Sent: 11/4/2013 3:20:19 P.M. Eastern Standard Time
Subj: Action Alerts TRADE -- LINE
Monday, November 04, 2013 3:19 p.m. EST
-- Buying 300 shares of Linn Energy at $31.44.
We'll add another 300 shares of Linn Energy (LINE:Nasdaq) at
$31.44 ahead of tomorrow's conference call, which we believe
will be upbeat and outline the future growth catalysts for
the company over the next several quarters.
The company will specifically review the new terms of the
Berry Petroleum (BRY:NYSE) deal, which was increased in
price earlier this morning to $4.9 billion in price (please
see our earlier alert). The company will issue more shares
as a result of this all-stock transaction, but this was
largely expected and will still be accretive to LINE by as
much as 20 cents per unit. The reason is because both BRY
and LINE have posted better operational results since the
initial nine months it took for the deal to gain approval.
Plus, the new arrangement lowers LINE's debt exposure and
the geographic expansion will lead to higher-than-expected
synergies than initially expected. After nine months of
negotiations and regulatory hurdles over BRY, the end looks
in sight and the real synergies can begin.
We continue to see NAV at $40, so there is ample upside from
the current level. We will trim Ford (F:NYSE) and Union
Pacific (UNP:NYSE) when our restrictions are cleared to help
fund this purchase.
After our trade we'll own 2,300 shares of LINE, or 2.3%.
Jim Cramer, Stephanie Link, and TheStreet Research Team