We believe that this newly raised issue of a potentially large 2016 tax liability at Linn is a straw man erected by Bary and his short sources. Any investors who are concerned about such an eventuality should also be worried about the hobgoblins in their bedroom closet. Omega Advisors is comfortable with our investment in Linn Energy; we are convinced of the professionalism and integrity of the company's management; we are optimistic about the company's future growth and financial performance; and we believe strongly that the distortions of the three Barron's articles will not, in the end, carry the day.
Leon G. Cooperman
Chairman and CEO
if you search for "Letters to editors Barrons Leon Cooperman Linn Energy" you will get to it online.
"Linn's Accounting and Value
To the Editor:
Barron's reporter Andrew Bary is in the vise of a small group of unprincipled short sellers on Linn Energy . Barron's again has published (for the third time) distortions about Linn ["Linn Comes Clean on Derivative Costs," Follow Up, June 17]. In an earlier article, Barron's said Linn [ticker: LINE] "has for years used aggressive accounting to prettify its financial statements" [see "Twilight of a Stock-Market Darling," May 6]. Yet the latest story acknowledges that the company's financial statements are entirely accurate: Barron's writes that the item at issue, accounting for hedges, "is properly reflected in Linn's GAAP financials."