Seeking Alpha

Linn Energy, LLC (LINE)

  • Fri, Aug. 28, 5:40 PM
    | Fri, Aug. 28, 5:40 PM | 15 Comments
  • Fri, Aug. 28, 12:46 PM
    | Fri, Aug. 28, 12:46 PM | 4 Comments
  • Thu, Aug. 27, 9:14 AM
    | Thu, Aug. 27, 9:14 AM | 4 Comments
  • Tue, Aug. 25, 7:15 AM
    • Linn Energy (NASDAQ:LINE) and LinnCo (NASDAQ:LNCO) appoint David Rottino as executive VP and CFO of both companies, effective immediately.
    • He replaces Kolja Rockov, who is leaving to pursue other opportunities.
    • Rottino joined Linn in 2008, and and has served as executive VP for business development and chief accounting officer since early 2014.
    | Tue, Aug. 25, 7:15 AM | 20 Comments
  • Mon, Aug. 24, 6:41 PM
    • The plunge in oil prices may lead to some oil companies going out of business within a few weeks, according to Energy Aspects senior oil analyst Amrita Sen, who points to Linn Energy (LINE, LNCO) and Energy XXI (NASDAQ:EXXI) as bankruptcy candidates after exhausting more than 75% of the credit available to them.
    • Sen names Midstates Petroleum (NYSE:MPO), Resolute Energy (NYSE:REN), W&T Offshore (NYSE:WTI), Breitburn Energy (NASDAQ:BBEP) and Comstock Resources (NYSE:CRK) as seeing their borrowing facilities "reduced the most" among companies tracked by the firm.
    • "The amount of money available to these U.S. producers to borrow is half, less than half in some cases, compared to a year ago," Sen writes, which "makes it very, very difficult for them to continue investing, continue drilling," but she also predicts that supplies will tighten by the end of next year, and prices could easily more than double from current levels.
    | Mon, Aug. 24, 6:41 PM | 116 Comments
  • Fri, Aug. 21, 11:57 AM
    • Linn Energy (LINE -7.9%) is leading the upstream MLPs lower, with Hedgeye's Kevin Kaiser trying to get confirmation on chatter CFO Kolja Rockov is facing financial difficulties and had to cancel an $8M house he was building.
    • LinnCo (LNCO -5.6%)
    • Breitburn Energy (BBEP -1.3%), Memorial Production (MEMP -5.2%), LRR Energy (LRE -5.9%), Eagle Rock Energy (EROC -5.3%), Vanguard Natural Resource (VNR -7.4%).
    | Fri, Aug. 21, 11:57 AM | 113 Comments
  • Mon, Aug. 3, 4:41 PM
    • Linn Energy (NASDAQ:LINE) declares $0.1042/share monthly dividend, in line with previous.
    • Forward yield 38.01%
    • Payable Aug. 18; for shareholders of record Aug. 13; ex-div Aug. 11.
    | Mon, Aug. 3, 4:41 PM | 21 Comments
  • Mon, Aug. 3, 2:26 PM
    • Linn Energy (LINE -18.7%) and LinnCo (LNCO -15.9%) continue their three-day slide which began last Thursday following their surprise announcement to suspend distributions; both have suffered ~50% declines during the period.
    • At least two more analysts weighed in with negative comments today following two downgrades last Friday; RBC Capital cut LINE and LNCO to Sector Perform from Outperform while lowering its price target for both to $5, saying the lack of a dividend means “investor appetite is likely to remain anemic for the foreseeable future" even though the dividend suspension was "the right step," and Citi also lowers its price target to $5 but keeps a neutral High Risk rating on LINE/LNCO.
    • Barron’s Andrew Bary also jumped in over the weekend, writing that LINE/LNCO could lose many retail investors without a fat distribution, and may find itself valued based on conventional energy-company methods.
    | Mon, Aug. 3, 2:26 PM | 47 Comments
  • Mon, Aug. 3, 12:46 PM
    | Mon, Aug. 3, 12:46 PM | 8 Comments
  • Mon, Aug. 3, 9:18 AM
    | Mon, Aug. 3, 9:18 AM | Comment!
  • Fri, Jul. 31, 1:42 PM
    • Linn Energy (NASDAQ:LINE) and LinnCo (NASDAQ:LNCO) are piling on losses -- LINE is -14.5% today, adding on to yesterday's 26.3% drop, and LNCO -12.9% after yesterday's 29.3% fall -- the day after LINE said it planned to suspend distributions starting in October.
    • Downgrades have come fast and heavy. Credit Suisse's John Edwards dropped ratings on the firms to Underperform on a limited ability to take out more debt: "Given LINE’s 2016 Debt/EBITDA leverage over 5x, raising additional debt to finance growth also appears challenging. We struggle to visualize accretive transactions with LINE’s current capital structure and don’t model any future distribution payments given the leverage."
    • Edwards set a $5 price target on LINE and LNCO, down from $10. LINE shares closed yesterday at $4.76, and LNCO at $4.41.
    • JPMorgan's Gabriel Daoud Jr. downgraded to Underperform as well, given that "the majority of MLP investors remain income orientated" and considering the lack of yield. He set a $5 target on LINE as well.
    • Stifel Nicolaus has lowered its price target on LINE to $7.
    | Fri, Jul. 31, 1:42 PM | 54 Comments
  • Thu, Jul. 30, 12:47 PM
    | Thu, Jul. 30, 12:47 PM | 8 Comments
  • Thu, Jul. 30, 10:54 AM
    • Linn Energy (LINE -16.9%) and LinnCo (LNCO -22.6%) plunge after LINE says it plans to suspend distributions later in the year, saving $450M; LINE plans to pay the distribution in August and September and suspend it starting in October.
    • Raymond James analyst Kevin Smith downgrades LINE/LNCO to Market Perform, saying he was “very surprised by management’s decision to fully suspend the distribution" - just last week, he had lowered the companies to Outperform from Strong Buy.
    • LINE also says it is buying back nearly $600M of senior debt from creditors at a 35% discount; by repurchasing a total of $783M in its debt this year, LINE says it is saving ~$54M/year in interest charges.
    | Thu, Jul. 30, 10:54 AM | 118 Comments
  • Thu, Jul. 30, 9:12 AM
    | Thu, Jul. 30, 9:12 AM | 7 Comments
  • Thu, Jul. 30, 6:45 AM
    | Thu, Jul. 30, 6:45 AM | 57 Comments
  • Tue, Jul. 21, 10:47 AM
    • LinnCo (LNCO +4.1%) is downgraded to Outperform from Strong Buy with a $9 price target, down from $15, by Raymond James analyst Keven Smith, a longtime supporter of LNCO and Linn Energy (LINE +4.4%).
    • Smith's positive view on LNCO has been based on Linn’s strong hedging book, low decline asset base, and unique ability to acquire E&P C-corps which mitigated the weakness of the oil markets; given the YTD lack of acquisitions and the higher equity cost of capital due to a lower stock price, he is dialing back acquisition expectations for the partnership and his forecast for Linn’s sustainable distribution rate.
    • Smith also drops his price target on LINE to $8 from $14 while maintaining his outperform rating, predicting LINE will need to lower its distribution in 2016 if oil remains below $60.
    • Smith also downgrades Atlas Resource Partners (ARP +1%) to Underperform, saying ARP could hit its leverage covenant of 5.25x its trailing 12-month total debt/EBITDA ratio; he expects ARP and Memorial Production Partners (MEMP +1.4%) to cut their distribution rates.
    | Tue, Jul. 21, 10:47 AM | 99 Comments
Company Description
Linn Energy LLC is an independent oil and natural gas company. The Company's properties are located in United States in Rockies, Hugoton Basin, California, East Texas and north Louisiana, Mid-Continent, Permian Basin, Michigan/Illinois and South Texas.