Item 1.01. Entry into a Material Definitive Agreement.
Linn Chisolm Trail Cryogenic Gas Plant Construction Agreements
June 13, 2017, Linn Midstream, LLC (“Midstream”), a wholly owned subsidiary of Linn Energy, Inc., entered into 1) an Engineering and Construction Agreement (the “Construction Agreement”) with BCCK Engineering Incorporated (“BCCK”), pursuant to which BCCK will engineer, construct and test the
gas processing facility to be known as the Linn Chisholm Trail Cryogenic Gas Plant to be located in Grady County, Oklahoma (the “Plant”) for a contract price of approximately $31 million, payable in installments and subject to adjustments as provided in the Construction Agreement and; and 2) an Equipment Supply Agreement with BCCK (the “Equipment Agreement” and together with the Construction Agreement, the “Agreements”), pursuant to which BCCK will fabricate or procure and supply the equipment necessary for construction of the Plant for a contract price of approximately $58 million, payable in installments and subject to adjustments as provided in the Equipment Agreement. In accordance with the Agreements, construction on the Plant is expected to be complete in the second quarter of 2018 with certain liquidated damages payable by BCCK if the deadlines in the Agreements are not met.
The foregoing description of the Agreements and the transactions contemplated thereby does not purport to be complete and is qualified in its entirety by reference to the Agreements, which will be filed with the Company’s Quarterly Report on Form 10-Q for the quarter ending June 30, 2017.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this Current Report on Form 8-K are forward-looking and are based upon the Company’s current belief as to the outcome and timing of future events. All statements, other than statements of historical facts, that address activities that the Company plans, expects, believes, projects, estimates or anticipates will, should or may occur in the future are forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to, the ability to timely complete construction on the Plant and the risk factors and known trends and uncertainties as described in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. 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 other public filings. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.