Did anybody pickup on the CEO's statement on the merger with Berry? " Could be nearly accretive". In other words it is not accretive but might be nearly accretive.
" Even with revised exchange ratio, we believe this transaction could be nearly accretive to cash available for distribution and create significant long-term value for LINN Energ"
English Dictionary:NEARLY means "in the near term" as well as close to, approximately,almost, not quite,even "soon". Rather a vague word in fact in modern usage, but in 1800 it would mean "soon" in the context of timing an event..
Don't know where you got this erroneous wording, but I do suggest you go to Linn's website and listen to the CC. It's clearly stated that the merger would be accretive but not by as much as would have been the case at 1.25X.
I stand Corrected. I copied and pasted the wording from " LINN Energy's CEO Discusses Q3 2013 Results - Earnings Call Transcriptat Seeking Alpha(Tue, Nov 5)". This is the first news article listed now on the Yahoo profile page for Linn. I went to the Linn website itself and it had a completely different wording saying the merger WAS accretive! WOW do we ever have to be careful!
The question and answer portion from analysts addressed your statement.Did you pick up on that the Permian basin acreage is doubled with BRY merger and also their decline rate decreases 2 to 3% with the merger.The merger is accretive now as to the immediate contribution may be smaller but long term this is good from what I read.I'm not thrilled with the price Linn had to pay but this type of merger is unique and worth the final effort.