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Linn Energy, LLC Message Board

  • rlp2451 rlp2451 Apr 26, 2013 7:35 AM Flag

    Global Hunter Reduces LINE to Sell

    LINN Energy downgraded to Reduce from Neutral at Global Hunter
    Global Hunter downgraded Linn Energy citing the disappointing Q1 report. Price target lowered to $34.

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    • rip i will give you $34 per share for up to 2000 shares since you are a Global Hunter believer.

    • Who is Global Hunter and why should I care what they have to say ?

      • 1 Reply to gpd8252
      • gpd, quick look

        You have to look at the call and see how the under performance of LINE was this 1/4.
        The bad:
        1 The only area to watch is that LINN reported lower-than-expected oil production, as some of its recently-drilled Hogshooter wells in Granite Wash of Texas underperformed expectations. The company is shifting its focus to develop its acreage in Oklahoma, which appears to hold the more promising wells.
        Sand our INE preacher was saying hodshooter was producing oil in great amounts as he speculated what he wanted to hear,
        2 With LINN's production below guidance, it caused the company to miss its guidance for both adjusted EBITDA, and distributable cash flow. So, while adjusted EBITDA increased 18% in the quarter to $356 million, this was below guidance of $372 million
        3 LINN was able to grow its average daily production by 69%, to 769 million cubic feet equivalent per day, or MMcfe/d. While that's great growth, it's well below the company's guidance of between 810 MMcf/d and 845 MMcf/d. The production miss really set the tone for the rest of the report.
        [so with MMcf/d down and oil production down this was not good.} All these declines in production and cash flow will result in a lower SP.

        The good
        1 The good news is that despite these challenges, LINN still expects to have a solid year, with Ellis going on to say that, "the high quality and depth of our inventory still gives us the ability to grow organic production nearly 10% in 2013." [is 10% good enough growth?\
        2 The good news here is that the company was able to reduce its lease operating expenses by 26%, to $1.24 per Mcfe, which gave a boost to earnings. Despite the miss, the company still expects that its drilling program will steadily increase its distribution coverage ratio this year. Further, the highly accretive deal to acquire Berry Petroleum (NYSE: BRY ) remains on track, which should further bolster the company's distribution coverage ratio and put it on much safer ground