Just looked at this week's Barron's comments on Linn. Dist cash 65 cents, 89% coverage, but they maintain that if derivative cost were expensed vs being capitalized, dist cash falls to 43 cents, 59% coverage. If investors believe this number, not sure how different it is from previous calculations, the units will be down again this week. I don't see how they begin to do the deal with BRY. Seems that won't happen and the dist will be in jeopardy. LINE could be in the teens. $20 LNCO x 1.25, $25 BRY value. Wonder if BRY starts to deteriorate from the low $40s, probably would, although their oily assets look fairly attractive longer term.
coverage of distrib would be affected via capitalization only over the longer term ie Total distrib would be the same plus or minus a few cents , again in total vs expensing hence non GAAP accounting which is legal
Barron's, by continually broadcasting its opinion, has crossed over from being a news source to being a market tout. They publish a story, that should be it. But Barron's continually publishes followups. Who's paying them ?