LINN Energy has initiated a process to explore strategic alternatives to strengthen its balance sheet and maximize the value of the company.

“Efficient management of our stable asset base and aggressive cost management are driving meaningful value even in today’s difficult commodity price environment,” said Mark E. Ellis, chairman, president and CEO. “However, given commodity pricing pressure and the impact that market challenges are expected to have on our industry and the long-term financial outlook of our company, we believe it is prudent to explore opportunities to strengthen our balance sheet and ensure we have adequate financial flexibility to manage through prolonged commodity price headwinds. By proactively undertaking this process now with the help of our advisors, we believe we can implement a comprehensive solution that will position LINN for long-term success.”

The company said it recently borrowed approximately $919 million from LINN’s credit facility, which represented the remaining undrawn amount that was available under the credit facility. These funds are intended to be used for general corporate purposes. Total borrowings under the credit facility are now $3.6 billion. Berry Petroleum’s credit facility remains fully utilized at $900 million, including $250 million of restricted cash posted as collateral.

According to a related 8-K filing dated October 21, 2015, the lender group is led by Wells Fargo Bank as administrative agent.

The company has retained Lazard as its financial advisor and Kirkland & Ellis as its legal advisor to assist the board of directors and management team with the strategic review process. Baker Botts will continue to provide ongoing corporate and finance representation.