Linn Energy/LinnCo upgraded to Focus Stock at Howard Weil

|About: Linn Energy, LLC (LINEQ)|By:, SA News Editor

Linn Energy (LINE +1.4%) and LinnCo (LNCO +1.1%) are upgraded to Focus Stock from Sector Outperform at Howard Weil as a result of the potentially game-changing transaction around Linn's now-60K net acres prospective for horizontal Wolfcamp drilling.

The firm notes Linn enters 2014 in strong shape after a difficult 2013 after closing the Berry transaction, and the new assets could yield better capital efficiency upon seeing the combined budget and expected production growth over the next few months.

The firm says the Berry integration should be relatively smooth as Linn has had ample time to prepare, but most importantly, the companies' combined Permian position offers a myriad of options to convert the non-producing horizontally prospective acreage into cash flow.