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.