Berry is spending (or plans to spend) $600 million in capex in 2013. Linn is simply reimbursing Berry for those costs with the increased offer.
Although that is a whole-year number, and Linn had originally planned to own them anyway for six months of the year, that's a bit of a stretch, but still plausible and part of the answer to my question "What has Berry done to deserve it?"
Nice point. Also, BRY has delivered and raised their guidance while LINE missed until the most recent period. And, the spike in transportation costs for LINE in the period does make me wonder if it wasn't related to revenue recognition needed to deliver the quarter rather than true repeatable progress. On the other side of the ledger, LINE did make another accretive acquisition in the interim. We shall see what they have to say tomorrow. Worst case (I am so good at predicting here, LOL), they have to maintain rather than raise the distribution for awhile as they try to get even more costs out of BRY and find additional accretive bolt-on acquisitions. Somehow though, I think they will still raise the dividend to $3.08 so it doesn't look like they stretched here. They want the story to read that they paid more because it was worth it and prove it by still raising the distribution.
I suspect that the ability to apply Linn's expertise in recovery technology may also have come into play. The recoverable assets may be much higher than originally thought. This being said, that clown at Hedgeye and the SEC cost Linn a lot of tie and money.