Linn Energy terminates $68m of commodity contracts with Lehman

US oil and gas company Linn Energy has terminated all of its commodity derivative contracts with Lehman Brothers, and has replicated and re-hedged each of the contracts at identical strike prices with an unnamed counterparty, Linn Energy announced.

Following its bankruptcy, it is estimated that Lehman Brothers would owe Linn Energy $68 million dollars for the terminated commodity hedges. However, costs to enter into identical commodity hedge positions matched this and Linn’s overall position remains unchanged.

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