Well, Linn's supplemental presentation posted today should not only take care of the shorters but makes it clear that, going forward, Linn does not intend to buy anymore puts. So in light of their 100% hedging strategy, that has to mean swaps exclusively. Seems to me good news, as I prefer the swap route to hedging over puts.
Meanwhile, I expect LINE to rise into the distribution declaration this month and provide a nice impetus to option-price increases. And with the Berry acquisition likely completed in June, there may well not be a PPS drop after the ex-div date. Should be interesting to see what happens.
That is great news: I do not like the idea of purchasing puts once existing puts roll off over the next few years.
We should see higher NG pricing by 2017 when the first LNG operations kick in...and there
should be several LNG export facilities running in 2018...$5 NG sot pricing with an average swap
above $5.5 will be very good for LINN.