% | $
Quotes you view appear here for quick access.

Linn Energy, LLC Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • rlp2451 rlp2451 Jan 19, 2013 1:13 PM Flag

    dividend increase?

    It is a mystery why Linn has not participated as much as others have in the MLP sector the last two weeks. I still think we should see a rise entering the ex-distribution date; perhaps if there isn't, there won't be as much of a drop post-distribution. Certainly Linn has NGL exposure, but so do many others.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • No mystery whatsoever. Nearly 20% of Linn's volumes are NGLs. None of those volumes are hedged directly and only the BP Hugoton volumes are heged via dirty proxy hedges.

      Additionally, Linn already has a lower yield than just about any of the E&P MLPs. Additionally, they have allowed their balance sheet to get too bloated. Their debt/ebitda ratio is approaching 4.0x, much higher than the 3.0x they target. This deleveraging will mean the next transactions they make will need to be heavily financed via the tune of perhaps $1 to $1.5 billion.

2.02-0.11(-5.16%)Nov 27 1:00 PMEST