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Linn Energy, LLC Message Board

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  • sandonthebeach47 sandonthebeach47 Dec 7, 2012 11:40 PM Flag

    Mike Linn has joined QRE

    Jack posted this below earlier this year......since you sound like you miss his thoughtful posts it may be of interest.

    "QRE has GP Incentive Rights Despite Liza's denial"

    "MANAGEMENT INCENTIVE FEES (contradicting Liza's assertion there are none)

    Page 42
    " The management incentive fee we will pay to our general partner may increase in situations where there is no corresponding increase in distributions to our common unitholders.

    Under our partnership agreement, for each quarter for which we have paid cash distributions that equaled or exceeded the Target Distribution, our general partner will be entitled to a quarterly management incentive fee, payable in cash, equal to 0.25% of the management incentive fee base, which will be an amount equal to the sum of:
    • the future net revenue of our estimated proved oil and natural gas reserves, discounted to present value at 10% per annum and calculated based on SEC methodology, adjusted for our commodity derivative contracts; and
    • the fair market value of our assets, other than our estimated oil and natural gas reserves and our commodity derivative contracts, that principally produce qualifying income for federal income tax purposes, at such value as may be determined by the board of directors of our general partner and approved by the conflicts committee of our general partner’s board of directors.

    Re ratio of oil, nat gas liquids, and dry gas, approx
    64% of proved reserves for the 2010 report were oil, with 32% dry gas, and the remaining 4% NGL. The oil ratio has recently increased with their oil property purchase. Given the poor prospects for dry gas, the negative affect on future earnings is plain."

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    • Here he is again trying to re-open another old and dead argument.
      Very clear who are the board troublemakers.

      For the record, I stated (long ago) that QRE has no IDR's (Incentive Distribution Rights).
      That statement was correct, they don't have IDR's.
      Your statement that they have something else does not make my statement incorrect.
      They have no IDRs.
      I never said they have no other kind of incentive structure.
      Again, you are just trying to re-start arguments, so I'm not responding any further to this thread.

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