ATrautmann's Comments RSS Syndication from SeekingAlpha.com http://seekingalpha.com/user/1102358/comments http://seekingalpha.com/article/1452851/comments?source=feed#comment-19166351 19166351 http://bit.ly/11dhg1G. Most were established as energy trusts and evolved into the MLP model . With dwindling reserves and unsustainable distributions investors lost interest and the traditional E&P model was resurrected as the dominant upstream model.

In attending some sessions at the recent MLP conference in CT I could not help but think the E&P MLP may be far less viable than many believe. Logistics, production and refining are all very different animals . Midstream and downstream being where I stay invested. LINN energy will tell the tale of the E&P model.

What LINN's CFO had to say in the q & a was most interesting . Essentially , Berry is the lynchpin to LINN's future growth and distribution sustainability. But what really shocked me was the tax differed implications of the transaction for Berry's equity owners.
There will be about $800mil in tax liability that Berry will defer or avoid altogether as they exchange their equity for LNCO shares.

Wow, that is a game changer and you could have heard a pin drop in the room . MLP's purchasing C corps assets and eliminating a taxable event for the selling entity. Sounds too good to be true ... And maybe it is ...the CFO went on to explain a 20% curtailment of LINN's hedging activity to satisfy investors "concerns" as we'll . Whatever that means !

Bottom line : LINN is on to something very big and the most creative in the MLP upstream space . Now we will see what the market thinks . I am still long LINE but with some serious reservation . Both LGCY and VNR presented business models which are more traditional for upstream producers , both firms are anxious to see how LINN proceeds with its LNCO capital structure and aggressive acquisition strategy . I couldn't help wondering what the IRS thinks of the metrics as well ]]> Thu, 23 May 2013 12:01:56 -0400 http://bit.ly/11dhg1G. Most were established as energy trusts and evolved into the MLP model . With dwindling reserves and unsustainable distributions investors lost interest and the traditional E&P model was resurrected as the dominant upstream model.

In attending some sessions at the recent MLP conference in CT I could not help but think the E&P MLP may be far less viable than many believe. Logistics, production and refining are all very different animals . Midstream and downstream being where I stay invested. LINN energy will tell the tale of the E&P model.

What LINN's CFO had to say in the q & a was most interesting . Essentially , Berry is the lynchpin to LINN's future growth and distribution sustainability. But what really shocked me was the tax differed implications of the transaction for Berry's equity owners.
There will be about $800mil in tax liability that Berry will defer or avoid altogether as they exchange their equity for LNCO shares.

Wow, that is a game changer and you could have heard a pin drop in the room . MLP's purchasing C corps assets and eliminating a taxable event for the selling entity. Sounds too good to be true ... And maybe it is ...the CFO went on to explain a 20% curtailment of LINN's hedging activity to satisfy investors "concerns" as we'll . Whatever that means !

Bottom line : LINN is on to something very big and the most creative in the MLP upstream space . Now we will see what the market thinks . I am still long LINE but with some serious reservation . Both LGCY and VNR presented business models which are more traditional for upstream producers , both firms are anxious to see how LINN proceeds with its LNCO capital structure and aggressive acquisition strategy . I couldn't help wondering what the IRS thinks of the metrics as well ]]> http://seekingalpha.com/article/1452851/comments?source=feed#comment-19123271 19123271 Wed, 22 May 2013 13:09:30 -0400 http://seekingalpha.com/article/1439521/comments?source=feed#comment-18906051 18906051 Thu, 16 May 2013 13:33:21 -0400 http://seekingalpha.com/article/1433791/comments?source=feed#comment-18849911 18849911 Wed, 15 May 2013 10:56:25 -0400 http://seekingalpha.com/article/1418301/comments?source=feed#comment-18678421 18678421 Fri, 10 May 2013 12:18:23 -0400 http://seekingalpha.com/article/1418301/comments?source=feed#comment-18624831 18624831
Thanks for a another great analysis. However, I have a question regarding the short position in LNCO which is now over 4% of the float.
Since, LNCO is using it's equity as currency to purchase Bery Petroleum won't Bery back out of the sale since LNCO has dropped so fast and has such a large short exposure ?

Isn't the goal of the shorts to prevent this deal from happening ?
An MLP essentially purchasing a C Corp ...uncharted territory

I am LONG LINN and have bought more]]> Thu, 09 May 2013 11:05:57 -0400
Thanks for a another great analysis. However, I have a question regarding the short position in LNCO which is now over 4% of the float.
Since, LNCO is using it's equity as currency to purchase Bery Petroleum won't Bery back out of the sale since LNCO has dropped so fast and has such a large short exposure ?

Isn't the goal of the shorts to prevent this deal from happening ?
An MLP essentially purchasing a C Corp ...uncharted territory

I am LONG LINN and have bought more]]> http://seekingalpha.com/article/1412521/comments?source=feed#comment-18584941 18584941 http://bit.ly/11SSkie]]> Wed, 08 May 2013 12:57:27 -0400 http://bit.ly/11SSkie]]> http://seekingalpha.com/article/1406991/comments?source=feed#comment-18512271 18512271 http://bit.ly/18P7Pu4
Merrill Lynch, Wells Fargo and Raymond James are defending the distribution and are calling the Bery merger as constructive. CEO went on Cramer tonight defending the valuation. I added more units at $34.50 . The units are trading ex-dst today. I expect a nice pop higher this week. Still long LINE]]> Mon, 06 May 2013 18:32:18 -0400 http://bit.ly/18P7Pu4
Merrill Lynch, Wells Fargo and Raymond James are defending the distribution and are calling the Bery merger as constructive. CEO went on Cramer tonight defending the valuation. I added more units at $34.50 . The units are trading ex-dst today. I expect a nice pop higher this week. Still long LINE]]> http://seekingalpha.com/article/1390431/comments?source=feed#comment-18501371 18501371 Mon, 06 May 2013 14:19:21 -0400 http://seekingalpha.com/article/1384931/comments?source=feed#comment-18495791 18495791 Mon, 06 May 2013 12:08:44 -0400 http://seekingalpha.com/article/1240161/comments?source=feed#comment-18472181 18472181 Sun, 05 May 2013 19:07:59 -0400 http://seekingalpha.com/article/1388871/comments?source=feed#comment-18359761 18359761 Thu, 02 May 2013 11:54:20 -0400 http://seekingalpha.com/article/1393001/comments?source=feed#comment-18358691 18358691 Thu, 02 May 2013 11:39:11 -0400 http://seekingalpha.com/article/1388341/comments?source=feed#comment-18323981 18323981 Wed, 01 May 2013 14:09:18 -0400 http://seekingalpha.com/article/1389611/comments?source=feed#comment-18321981 18321981 (Natural gas is a great example.) The supply exploded and thus the prices crashed but the economic demand was still there and was actually increasing ; power plants were converting to nat gas as fast as possible. The rig count decreased and production dropped. Now, nat gas is returning to a price that provides profit to the most efficient producers. Such is the case with most commodities over time. Gold,oil,sugar etc. Another trend omitted in your comments is inflation which can be a boon for comodities. which is why "big money" is jumping back into gold which is outlined here >

http://bit.ly/1605UpF]]> Wed, 01 May 2013 13:29:59 -0400 (Natural gas is a great example.) The supply exploded and thus the prices crashed but the economic demand was still there and was actually increasing ; power plants were converting to nat gas as fast as possible. The rig count decreased and production dropped. Now, nat gas is returning to a price that provides profit to the most efficient producers. Such is the case with most commodities over time. Gold,oil,sugar etc. Another trend omitted in your comments is inflation which can be a boon for comodities. which is why "big money" is jumping back into gold which is outlined here >

http://bit.ly/1605UpF]]> http://seekingalpha.com/article/1381381/comments?source=feed#comment-18319261 18319261 Wed, 01 May 2013 12:46:29 -0400 http://seekingalpha.com/article/1343261/comments?source=feed#comment-18228331 18228331 Mon, 29 Apr 2013 12:27:02 -0400 http://seekingalpha.com/article/1378751/comments?source=feed#comment-18209831 18209831 Mon, 29 Apr 2013 00:06:35 -0400 http://seekingalpha.com/article/1378791/comments?source=feed#comment-18209691 18209691 Sun, 28 Apr 2013 23:56:19 -0400 http://seekingalpha.com/article/1378881/comments?source=feed#comment-18209611 18209611 Sun, 28 Apr 2013 23:47:32 -0400 http://seekingalpha.com/article/1379491/comments?source=feed#comment-18207941 18207941 Sun, 28 Apr 2013 22:24:30 -0400 http://seekingalpha.com/article/1375731/comments?source=feed#comment-18134141 18134141 Fri, 26 Apr 2013 11:45:07 -0400 http://seekingalpha.com/article/1373451/comments?source=feed#comment-18114331 18114331 Thu, 25 Apr 2013 23:37:44 -0400 http://seekingalpha.com/article/1368061/comments?source=feed#comment-18050371 18050371 Wed, 24 Apr 2013 17:18:21 -0400 http://seekingalpha.com/article/1349461/comments?source=feed#comment-17997381 17997381 Tue, 23 Apr 2013 16:48:17 -0400 http://seekingalpha.com/article/1358041/comments?source=feed#comment-17989091 17989091 BPL is a lot more compelling and yields +6%]]> Tue, 23 Apr 2013 14:06:54 -0400 BPL is a lot more compelling and yields +6%]]> http://seekingalpha.com/article/1356641/comments?source=feed#comment-17952881 17952881 Mon, 22 Apr 2013 18:13:03 -0400 http://seekingalpha.com/article/1357651/comments?source=feed#comment-17941861 17941861 usually that never happens unless something is up - like a sale of the company or its assets at a higher price . thoughts ?
http://yhoo.it/14JTVgp]]> Mon, 22 Apr 2013 14:37:42 -0400 usually that never happens unless something is up - like a sale of the company or its assets at a higher price . thoughts ?
http://yhoo.it/14JTVgp]]> http://seekingalpha.com/article/1357871/comments?source=feed#comment-17940021 17940021 Mon, 22 Apr 2013 13:53:58 -0400 http://seekingalpha.com/article/1347381/comments?source=feed#comment-17939241 17939241 Mon, 22 Apr 2013 13:32:29 -0400