One is a refinery and Linn is basically a purchaser of existing production that then drills in fill wells next to the exiting production. I am asking which will be the better investment in 2013 and 2014 and I think a 19% distribution compared to an 8% distribution says something.
Playing devils advocate is what I am doing. How long can a refinery pay out 19% before investors shove the price up and yield down. I merely believe that Linn Energy is not going to see much of a change in yield or price over the next 1-2 years. I thing the yield in CVRR is going to catch investor interest.
Icahn took $100 million of the $600 million in CVRR LP interests. He expects to get a better return on that $100 million or he would have bought Linn interests. I suspect his investment will outperform Linn. Icahn has billions invested in energy. He knows every major energy player including Linn Energy and he knows a good investment opportunity when he sees it. I suspect he will be right, and his investment of $100 million will outperform Linn Energy over the next few years. Keep buying Linn if you think it will outperform Linn. I own both, but have not purchased any additional units of Linn during the last three years.