Third quarter NG average hedge price: $5.60 (will be dropping 4th quarter):
Third quarter average cost of production: $5.43.
"Depreciation, depletion and amortization per Mcfe increased to $2.49 per Mcfe for the nine months ended September 30, 2012, primarily due to higher production volumes in operating areas with higher depletion rates."
The large foot print pipe MLPs like EPD, KMR, ETP, OKS have hedged out their commodity exposure. So they do not trade as closely to production partnerships as they once did. Wild discounts on American energy resources to world prices are generally beneficial to their business models. Also they have been able with take or pay toll contracts for their pipes and processing to leave the price exposure with the exploration and production companies they serve.
There is great concern that a recession would bring down Brent or OPEC prices or our WTI bench marks. With LINE the 20% of the production mix in natural gas liquids is even more sensitive to he American economy as it cannot be effectively hedged.
For what ever it is worth I do believe the selling on LINE has been over done.
norris, after spotting this below from a motley fool article from yesterday and looking at a chart or two:
"If you are fearful that Cabot has hit its high, a good side bet is Linn Energy.
The stock has fallen 16.9% from its fairly recent 52-week high.
There are several variables that further make Linn an attractive investment: (1) the 6.8% dividend yield, (2) ~25% less volatility than the broader market, (3) and a a "buy" rating on the Street.
Analysts forecast 13.6% annual EPS growth over the next 5 years.
Combined with the income support, this makes the risk/reward highly compelling. Results have already been better-than-expected with losses being relatively limited."
If you look at finviz, I think that COG looks a bit like it is nearing a top, and that LINE does look like it is near a bottom, & .....just maybe, it kinda looks like LINE may be headed upwards sometime soon?