andydee

Why I'm Short Vanguard Natural Resources, Long Linn Energy

Freyda,

I guess we move in different circles.

I was suggesting that you listen to a recording of the LINE presentation so that you could get an answer to your question re: how long they expect to maintain their current distribution...You told me you looked at a chart of LINE prices(? - I guess...)

I don't "read charts". I'd like to know more about the companies I invest in than simply what price someone assigns to a share (or unit in LINE's case).

Since you haven't listened to the recording, and since I was trying to be helpful - I'll answer your question..."They expect to maintain the current distribution because they have hedged about 100% of their production through 2011." In other words they have, in effect, "presold" all of their output for the next three years at prices well in excess of today's price...somewhere between 2 and 3 times as much as today's NG spot price.

Why I'm Short Vanguard Natural Resources, Long Linn Energy

Freyda,

Do you follow LINE? Seems as though you don't.

There's a 14 minute presentation by Mark Ellis, the COO, and Kolya Rockov, the CFO, and co-founder of LINE on the web right now at... www.vcall.com/CustomEv...

Just go down to the "Day 1" 10:30AM time and click on LINE. In about 14 minutes you'll get an excellent briefing on the company, and you'd get an answer to your question...

"how long will it continue to maintain its present distribution in the face of a really tough 2010 environment?"

PS If you are interested in VNR turn to Day 2...I think their presentation is about 20 minutes long...