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Linn Energy, LLC Message Board

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  • opinionsarelike33 opinionsarelike33 Jan 26, 2013 10:34 AM Flag

    Prattle on RRB'D

    .....and then he tried (with help from the barnum and bailey brigade) to make less of it or try to discount it as merely "dirty" hedges, oh, those NGL hedges... the ones that do actually exist.

    your barnum and baily brigade was correct the only NGL hedges are with "dirty hedges" and only in the BP deal. Came right from the source you dimwit.

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    • Exactly.

      S-O-"If-I-find-it-on-the-internet-it-must-be-true-but-if-someone-else-finds-it-it's-a-lie"-B can only repost what he finds on year old presentations and can't imagine that it might have expired or repurposed or even existed as a different kind of derivative. He doesn't know how to think otherwise due to limited education.

      • 1 Reply to rlp2451
      • The subject is not metric other companies may use but rather given LINEs unique business model how it should be understood.

        The business model is 1/3 of market capitalization as debt. So given the borrowing is long term and unsecured it is indeed more capitalization than borrowing.

        The question then becomes what is the cost or rate on the model capitalization structure. All things equal the better the ebitda to interest cost the more secure the bonds, higher the credit rating and lower the debt cost.

        LINE borrowing costs have come down from 12% to about 6%. How much shareholder value has been created? Roughly 1/3 of capital * 6% annually being moved directly to the equity return.

        BUt on and on the OLB will flutter like monkeys with their hand around a piece of fruit in a jar they, will not release. Pretending they are not trapped by it all.

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