Thu, Feb. 19, 6:58 AM
Wed, Feb. 18, 5:30 PM| 7 Comments
Thu, Feb. 5, 6:33 PM
- Linn Energy (LINE, LNCO) says the SEC has closed its inquiry related to its 2013 acquisition of Berry Petroleum.
- Linn says the SEC does not intend to recommend any enforcement action against the company.
- The inquiry, which originally was expected to last a few months, delved into Linn's financial disclosures, its pending merger with Berry Petroleum, its use of non-GAAP financial measures relayed to investors and its hedging strategy.
Wed, Feb. 4, 2:44 PM
- Barclays warns that MLPs focused on exploration and production, pressured by high debt levels and weak operating margins, could cut distributions as well as capital spending, with particular concern for oil and gas royalty trusts.
- The firm revises its estimates to reflect lower oil price assumptions in 2015-16, cutting ratings on Enduro Royalty Trust (NYSE:NDRO), Pacific Coast Oil Trust (NYSE:ROYT) and Vanguard Natural Resources (NASDAQ:VNR) to Equal Weight from Overweight; it reinstates Legacy Reserves (NASDAQ:LGCY) at Equal Weight, and reiterates Breitburn Energy (NASDAQ:BBEP), Linn Energy (NASDAQ:LINE), and Memorial Production Partners (NASDAQ:MEMP) at Equal Weight and Viper Energy Partners (NASDAQ:VNOM) at Overweight.
- Barclays notes that average yields for BBEP, LGCY, LINE, MEMP, and VNR have generally ranged from 9%-11% for most of the past five years but are now 14% based on the latest annualized distributions; based on lower oil prices, its distributable cash flow estimates imply average yields of 8%-9% in 2016.
Thu, Jan. 29, 4:44 PM
Wed, Jan. 7, 12:26 PM
- Linn Energy (LINE +0.4%) is downgraded to Equal Weight from Overweight with a $12 price target, lowered from $29, at Barclays following the company's reduced 2015 capital budget and a cut in its annualized distribution announced last week.
- The firm says the implied yield of 11% on the reduced distribution is still attractive but lower hedging gains and rising leverage ratios are likely to continue pressuring the balance between cash flow, capital spending and distributable cash.
Mon, Jan. 5, 5:58 PM
- After last week's distribution cuts (I, II) from Linn Energy (NASDAQ:LINE) and Breitburn Energy Partners (NASDAQ:BBEP), Citigroup's Faisel Khan and Vikram Bagri write that distribution cuts by other exploration and production MLPs appear “imminent.”
- Linn's moves are positive but only a short-term fix, the analysts say, citing what it calls one of the highest leverage ratios in the group; absent any uplift in commodity prices, the firm does not see a clear way to improve leverage to a more manageable level, which could once again put the distribution at risk in 2016.
- Citi also cuts its target prices for Linn to $11.50 from $23.50 and LinnCo (NASDAQ:LNCO) to $11.00 from $22.75; its target for LINE assumes applying an 8.25x multiple to its near-term adjusted EBITDA forecast of $1.7B, while its target for LNCO assumes a 3% discount to its target for LINE.
Fri, Jan. 2, 5:43 PM
- Some MLPs are weighing whether to cut their generous payouts to shareholders, and Linn Energy (NASDAQ:LINE) was rewarded today for being the first to bite the bullet (I, II), sending shares soaring 12% today; LinnCo (NASDAQ:LNCO) jumped 11%.
- Wells Fargo analysts believe Linn now will be able to fund all of its capital spending with internally generated cash flow, which they see as "a key positive given the dislocation in the capital markets" while adding that the company may have to cuts its payouts further if oil prices trade at ~$52/bbl.
- Investors also appeared to like Linn's deal with a fund backed by Blackstone which will provide up to $500M for future drilling in exchange for an 85% stake in the profits; after Blackstone makes a 15% return on the wells, its interest will decline to 5% and Linn will reap 95% of the profits.
- The GSO deal "would give us access to acquisition funding in down markets and diversify Linn away from traditional debt and equity capital markets," says Linn CEO Mark Ellis.
Fri, Jan. 2, 10:16 AM
- Linn Energy (LINE +8.9%) has turned sharply higher despite its earlier announcement that it cut its oil and natural gas budget by 53% to $730M for the new year and that Linn and sister company LinnCo (LNCO +5.9%) also slashed their annual dividends to $1.25/share from $2.90.
- LINE/LNCO initially plunged on the news during premarket trading, but apparently the capex and dividend cuts had been priced in, and now the shorts are getting squeezed.
Fri, Jan. 2, 9:14 AM
Fri, Jan. 2, 7:19 AM
- The board approves a 2015 budget with oil and gas capital expenditures of $730M - down 53% from $1.55B in 2014 - and a 56.9% cut in the annual distribution of both LINE and LNCO.
- In other news: Linn signs a letter of intent with a Blackstone's GSO Capital Partners for $500M in funding for oil and gas development.
- A conference call is set for 11 ET
- Source: Press release
- Previously: Linn Co declares $0.10 dividend (Jan. 2)
- Previously: Linn Energy declares $0.10 dividend (Jan. 2)
- LINE -6.2%, LNCO -11.8% premarket
Fri, Jan. 2, 7:03 AM
Dec. 22, 2014, 10:45 AM
- Natural gas prices fall 9.5% to near two-year lows at $3.133/mmBtu, in the biggest one-day percentage loss since February and the lowest intraday price since January 2013, on mild weather forecasts and inventory that is above year-ago levels.
- Prices are now down more than 15% in three straight losing sessions and are 30% lower than the six-month high closing price of $4.489/mmBtu it hit just a month ago.
- Weather has been unseasonably warm for December, limiting demand for home heating and allowing relatively low stockpiles to catch up to where they were a year ago and encouraging traders to sell based on the belief that supply is relatively healthy.
- Gas producers are among the biggest early decliners: XOM -1.1%, CHK -7.3%, APC -2.6%, SWN -6%, DVN -2.2%, COP -2.3%, BP -1.5%, COG -4%, BHP -1.9%, CVX -1.3%, ECA -5.1%, EQT -4.3%, RDS.A -1.7%, UPL -12%, WPX -6.9%, EOG -1%, OXY -1.1%, RRC -6.1%, APA -2.3%, AR -3.2%, CNX -3%, QEP -4.8%, LINE -4.9%, NBL -1.6%, SM -2.6%, XEC -4.2%, PXD -2.9%, NFX -5.1%.
- ETFs: UNG, DGAZ, UGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, NAGS, DCNG
Dec. 18, 2014, 9:14 AM| 9 Comments
Dec. 16, 2014, 12:58 PM
- Linn Energy (LINE +22.1%) will delay its 2015 budget and use proceeds from assets sold in Texas and Oklahoma to cut debt 16%, VP of investor relations Clay Jeansonne tells Bloomberg, following other energy firms in putting spending on hold and reducing debt amid investor concern about payouts.
- LINE said yesterday that it closed the sale of its holdings in the Granite Wash and Cleveland plays in Texas and Oklahoma for $1.95B, and Jeansonne says expectations that the sale wouldn’t go through had helped push down the stock.
- Shares are turning around spectacularly from earlier losses as oil prices rebound.
- Earlier (I, II): Linn Energy, LinnCo (LNCO +15.2%)slashed by Baird
Dec. 16, 2014, 12:47 PM
LINE vs. ETF Alternatives
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.
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