- 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.