

Separated Into Two Public Companies August 7th

• LNGG shareholders on record date received 1 share of RVRA for each share of LNGG
• Working closely with Roan Holdings, LLC on definitive documentation to consolidate 100% of Roan’s

equity interest under LNGG

• Roan preparing to uplist to NASDAQ or NYSE in 2018 under the ticker “ROAN”

LINN Energy, Inc. 50% equity interest Riviera Resources, Inc. Riviera Upstream Assets Blue Mountain Midstream LLC Roan Holdings, LLC 50% equity interest Roan Resources, LLC LINN shareholders

Distribution of Riviera Resources stock

Distribution of 1 share of RVRA for each share of LNGG

LINN Energy, Inc. 50% equity interest Riviera Resources, Inc. Riviera Upstream Assets Blue Mountain Midstream LLC Roan Holdings, LLC 50% equity interest Roan Resources, LLC LINN shareholders RVRA Share LNGG Share

Post Spin-Off Transaction

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• Net Production of ~136 MMcfe/d
• Base decline of ~ 6%
• More than 3,400 infill drilling locations
• Jayhawk Plant derives significant value from helium recovery

and third party processing

Hugoton

• Net Production of ~27 MMcfe/d
• Base decline of ~4%

Michigan / Illinois

• Net Production of ~49 MMcfe/d
• NW STACK
• Core acreage position heavily concentrated in

Blaine, Major and Garfield counties, with significant offset activity throughout play

• Arkoma
• ~37,000 net acres, 100% HBP with large inventory
• f remaining horizontal locations

Mid-Continent

• Net Production of ~51 MMcfe/d
• ~ 110,000 net acres HBP
• Bossier and Cotton Valley development potential
• Two successful horizontal wells drilled in 2017

East Texas

• Net Production of ~27 MMcfe/d
• ~ 100,000 net acres HBP
• Significant offset activity in region. Four operated horizontal

wells drilled in 2016/2017 with excellent results

North Louisiana

• Net Production of ~22 MMcfe/d
• Base decline of ~ 11%
• Non-Operated position

Uinta

Growth Long life, low decline

Hugoton Uinta Michigan / IL Arkoma NW STACK ETX NLA

Riviera Upstream Assets Q2 2018 Overview

312 MMcfe/d

Second Quarter 2018 Average Net Production

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Blue Mountain Q2 2018 Key Statistics

• Chisholm Trail System
• Completed a major processing capacity addition at the end of the

second quarter 2018 with the successful start up of the Chisholm Trail III cryogenic gas plant

• Located in the core of the prolific Merge/SCOOP/STACK plays, the plant

is a state of the art cryogenic processing facility with an initial design capacity of 150 MMcf/d and total designed processing capacity of 250 MMcf/d

• Supported by dedicated acreage position of more than 80,000 net

acres under long-term contracts

• Interconnections into Southern Star Central, Enable Gas Transmission

and ONEOK Gas Transportation pipelines

• Unfavorable Mt. Belvieu versus Conway spread during the second quarter

resulted in a lower operating margin than midpoint of guidance

Heritage LINN Dedicated Acreage Other 3rd Party Dedication Area Z Roan AMI

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Roan Resources

Focused on the accelerated development of the prolific Merge/SCOOP/STACK play Roan Acreage

Blue Mountain Midstream LLC Chisholm Trail III Cryogenic Gas Plant

June 2017

• LINN & Citizen sign a Contribution Agreement to form a Merge/SCOOP/STACK pure

play company

• Each receive 50% of the equity interest
• Approximately 140,000 total net acres(1)

Aug-Sept 2017

• Closed on the transaction to form Roan
• Established a separate $200 million credit facility
• Appointment of new Roan Board of Directors
• Net production of ~23,500 BOE/d in September

Nov-Dec 2017

• Tony Maranto named as CEO along with two Executive Vice Presidents
• Acreage increased to approximately 150,000 total net acres(1)
• Increased credit facility to $275 million

Q1 2018

• Roan management assumes operations in January
• Average net production rate of ~38,000 BOE/d
• Operated six drilling rigs by end of first quarter

Q2 2018

• Completed redetermination and increased credit facility to $425 million
• Completed back office transition
• Average net production rate of ~36,400 BOE/d
• Operated six to seven drilling rigs and three frac crews

July 2018

• Current net production rate of ~45,000 BOE/d
• Plans to add 8th rig in third quarter
• 13 drilled uncompleted wells (“DUCs”)
• 2018 exit-rate net production projected to be between 58,000 and 64,000 BOE/d

(1) Total net acres is defined as the sum of LINN net acres and Citizen net acres as represented for each company in the agreement LINN executed a term sheet with Roan Holdings, LLC (the successor to Citizen Energy II, LLC) which is expected to result in the combination of LNGG’s 50 percent equity interest with Roan Holdings, LLC’s 50 percent equity interest. This will allow for the consolidation of 100 percent of the equity in Roan under LNGG, subject to due diligence and execution of definitive documentation.

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Roan Resources

Key Merge Well Results

Roan 2Q Activity:

• 6 - 7 operated horizontal drilling rigs
• 25 operated wells drilled
• 13 DUCs

Highlight Q2 2018 Activity:

• Dutch pad
• Dutch 1H-33-28 - IP-30: 1,918 Boe/d
• Oil: 41%; Liquids: 67%
• 9,700’ lateral in the Woodford formation
• Dutch 1H-4-9 - IP-30: 1,360 Boe/d
• Oil: 40%; Liquids: 66%
• 7,475’ lateral in the Woodford formation
• Spectacular Bid 18-11-6 2H
• IP-30: 1,728 Boe/d
• Oil: 55%; Liquids: 75%
• 4,915’ lateral in the Mayes formation
• Barbour 1-10-7 1H
• IP-30: 1,487 Boe/d
• Oil: 34%; Liquids: 56%
• 4,960’ lateral in the Mayes formation

Dutch Pad Spectacular Bid Barbour

$330 $330 $299 $299 $301 $301 $5 $12 ($36) ($10) Previous Guidance as of 5/3/18 Cash Balance 6/30/18 Higher Adjusted EBITDAX Additional Share Repurchases (1) Lower Capital Spending Working Capital / Other Cash Balance 6/30/2018

Quarter End Cash Reconciliation

($ in millions)

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(1) Includes ~$16 million of employee shares repurchased associated with the Company’s long term incentive program

Share Buybacks

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As of June 30, 2018 Over $660 million returned to shareholders

Number of Shares 5,690,192 6,770,833 470,630 1,557,180 1,421,018 15,909,853 Average Price Per Share $ 34.85 $ 48.00 $ 42.34 $ 39.13 $ 39.49 $ 41.50

$198 $198 $523 $543 $604 $660 $325 $20 $61 $56 2017 Open Market Share Repurchases Tender Offer Retirement of Profits Interest Shares (1) 2018 Open Market Share Repurchases 2018 Employee Liquidity Program (2) Total

(1) Class A-2 units of LINN Energy HoldCo LLC held by management retired as a result of common stock repurchases (2) 271,314 vesting RSUs settled in cash prior to shares being issued, 120,829 shares previously issued as a result of vested Restricted Stock Units (“RSUs”) and subsequently repurchased and 1,028,875 vested RSUs settled in cash prior to shares being issued

($ in millions)