Maybe Barrons is getting LINE wrong. I don't know. But the same stuff was being said when Barrons came out and said Blackberry was going to fall to $25 when it was closer to $100. So don't think Barrons will lose its reputation over LINE. The thought process laid out by Barrons is not far off base. E&P MLPs must engage in never ending acquisitions to maintain distributions. E&P MLPs must fight the three demons of commodity pricing, hedging, and spot costs to drill. LINE management was foolish to ever suggest it could grow its distribution 5%/year always. No other E&P MLP management has ever made such a reckless statement. It is not true because LINE is struggling with the expiration of hedges going back to 2008/9 when oil was near the mid $100 dollar/barrel range.
LINE must grow exponentially bigger as those hedges from 2008/9 fade away knowing the spreads they once enjoyed they will never enjoy again AND STILL making the claim to 5%/year distribution growth.
Berry is the near term solution but there will be a time again when LINE would have to make an even larger acquisition in order to maintain any emboldened claims of 5% distribution growth. I suspect after this disaster if they pull off Berry you will not hear LINE management talk about long term distribution growth in the same way ever again.
And if Berry does not happen then we will see the LINE emperors have no clothes as LINE fights to produce more but is chasing its tail because the spreads between current costs to produce and commodity prices out of the ground can come nowhere near the spreads they enjoyed on those 2008/9 hedges.
All E&P companies need to develop new sources to replace what is being sold, the same way any company buys feedstock. Linn has, conservatively 20years worth of output in hand and the trend is that technology is increasing the yield of those assets so they don't need to constantly buy to support the dividend.
Linn is buying to grow because there are attractive assets available and rates are low. If the share price of LINE stays this low the job becomes that much simpler -just buy back LINE shares.
I have made a lot of money with GMCR because Barrons hated it. Their writers' opinion is just that and if the company is good, then the stock price will recover. Hey recently when NFLX was $100, they had a target price of $50. Now it is $147. Anyone short on their call of $50 has lost 50% of their funds. LINE just has to prove itself. However, a call for an $18 price is really stupid.