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Richard Zeits

 
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  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Bobdbus,

    I would disagree with regard to Chevron's PV-10, plus other metrics, not offering meaningful information. But it's just my perspective.

    But why are we comparing LINN to Chevron?
    Sep 21 11:31 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Bryce-in-TX,

    I don't think the standard says that PV-10 is not helpful in determining FMV of the reserves. In fact, I believe it is for many analysts who try to do valuation work. That's why the SEC requires this disclosure.
    Sep 21 10:41 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Bryce_in_TX,

    I think the PV-10 is actually a helpful metric. I agree, certainly not exactly the fair market value, but helps a lot in figuring out potential issues.
    Sep 21 10:33 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Bobdbus,

    PV-10 relates to proved oil and gas reserves. For integrated oil majors, the upstream is just one of several segments.

    Also, let's not forget that the majors sell of mature properties and retain high-growth, low-cost assets.
    Sep 21 10:25 PM | 1 Like Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Alpha Wolf,

    Actually, I see significant informational value in the PV-10 estimate because it is provided by an informed insider. When you suggest "modeling out a few scenarios," what would those scenarios be based on to have the right to be different from what the company says under oath?
    Sep 21 10:08 PM | 1 Like Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    ZZ,

    I am not sure I made any projections. I just know that base production naturally declines and it takes a lot of skill and focus to replace it at a competitive cost. Having a competitive asset base certainly helps.
    Sep 21 10:04 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Davephd,

    You are making a very relevant point. However, it appears that you are implicitly suggesting that hydrocarbons are in short supply. I would argue, what is in short supply is politically safe and investment-friendly business environment in many parts of the world. The US/Canada case study shows that there is no real shortage of hydrocarbons.
    Sep 21 10:02 PM | 2 Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Critterlitter,

    The bottomline consists of both current distribution and unit price performance, may I note...

    I cannot agree more, rising commodity prices would certainly help unitholders' total return. However, I am not sure what you mean by the "science of extraction." Sounds almost scientific, but am not sure makes a convincing argument.
    Sep 21 09:58 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Richard 48,

    "Most of the scientific articles indicate that the future of enhanced
    recovery methods could double the amount of energy recovered
    from a well."

    Would you please clarify?
    Sep 21 09:51 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Longhorn54,

    Or perhaps the partnership does not have free cash - due to high distribution - to schedule any more PUDs than they already have.
    Sep 21 09:43 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    hhmcdon,

    In my philosophy, whether to invest or not to invest and on what basis is every investor's personal decision. The article is hopefully some food for thought, but was certainly not meant to be an investment recommendation.

    With regard to current distribution yield, I would be careful. You may wish to look at the performance of SandRidge Mississippian Trust I and SandRidge Mississippian Trust II. Those vehicles have also traded at a terrific current yield. But what about unit price performance.
    Sep 21 08:57 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Jerrywengler,

    The PV-10 metric discussed in the article relates to the value of proved oil & gas reserves. I am not sure what relevance it has for KMP or "a general stock of the DOW." KMP and LINN are in very different lines of business.
    Sep 21 08:50 PM | 1 Like Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Hermanbrut,

    Just to avoid any misunderstanding: the PV-10 number is really not "my" PV-10 number. It is provided by the company based on SEC guidelines.

    I am not sure though what you mean by "the present value of unproven reserves based on a probabiliy analysis." Sounds almost scientific.

    By the way, does the company have any spare cash to invest into unproven reserves in the next five years? I am not sure it does.
    Sep 21 08:46 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Creese,

    DCF comes from operating cash flows. The PV-10 metric gives an idea of what future operating cash flows are expected to be. Of note, existing production tends to decline.
    Sep 21 08:36 PM | 1 Like Like |Link to Comment
  • Continental Resources: The Big Promise Of The Anadarko Basin [View article]
    Clarkaroo and Pablomike,

    Your comments are fair, Continental's acreage goes beyond the Anadarko Basin in the south. I guess, my point was that the opportunity set is much wider than just Woodford and is a consequence of being part of well known, prolific basin(s) that have excellent source rocks and stacked-pay structure.
    Sep 19 01:37 PM | 3 Likes Like |Link to Comment
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