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Linn Energy, LLC Message Board

  • raman_ds raman_ds Jun 17, 2013 10:24 AM Flag

    latest from BOA- Merill Lynch on LINN - Addressing controversy - facts

    Price Objective

    Hedging: not as opaque as it looks From our review of the issue, LINE has
    not defied any accounting rules nor has it tried to conceal the issue; LINE management has attempted to address the controversy and has committed to avoid this hedging strategy in the future simply
    because ensuing controversies have weighed on its cost of capital and turned the
    tailwind into a headwind. Our analysis suggests that absent the ‘puts’, future
    distributions will still be safe. If we remove the ‘put’ gains from our projected cash
    flow – which is fully paid – our analysis suggests LINE would still achieve a 3 yr
    average distribution coverage ratio of 1.0x for 2013-2015

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0.18+0.03(+16.13%)May 23 4:00 PMEDT