Seeking Alpha

Linn Energy (LINE): Q2 EPS of $0.31 misses by $0.09. (PR)

Linn Energy (LINE): Q2 EPS of $0.31 misses by $0.09. (PR)
Comments (4)
  • When will SA editors ever learn that EPS for an MLP is irrelevant....
    26 Jul 2012, 09:39 AM Reply Like
  • Your comment is way off base. SA is reporting what LINE reported. You might as well complain "will LINE ever learn that EPS for an MLP is irrelevant." And there are EPS estimates for MLPs - it's not accurate to say they're irrelevant. It's up to present and potential MLP investors to understand that EPS doesn't mean the same thing for an MLP as it does for a C corp, and that there are other metrics that must be considered.
    26 Jul 2012, 10:28 AM Reply Like
  • I disagree - EPS is not an important metric for MLPs and should not therefore be the headline banner for quarterly reports for an MLP. Rather, distributable cash flow is the important metric for an MLP and its growth or contraction is key to an investment decision. As stated in today's Energy Strategist live chat by Elliottt Gue concerning LINE :
    "the wire services continue to report earnings numbers which are meaningless for Linn".
    Your comment is way off base though commonly shared by the uninformed.
    26 Jul 2012, 05:29 PM Reply Like
  • I agree that DCF is more important - that's not what I claimed. However EPS isn't irrelevant and and it's not SA's job to go in and calculate DCF. EPS is the figure LINE publishes in the press release and that's what SA reported. If Gue doesn't like LINE reporting EPS then he needs to take it up with Linn management and their PR dept. I don't expect SA to do my homework and spoon-feed me. That's not their obligation.

     

    P.s. The wire services just publish the LINE press release. Not sure why Gue would think they create company press releases.
    26 Jul 2012, 09:08 PM Reply Like
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