Has anyone on this board looked at the e and p MLPs. Have looked at Linn Energy LINE and their reserves are valued at around $2.25 per mcf. They bought the mid continent assets of Dominion recently and have a long life reserve base, 20+ year, around 2/3 gas and as an MLP they are currently paying a 13% distribution. The dist is tax 100% tax deferred currently. There is no GP incentive as in the pipeline MLPs. They have hedged most of 08 production and should be hedging more. At $2.25 a mcf, it looks like a good value, most e and p's are not finding new reserves at that cost. The negative is their debt load.
In subsequent posts, I suggested waiting to own when the stock got into the $20-$21 range. It is actually a buck below that now. Any owner of line will have to be very, very patient. The float is too big, for one thing. And the market hates many vehicles that use leverage to produce a return to shareholders. LINE does not regard themselves as heavily levered: they're about 2:1 equity to debt.