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Linn Energy, LLC (LINE) Message Board

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  • rrb1981 rrb1981 Feb 28, 2012 11:15 PM Flag

    Is BBEP poised to double ??????

    I cannot understand why Ellis is letting money burn a hole in his pocket.

    The PXP Granite Wash deal was clearly an expensive deal, but I would argue that even at a higher initial multiple, it is far better of a deal than the Hugoton transaction.

    I am not sure who posted it earlier today, but I agree 100% that Linn might actually be better suited if they divested some of their smaller holdings where they don't have critical mass.

    I will say that the Hugoton is very low risk from a geologic/drilling standpoint. Even though I am not thrilled with this deal, as it appears Linn continues to dillute its GW,Bakken and Permian exposure on a per unit basis, it does add cash flow per unit.

    I think what many people are disappointed about is that Linn went from being a "special" E&P MLP with some really attractive properties and the ability to grow organically to being more of a run of the mill E&P MLP similar to LGCY, VNR, BBEP, EROC etc.

    I don't lump EVEP into that category because EVEP has a huge Utica stake that they will either develop, JV or divest.

    I now firmly believe that Linn has bloated itself into such a large company, that they will struggle to achieve any sort of growth via the drillbit and will have to rely on acquisitions to achieve any distribution growth.

 
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13.56-0.05(-0.33%)Apr 24 4:00 PMEDT