I expect the previously announced distribution increase to come to fruition in early January. The only question is whether they take it to $3.08 as announced, or go higher.
Either way, management needs to do something to goose the share price soon. They're going to need to raise cash through additional stock offerings and i know they don't want to do that in the sub $36 range.
This year is over, but look for the bump in January.
Sentiment: Strong Buy
Two data points. Linn has already pre-announced that Q4 coverage will be 105-110% without Berry. They've also said that Berry will be accretive to cash flow.
IF they believe Q4 to be a sustainable level of cash flow (or better yet, a lower bound), then expect an increase in their distribution.
A simple number would be the lower number they gave (105%) of current would be a little over $3.
not sure we need a div increase any time soon... with the shares going a such a discount price now. Shares at this price are better than a div increase! Can't wait for Jan div already. Hope the price stays down til then!! I DO expect the Feb report to be very very good. THAT will kick up the price/share.
since you have been so very nice to me I hate to disagree but here are some points I see as obstacles 1 if you look at the last 2 buys from bp it took almost a yr to make these assets fit into lines plans for the future that brings me to the fact that anytime a co buys another co it takes some time to intergrate so I see another 6 mos of hand wringing I know all the little thinkers in here will give me a thumbs down but as for me I am preparing for 6 more months of winter (so to say ) I wish my friends here wealth and happiness and my detracators yall can go to hell
How's that going to happen after Linn said they'd be reconsidering the increase in light of the change from 1.25X to 1.68X, meaning lots more shares out to receive distribution money. The company's going to need some time, I think, to determine how things are working out with the Berry acquisition and the Permian Basin purchase. My hope is that Linn takes a conservative course in the matter of a distribution increase, as their financial health should be the primary consideration.
Simple. They already know q4 dcf for linn and bry and have some decent projections for full year 2014 dcf. You base your immediate increase on conservative full year projections even if it misses a little in q1, q2.
Why? To raise the stock price, do additional offerings, raise capital and keep the acquisition machine rolling. All the other news is already out. They have no ability to raise the stock price other than to riase the distribution.
So yes, its a guess, but its my guess and we'll have to wait and see what happens in january.
Sentiment: Strong Buy