Seeking Alpha

Linn Energy acreage swap falls short of expectations, Oppenheimer says

  • Oppenheimer reiterates its Underperform rating and $26 price target on Linn Energy (LINE +0.3%) after company's announced asset swap with Exxon Mobil (Briefing.com).
  • The low decline, mature assets acquired by Linn will likely slightly lower the overall decline rate and capital intensity, but the anticipated accretion is only about half of what had been expected, Oppenheimer says; as a result, it is lowering its earnings estimates.
  • In addition, the deal does little to reduce elevated leverage, which the firm forecasts at 4.5x in 2015; it also continue to believes maintenance capital spending is significantly understated.
  • LNCO +0.8%.
Comments (22)
  • AltheDentist
    , contributor
    Comments (22) | Send Message
     
    I hope people follow Oppenheimer's advice and drive LINE down to 26. I would back up the truck.
    27 May, 03:12 PM Reply Like
  • azureblue0917
    , contributor
    Comments (41) | Send Message
     
    Oppenheimer's institutional accounts would be first in-line to buy the stock at 26....please their research is a joke
    27 May, 03:15 PM Reply Like
  • GUY TARANTOLO
    , contributor
    Comments (3) | Send Message
     
    I have prophetic dreams, even about my investments and positions in the market. I'll either see a vision like a ten minute movie in my mind, or just a quick snapshot of something. I'm laying here with my eyes closed and this snapshot appears in my mind. Very boldly it said Linn $45. I guarantee that's what you're going to see. It was my God telling me to hold on to my Linn positions. I also saw gold hitting $2000. I guarantee that's what you're going to see. Position yourself for the long term in both Linn and gold. Mark my words. They scared everybody out of Linn, but I held on. It's going to see $45. With 10% dividend along the way.
    27 May, 08:51 PM Reply Like
  • Glucose
    , contributor
    Comments (245) | Send Message
     
    hey!! dude thank you for your prophecy and are there any more insights on stuff from the future?
    what about TWITTER, will facebook go out of business? when will the FED hike Rates? what about oil? who wins the next elections? thank you in advance :)
    27 May, 11:17 PM Reply Like
  • GUY TARANTOLO
    , contributor
    Comments (3) | Send Message
     
    I don't control these visions. I have a relationship with God and He gives me direction. Anybody can cultivate that. Share with Him all your thoughts and desires. As you get to know Him, it gets deeper and deeper. It's like an intimate relationship. It gets better and better all the time. You'll learn it's His choice what you have in life. Sickness or health, poverty or wealth. He has to receive all the glory for your blessings and moment by moment existence. Your spiritual journey. Enjoy the ride. If He reveals anymore insights I'll let you know. He'll give you your own.
    28 May, 08:42 AM Reply Like
  • GUY TARANTOLO
    , contributor
    Comments (3) | Send Message
     
    Washington aka Obama, Hillary, Kerry, and Gore to name a few have it all wrong on this one. As posted on National Geographic Daily News comments.
    http://bit.ly/1mFlr4o
    Carbon emissions, greenhouse gases, defining climate change as man caused is a hoax. The people propagating this are deceived by this notion and they are deceiving the public at large. About the middle of the 1980's I had a vision that said this. "We are coming into a time of illumination, and you ARE GOING TO see whole civilizations walking around naked. It's meant to pass genetic strengths down upon the whole human race." We are meant to absorb this energy while it lasts. Plants and animals are also going to be absorbing this energy. This vision has also returned to me on a recurring basis over the years until this present day to continue to reinforce this impression upon my mindset that I may with authority communicate this to the world. Laugh fools. But this is what you're going to see.
    28 May, 11:39 AM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1097) | Send Message
     
    OPP is on that B of S.

     

    I just love how blatantly pointed and bias the piece is written, with words of will likely slightly that's like saying someone was vaguely threatening towards you for waving hello from across the street. How about an actual # for this lowering of their earnings estimate? plus most people know that the coverage ratio is more important than any earnings estimate. Per LINN this swap will increase the distributable amount a good penny plus per unit per month.

     

    How about a name to this call? look Lnco is actually up.
    So that I can discard any future badly worded pointed articles from Oppenheimer.

     

    Oppenheimer is like the Dave Del Dotto of the stock information community.
    27 May, 03:23 PM Reply Like
  • azureblue0917
    , contributor
    Comments (41) | Send Message
     
    Nice reference to Dave Del Dotto http://bit.ly/1hvmhfu he's taken his "talent" to the wine business.
    27 May, 03:33 PM Reply Like
  • Capt Jack Daniels
    , contributor
    Comments (1097) | Send Message
     
    LMAO he'll likely bottle the world's only wine that won't get anyone rich or drunk.
    27 May, 05:55 PM Reply Like
  • madmax02
    , contributor
    Comments (19) | Send Message
     
    this is bullS---
    gosh not news at all
    Huh
    27 May, 03:24 PM Reply Like
  • Wilcoj
    , contributor
    Comments (29) | Send Message
     
    Average rating is "OVERWEIGHT" with a target of 33+. This is nice considering the HUGE dividend.
    27 May, 05:27 PM Reply Like
  • Chancer
    , contributor
    Comments (2737) | Send Message
     
    Linn Energy could not make a good deal on a purchase, sale, or trade, if their distribution depended on it. And in time, their distribution may depend on all their bad decisions made from their weak position of desperation. I think the entire industry knows that in negotiations, Linn is the weak wimpy kid- a real pushover. Everybody in the industry like management at Exxon and BRY will continue eating Linn's lunch until they grow a spine.
    27 May, 05:28 PM Reply Like
  • Hawkeronetwo
    , contributor
    Comments (85) | Send Message
     
    Just how short are you ?
    27 May, 08:00 PM Reply Like
  • jerrywengler
    , contributor
    Comments (465) | Send Message
     
    Chancer, you are resorting to name calling. It doesn't work well. There have been times in the past when I found your comments more informing. You probably have more worthwhile things to say. I would guess that an executive at Exxon would tell you that they operate at a sufficient level of maturity to deal respectfully with equally able representatives of Linn. I think it was a more even-handed deal than you seem to. Linn's new position in the Hugoton is a great deal, and Exxon gets a shot at possibly great horizontal plays. My condolences if you lost money on trading them because I know that's not fun.
    27 May, 11:53 PM Reply Like
  • cem1976
    , contributor
    Comments (102) | Send Message
     
    Yep, they (Linn ) have grown into the largest upstream MLP there is now, didn't cut divy.........Management obviously doesn't know what they're doing....( imply sarcasm )
    27 May, 06:25 PM Reply Like
  • stockdunn
    , contributor
    Comments (159) | Send Message
     
    This is the dividend coverage info from Schwab-yikes! Is this correct? Long LNCO.

     

    Payout Ratio (TTM) --
    Dividend Coverage Ratio (TTM) -540.96%
    27 May, 11:48 PM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2380) | Send Message
     
    stockdunn
    this is what I got from Schwab at 11:25cst 5/28/2014 for LINE

     

    Dividend Coverage Ratio (TTM)Help
    -74.94%

     

    Total Dividends Paid (http://bit.ly/SQsUDz
    $2.66

     

    As LNCO has NO outside income other than payments from LINE
    you might call Schwab and ask how they got that number. I have seen over the years some crazy numbers on the Schwab research site.
    28 May, 12:30 PM Reply Like
  • stockdunn
    , contributor
    Comments (159) | Send Message
     
    Thanks. Interesting difference between LINE and LNCO, as LNCO is supposed to shadow LINE, no?
    28 May, 11:54 PM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2380) | Send Message
     
    stockdunn
    yes, it allows people to invest without the ubt tax possibility using erisa accounts like iras.
    29 May, 08:36 AM Reply Like
  • Uain53
    , contributor
    Comments (1451) | Send Message
     
    Well I bought 49 shares today at $27.11 for my brokerage 401K.

     

    Looking at the news, company provided that is, I leverage the tiresome articles from the "weak hands" to my advantage.

     

    Long, accumulating and re-investing the divs.
    Next year the smart money lemmings will be singing the praises of (LNCO), whilst many of us pick up a little Capital Appreciation.

     

    Who says you can't let Wall Street work for you?
    28 May, 02:02 AM Reply Like
  • NYCTEXASBANKER
    , contributor
    Comments (2380) | Send Message
     
    uain53

     

    As a line and lnco shareholder I agree with your investment.
    Back in the old days, we use to say the four hands were stopping each other from touching the money.
    28 May, 12:35 PM Reply Like
  • Uain53
    , contributor
    Comments (1451) | Send Message
     
    "..four hands were stopping each other from touching the money. "

     

    I'll remember to use this one in my investment club.... properly referenced, of course.
    29 May, 10:52 PM Reply Like
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