EVEP up to almost $32 per share.
When I started my initial investments in LINE around $16 up to $18 per share I was debating about splitting the investment between EVEP and LINE. Both were priced at the same price at the time. Now EVEP is higher by almost $4 per share that is absolutely incredible.
LINE investors including myself made the wrong choice by not loading up on EVEP. With the amount of shares I hold I could have made a nice bundle.
We are holding the wrong company in the sector. I went with size and not fundamentals. Perhaps the debt on LINE is holding it back.
Any ideas why LINE has been stuck in the mud.
Great discussion on all points. I researched both LINN and EVEP, sometime ago, and chose LINN because of the dividend. Currently, I think that energy MLPs, power companys and Canadian banks are a place for the US investor.
They will resume when D/ADJEBITDA=2.5 or less.At their current monthly cash flow of 11-12m they should reach that level in May 2010. Jim Jackson (CFO) in their q3 conference call in the Q&A section responded to that quiestion from Scot Hanold (RBC-Capitol) indicating in addition to the 2.5(D/A-E) threshold BBEP would have to be able hypotheticaly to borrow 10% of the borrowing base (10%=73.2m),add that to their real debt and have a D/EBITDA of 3.5 or less.My projections based on all cash flow after cap&Mait Ex being applied to debt indicates that they will pass both test by 5-1-10 IMO
As of 10/23/09 Citi estimated 55% of EVEP's 2012 production was hedged.Based on slide 17 of the 1/19/10 IPAA OGIS presentation I'd say that EVEP has added additional hedges in a substantial way not only to 2012 but also to 2013 & 2014 production.Please advise where you came up with "small" for 2012?
I recently checked the EVEP hedges, and while they have them, they cover only a small percentage of production after 2011. LINN is 50% oil, EVEP's oil production is negligible.
I'm up over 100% on both.
I did add some LINE last week (silly me).
2010: $8 gas, $90 oil
2011: $8-9.50 gas, $108 oil
2012: $8.50-9.75, $107 oil
They are about 75% hedged compared to 100% hedged for LINE but line does not have good hedging in 2012. LINE will probably get $6 for gas in 2012 while EVEP gets $9.
One other smart move for EVEP is that they paid down 35% of their debt over the last 2-3 years while LINE increased debt over the same period.
I guess it comes down to better management moves.