NEW YORK, Dec 28 (Reuters) - Despite plummeting natural-gas and oil prices in the past six months that sent Linn Energy's (LINE.O) stocks falling, and frozen capital markets that could make it hard for the company to make acquisitions, concerns about the oil and gas driller are probably unwarranted, Barron's wrote in its Dec. 29 edition.
Linn, which is a master limited partnership that pays out about 60 percent to 70 percent of its quarterly cash flow to shareholders in tax-advantaged distributions, has used hedging to lock in the high prices of last summer's energy price bubble for the next three to four years, Barron's wrote.
Based on its third-quarter distribution of 63 cents per unit, the company is offering a current yield of more than 20 percent, Barron's wrote.
One Citigroup analyst said Linn's distribution level is "relatively secure," and has a one-year price target on its stock of $22, while another, at RBC Capital Markets, has a target price of $27, Barron's wrote.
Linn Energy shares closed at $11.98 on Friday in trading on the Nasdaq.