UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q



x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended ~~June~~September 30, 2016



¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number: 001-35695

LinnCo, LLC

(Exact name of registrant as specified in its charter)

Delaware(State or other jurisdiction of incorporation or organization)	45-5166623(I.R.S. EmployerIdentification No.)
600 Travis, Suite 5100Houston, Texas(Address of principal executive offices)	77002(Zip Code)
600 TravisHouston, Texas(Address of principal executive offices)	77002(Zip Code)
(281) 840-4000(Registrant’s telephone number, including area code)
600 Travis, Suite 5100Houston, Texas 77002(Former address of principal executive offices)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer x Accelerated filer ¨ Non-accelerated filer ¨ Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of ~~July~~October 31, 2016, there were ~~249~~251,~~084~~644,~~020~~889 common shares outstanding.

TABLE OF CONTENTS

		Page
	Part I – Financial Information
Item 1.	Financial Statements
	Balance Sheets as of June 30, 2016, and December 31, 2015	1
	Balance Sheets as of September 30, 2016, and December 31, 2015	1
	Statements of Operations for the three months and six months ended June 30, 2016, and June 30, 2015	2
	Statements of Operations for the three months and nine months ended September 30, 2016, and September 30, 2015	2
	Statement of Shareholders’ Equity for the six months ended June 30, 2016	3
	Statement of Shareholders’ Equity (Deficit) for the nine months ended September 30, 2016	3
	Statements of Cash Flows for the six months ended June 30, 2016, and June 30, 2015	4
	Statements of Cash Flows for the nine months ended September 30, 2016, and September 30, 2015	4
	Notes to Financial Statements	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2123
Item 4.	Controls and Procedures	2123
	Part II – Other Information
Item 1.	Legal Proceedings	2324
Item 1A.	Risk Factors	2324
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2728
Item 6.	Exhibits	2829
	Signatures	2931

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

LINNCO, LLC (DEBTOR-IN-POSSESSION)

BALANCE SHEETS

(Unaudited)

	June 30, 2016			December 31,2015
	September 30, 2016			December 31,2015
	(in thousands, exceptshare amounts)
ASSETS
Current assets:
Cash	$	847		$	11,023
Accounts receivable – related party	~~200~~96			—
Income taxes receivable	65,~~096~~380			7,414
Total current assets	76,~~143~~323			18,437
Noncurrent assets:
Deferred income taxes	—			18,971
Investment in Linn Energy, LLC	~~10,407~~—			—
Total noncurrent assets	~~10,407~~—			18,971
Total assets	$	176,~~550~~323		$	37,408
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	~~200~~96		$	573
Income taxes payable	1311,~~000~~357			29,829
Total current liabilities	1311,~~200~~453			30,402
Commitments and contingencies (Note 7)
Shareholders’ equity:
Shareholders’ equity (deficit):
Voting shares; unlimited shares authorized; 1 share issued and outstanding at June 30, 2016, and December 31, 2015	1			1
Voting shares; unlimited shares authorized; 1 share issued and outstanding at September 30, 2016, and December 31, 2015	1			1
Common shares; unlimited shares authorized; 244,246,698 shares and 128,544,174 shares issued and outstanding at June 30, 2016, and December 31, 2015, respectively	3,911,333			3,868,322
Common shares; unlimited shares authorized; 251,644,889 shares and 128,544,174 shares issued and outstanding at September 30, 2016, and December 31, 2015, respectively	3,911,781			3,868,322
Additional paid-in capital	4647,~~934~~933			42,723
Accumulated deficit	(3,~~953~~964,~~918~~845		)	(3,904,040		)
	4,350			7,006
	(5,130		)	7,006
Total liabilities and shareholders’ equity	$	17,550		$	37,408
Total liabilities and shareholders’ equity (deficit)	$	6,323		$	37,408

The accompanying notes are an integral part of these financial statements.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2016			2015			2016			2015
	(in thousands, except per share amounts)
Equity loss from investment in Linn Energy, LLC	$	(3410,~~625~~899	)	$	(~~122~~663,~~052~~276	)	$	(3445,~~625~~524	)	$	(~~172~~835,~~544~~820	)
General and administrative expenses	(~~1,143~~855		)	(~~901~~965		)	(2,~~076~~931		)	(12,~~877~~842		)
Reorganization items	(~~200~~100		)	—			(~~200~~300		)	—
Loss before income taxes	(3511,~~968~~854		)	(~~122~~664,~~953~~241		)	(3648,~~901~~755		)	(~~174~~838,~~421~~662		)
Income tax (expense) benefit	~~483~~927			13(3,~~127~~712		)	(12,~~977~~050		)	3127,~~620~~908
Net loss	$	(3510,~~485~~927	)	$	(~~109~~667,~~826~~953	)	$	(4960,~~878~~805	)	$	(~~142~~810,~~801~~754	)
Net loss per share, basic and diluted	$	(0.1704	)	$	(05.8520	)	$	(0.3031	)	$	(16.1131	)
Weighted average shares outstanding	~~209~~250,~~405~~024			128,544			~~168~~196,~~975~~188			128,544
Dividends declared per share	$	—		$	0.313		$	—		$	0.~~625~~938

The accompanying notes are an integral part of these financial statements.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

STATEMENT OF SHAREHOLDERS’ EQUITY (DEFICIT)

(Unaudited)

	Shares	Share Amount		Additional Paid-In Capital		Accumulated Deficit			Total Shareholders’ Equity (Deficit)
	(in thousands)
December 31, 2015	128,544	$	3,868,323	$	42,723	$	(3,904,040	)	$	7,006
Exchanges of Linn Energy, LLC units for LinnCo shares, net of offering costs of $2,020	115,703	43,011		—		—			43,011
Exchanges of Linn Energy, LLC units for LinnCo shares, net of offering costs of $2,065	123,101	43,459		—		—			43,459
Capital contributions from Linn Energy, LLC		—		45,~~211~~210		—			45,~~211~~210
Net loss		—		—		(4960,~~878~~805		)	(4960,~~878~~805		)
June 30, 2016	244,247	$	3,911,334	$	46,934	$	(3,953,918	)	$	4,350
September 30, 2016	251,645	$	3,911,782	$	47,933	$	(3,964,845	)	$	(5,130	)

The accompanying notes are an integral part of these financial statements.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months EndedJune 30,
	Nine Months EndedSeptember 30,
	2016			2015
	(in thousands)
Cash flow from operating activities:
Net loss	$	(4960,~~878~~805	)	$	(~~142~~810,~~801~~754	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Equity loss from investment in Linn Energy, LLC	3445,~~625~~524			~~172~~835,~~544~~820
Noncash general and administrative expenses paid by Linn Energy, LLC	2,~~076~~931			12,~~877~~842
Noncash reorganization items paid by Linn Energy, LLC	~~200~~300			—
Deferred income taxes	18,971			(3128,~~763~~106		)
(Increase) decrease in income taxes receivable	(76,~~252~~535		)	436
Decrease in accounts payable	(573		)	—
Increase (decrease) in accounts payable	(573		)	55
Decrease in income taxes payable	(89,~~345~~989		)	(454		)
Cash distributions received	—			80120,~~366~~548
Net cash provided by (used in) operating activities	(10,176		)	80120,~~614~~837
Cash flow from financing activities:
Dividends paid to shareholders	—			(81120,~~129~~930		)
Net cash used in financing activities	—			(81120,~~129~~930		)
Net decrease in cash and cash equivalents	(10,176		)	(~~515~~93		)
Cash and cash equivalents:
Beginning	11,023			6,544
Ending	$	847		$	6,~~029~~451

The accompanying notes are an integral part of these financial statements.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note 1 – Basis of Presentation

Nature of Business

LinnCo, LLC (“LinnCo” or the “Company”) is a Delaware limited liability company formed on April 30, 2012, that completed its initial public offering (“IPO”) in October 2012. After the IPO, LinnCo’s initial sole purpose was to own units representing limited liability company interests (“units”) in its affiliate, Linn Energy, LLC (“LINN Energy”). In connection with the acquisition of Berry Petroleum Company, now Berry Petroleum Company, LLC (“Berry”), LinnCo amended its limited liability company agreement to permit, among other things, the acquisition and subsequent transfer of assets to LINN Energy for consideration received. As of ~~June~~September 30, 2016, LinnCo had no significant assets or operations other than those related to its interest in LINN Energy. LINN Energy is an independent oil and natural gas company. At ~~June~~September 30, 2016, LINN Energy’s last reported sales price was $0.0906 per unit, as reported by OTC Markets Group Inc.’s Pink marketplace, and the Company owned approximately 6971% of LINN Energy’s outstanding units.

Principles of Reporting

The information reported herein reflects all normal recurring adjustments that are, in the opinion of management, necessary for the fair presentation of the results for the interim periods. Certain information and note disclosures normally included in annual financial statements prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been condensed or omitted under Securities and Exchange Commission (“SEC”) rules and regulations; as such, this report should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The results reported in these unaudited financial statements should not necessarily be taken as indicative of results that may be expected for the entire year.

Investments in noncontrolled entities over which the Company exercises significant influence are accounted for under the equity method.

The financial statements for previous periods include certain reclassifications that were made to conform to current presentation. Such reclassifications have no impact on previously reported net income (loss), shareholders’ equity (deficit) or cash flows.

Bankruptcy Accounting

As discussed further in Note 2, on May 11, 2016 (the “Petition Date”), the Company, LINN Energy, and ~~Berry~~certain of LINN Energy’s direct and indirect subsidiaries (collectively with the Company, the “LINN Debtors”) and Berry (collectively with the LINN Debtors, the “Debtors”) filed voluntary petitions (“Bankruptcy Petitions”) for relief under Chapter 11 of the U.S. Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). During the pendency of the Chapter 11 proceedings, the Debtors will operate their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code.

The financial statements have been prepared as if the Company is a going concern and reflect the application of Accounting Standards Codification 852 “Reorganizations” (“ASC 852”). ASC 852 requires that the financial statements, for periods subsequent to the Chapter 11 filing, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that are realized or incurred in the bankruptcy proceedings are recorded in “reorganization items” on the Company’s statements of operations.

The accompanying financial statements do not purport to reflect or provide for the consequences of the Chapter 11 proceedings. In particular, the financial statements do not purport to show: (i) the realizable value of assets on a liquidation basis or their availability to satisfy liabilities; (ii) the amount of prepetition liabilities that may be allowed for claims or contingencies, or the status and priority thereof; (iii) the effect on shareholders’ equity (deficit) accounts of any changes that may be made to the Company’s capitalization; or (iv) the effect on operations of any changes that may be made to the Company’s business. While operating as debtor-in-possession under Chapter 11 of the Bankruptcy Code, the Company may sell or otherwise dispose of or ~~liquidate assets or settle liabilities in amounts other than those reflected on its financial statements, subject to the approval of the~~

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

liquidate assets or settle liabilities in amounts other than those reflected on its financial statements, subject to the approval of the Bankruptcy Court or otherwise as permitted in the ordinary course of business. Further, a plan of reorganization could materially change the amounts and classifications on the Company’s historical financial statements.

Reimbursement of LinnCo’s Costs and Expenses

LINN Energy has agreed to provide to LinnCo, or to pay on LinnCo’s behalf, any financial, legal, accounting, tax advisory, financial advisory and engineering fees, and other administrative and out-of-pocket expenses incurred by LinnCo, along with any other expenses incurred in connection with any public offering of common shares representing limited liability company interests (“shares”) in LinnCo or incurred as a result of being a publicly traded entity. These expenses include costs associated with annual, quarterly and other reports to holders of LinnCo shares, tax return and Form 1099 preparation and distribution, NASDAQ listing fees, printing costs, independent auditor fees and expenses, legal counsel fees and expenses, limited liability company governance and compliance expenses, and registrar and transfer agent fees. In addition, LINN Energy has agreed to indemnify LinnCo and its officers and directors for damages suffered or costs incurred (other than income taxes payable by LinnCo) in connection with carrying out LinnCo’s activities. Because all general and administrative expenses and certain offering costs are actually paid by LINN Energy on LinnCo’s behalf, no cash is disbursed by LinnCo for these expenses and costs.

For the three months and ~~six~~nine months ended ~~June~~September 30, 2016, LinnCo incurred total general and administrative expenses, reorganization expenses and offering costs of approximately $21.50 million and $45.2 million, respectively, including approximately $603,000 and $1.28 million, respectively, related to services provided by LINN Energy. Of the expenses and costs incurred during the ~~six~~nine months ended ~~June~~September 30, 2016, approximately $45.01 million had been paid by LINN Energy on LinnCo’s behalf as of ~~June~~September 30, 2016.

For the three months and ~~six~~nine months ended ~~June~~September 30, 2015, LinnCo incurred total general and administrative expenses and certain offering costs of approximately $~~1.1~~965,000 ~~million~~ and $2.58 million, respectively, including approximately $~~492~~491,000 and $~~983~~1.5 million,~~000,~~ respectively, related to services provided by LINN Energy. OfAll of the expenses and costs incurred during the ~~six~~nine months ended ~~June~~September 30, 2015, ~~approximately $2.2 million~~ had been paid by LINN Energy on LinnCo’s behalf as of ~~June~~September 30, 2015.

Dividends

Within five business days after receiving a cash distribution related to its interest in LINN Energy units, LinnCo is required to pay the cash received, net of reserves for its income taxes liability (“tax reserve”), if any, as dividends to its shareholders. The amount of the tax reserve is calculated on a quarterly basis and is determined based on the estimated tax liability for the entire year. The current tax reserve can be increased or reduced, at Company management’s discretion, to account for the over/(under) tax reserve previously recorded. Because the tax reserve is an estimate, upon filing the annual tax returns, if the actual amount of tax due is greater or less than the total amount of tax reserved, the subsequent tax reserve, at Company management’s discretion, could be adjusted accordingly. Any such adjustments are subject to approval by the Company’s Board of Directors (“Board”).

Use of Estimates

The preparation of the accompanying financial statements in conformity with GAAP requires management of the Company to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of income and expenses. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Any changes in estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

Recently Issued Accounting Standards

In November 2015, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) that is intended to simplify the presentation of deferred taxes by requiring that all deferred taxes be classified as noncurrent, presented as a single noncurrent amount for each tax-paying component of an entity. The ASU is effective for fiscal years beginning after December 15, 2016; however, the Company early adopted it on January 1, 2016, on a retrospective basis. The adoption of this ASU resulted in the reclassification of previously-classified current deferred taxes of approximately $3 million to noncurrent on the Company’s balance sheet at December 31, 2015. There was no impact to the statements of operations.

In August 2014, the FASB issued an ASU that provides guidance about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. This ASU is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter (early adoption permitted). The Company does not expect the adoption of this ASU to have a material impact on its financial statements or related disclosures.

Accounting for Investment in Linn Energy, LLC

The Company uses the equity method of accounting for its investment in LINN Energy. The Company’s equity income (loss) consists of its share of LINN Energy’s earnings or losses attributed to the units the Company owns, the amortization of the difference between the Company’s investment in LINN Energy and LINN Energy’s underlying net assets attributable to certain assets and liabilities, and impairments of its investment in LINN Energy. The Company records its share of LINN Energy’s net income (loss) in the period in which it is earned. If the Company’s share of LINN Energy’s losses reduces its investment in LINN Energy to zero, the Company temporarily discontinues applying the equity method. At ~~June~~September 30, 2016, the Company owned approximately 6971% of LINN Energy’s outstanding units. The Company’s ownership percentage could change if the Company acquires additional units or if LINN Energy issues or repurchases additional units. Changes in the Company’s ownership percentage affect its net income (loss).

At ~~June~~September 30, 2016, the carrying amount of the Company’s investment in LINN Energy was greater than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $~~946~~1.1 ~~million~~billion. The difference is attributable to cumulative excess losses of approximately $~~482~~592 million, as well as a basis difference of approximately $~~464~~509 million related to proved and unproved oil and natural gas properties and senior notes. The difference attributable to oil and natural gas properties and senior notes is amortized over the lives of the related assets and liabilities. Such amortization is included in the equity income (loss) from the Company’s investment in LINN Energy. At December 31, 2015, the carrying amount of the Company’s investment in LINN Energy was greater than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $85 million.

Impairment testing on the Company’s investment in LINN Energy is performed when events or circumstances warrant such testing and considers whether there is an inability to recover the carrying value of the investment that is other than temporary. No impairments occurred with respect to the Company’s investment in LINN Energy for the three months ended September 30, 2016. At June 30, 2016, declines in the quoted market price of LINN Energy units, when considering LINN Energy’s bankruptcy filing, were determined by the Company to be other than temporary. Accordingly, the Company reduced the carrying value of its investment in LINN Energy to fair value by recording a charge of approximately $181 million in excess of what would otherwise be recognized by application of the equity method. The carrying value was reduced to fair value using LINN Energy’s quoted market price of $0.09 per unit at June 30, 2016, which is characteristic of a Level 1 fair value measurement. The impairment charge of approximately $181 million is included in “equity loss from investment in Linn Energy, LLC” on the ~~statements~~statement of operations for the ~~three~~nine months ~~and six months~~ ended ~~June~~September 30, 2016. NoFor ~~impairment~~the ~~had~~nine ~~occurred~~months ~~with~~ended ~~respect~~September 30, to2015, the Company’s ~~investment~~recorded inan ~~LINN~~impairment ~~Energy~~charge ~~for~~of ~~the~~approximately ~~six~~$326 ~~months ended June 30, 2015~~million.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

Note 2 - Chapter 11 Proceedings and Ability to Continue as a Going Concern

Chapter 11 Proceedings

On the Petition Date, the Debtors filed Bankruptcy Petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. The Debtors’ Chapter 11 cases are being administered jointly under the caption In re Linn Energy, LLC., et al., Case No. 16‑60040.

The Debtors are operating their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has granted certain relief requested by the Debtors, allowing the Company to use its cash to fund the Chapter 11 proceedings. During the pendency of the Chapter 11 proceedings, all transactions outside the ordinary course of the Company’s business require prior approval of the Bankruptcy Court. For goods and services provided following the Petition Date, LINN Energy intends to pay vendors, on LinnCo’s behalf, in full under normal terms.

Bank RSA

Prior to the Petition Date, on May 10, 2016, the Debtors entered into a restructuring support agreement (“Bank RSA”) with certain holders (“Consenting Bank Creditors”) collectively holding or controlling at least 66.67% by aggregate outstanding principal amounts under (i) LINN Energy’s Sixth Amended and Restated Credit Agreement (“LINN Credit Facility”) and (ii) Berry’s Second Amended and Restated Credit Agreement (“Berry Credit Facility”).

The Bank RSA sets forth, subject to certain conditions, the commitment of the Consenting Bank Creditors to support a comprehensive restructuring of the Debtors’ long-term debt. The restructuring transactions contemplated by the Bank RSA will be effectuated through one or more plans of reorganization (“Plan”) filed in the Chapter 11 proceedings.

The Bank RSA provides that the Consenting Bank Creditors will support the use of the LINN Debtors’ and Berry’s cash collateral under specified terms and conditions, including adequate protection terms. The Bank RSA obligates the Debtors and the Consenting Bank Creditors to, among other things, support and not interfere with consummation of the restructuring transactions contemplated by the Bank RSA and, as to the Consenting Bank Creditors, vote their claims in favor of the Plan. The Bank RSA may be terminated upon the occurrence of certain events, including the failure to meet specified milestones relating to, among other requirements, the filing, confirmation and consummation of the Plan, and in the event of certain breaches by the parties under the Bank RSA. The Bank RSA is subject to termination if the effective date of the Plan has not occurred within 250 days of the Petition Date. There can be no assurance that the restructuring transactions contemplated by the Bank RSA will be consummated.

Restructuring Support Agreement

~~Prior~~On ~~to the Petition Date, on May~~October 107, 2016, the LINN Debtors entered into a restructuring support agreement (“~~Restructuring~~Original ~~Support~~LINN ~~Agreement~~RSA”) with (i) certain holders ~~(“Consenting~~of ~~Creditors”)~~LINN ~~collectively~~Energy’s ~~holding~~12.00% orsenior ~~controlling~~secured atsecond ~~least~~lien ~~66.67%~~notes bydue ~~aggregate~~December ~~outstanding~~2020 ~~principal~~(such ~~amounts~~notes, ~~under~~the ~~(i) LINN~~“Second ~~Energy’s~~Lien ~~Sixth~~Notes,” ~~Amended~~ and ~~Restated~~such ~~Credit~~holders, ~~Agreement~~the (“~~LINN~~Consenting ~~Credit~~Second ~~Facility~~Lien Noteholders”) and (ii) ~~Berry~~certain holders of LINN Energy’s ~~Second~~unsecured ~~Amended~~notes (such notes, the “Unsecured Notes,” and ~~Restated~~such ~~Credit~~holders ~~Agreement~~of (the Unsecured Notes, the “~~Berry~~Consenting ~~Credit~~Unsecured ~~Facility~~Noteholders,” and together such Consenting Unsecured Noteholders with the Consenting Second Lien Noteholders, the “Consenting Noteholders”).

~~The~~On October 21, 2016, the LINN Debtors entered into the First Amended and Restated Restructuring Support Agreement ~~sets~~(“LINN ~~forth~~RSA”) with (i) certain Consenting Second Lien Noteholders, ~~subject~~(ii) certain toConsenting Unsecured Noteholders and (iii) certain ~~conditions~~lenders (the “Consenting LINN Lenders,” and together with the ~~commitment~~Consenting ofNoteholders, the “Consenting LINN Creditors”) tounder ~~support~~the aLINN ~~comprehensive~~Credit ~~restructuring~~Facility. The LINN RSA amends and restates the Original LINN RSA and replaces the Bank RSA with respect to the terms of the ~~Debtors’~~restructuring ~~long-term~~of ~~debt~~the ~~(“Restructuring~~LINN ~~Transactions”)~~Debtors. The ~~Restructuring~~Bank ~~Transactions~~RSA ~~will~~remains bein ~~effectuated~~full ~~through~~force ~~one~~and oreffect ~~more~~with ~~plans~~respect ofto ~~reorganization~~the ~~(“Plan”)~~restructuring toof beBerry ~~filed~~and inLinn ~~the~~Acquisition ~~Chapter 11~~Company, ~~proceedings~~LLC.

The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~sets ~~provides~~forth, ~~that~~subject ~~the~~to ~~Consenting~~certain ~~Creditors~~conditions, ~~will support~~ the ~~use~~commitment of the LINN ~~Energy’s~~Debtors and ~~Berry’s~~the ~~cash~~Consenting ~~collateral~~LINN ~~under~~Creditors ~~specified~~to ~~terms~~support ~~and~~a ~~conditions,~~comprehensive ~~including~~restructuring ~~adequate~~of ~~protection~~the ~~terms~~LINN Debtors’ long-term debt (the “Restructuring”). The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~ obligates the LINN Debtors and the Consenting LINN Creditors to, among other things, support and not interfere with consummation of the Restructuring ~~Transactions~~ and, as to the Consenting LINN Creditors, vote their claims in favor of the Plan. The ~~Restructuring~~LINN Support Agreement may be terminated upon the occurrence of certain events, including the failure to meet specified milestones relating to, among other requirements, the filing, confirmation and consummation of the Plan, and in the event of breaches by the parties of certain provisions of the Restructuring Support Agreement. The Restructuring Support Agreement is subject to termination if the effective date of the Plan has not occurred within 250 days of the Petition Date. There can be no assurance that the Restructuring Transactions will be consummated.

Magnitude of Potential Claims

On July 11, 2016, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of the Debtors, subject to the assumptions filed in connection therewith. The schedules and statements may be subject to further amendment or modification after filing. Holders of prepetition claims will be required to file proofs of claims by the applicable deadline for filing certain proofs of claims in the Debtors’ Chapter 11 cases. The court has not yet confirmed the claims deadlines. Differences between amounts scheduled by the Debtors and claims by creditors will be investigated and resolved in connection with the claims resolution process.

Reorganization Items

The Company has incurred and is expected to continue to incur significant costs associated with the reorganization. These costs, which are expensed as incurred, are expected to significantly affect the Company’s results of operations. Reorganization items represent costs and income directly associated with the Chapter 11 proceedings since the Petition Date.

For the three months and six months ended June 30, 2016, “reorganization items” of $200,000 on the statements of operations represents legal and other professional advisory fees incurred by LinnCo, none of which had been paid by LINN Energy on LinnCo’s behalf as of June 30, 2016.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

RSA may be terminated upon the occurrence of certain events, including the failure to meet specified milestones relating to the filing, confirmation and consummation of the Plan, and in the event of certain breaches by the parties under the LINN RSA. The LINN RSA is subject to termination if the effective date of the Plan has not occurred by March 1, 2017. There can be no assurance that the Restructuring will be consummated.

Magnitude of Potential Claims

On July 11, 2016, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of the Debtors, subject to the assumptions filed in connection therewith. The schedules and statements may be subject to further amendment or modification after filing. Holders of prepetition claims are required to file proofs of claims by the applicable deadline for filing certain proofs of claims in the Debtors’ Chapter 11 cases, which was September 16, 2016, for general claims and is November 7, 2016, for governmental claims. Differences between amounts scheduled by the Debtors and claims by creditors will be investigated and resolved in connection with the claims resolution process.

Reorganization Items

For the three months and nine months ended September 30, 2016, “reorganization items” of $100,000 and $300,000, respectively, on the statements of operations represents legal and other professional advisory fees incurred by LinnCo, all of which had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2016.

Effect of Filing on Creditors and Shareholders

Subject to certain exceptions, under the Bankruptcy Code, the filing of Bankruptcy Petitions automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to recover, collect or secure a claim arising prior to the Petition Date. Absent an order of the Bankruptcy Court, substantially all of the Debtors’ prepetition liabilities are subject to settlement under the Bankruptcy Code. Although the filing of Bankruptcy Petitions triggered defaults on the Debtors’ debt obligations, creditors are stayed from taking any actions against the Debtors as a result of such defaults, subject to certain limited exceptions permitted by the Bankruptcy Code.

Under the Bankruptcy Code, unless creditors agree otherwise, prepetition liabilities and post-petition liabilities must be satisfied in full before the holders of the Company’s existing shares are entitled to receive any settlement or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or shareholders, if any, will not be determined until confirmation and implementation of a plan or plans of reorganization. No assurance can be given as to what values, if any, will be ascribed in the Chapter 11 proceedings to each of these constituencies or what types or amounts of settlements, if any, they will receive. A plan of reorganization could result in holders of the Debtors’ liabilities and/or shares receiving no settlement on account of their interests and cancellation of their holdings.

Appointment of Creditors Committee

On May 23, 2016, the Bankruptcy Court appointed the official committee for unsecured creditors (the “Creditors Committee”). The Creditors Committee and its legal representatives have a right to be heard on all matters that come before the Bankruptcy Court with respect to the Debtors.

Process for Plan of Reorganization

In order to successfully exit bankruptcy, the Debtors will need to propose, and obtain confirmation by the Bankruptcy Court of, a Plan that satisfies the requirements of the Bankruptcy Code. A Plan would, among other things, resolve the Debtors’ prepetition obligations, set forth the revised capital structure of the newly reorganized entity and provide for corporate governance subsequent to exit from bankruptcy.

The Debtors have an exclusive right to file a Plan within 120 days from the Petition Date, subject to an extension for cause. If the Debtors’ exclusive filing period lapses, any party in interest may file a Plan for any of the Debtors.

In addition to being voted on by holders of impaired claims and equity interests, a Plan must satisfy certain requirements of the Bankruptcy Code and must be approved, or confirmed, by the Bankruptcy Court in order to become effective. A Plan would be accepted by holders of claims against and equity interests in the Debtors if (i) at least one-half in number and two-thirds in dollar amount of claims actually voting in each class of claims impaired by the Plan have voted to accept the Plan and (ii) at least two-thirds in amount of equity interests impaired by the Plan actually voting has voted to accept the Plan. A class of claims or equity interests that does not receive or retain any property under the Plan on account of such claims or interests is deemed to have voted to reject the Plan.

Under certain circumstances set forth in Section 1129(b) of the Bankruptcy Code, the Bankruptcy Court may confirm a Plan even if such Plan has not been accepted by all impaired classes of claims and equity interests. The precise requirements and evidentiary showing for confirming a Plan notwithstanding its rejection by one or more impaired classes of claims or equity interests depends upon a number of factors, including the status and seniority of the claims or equity interests in the rejecting class (i.e., unsecured or secured claims, subordinated or senior claims). Generally, with respect to shares, a Plan may be “crammed down” even if the shareholders receive no recovery if the proponent of the Plan demonstrates that (1) no class junior to the shares are receiving or retaining property under the Plan and (2) no class of claims or interests senior to the shares are being paid more than in full.

The timing of filing a Plan by the Debtors will depend on the timing and outcome of numerous other ongoing matters in the Chapter 11 proceedings. Although the Debtors expect to file a Plan that provides for emergence from bankruptcy as a going concern, there can be no assurance at this time that the Debtors will be able to successfully develop, confirm and consummate one or more plans of reorganization or other alternative restructuring transactions, including a sale of all or substantially all of the Debtors’ assets, that satisfies the conditions of the Bankruptcy Code and is confirmed by the Bankruptcy Court, or that any such Plan will be implemented successfully.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

AsUnder ofcertain ~~August~~circumstances set forth in Section 5,1129(b) ~~2016~~of the Bankruptcy Code, the ~~Debtors~~Bankruptcy ~~have~~Court may confirm a Plan even if such Plan has not ~~yet~~been ~~filed~~accepted by all impaired classes of claims and equity interests. The precise requirements and evidentiary showing for confirming a Plan notwithstanding its rejection by one or more impaired classes of claims or equity interests depends upon a number of factors, including the status and seniority of the claims or equity interests in the rejecting class (i.e., unsecured or secured claims, subordinated or senior claims). Generally, with respect to shares, a Plan may be “crammed down” even if the shareholders receive no recovery if the proponent of the Plan demonstrates that (1) no class junior to the shares are receiving or retaining property under the Plan and (2) no class of claims or interests senior to the shares are being paid more than in full.

On October 21, 2016, the Debtors filed a proposed Plan with the Bankruptcy Court.

Ability to Continue as a Going Concern

The Company’s only significant asset is its interest in LINN Energy units and the Company’s cash flow, which was historically used to pay dividends to the Company’s shareholders, is completely dependent upon the ability of LINN Energy to make distributions to its unitholders. In October 2015, LINN Energy suspended the payment of its distribution. As of ~~June~~September 30, 2016, the Company had income taxes payable of approximately $1311 million and cash of approximately $1 million.

The significant risks and uncertainties related to the Company’s liquidity and Chapter 11 proceedings described above raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The financial statements do not include any adjustments that might result from the outcome of the going concern uncertainty. If the Company cannot continue as a going concern, adjustments to the carrying values and classification of its assets and liabilities and the reported amounts of income and expenses could be required and could be material.

The Company estimates that the income taxes payable will become due ~~later~~ in ~~2016~~2017, but cannot be certain of the exact timing of payment, or of the final amount that will ultimately be owed. If the income taxes owed are greater than the cash on hand at such time, the payment will require some form of liquidity to satisfy it. As of ~~August~~November 57, 2016, LINN Energy had not agreed to provide any cash contribution to the Company.

Note 3 – Capitalization

LinnCo’s authorized capital structure consists of two classes of interests: (1) shares with limited voting rights and (2) voting shares, 100% of which are currently held by LINN Energy. At ~~June~~September 30, 2016, LinnCo’s issued capitalization consisted of approximately $3.9 billion in common shares and $1,000 contributed by LINN Energy in connection with LinnCo’s formation and in exchange for its voting share. LinnCo is authorized to issue an unlimited number of common shares and voting shares. Additional classes of equity interests may be created upon approval by the Board and the holders of a majority of the outstanding common shares and voting shares, voting as separate classes.

Offer to Exchange LINN Energy Units for LinnCo Shares

In March 2016, the Company filed a Registration Statement on Form S-4 related to an offer to exchange each outstanding unit representing limited liability company interests of LINN Energy for one common share representing limited liability company interests of LinnCo. The initial offer expired on April 25, 2016, and on April 26, 2016, the Company commenced a subsequent offering period that expired on August 1, 2016. ~~Through~~During ~~June 30,~~the ~~2016~~exchange period, ~~115~~123,~~702~~100,~~524~~715 LINN Energy units were exchanged for an equal number of LinnCo shares. The shares issued in the exchanges were valued at approximately $4546 million. As a result of the exchanges of LINN Energy units for LinnCo shares, LinnCo’s ownership of LINN Energy’s outstanding units increased from approximately 3637% at ~~March~~December 31, ~~2016~~2015, to approximately 6971% at ~~June~~September 30, 2016.

Delisting from Stock Exchange

As a result of the Company’s failure to comply with the NASDAQ Global Select Market (“NASDAQ”) continued listing requirements, on May 24, 2016, the Company’s common shares began trading over the counter on the OTC Markets Group Inc.’s Pink marketplace under the trading symbol “LNCOQ.”

Note 4 – Summarized Financial Information for Linn Energy, LLC

Following are summarized statements of operations and balance sheets information for LINN Energy. Additional information on LINN Energy’s results of operations and financial position are contained in its Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, which is included in this filing as Exhibit 99.1 and incorporated herein by reference.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

Delisting from Stock Exchange

Note 4 – Summarized Financial Information for Linn Energy, LLC

Following are summarized statements of operations and balance sheets information for LINN Energy. Additional information on LINN Energy’s results of operations and financial position are contained in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2016, which is included in this filing as Exhibit 99.1 and incorporated herein by reference.

Summarized Linn Energy, LLC Statements of Operations Information

	Three Months Ended June 30,						Six Months Ended June 30,
	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
	(in thousands)
Revenues and other	$	~~155~~385,~~395~~665		$	~~321~~998,~~828~~304		$	~~570~~955,~~162~~827		$	12,~~238~~236,~~375~~679
Expenses	(~~415~~430,~~539~~996		)	(~~560~~2,~~590~~623,101		)	(2,~~062~~493,~~723~~719		)	(14,~~684~~307,~~745~~846		)
Other income and (expenses)	(6940,~~736~~374		)	~~(143~~57,~~095~~657		)	(~~174~~215,~~821~~195		)	(~~281~~224,~~774~~117		)
Reorganization items, net	~~534~~(116,~~884~~276		)	—			~~534~~418,~~884~~608			—
Income tax (expense) benefit	3,~~488~~616			(2,~~730~~177		)	(63,~~756~~140		)	97,~~857~~680
Net income (loss)	$	208,492		$	(379,127	)	$	(1,139,254	)	$	(718,287	)
Net loss	$	(198,365	)	$	(1,569,317	)	$	(1,337,619	)	$	(2,287,604	)

Summarized Linn Energy, LLC Balance Sheets Information

	June 30,2016			December 31, 2015
	September 30,2016			December 31, 2015
	(in thousands)
Current assets	$	1,~~086~~136,~~321~~154		$	1,534,547
Noncurrent assets	6,~~390~~266,~~853~~794			8,393,711
	7,477,174			9,928,258
	7,402,948			9,928,258
Current liabilities	3,~~209~~239,~~715~~926			4,291,901
Noncurrent liabilities	~~588~~572,~~172~~322			5,905,258
Liabilities subject to compromise	5,~~069~~173,~~158~~059			—
Unitholders’ deficit	$	(1,~~389~~582,~~871~~359	)	$	(268,901	)

Note 5 – Income Taxes

The Company is a limited liability company that has elected to be treated as a corporation for U.S. federal income tax purposes. Deferred income tax assets and liabilities are recognized for temporary differences between the basis of the Company’s assets and liabilities for financial and tax reporting purposes. At ~~June~~September 30, 2016, and December 31, 2015, the majority of the Company’s temporary differences and associated deferred taxes result from its investment in LINN Energy. Based on projections of future taxable income for the periods in which the deferred tax assets are deductible, valuation allowances of approximately $~~472~~448 million and $468 million, respectively, were recorded to reduce the net deferred tax assets to an amount that is more likely than not to be realized.

The Company had no gross liability for uncertain income tax benefits at ~~June~~September 30, 2016. At December 31, 2015, the Company had a gross liability for uncertain income tax benefits of approximately $15 million. During the ~~six~~nine months ended June 30, 2016, the Company reduced the balance of its unrecognized income tax benefits by approximately $15 million due to settlements with taxing authorities. The Company had zero and approximately $203,000 of accrued interest related to its uncertain income tax positions as of June 30, 2016, and December 31, 2015, respectively. The tax years 2013 – 2015 remain open to examination for federal income tax purposes.

Note 6 – Supplemental Disclosures to the Statements of Cash Flows

For the six months ended June 30, 2016, and June 30, 2015, LinnCo incurred and recorded approximately $4.2 million and $2.5 million, respectively, of total general and administrative expenses, reorganization expenses and offering costs. Of the expenses and costs incurred, approximately $4.0 million had been paid by LINN Energy on LinnCo’s behalf as of June 30, 2016, and approximately $2.2 million had been paid by LINN Energy on LinnCo’s behalf as of June 30, 2015. All of these expenses and costs are paid by LINN Energy on LinnCo’s behalf, and therefore, are accounted for as capital contributions and reflected as noncash transactions by LinnCo.

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LINNCO, LLC (DEBTOR-IN-POSSESSION)

NOTES TO FINANCIAL STATEMENTS - Continued

(Unaudited)

~~During the six months ended June~~September 30, 2016, ~~and~~the ~~June 30,~~Company ~~2015,~~reduced the ~~Company~~balance ~~made~~of ~~cash~~its ~~payments~~unrecognized ~~for~~ income ~~taxes~~tax ofbenefits by approximately $1015 million due to settlements with taxing authorities. The Company had zero and approximately $~~186~~203,000 of accrued interest related to its uncertain income tax positions as of September 30, 2016, and December 31, 2015, respectively. The tax years 2013 – 2015 remain open to examination for federal income tax purposes.

Note 6 – Supplemental Disclosures to the Statements of Cash Flows

For the nine months ended September 30, 2016, and September 30, 2015, LinnCo incurred and recorded approximately $5.2 million and $2.8 million, respectively, of total general and administrative expenses, reorganization expenses and offering costs. Of the expenses and costs incurred during the nine months ended September 30, 2016, approximately $5.1 million had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2016. All of the expenses and costs incurred during the nine months ended September 30, 2015, had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2015. All of these expenses and costs are paid by LINN Energy on LinnCo’s behalf, and therefore, are accounted for as capital contributions and reflected as noncash transactions by LinnCo.

During the nine months ended September 30, 2016, and September 30, 2015, the Company made cash payments for income taxes of approximately $10 million and $202,000, respectively.

Note 7 - Commitments and Contingencies

The commencement of the Chapter 11 proceedings automatically stayed certain actions against the Company, including actions to collect prepetition liabilities or to exercise control over the property of the Company’s bankruptcy estates. The Company intends to seek authority to pay all general claims in the ordinary course of business notwithstanding the commencement of the Chapter 11 proceedings in a manner consistent with the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and Bank RSA. The Plan in the Chapter 11 proceedings, if confirmed, will provide for the treatment of claims against the Company’s bankruptcy estates, including prepetition liabilities that have not otherwise been satisfied or addressed during the Chapter 11 proceedings. See Note 2 for additional information.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with the financial statements and related notes included in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The following discussion contains forward-looking statements based on expectations, estimates and assumptions. Actual results may differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those factors set forth in “Cautionary Statement Regarding Forward-Looking Statements” below and in Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and elsewhere in the Annual Report.

The reference to a “Note” herein refers to the accompanying Notes to Financial Statements contained in Item 1. “Financial Statements.”

General

LinnCo, LLC (“LinnCo” or the “Company”) is a Delaware limited liability company formed on April 30, 2012, under the Delaware Limited Liability Company Act, that has elected to be treated as a corporation for United States (“U.S.”) federal income tax purposes. Linn Energy, LLC (“LINN Energy”), an independent oil and natural gas company, owns LinnCo’s sole voting share.

LinnCo’s success is dependent upon the operations and management of LINN Energy and its resulting performance. Therefore, LINN Energy’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, 2016, has been included in this filing as Exhibit 99.1 and incorporated herein by reference.

Business

At no time after LinnCo’s formation and prior to the initial public offering (“IPO”) did LinnCo have any operations or own any interest in LINN Energy. After the IPO, LinnCo’s initial sole purpose was to own units representing limited liability company interests (“units”) in its affiliate, LINN Energy. In connection with the acquisition of Berry Petroleum Company, now Berry Petroleum Company, LLC (“Berry”), LinnCo amended its limited liability company agreement to permit, among other things, the acquisition and subsequent transfer of assets to LINN Energy for consideration received. As of ~~June~~September 30, 2016, LinnCo had no significant assets or operations other than those related to its interest in LINN Energy.

Recent Developments

Chapter 11 Proceedings

On May 11, 2016 (the “Petition Date”), the Company, LINN Energy, and certain of LINN Energy’s direct and indirect subsidiaries (collectively with the Company, the “LINN Debtors”) and Berry (collectively with the LINN Debtors, the “Debtors”), filed voluntary petitions (“Bankruptcy Petitions”) for relief under Chapter 11 of the ~~United~~U.S. ~~States~~ Bankruptcy Code (“Bankruptcy Code”) in the U.S. Bankruptcy Court for the Southern District of Texas (“Bankruptcy Court”). The Debtors’ Chapter 11 cases are being administered jointly under the caption In re Linn Energy, LLC., et al., Case No. 16‑60040.

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Bank RSA

Restructuring Support Agreement

~~Certain~~The ~~principal~~LINN ~~terms~~RSA ofsets forth, subject to certain conditions, the ~~Plan~~commitment ~~are~~of ~~outlined~~the ~~below. See~~LINN ~~Item 1A.~~Debtors ~~“Risk~~and ~~Factors”~~the ~~for~~Consenting ~~risks~~LINN ~~relating~~Creditors to ~~Chapter 11~~support ~~proceedings,~~a ~~including~~comprehensive restructuring of the ~~risk~~LINN ~~that~~Debtors’ long-term debt (the ~~Company~~“Restructuring”). On ~~may~~October 21, ~~not~~2016, bethe ~~able~~Debtors tofiled ~~obtain~~a ~~confirmation~~proposed Plan with the Bankruptcy Court. See “Process for Plan of aReorganization” ~~Chapter 11~~below ~~plan~~for certain principal terms of ~~reorganization~~the proposed Plan.

•The ~~Claims~~LINN ~~under~~RSA obligates the LINN ~~Credit~~Debtors ~~Facility~~and ~~will~~the ~~receive~~Consenting ~~participation~~LINN inCreditors ato, ~~new~~among ~~company~~other ~~$2.2~~things, ~~billion~~support ~~reserve-based~~ and ~~term~~not ~~loan~~interfere ~~credit~~with ~~facility~~consummation of the Restructuring and, as ~~described~~to ~~further~~the ~~below~~Consenting ~~(“New~~LINN Creditors, vote their claims in favor of the Plan. The LINN ~~Exit~~RSA ~~Facility”)~~may be terminated upon the occurrence of certain events, including the failure to meet specified milestones relating to the filing, confirmation and ~~payment~~consummation of the ~~remainder~~Plan, and in the event of ~~claims~~certain breaches by the parties under the LINN ~~Credit~~RSA. The ~~Facility~~LINN ~~(if~~RSA ~~any)~~is insubject ~~cash~~to ~~or,~~termination toif the ~~extent~~effective date of the Plan has not ~~viable~~occurred by March 1, a2017. There ~~later-agreed-upon~~can ~~alternative~~be ~~consideration~~no assurance that the Restructuring will be consummated.

•Backstop ~~LINN~~Commitment Energy’s 12.00% senior secured second lien notes due December 2020 (“Second Lien Notes”) will be allowed as a $2.0 billion unsecured claim consistent with the settlement agreement, dated April 4, 2016, entered into between LINN Energy and certain holders of the Second Lien Notes.Agreement

•In ~~Unsecured~~connection ~~claims~~with ~~against~~the proposed Plan, on October 25, 2016, LINN Energy entered into a backstop commitment agreement (“Backstop Commitment Agreement”) with the parties thereto (collectively, ~~including~~the ~~under~~“Backstop Parties”), pursuant to which the ~~Second~~Backstop ~~Lien~~Parties, ~~Notes~~which ~~and~~are ~~LINN~~also ~~Energy’s~~Consenting ~~unsecured~~Noteholders ~~notes~~under the LINN RSA, ~~will~~have ~~convert~~agreed to ~~equity~~backstop a $530 million new money investment in the ~~reorganized~~ LINN ~~Energy~~Debtors orpursuant ~~reorganized~~to ~~LinnCo~~the ~~(“New~~rights ~~LINN~~offerings ~~Common~~to ~~Stock”)~~be conducted in ~~to-be-determined~~accordance ~~allocations~~with the Plan.

•In ~~The~~accordance ~~Restructuring~~with ~~Support~~the ~~Agreement~~Plan, ~~contemplates~~the ~~that~~Backstop ~~Berry~~Commitment ~~will~~Agreement ~~separate~~and ~~from~~the ~~LINN~~rights ~~Energy~~offerings ~~under~~procedures ~~the~~filed ~~Plan.~~in ~~Claims~~the ~~under~~Chapter 11 cases, the ~~Berry~~LINN ~~Credit~~Debtors ~~Facility~~ will ~~receive~~offer ~~participation~~eligible increditors, aincluding ~~new~~the ~~Berry~~Backstop ~~exit facility~~Parties, ifthe ~~any,~~right ~~and a~~ to~~-be-determined~~ ~~allocation~~purchase ofnew ~~equity~~common instock ~~reorganized Berry (“New Berry Common Stock”).~~

• Unsecured claims against Berry, including under Berry’s unsecured notes, will receive a to-be-determined allocation of New Berry Common Stock up to the full amount of Berry’s unencumbered collateral and/or collateral value in excess of amounts outstanding under the Berry Credit Facility.

• Cash payments under the Plan may be funded by rights offerings or other new-money investments. The Restructuring Support Agreement contemplates that Berry may undertake a marketing process for the opportunity to sponsor its Plan.

• All existing equity interests of the Company, LINN Energy and Berry will be extinguished without recovery.

The New LINN Exit Facility will consist of (i) a term loan in the amount of $800 million (“New LINN Term Loan”) and (ii) a revolving loan in the initial amount of $1.4 billion (“New LINN Revolving Loan”). The New LINN Term Loan will mature on the earlier of June 30, 2021, or the day prior to the fourth anniversary of the closing date, with interest payable at LIBOR plus 7.50% and amortized principal payments payable quarterly, beginning March 31, 2017. The New LINN Revolving Loan will be composed of two tranches as follows: (a) a conforming tranche with an initial amount of $1.2 billion subject to the borrowing base (“Conforming Tranche”) and (b) a non-conforming tranche with an initial amount of $200 million (“Non-Conforming Tranche”). The Conforming Tranche will mature on the earlier of June 30, 2021, or the day prior to the fourth anniversary of the closing date, with an interest rate of LIBOR plus 3.50%. The Non-Conforming Tranche will mature on the earlier of December 31, 2020, or the day prior to the date that is three years and six months after the closing date, with an interest rate of LIBOR plus 5.50%. The New LINN Exit Facility is subject to a variety of other terms and conditions including conditions precedent to funding, financial covenants and various other covenants and representations and warranties.

The Plan will provide for the establishment of a customary management incentive plan at LINN Energy and Berry under which no less than 10% of the New LINN Common Stock and New Berry Common Stock, respectively, will be reserved for grants made from time to time to the officers and other key employees of the respective reorganized entities. The Plan will provide for releases of specified claims held by the Debtors, the Consenting Creditors and certain other specified parties against one another and for customary exculpations and injunctions.

The Restructuring Support Agreement provides that the Consenting Creditors will support the use of LINN Energy’s and Berry’s cash collateral under specified terms and conditions, including adequate protection terms. The Restructuring Support Agreement obligates the Debtors and the Consenting Creditors to, among other things, support and not interfere with

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

~~consummation~~or oflimited ~~the~~liability ~~Restructuring~~company ~~Transactions~~interests ~~and, as to the Consenting Creditors, vote their claims~~ in ~~favor of~~ the ~~Plan. The~~reorganized ~~Restructuring~~Company ~~Support~~(“New ~~Agreement~~Common ~~may~~Stock”) ~~be terminated~~ upon ~~the~~emergence ~~occurrence~~from ~~of certain events, including~~ the ~~failure~~Chapter 11 tocases ~~meet~~for ~~specified~~an ~~milestones~~aggregate ~~relating~~purchase ~~to,~~price ~~among other requirements, the filing, confirmation and consummation~~ of ~~the~~$530 ~~Plan, and in the event of breaches by the parties of certain provisions of the Restructuring Support Agreement~~million. The ~~Restructuring~~rights ~~Support~~offerings ~~Agreement~~will isconsist ~~subject to termination if the effective date~~ of the ~~Plan~~following ~~has not occurred within 250 days of the Petition Date. There can be no assurance that the Restructuring Transactions will be consummated.~~offerings:

•

Holders of Unsecured Notes as of the record date set therefor shall be granted rights entitling each such holder to subscribe to the rights offering in an amount up to its pro rata share of New Common Stock (the “Unsecured Rights Offering,” and such New Common Stock offered for purchase thereunder, the “Unsecured Rights Offering Shares”), which Unsecured Rights Offering Shares, collectively, will reflect an aggregate purchase price of $319,004,408 at the per share price set forth in the Backstop Commitment Agreement.

•

Holders of Second Lien Notes as of the record date set therefor shall be granted rights entitling each such holder to subscribe to the rights offering in an amount up to its pro rata share of New Common Stock (the “Secured Rights Offering,” and such New Common Stock offered for purchase thereunder, the “Secured Rights Offering Shares”), which Secured Rights Offering Shares, collectively, will reflect an aggregate purchase price of $210,995,592 at the per share price set forth in the Backstop Commitment Agreement.

Under the Backstop Commitment Agreement, certain Backstop Parties have agreed to purchase their pro rata share of the Unsecured Rights Offering Shares and the Secured Rights Offering Shares, as applicable, that are not duly subscribed to pursuant to the Unsecured Rights Offering or the Secured Rights Offering, as applicable, at the discounted per share price set forth in the Backstop Commitment by parties other than Backstop Parties (the “Backstop Commitment”).

Subject to Bankruptcy Court approval, the LINN Debtors will pay the Backstop Parties on the Plan effective date a commitment premium equal to 4.0% of the $530 million committed amount (the “Backstop Commitment Premium”), of which 3.0% will be paid in cash and 1.0% will be paid in the form of New Common Stock at the discounted per share price set forth in the Backstop Commitment Agreement. The Backstop Commitment Premium shall be fully earned and nonrefundable as of the date of the Bankruptcy Court order approving the LINN Debtors’ entry into the Backstop Commitment Agreement. All amounts payable to the Backstop Parties in their capacities as such for the Backstop Commitment Premium shall be paid pro rata based on the amount of their respective Backstop Commitments on the effective date (as compared to the aggregate Backstop Commitment of all Backstop Parties).

The rights to purchase New Common Stock in the rights offerings, any shares issued upon exercise thereof, and all shares issued to the Backstop Parties in respect of their Backstop Commitments pursuant to the Backstop Commitment Premium, will be issued in reliance upon the exemption from the registration requirements of the securities laws pursuant to Section 1145 of the Bankruptcy Code. All shares issued to the Backstop Parties pursuant to the Backstop Commitment Agreement in respect of their Backstop Commitment will be issued in reliance upon the exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 4(a)(2) thereof and/or Regulation D thereunder. As a condition to the closing of the transactions contemplated by the Backstop Commitment Agreement, the Company will enter into a registration rights agreement with the certain Backstop Parties entitling such Backstop Parties to request that the Company register their securities for sale under the Securities Act at various times.

The Backstop Parties’ commitments to backstop the rights offerings, and the other transactions contemplated by the Backstop Commitment Agreement, are conditioned upon the satisfaction of all conditions to the effectiveness of the Plan and other applicable conditions precedent set forth in the Backstop Commitment Agreement. The issuances of New Common Stock pursuant to the rights offerings and the Backstop Commitment Agreement are conditioned upon, among other things, confirmation of the Plan by the Bankruptcy Court, and the Plan’s effectiveness upon the Company’s emergence from its Chapter 11 cases.

Magnitude of Potential Claims

On July 11, 2016, the Debtors filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of the Debtors, subject to the assumptions filed in connection therewith. The schedules and statements may be subject to further amendment or modification after filing. Holders of prepetition claims ~~will~~are be required to file proofs of claims by the applicable deadline for filing certain proofs of claims in the Debtors’ Chapter 11 cases~~. The~~, ~~court~~which ~~has~~was ~~not~~September 16, ~~yet~~2016, ~~confirmed~~for ~~the~~general claims ~~deadlines~~and is November 7, 2016, for governmental claims. Differences between amounts scheduled by the Debtors and claims by creditors will be investigated and resolved in connection with the claims resolution process.

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Effect of Filing on Creditors and Shareholders

Under the Bankruptcy Code, unless creditors agree otherwise, prepetition liabilities and post-petition liabilities must be satisfied in full before the holders of the Company’s existing common shares representing limited liability company interests (“shares”) are entitled to receive any settlement or retain any property under a plan of reorganization. The ultimate recovery to creditors and/or shareholders, if any, will not be determined until confirmation and implementation of a plan or plans of reorganization. No assurance can be given as to what values, if any, will be ascribed in the Chapter 11 proceedings to each of these constituencies or what types or amounts of settlements, if any, they will receive. A plan of reorganization could result in holders of the Debtors’ liabilities and/or shares receiving no settlement on account of their interests and cancellation of their holdings. The Company believes that it is highly likely that its existing shares will be canceled in the Chapter 11 proceedings and will be entitled to a limited recovery, if any. Any trading in the Company’s shares during the pendency of the Chapter 11 proceedings is highly speculative and poses substantial risks to purchasers of the Company’s shares.

Appointment of Creditors Committee

Process for Plan of Reorganization

~~The~~In ~~Debtors~~addition ~~have~~to anbeing ~~exclusive~~voted ~~right~~on toby ~~file~~holders of impaired claims and equity interests, a Plan ~~within~~must ~~120~~satisfy ~~days~~certain ~~from~~requirements of the ~~Petition~~Bankruptcy ~~Date~~Code and must be approved, ~~subject~~or toconfirmed, anby ~~extension~~the ~~for~~Bankruptcy ~~cause~~Court in order to become effective. IfA Plan would be accepted by holders of claims against and equity interests in the Debtors’ ~~exclusive~~if ~~filing~~(i) at ~~period~~least ~~lapses,~~one-half ~~any~~in ~~party~~number and two-thirds in ~~interest~~dollar ~~may~~amount ~~file~~of aclaims actually voting in each class of claims impaired by the Plan ~~for~~have voted to accept the Plan and (ii) at least two-thirds in amount of equity interests impaired by the Plan actually voting has voted to accept the Plan. A class of claims or equity interests that does not receive or retain any property under the Plan on account of such claims or interests is deemed to have voted to reject the ~~Debtors~~Plan.

InUnder ~~addition~~certain tocircumstances ~~being~~set ~~voted~~forth onin bySection ~~holders~~1129(b) of ~~impaired~~the ~~claims~~Bankruptcy ~~and~~Code, ~~equity~~the ~~interests,~~Bankruptcy Court may confirm a Plan ~~must~~even ~~satisfy~~if ~~certain~~such ~~requirements~~Plan ofhas ~~the~~not ~~Bankruptcy~~been ~~Code~~accepted ~~and~~by ~~must~~all beimpaired ~~approved,~~classes orof ~~confirmed,~~claims byand ~~the~~equity ~~Bankruptcy~~interests. The ~~Court~~precise inrequirements ~~order~~and toevidentiary ~~become~~showing ~~effective. A~~for confirming a Plan ~~would~~notwithstanding beits ~~accepted~~rejection by ~~holders~~one or more impaired classes of claims ~~against~~or equity interests depends upon a number of factors, including the status and seniority of the claims or equity interests in the ~~Debtors~~rejecting ifclass (i~~) at~~.e., ~~least~~unsecured ~~one-half~~or insecured ~~number~~claims, ~~and~~subordinated ~~two-thirds~~or insenior ~~dollar~~claims). Generally, ~~amount~~with ofrespect ~~claims~~to ~~actually~~shares, ~~voting~~a inPlan ~~each~~may ~~class~~be of“crammed ~~claims~~down” ~~impaired~~even byif the ~~Plan~~shareholders ~~have~~receive ~~voted~~no torecovery ~~accept~~if the proponent of the Plan ~~and~~demonstrates that (ii1) atno ~~least~~class ~~two-thirds~~junior into ~~amount~~the ofshares ~~equity~~are ~~interests~~receiving ~~impaired~~or byretaining property under the Plan ~~actually~~and ~~voting~~(2) no ~~has~~class ~~voted~~of toclaims ~~accept~~or interests senior to the ~~Plan. A~~shares ~~class~~are ofbeing paid more than in full.

15On October 21, 2016, the Debtors filed a proposed Plan with the Bankruptcy Court. Certain principal terms of the proposed Plan, as filed on October 21, 2016, with respect to the LINN Debtors include:


•	One or more new legal entities, in a to-be-determined form, will be formed to directly or indirectly hold all of the assets of the LINN Debtors. Following the Restructuring, the LINN Debtors will be standalone companies, separate from Berry.


•	The holders of claims under the LINN Credit Facility will receive their pro rata share of $1.7 billion reserve-based revolving and term loan credit facilities, as described further below (the “New LINN Exit Facility”), and a cash paydown in an amount that has yet to be determined.


•	LINN Energy’s Second Lien Notes will be allowed in the aggregate as a $2.0 billion unsecured claim (plus accrued and unpaid interest and reasonable and documented fees and expenses), and the holders of the Second Lien Notes will

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

~~claims~~receive ortheir ~~equity~~pro ~~interests~~rata ~~that~~share ~~does~~of ~~not~~(i) a ~~receive~~to-be-determined orpercentage ~~retain~~of ~~any~~New ~~property~~Common ~~under~~Stock; ~~the~~(ii) certain ~~Plan~~rights onto ~~account~~purchase shares of ~~such~~New ~~claims~~Common orStock ~~interests~~in isthe ~~deemed~~rights offering, as described above; and (iii) $30 million in cash to ~~have~~the ~~voted~~extent such holders vote their Second Lien Notes claims to ~~reject~~accept the Plan.

~~Under~~• certain circumstances set forth in Section 1129(b) of the Bankruptcy Code, the Bankruptcy Court may confirm a Plan even if such Plan has not been accepted by all impaired classes of claims and equity interests. The ~~precise~~holders ~~requirements and evidentiary showing for confirming a Plan notwithstanding its rejection by one or more impaired classes~~ of ~~claims~~LINN orEnergy’s ~~equity~~Unsecured ~~interests~~Notes ~~depends~~will ~~upon~~receive atheir ~~number~~pro ofrata ~~factors,~~share ~~including the status and seniority~~ of ~~the claims or equity interests in the rejecting class~~ (i~~.e., unsecured or secured claims, subordinated or senior claims~~)~~. Generally,~~ ~~with respect to shares,~~ a ~~Plan may~~ to-be-determined ~~“crammed~~percentage ~~down” even if the shareholders receive no recovery if the proponent~~ of ~~the~~New ~~Plan~~Common ~~demonstrates~~Stock; ~~that~~and (1ii) no ~~class~~certain ~~junior~~rights to ~~the~~purchase shares ~~are receiving or retaining property under the Plan and (2) no class~~ of ~~claims~~New orCommon ~~interests~~Stock ~~senior~~in to the ~~shares~~rights ~~are being paid more than in full~~offering.

• The ~~timing~~holders of ~~filing~~unsecured aclaims ~~Plan~~against byLINN ~~the~~Energy ~~Debtors~~other ~~will~~than ~~depend on~~ the ~~timing~~Unsecured ~~and~~Notes ~~outcome~~will ofreceive ~~numerous~~their ~~other~~pro ~~ongoing~~rata ~~matters~~share inof ~~the~~(i) ~~Chapter 11~~a ~~proceedings. Although~~to-be-determined ~~the~~percentage ~~Debtors~~of ~~expect~~New toCommon ~~file~~Stock; aand ~~Plan~~(ii) ~~that~~certain ~~provides~~rights ~~for~~to ~~emergence~~purchase ~~from~~shares ~~bankruptcy~~of asNew aCommon ~~going concern~~Stock, ~~there~~at ~~can~~the besame noprice ~~assurance~~per atshare ~~this~~as ~~time~~in ~~that~~ the ~~Debtors~~rights ~~will~~offerings, to be ~~able~~issued toseparate ~~successfully~~from ~~develop,~~the ~~confirm~~rights ~~and~~offerings. ~~consummate~~Such ~~one~~holders orof ~~more~~unsecured ~~plans~~claims ofless ~~reorganization~~than ora ~~other~~to-be-determined ~~alternative~~amount ~~restructuring~~are ~~transactions,~~expected ~~including~~to ahave ~~sale~~the ofright ~~all~~to orelect ~~substantially~~to ~~all~~receive, in lieu of ~~the~~New ~~Debtors’~~Common ~~assets,~~Stock ~~that~~and ~~satisfies~~rights ~~the~~to ~~conditions~~purchase shares of ~~the~~New ~~Bankruptcy~~Common ~~Code~~Stock, ~~and~~cash isin ~~confirmed~~an byamount ~~the~~equal ~~Bankruptcy~~to ~~Court,~~a orto-be-determined ~~that~~percentage ~~any~~of such ~~Plan~~holder’s ~~will~~allowed beunsecured ~~implemented successfully~~claim.

As• Cash recoveries will be funded with the proceeds of ~~August 5,~~$530 ~~2016,~~million from the ~~Debtors~~rights ~~have~~offerings ~~not~~of ~~yet~~New ~~filed~~Common aStock, ~~Plan~~which will be fully committed to be backstopped by certain of the Consenting Noteholders, as described above.


•	The board of directors shall consist of seven directors, who shall include: (i) the chief executive officer of the Company, (ii) one director selected by the Company and (iii) five directors selected by a selection committee.


•	All existing equity interests of the Company and LINN Energy will be extinguished without recovery.

The Plan contemplates a New LINN Exit Facility consisting of (i) a term loan in the amount of $300 million (the “New LINN Term Loan”) and (ii) a revolving loan in the initial amount of $1.4 billion (the “New LINN Revolving Loan”). The New LINN Term Loan will mature on the earlier of June 30, 2021, or the day prior to the fourth anniversary of the date of emergence from bankruptcy (the “Closing Date”), with interest payable at LIBOR plus 7.50% and amortized principal payments payable quarterly, beginning March 31, 2017. The New LINN Revolving Loan will be composed of two tranches as follows: (a) a conforming tranche with an initial amount of $1.4 billion subject to the borrowing base (the “Conforming Tranche”), and (b) a non-conforming tranche with an initial amount of $0 (the “Non-Conforming Tranche”). The Conforming Tranche will mature on the earlier of (i) June 30, 2021, or (ii) the day prior to the fourth anniversary of the Closing Date, with an interest rate of LIBOR plus 3.50%. The Non-Conforming Tranche will mature on the earlier of (i) December 31, 2020, or (ii) the day prior to the date that is three years and six months after the Closing Date, with an interest rate of LIBOR plus 5.50%. The New LINN Exit Facility will contain a variety of other terms and conditions including annual year-end borrowing base redeterminations beginning April 1, 2018, conditions precedent to funding, financial and other covenants, and certain representations and warranties.

The Plan also provides for the establishment of a customary employee incentive plan at the reorganized Company under which a pool of equity having a value equal to (i) 8% of the equity value of the reorganized LINN Debtors as of the Plan effective date (the “Company Group Emergence Value”) as follows: (A) 2.5% of the Company Group Emergence Value in the form of restricted stock units to be issued at emergence; (B) 1.5% of the Company Group Emergence Value in the form of profits interests that will vest based on time and performance; and (C) the remaining 4% of the Company Group Emergence Value in a form of equity-based awards as determined by the board of directors of the reorganized Company; and (ii) an additional 2.0% of the Company Group Emergence Value, which will be issued at emergence in the form of profits interests that vest once the equity value of the reorganized LINN Debtors (as equitably adjusted for subsequent contributions and distributions) is equal to 1.5 times the Company Group Emergence Value.

Certain principal terms of the proposed Plan, as filed on October 21, 2016, with respect to Berry include:

•

The holders of claims under the Berry Credit Facility will receive a full recovery consisting of one or more of the following: (i) a to-be-determined exit financing facility; (ii) a to-be-determined cash paydown; (iii) a to-be-determined percentage of new common stock or limited liability company interests (“New Berry Common Stock”) in the reorganized Berry or its successor in interest (“New Berry”) up to the value of the collateral securing the Berry Credit Facility claims; and (iv) proceeds of any asset sales solely to the extent such assets are the collateral securing the Berry Credit Facility claims.

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued


•	The holders of Berry unsecured notes (the “Berry Unsecured Notes”) will receive one or more of the following: (i) New Berry Common Stock; (ii) rights to purchase New Berry Common Stock or other security in New Berry; and (iii) proceeds of any asset sales, after accounting for proceeds required to satisfy the Berry Credit Facility claims.


•	The holders of unsecured claims against Berry other than the Berry Unsecured Notes will receive one or more of the following: (i) New Berry Common Stock; (ii) rights to purchase New Berry Common Stock or other security in New Berry; and (iii) proceeds of any asset sales, after accounting for proceeds required to satisfy the Berry Credit Facility claims.


•	Berry will settle all intercompany claims against the LINN Debtors pursuant to a settlement to be approved as part of the Plan, which settlement provides that Berry will have a $25 million general unsecured claim against LINN Energy.


•	The governance terms of New Berry, as well as the terms of any employee incentive plan, are to be determined. New Berry will be a standalone company, separate from the Company and the LINN Debtors.


•	All existing equity interests of Berry and Linn Acquisition Company, LLC will be extinguished without recovery.

There can be no assurance at this time that the Debtors will be able to successfully confirm and consummate the Plan.

Ability to Continue as a Going Concern

Offer to Exchange LINN Energy Units for LinnCo Shares

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Delisting from Stock Exchange

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

Results of Operations

Equity Income (Loss) from Investment in Linn Energy, LLC

The Company uses the equity method of accounting for its investment in LINN Energy. The Company’s equity income (loss) consists of its share of LINN Energy’s earnings or losses attributed to the units the Company owns, the amortization of the difference between the Company’s investment in LINN Energy and LINN Energy’s underlying net assets attributable to certain assets and liabilities, and impairments of its investment in LINN Energy. As a result of the exchanges of LINN Energy units for LinnCo shares (see Note 3), LinnCo’s ownership of LINN Energy’s outstanding units increased from approximately 3637% at ~~March~~December 31, ~~2016~~2015, to approximately 6971% at ~~June~~September 30, 2016. The percentage ownership in LINN Energy could continue to change if the Company acquires additional units or if LINN Energy issues or repurchases additional units.

Following are summarized statements of operations information for LINN Energy. Additional information on LINN Energy’s results of operations and financial position are contained in its Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, 2016, which is included in this filing as Exhibit 99.1 and incorporated herein by reference.

Summarized Linn Energy, LLC Statements of Operations Information

	Three Months EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2016			2015			2016			2015
	(in thousands)
Revenues and other	$	~~155~~385,~~395~~665		$	~~321~~998,~~828~~304		$	~~570~~955,~~162~~827		$	12,~~238~~236,~~375~~679
Expenses	(~~415~~430,~~539~~996		)	(~~560~~2,~~590~~623,101		)	(2,~~062~~493,~~723~~719		)	(14,~~684~~307,~~745~~846		)
Other income and (expenses)	(6940,~~736~~374		)	~~(143~~57,~~095~~657		)	(~~174~~215,~~821~~195		)	(~~281~~224,~~774~~117		)
Reorganization items, net	~~534~~(116,~~884~~276		)	—			~~534~~418,~~884~~608			—
Income tax (expense) benefit	3,~~488~~616			(2,~~730~~177		)	(63,~~756~~140		)	97,~~857~~680
Net income (loss)	$	208,492		$	(379,127	)	$	(1,139,254	)	$	(718,287	)
Net loss	$	(198,365	)	$	(1,569,317	)	$	(1,337,619	)	$	(2,287,604	)

General and Administrative Expenses

The Company’s general and administrative expenses are associated with managing the business and affairs of LinnCo and include services provided by LINN Energy necessary for the conduct of LinnCo’s business, such as accounting, legal, tax, information technology and other expenses. For the three months and ~~six~~nine months ended ~~June~~September 30, 2016, LinnCo incurred total general and administrative expenses of approximately $1855,000 and $2.19 million, respectively, including approximately $603,000 and $2.1.8 million, respectively, ~~including~~related to services provided by LINN Energy. Of the general and administrative expenses incurred during the nine months ended September 30, 2016, approximately $2.8 million had been paid by LINN Energy on LinnCo’s behalf as of September 30, 2016.

1719

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

For the three months and nine months ended September 30, 2015, LinnCo incurred total general and administrative expenses of approximately $~~603~~965,000 and $2.8 million, respectively, including approximately $491,000 and $1.25 million, respectively, related to services provided by LINN Energy. All general and administrative expenses incurred during the ~~six~~nine months ended ~~June~~September 30, ~~2016~~2015, had been paid by LINN Energy on LinnCo’s behalf as of ~~June~~September 30, ~~2016~~2015.

For the three months and six months ended June 30, 2015, LinnCo incurred total general and administrative expenses of approximately $901,000 and $1.9 million, respectively, including approximately $492,000 and $983,000, respectively, related to services provided by LINN Energy. Of the general and administrative expenses incurred during the six months ended June 30, 2015, approximately $1.8 million had been paid by LINN Energy on LinnCo’s behalf as of June 30, 2015.

Because all general and administrative expenses are actually paid by LINN Energy on LinnCo’s behalf, no cash is disbursed by LinnCo for these expenses.

Reorganization Items

For the three months and ~~six~~nine months ended ~~June~~September 30, 2016, “reorganization items” of $~~200~~100,000 and $300,000, respectively, on the statements of operations represents legal and other professional advisory fees incurred by LinnCo, ~~none~~all of which had been paid by LINN Energy on LinnCo’s behalf as of ~~June~~September 30, 2016.

Income Tax (Expense) Benefit

The income tax benefit of approximately $~~483~~927,000 and income tax expense of approximately $1312 million for the three months and ~~six~~nine months ended ~~June~~September 30, 2016, respectively, are associated with settlements with taxing authorities related to statutory audits of previous tax years,. The ~~and the~~ income tax ~~benefit~~expense of approximately $134 million and income tax benefit of approximately $3228 million for the three months and ~~six~~nine months ended ~~June~~September 30, 2015, respectively, are based on the Company’s ~~losses~~net income (loss) for the periods, primarily associated with the equity ~~losses~~income (loss) from its investment in LINN Energy.

Liquidity and Capital Resources

The Company’s authorized capital structure consists of two classes of interests: (1) shares with limited voting rights, which were issued in the IPO, in connection with the Berry acquisition and in connection with the 2016 exchanges of LINN Energy units for LinnCo shares, and (2) voting shares, 100% of which are held by LINN Energy. At ~~June~~September 30, 2016, LinnCo’s issued capitalization consisted of approximately $3.9 billion in common shares and $1,000 contributed by LINN Energy in connection with LinnCo’s formation and in exchange for its voting share. Additional classes of equity interests may be created upon approval by the Board of Directors (“Board”) and the holders of a majority of the outstanding common shares and voting shares, voting as separate classes.

The Company expects neither to generate nor to require significant cash in its ongoing business. Any cash received from the sale of additional shares will be immediately used to purchase LINN Energy units. Accordingly, the Company does not anticipate any other sources or needs for additional liquidity, other than if the Company had a tax obligation. Such tax obligation would require some form of liquidity to satisfy it, including a cash contribution from LINN Energy, which LINN Energy is not required to provide.

18The Company’s only significant asset is its interest in LINN Energy units and the Company’s cash flow, which was historically used to pay dividends to the Company’s shareholders, is completely dependent upon the ability of LINN Energy to make

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

The significant risks and uncertainties related to the Company’s liquidity and Chapter 11 proceedings described under “Recent Developments” raise substantial doubt about the Company’s ability to continue as a going concern.

In order to decrease LINN Energy’s level of indebtedness and maintain its liquidity at levels sufficient to meet its commitments, LINN Energy undertook a number of actions, including minimizing capital expenditures and further reducing its recurring operating expenses. Despite taking these actions, LINN Energy did not have sufficient liquidity to satisfy its debt service obligations, meet other financial obligations and comply with its debt covenants. As a result, the Debtors filed Bankruptcy Petitions for relief under Chapter 11 of the Bankruptcy Code.

See above under “Chapter 11 Proceedings” for information about the Company’s entry into the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and Bank RSA.

Distributions and Dividends

Within five business days after receiving a cash distribution related to its interest in LINN Energy units, LinnCo is required to pay the cash received, net of reserves for its income taxes liability, if any, as dividends to its shareholders. In October 2015, LINN Energy suspended the payment of its distribution. Since LinnCo pays its dividend from the receipt of cash distributions from LINN Energy, LinnCo will not pay a dividend while LINN Energy’s distributions are suspended.

Critical Accounting Policies and Estimates

The discussion and analysis of the Company’s financial condition and results of operations is based on the financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management of the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, income and expenses, and related disclosures of contingent assets and liabilities. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors that are believed to be reasonable under the circumstances. Such estimates and assumptions are adjusted when facts and circumstances dictate. Actual results may differ from these estimates and assumptions used in the preparation of the financial statements.

Recently Issued Accounting Standards

For a discussion of recently issued accounting standards, see Note 1.

Accounting for Investment in Linn Energy, LLC

The Company uses the equity method of accounting for its investment in LINN Energy. The Company records its share of LINN Energy’s net income (loss) in the period in which it is earned. If the Company’s share of LINN Energy’s losses reduces its investment in LINN Energy to zero, the Company temporarily discontinues applying the equity method. At ~~June~~September 30, 2016, the Company owned approximately 6971% of LINN Energy’s outstanding units. The Company’s ownership percentage could change if the Company acquires additional units or if LINN Energy issues or repurchases additional units. Changes in the Company’s ownership percentage affect its net income (loss).

19At September 30, 2016, the carrying amount of the Company’s investment in LINN Energy was greater than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $1.1 billion. The difference is attributable to cumulative excess losses of approximately $592 million, as well as a basis difference of approximately $509 million related to proved and unproved oil and natural gas properties and senior notes. The difference attributable to oil and natural gas properties and senior notes is amortized over the lives of the related assets and liabilities. Such amortization is included in the equity income (loss) from the Company’s investment in LINN Energy. At December 31, 2015, the carrying amount of the

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

~~At June 30, 2016, the carrying amount of the~~ Company’s investment in LINN Energy was greater than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $946 million. The difference is attributable to cumulative excess losses of approximately $482 million, as well as a basis difference of approximately $464 million related to proved and unproved oil and natural gas properties and senior notes. The difference attributable to oil and natural gas properties and senior notes is amortized over the lives of the related assets and liabilities. Such amortization is included in the equity income (loss) from the Company’s investment in LINN Energy. At December 31, 2015, the carrying amount of the Company’s investment in LINN Energy was greater than the Company’s ownership interest in LINN Energy’s underlying net assets by approximately $85 million.

Cautionary Statement Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements that are subject to a number of risks and uncertainties, many of which are beyond the Company’s control. Because substantially all of LinnCo’s assets consist of its interest in LINN Energy’s units, these risks and uncertainties primarily relate to LINN Energy’s business which include the following:


•	business strategy;


•	acquisition strategy;


•	financial strategy;


•	risks associated with the Chapter 11 process, including LINN Energy’s inability to develop, confirm and consummate a plan under Chapter 11 or an alternative restructuring transaction;


•	inability to maintain relationships with suppliers, customers and other third parties as a result of the Chapter 11 filing;


•	failure to satisfy the Company’s short- or long-term liquidity needs;


•	large or multiple customer defaults on contractual obligations, including defaults resulting from actual or potential insolvencies;


•	effects of legal proceedings;


•	ability to resume payment of distributions in the future or maintain or grow them after such resumption;


•	drilling locations;


•	oil, natural gas and NGL reserves;


•	realized oil, natural gas and NGL prices;


•	production volumes;


•	capital expenditures;


•	economic and competitive advantages;


•	credit and capital market conditions;


•	regulatory changes;


•	lease operating expenses, general and administrative expenses and development costs;


•	future operating results, including results of acquired properties;

• plans, objectives, expectations and intentions; and

• taxes~~; and~~.

• integration of acquired businesses and operations and commencement of activities in LINN Energy’s strategic alliances with GSO Capital Partners LP and Quantum Energy Partners, which may take longer than anticipated, may be more costly than anticipated as a result of unexpected factors or events and may have an unanticipated adverse effect on LINN Energy’s business.

All of these types of statements, other than statements of historical fact included in this Quarterly Report on Form 10-Q, are forward-looking statements. These forward-looking statements may be found in Item 2. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology.

The forward-looking statements contained in this Quarterly Report on Form 10-Q are largely based on LINN Energy and Company expectations, which reflect estimates and assumptions made by LINN Energy and Company management. These estimates and assumptions reflect management’s best judgment based on currently known market conditions and other factors. Although the Company believes such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties beyond its control. In addition, management’s assumptions may prove to be inaccurate. The Company cautions that the forward-looking statements contained in this Quarterly Report on Form 10-Q are not guarantees of future performance, and it cannot assure any reader that such statements will be realized or the events will occur. Actual results may differ materially from those anticipated or implied in forward-looking statements due to factors set forth in Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q and in the Annual Report on Form 10-K for the year ended December 31, 2015, and elsewhere in the Annual Report. The forward-looking statements speak only as of the date made and, other than as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

20The forward-looking statements related to the Plan involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any results,

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Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations - Continued

~~number~~performance ofor ~~risks~~achievements ~~and~~expressed ~~uncertainties~~or ~~beyond~~implied ~~its~~by ~~control. In~~other ~~addition, management’s assumptions may prove to be inaccurate. The Company cautions that the~~ forward-looking statements contained in this Quarterly Report on Form 10-Q, ~~are~~including but not ~~guarantees~~limited ofto ~~future~~potential ~~performance,~~adverse ~~and~~effects itrelated ~~cannot~~to ~~assure~~the ~~any~~following: ~~reader~~delisting ~~that~~of ~~such~~the ~~statements~~Company’s ~~will~~shares beand ~~realized~~LINN orEnergy’s ~~the~~units ~~events~~on ~~will~~NASDAQ; ~~occur. Actual~~reorganization ~~results~~and ~~may~~related ~~differ~~effects ~~materially~~on ~~from~~LINN ~~those~~Energy’s ~~anticipated~~outstanding ordebt ~~implied~~and inoutstanding ~~forward-looking~~units, ~~statements~~as ~~due~~well toas ~~factors~~the ~~set~~Company’s ~~forth~~outstanding inshares; ~~Item~~potential ~~1A.~~effects ~~“Risk~~of ~~Factors”~~the inindustry ~~this~~downturn ~~Quarterly~~on ~~Report~~LINN onEnergy’s ~~Form~~business, ~~10-Q~~financial condition and inresults ~~the~~of ~~Annual~~operations; ~~Report~~potential limitations on ~~Form~~the ~~10-K~~Company’s ~~for~~and ~~the~~LINN ~~year~~Energy’s ~~ended~~ability ~~December 31,~~to ~~2015,~~maintain contracts and ~~elsewhere~~other incritical ~~the~~business ~~Annual~~relationships; ~~Report. The~~requirements ~~forward-looking~~for ~~statements~~adequate ~~speak~~liquidity ~~only~~to asfund of the ~~date~~Company’s ~~made~~ and, ~~other~~LINN ~~than~~Energy’s asoperations ~~required~~in bythe ~~law~~future, ~~the~~including ~~Company~~obtaining ~~undertakes~~sufficient nofinancing ~~obligation~~on toacceptable ~~publicly~~terms; ~~update~~and orother ~~revise~~matters ~~any~~related ~~forward-looking~~to ~~statement,~~the ~~whether~~reorganization asand aLINN ~~result~~Energy’s ~~of new information~~indebtedness, ~~future~~including ~~events~~any ordefaults ~~otherwise~~related thereto.

The forward-looking statements related to the Plan involve known and unknown risks, uncertainties, assumptions and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any results, performance or achievements expressed or implied by other forward-looking statements contained in this Quarterly Report on Form 10-Q, including but not limited to potential adverse effects related to the following: delisting of the Company’s shares and LINN Energy’s units on NASDAQ; reorganization and related effects on LINN Energy’s outstanding debt and outstanding units, as well as the Company’s outstanding shares; potential effects of the industry downturn on LINN Energy’s business, financial condition and results of operations; potential limitations on the Company’s and LINN Energy’s ability to maintain contracts and other critical business relationships; requirements for adequate liquidity to fund the Company’s and LINN Energy’s operations in the future, including obtaining sufficient financing on acceptable terms; and other matters related to the reorganization and LINN Energy’s indebtedness, including any defaults related thereto.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

The nature of the Company’s business and operations is such that no activities or transactions are conducted or entered into by the Company that would require it to have a discussion under this item.

For a discussion of these matters as they pertain to LINN Energy, please read Item 3. “Quantitative and Qualitative Disclosures About Market Risk” of LINN Energy’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, 2016, which is included in this filing as Exhibit 99.1 and incorporated herein by reference as activities of LINN Energy have an impact on the Company’s results of operations and financial position.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company’s reports under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including the Company’s Chief Executive Officer and Chief Financial Officer, and the Company’s Audit Committee of the Board of Directors, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

The Company carried out an evaluation under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of its disclosure controls and procedures as of the end of the period covered by this report. Based on this evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of ~~June~~September 30, 2016.

Changes in the Company’s Internal Control Over Financial Reporting

The Company’s management is also responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. The Company’s internal controls were designed to provide reasonable assurance as to the reliability of its financial reporting and the preparation and presentation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

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Item 4. Controls and Procedures - Continued

provide reasonable assurance as to the reliability of its financial reporting and the preparation and presentation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States.

Because of its inherent limitations, internal control over financial reporting may not detect or prevent misstatements. Projections of any evaluation of the effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

There were no changes in the Company’s internal control over financial reporting during the ~~second~~third quarter of 2016 that materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

Item 1A. Risk Factors

Our business has many risks. Factors that could materially adversely affect our business, financial condition, operating results or liquidity and the trading price of our shares are described in Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015. Except as set forth below, as of the date of this report, these risk factors have not changed materially. This information should be considered carefully, together with other information in this report and other reports and materials we file with the United States Securities and Exchange Commission.

Any plan of reorganization that we may implement will be based in large part upon assumptions and analyses developed by us and LINN Energy. If these assumptions and analyses prove to be incorrect, our plan may be unsuccessful in its execution.

On October 21, 2016, we filed a proposed Plan with the Bankruptcy Court. Any plan of reorganization that we may implement could affect both our capital structure and the ownership, structure and operation of our business and will reflect assumptions and analyses based on our and LINN Energy’s management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that they consider appropriate under the circumstances. Whether actual future results and developments will be consistent with management’s expectations and assumptions depends on a number of factors, including but not limited to (i) our and LINN Energy’s ability to change substantially our capital structures; (ii) our and LINN Energy’s ability to obtain adequate liquidity and financing sources; (iii) our and LINN Energy’s ability to maintain customers’ confidence in our viability as a continuing entity and to attract and retain sufficient business from them; (iv) LINN Energy’s ability to retain key employees; and (v) the overall strength and stability of general economic conditions of the financial and oil and natural gas industries, both in the U.S. and in global markets. The failure of any of these factors could materially adversely affect the successful reorganization of our business.

In addition, any plan of reorganization will rely upon financial projections, including with respect to revenues, EBITDA, capital expenditures, debt service and cash flow. Financial forecasts are necessarily speculative, and it is likely that one or more of the assumptions and estimates that are the basis of these financial forecasts will not be accurate. In our case, the forecasts will be even more speculative than normal, because they may involve fundamental changes in the nature of our capital structure. Accordingly, we expect that our actual financial condition and results of operations will differ, perhaps materially, from what we have anticipated. Consequently, there can be no assurance that the results or developments contemplated by any plan of reorganization we may implement will occur or, even if they do occur, that they will have the anticipated effects on us or our business or operations. The failure of any such results or developments to materialize as anticipated could materially adversely affect the successful execution of any plan of reorganization.

LINN Energy has substantial liquidity needs and may not be able to obtain sufficient liquidity to confirm a plan of reorganization and exit bankruptcy.

Although LINN Energy has lowered its capital budget and reduced the scale of its operations significantly, its business remains capital intensive. In addition to the cash requirements necessary to fund ongoing operations, LINN Energy has incurred significant professional fees and other costs in connection with its Chapter 11 proceedings and expects that it will continue to incur significant professional fees and costs throughout the Chapter 11 proceedings. There are no assurances that LINN Energy’s current liquidity is sufficient to allow it to satisfy its obligations related to the Chapter 11 proceedings, allow it to proceed with the confirmation of a Chapter 11 plan of reorganization and allow it to emerge from bankruptcy. LINN Energy can provide no assurance that it will be able to secure additional interim financing or exit financing sufficient to meet its liquidity needs.

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Item 1A. Risk Factors - Continued

In connection with a plan of reorganization, LINN Energy may, for federal and state income tax purposes, trigger an actual or deemed sale of all or a portion of its properties which may result in unfavorable tax consequences.

In connection with a plan of reorganization, LINN Energy may, for federal and state income tax purposes, trigger an actual or deemed sale of all or a portion of its properties and use the proceeds to satisfy debt. LINN Energy’s unitholders may be allocated substantial taxable income or loss with respect to such a sale, and our share of LINN Energy’s taxable income and gain (or specific items thereof) from such sale may be substantially greater than, or LINN Energy’s tax losses and deductions (or specific items thereof) from such sale may be substantially less than, our interest in LINN Energy’s economic profits because of allocations under section 704(c) of the Internal Revenue Code.

The ~~Restructuring Support Agreement to which LinnCo,~~ LINN ~~Energy~~RSA and ~~Berry~~Bank ~~are~~RSA acontemplate ~~party contemplates~~ a separation of Berry from LINN Energy. To the extent such separation triggers an actual or deemed sale of assets held by LINN Energy, as a result of the December 2013 Contribution Agreement between LinnCo and LINN Energy, LinnCo may have a substantial current cash tax liability resulting from an allocation of taxable income with respect to any remaining net unrealized built-in-gain on the assets contributed.

We are subject to the risks and uncertainties associated with Chapter 11 proceedings.

For the duration of our Chapter 11 proceedings, our operations and our ability to develop and execute our business plan, as well as our continuation as a going concern, are subject to the risks and uncertainties associated with bankruptcy. These risks include the following:

• our and LINN Energy’s ability to develop, confirm and consummate a ~~Chapter~~Plan ~~11 plan~~ or alternative restructuring transaction;


•	our and LINN Energy’s ability to obtain court approval with respect to motions filed in Chapter 11 proceedings from time to time;


•	our and LINN Energy’s ability to maintain our relationships with our suppliers, service providers, customers, employees and other third parties;


•	our and LINN Energy’s ability to maintain contracts that are critical to our operations;


•	our and LINN Energy’s ability to execute our business plan;


•	the ability of third parties to seek and obtain court approval to terminate contracts and other agreements with us and LINN Energy;

• the ability of third parties to seek and obtain court approval to terminate or shorten the exclusivity period for us and LINN Energy to propose and confirm a ~~Chapter 11 plan~~Plan, to appoint a Chapter 11 trustee, or to convert the Chapter 11 proceedings to a Chapter 7 proceeding; and


•	the actions and decisions of our and LINN Energy’s creditors and other third parties who have interests in our Chapter 11 proceedings that may be inconsistent with our plans.

These risks and uncertainties could affect our and LINN Energy’s business and operations in various ways. For example, negative events associated with our Chapter 11 proceedings could adversely affect LINN Energy’s relationships with its suppliers, service providers, customers, employees, and other third parties, which in turn could adversely affect our operations and financial condition. Also, we need the prior approval of the Bankruptcy Court for transactions outside the ordinary course of business, which may limit our ability to respond timely to certain events or take advantage of certain opportunities. Because of the risks and uncertainties associated with our Chapter 11 proceedings, we cannot accurately predict or quantify the ultimate impact of events that will occur during our Chapter 11 proceedings that may be inconsistent with our plans.

Operating under Bankruptcy Court protection for a long period of time may harm our business.

Our future results are dependent upon the successful confirmation and implementation of a plan of reorganization. A long period of operations under Bankruptcy Court protection could have a material adverse effect on our business, financial condition, results of operations and liquidity. So long as the Chapter 11 proceedings continue, our senior management will be required to spend a significant amount of time and effort dealing with the reorganization instead of focusing exclusively on our business operations. A prolonged period of operating under Bankruptcy Court protection also may make it more difficult to retain management and other key personnel necessary for the success and growth of our business. In addition, the longer the Chapter 11 proceedings continue, the more likely it is that LINN Energy’s customers and suppliers will lose confidence in its ability to reorganize its business successfully and will seek to establish alternative commercial relationships.

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Item 1A. Risk Factors - Continued

Chapter 11 proceedings continue, the more likely it is that LINN Energy’s customers and suppliers will lose confidence in its ability to reorganize its business successfully and will seek to establish alternative commercial relationships.

Furthermore, so long as the Chapter 11 proceedings continue, we will be required to incur substantial costs for professional fees and other expenses associated with the administration of the Chapter 11 proceedings. The Chapter 11 proceedings may also require us or LINN Energy to seek debtor-in-possession financing to fund operations. If we or LINN Energy are unable to obtain such financing on favorable terms or at all, our chances of successfully reorganizing our business may be seriously jeopardized, the likelihood that we instead will be required to liquidate our assets may be enhanced, and, as a result, any securities in us could become further devalued or become worthless.

Furthermore, we cannot predict the ultimate amount of all settlement terms for the liabilities that will be subject to a plan of reorganization. Even once a plan of reorganization is approved and implemented, our operating results may be adversely affected by the possible reluctance of prospective lenders and other counterparties to do business with a company that recently emerged from Chapter 11 proceedings.

The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and ~~provides~~Bank RSA provide that our common shares representing limited liability company interests (“common shares”) will be canceled in our Chapter 11 proceedings.

The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and ~~provides~~Bank RSA provide that our existing equity will be canceled in our Chapter 11 proceedings and will be entitled to a limited recovery, if any. Any trading in our common shares during the pendency of the Chapter 11 proceedings is highly speculative and poses substantial risks to purchasers of our common shares.

We may not be able to obtain confirmation of a Chapter 11 plan of reorganization.

To emerge successfully from Bankruptcy Court protection as a viable entity, we must meet certain statutory requirements with respect to adequacy of disclosure with respect to the Plan, solicit and obtain the requisite acceptances of such a plan and fulfill other statutory conditions for confirmation of such a plan, which have not occurred to date. The confirmation process is subject to numerous, unanticipated potential delays, including a delay in the Bankruptcy Court’s commencement of the confirmation hearing regarding our Plan.

Prior to the Chapter 11 filing, we entered into the Bank RSA with certain of LINN Energy’s creditors, and on October 21, 2016, we entered into the LINN RSA, which is intended to replace the Bank RSA with respect to the terms of the Restructuring ~~Support~~of ~~Agreement~~the LINN Debtors. The restructuring transactions contemplated by the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and Bank RSA will be effectuated through ~~the~~a Plan. However, we may not receive the requisite acceptances of constituencies in the Chapter 11 proceedings to confirm our Plan. Even if the requisite acceptances of ~~the~~a Plan are received, the Bankruptcy Court may not confirm such a plan. The precise requirements and evidentiary showing for confirming a plan, notwithstanding its rejection by one or more impaired classes of claims or equity interests, depends upon a number of factors including, without limitation, the status and seniority of the claims or equity interests in the rejecting class (i.e., unsecured claims or secured claims, subordinated or senior claims).

If a Chapter 11 plan of reorganization is not confirmed by the Bankruptcy Court, it is unclear whether we would be able to reorganize our business and what, if anything, holders of claims against us would ultimately receive with respect to their claims.

The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and isBank RSA are subject to significant conditions and milestones that may be difficult for us to satisfy.

There are certain material conditions we must satisfy under the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and Bank RSA, including the timely satisfaction of milestones in the anticipated Chapter 11 proceedings, such as confirmation of ~~the~~a Plan and effectiveness of ~~the~~a Plan. Our ability to timely complete such milestones is subject to risks and uncertainties that may be beyond our control.

If either the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~or Bank RSA is terminated, or if both agreements are terminated, our ability to confirm and consummate the Plan could be materially and adversely affected.

The ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and ~~contains~~Bank RSA contain a number of termination events, upon the occurrence of which certain parties to the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and Bank RSA, as applicable, may terminate the agreement. If the ~~Restructuring~~LINN ~~Support~~RSA ~~Agreement~~and isBank RSA are terminated, each of the parties thereto, as applicable, will be released from their obligations in accordance with the terms of the ~~Restructuring~~applicable ~~Support~~agreement. Such termination may result in the loss of support for the Plan by the parties to the LINN RSA or Bank RSA, as

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Item 1A. Risk Factors - Continued

~~Agreement. Such termination may result in the loss of support for the Plan by the parties to the Restructuring Support Agreement~~applicable, which could adversely affect our ability to confirm and consummate the Plan. If the Plan is not consummated, there can be no assurance that any new Plan would be as favorable to holders of claims as the current Plan.

Our long-term liquidity requirements and the adequacy of our capital resources are difficult to predict at this time.

We face uncertainty regarding the adequacy of our liquidity and capital resources and have extremely limited, if any, access to additional financing. In addition to the cash requirements necessary to fund its ongoing operations, LINN Energy has incurred significant professional fees and other costs in connection with ~~preparation for~~ the Chapter 11 proceedings and expects tothat it will continue to incur significant professional fees and costs throughout ~~our~~the Chapter 11 proceedings. We cannot assure you that LINN Energy’s cash on hand and cash flow from operations will be sufficient to continue to fund our operations and allow us and LINN Energy to satisfy our obligations related to the Chapter 11 proceedings until we are able to emerge from our Chapter 11 proceedings.

Our liquidity, including our ability to meet our ongoing operational obligations, is dependent upon, among other things: (i) our ability to comply with the terms and conditions of any cash collateral order that may be entered by the Bankruptcy Court in connection with the Chapter 11 proceedings, (ii) our ability to maintain adequate cash on hand, (iii) our ability to develop, confirm and consummate a Chapter 11 plan or other alternative restructuring transaction, and (iv) the cost, duration and outcome of the Chapter 11 proceedings.

We may be subject to claims that will not be discharged in the Chapter 11 proceedings, which could have a material adverse effect on our financial condition and results of operations.

The Bankruptcy Code provides that the confirmation of a plan of reorganization discharges a debtor from substantially all debts arising prior to confirmation. With few exceptions, all claims that arose prior to May 12, 2016, or before confirmation of the plan of reorganization (i) would be subject to compromise and/or treatment under the plan of reorganization and/or (ii) would be discharged in accordance with the terms of the Plan. Any claims not ultimately discharged through the Plan could be asserted against the reorganized entities and may have an adverse effect on our financial condition and results of operations on a post-reorganization basis.

LINN Energy may experience increased levels of employee attrition as a result of the Chapter 11 proceedings.

We have no employees. We have entered into an agreement with LINN Energy to provide to us the necessary services and support personnel. As a result of the Chapter 11 proceedings, LINN Energy may experience increased levels of employee attrition, and its employees likely will face considerable distraction and uncertainty. A loss of key personnel or material erosion of employee morale could adversely affect our business and results of operations. LINN Energy’s ability to engage, motivate and retain key employees or take other measures intended to motivate and incent key employees to remain with LINN Energy through the pendency of the Chapter 11 proceedings is limited by restrictions on implementation of incentive programs under the Bankruptcy Code. The loss of services of members of LINN Energy’s senior management team could impair our ability to execute our strategy and implement operational initiatives, which would be likely to have a material adverse effect on our business, financial condition and results of operations.

In certain instances, a Chapter 11 case may be converted to a case under Chapter 7 of the Bankruptcy Code.

There can be no assurance as to whether we will successfully reorganize and emerge from the Chapter 11 proceedings or, if we do successfully reorganize, as to when we would emerge from the Chapter 11 proceedings.

If the Bankruptcy Court finds that it would be in the best interest of creditors and/or the Debtors, the Bankruptcy Court may convert our anticipated Chapter 11 bankruptcy case to a case under Chapter 7 of the Bankruptcy Code. In such event, a Chapter 7 trustee would be appointed or elected to liquidate the Debtors’ assets for distribution in accordance with the priorities established by the Bankruptcy Code. The Debtors believe that liquidation under Chapter 7 would result in significantly smaller distributions being made to the Debtors’ creditors than those provided for in a Chapter 11 plan because of (i) the likelihood that the assets would have to be sold or otherwise disposed of in a disorderly fashion over a short period of time rather than reorganizing or selling in a controlled manner the Debtors’ businesses as a going concern, (ii) additional administrative expenses involved in the appointment of a Chapter 7 trustee, and (iii) additional expenses and claims, some of which would be

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Item 1A. Risk Factors - Continued

~~expenses involved in the appointment of a Chapter 7 trustee, and (iii) additional expenses and claims, some of which would be~~ entitled to priority, that would be generated during the liquidation and from the rejection of leases and other executory contracts in connection with a cessation of operations.

Our common shares are no longer listed on a national securities exchange and are quoted only in over-the-counter markets, which carries substantial risks and could continue to negatively impact our common share price, volatility and liquidity.

As a result of our failure to comply with the NASDAQ Global Select Market (“NASDAQ”) continued listing requirements, on May 24, 2016, our common shares began trading over the counter on the OTC Markets Group Inc.’s Pink marketplace under the trading symbol “LNCOQ.”

Our delisting from the NASDAQ and commencement of trading on the OTC Pink marketplace has resulted and may continue to result in a reduction in some or all of the following, each of which could have a material adverse effect on our common shareholders:


•	the liquidity of our common shares;


•	the market price of our common shares;


•	the number of institutional and other investors that will consider investing in our common shares;


•	the number of market makers in our common shares;


•	the availability of information concerning the trading prices and volume of our common shares; and


•	the number of broker-dealers willing to execute trades in our common shares.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The Company’s Board of Directors ~~has~~had authorized the repurchase of up to $250 million of the Company’s outstanding shares from time to time on the open market or in negotiated purchases. The timing and amounts of any such repurchases are at the discretion of management, subject to market conditions and other factors, and in accordance with applicable securities laws and other legal requirements. The repurchase plan does not obligate the Company ~~to acquire any specific number of shares and may be discontinued at any time. The Company~~ did not repurchase any shares during the ~~six~~nine months ended ~~June~~September 30, 2016, and as of September 30, 2016, the ~~entire~~Company ~~amount~~does ~~remains~~not ~~available~~intend ~~for~~to ~~share~~make ~~repurchase~~any purchases under the program.

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Item 6. Exhibits

Exhibit Number		Description
3.1	—	Certificate of Formation of LinnCo, LLC (incorporated herein by reference to Exhibit 3.1 to Registration Statement on Form S-1 filed on June 25, 2012)
3.2	—	Certificate of Amendment to Certificate of Formation of LinnCo, LLC (incorporated herein by reference to Exhibit 3.6 to Amendment No. 3 to Registration Statement on Form S‑1 filed on October 1, 2012)
3.3	—	Amended and Restated Limited Liability Company Agreement of LinnCo, LLC dated October 17, 2012 (incorporated herein by reference to Exhibit 3.1 to Current Report on Form 8‑K filed on October 17, 2012)
3.4	—	First Amendment, dated December 16, 2013, to Amended and Restated Limited Liability Company Agreement of LinnCo, LLC, dated October 17, 2012 (incorporated herein by reference to Exhibit 3.4 to Annual Report on Form 10‑K filed on March 3, 2014)
10.1	—	First Amendment to Restructuring Support Agreement, dated as of ~~May~~September 108, 2016, by and among the Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed on ~~May~~September 119, 2016)
10.2	—	Second Amendment to Restructuring Support Agreement, dated as of September 23, 2016, by and among the Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed on September 26, 2016)
10.3	—	Third Amendment to Restructuring Support Agreement, dated as of October 7, 2016, by and among the Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed on October 11, 2016)
10.4	—	Fourth Amendment to Restructuring Support Agreement, dated as of October 14, 2016, by and among the Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.2 to Current Report on Form 8-K filed on October 18, 2016)
10.5	—	Restructuring Support Agreement, dated as of October 7, 2016, by and among the Linn Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed on October 11, 2016)
10.6	—	First Amendment to Restructuring Support Agreement, dated as of October 14, 2016, by and among the Linn Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed on October 18, 2016)
10.7	—	First Amended and Restated Restructuring Support Agreement, dated as of October 21, 2016, by and among the Linn Debtors and the supporting parties thereto (incorporated herein by reference to Exhibit 10.1 to Current Report on Form 8-K filed on October 27, 2016)
31.1*	—	Section 302 Certification of Mark E. Ellis, Chairman, President and Chief Executive Officer of LinnCo, LLC
31.2*	—	Section 302 Certification of David B. Rottino, Executive Vice President and Chief Financial Officer of LinnCo, LLC
32.1*	—	Section 906 Certification of Mark E. Ellis, Chairman, President and Chief Executive Officer of LinnCo, LLC
32.2*	—	Section 906 Certification of David B. Rottino, Executive Vice President and Chief Financial Officer of LinnCo, LLC
99.1*	—	Linn Energy, LLC’s Quarterly Report on Form 10-Q for the quarter ended ~~June~~September 30, 2016
101.INS**	—	XBRL Instance Document
101.SCH**	—	XBRL Taxonomy Extension Schema Document
101.CAL**	—	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**	—	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	—	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	—	XBRL Taxonomy Extension Presentation Linkbase Document

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Item 6. Exhibits - Continued



Exhibit Number		Description

101.DEF**	—	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**	—	XBRL Taxonomy Extension Label Linkbase Document
101.PRE**	—	XBRL Taxonomy Extension Presentation Linkbase Document


*	Filed herewith.


**	Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	LinnCo, LLC
	(Registrant)
Date: August 5, 2016	/s/ Darren R. Schluter
Date: November 7, 2016	/s/ Darren R. Schluter
	Darren R. Schluter
	Vice President and Controller
	(Duly Authorized Officer and Principal Accounting Officer)
Date: August 5, 2016	/s/ David B. Rottino
Date: November 7, 2016	/s/ David B. Rottino
	David B. Rottino
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

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Filing Compare · LinnCo, LLC