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Linn Energy, LLC Message Board

  • diodia2000 diodia2000 Aug 14, 2013 7:19 PM Flag

    Derivative gains are 40% of Linn's reported revenue in 2013

    I wanted to look at how Linn got its revenues for this last quarter, q2 2013, compared to q1 2013. Q2 2013 revenues are reported next to 2012 q2, but you can skip over one column to compare them to q1 2013.

    The figures below show the difference in revenues that the acquisitions have made -- but in 2013 the added revenue from the acquisitions has been much smaller than the 40% contribution to total reported revenues from derivatives. In q2 oil, gas & NGL sales rose by $141 million from 2012 q2, whereas derivatives gains were in this quarter were $326.7 million. Notice also that without derivatives, net income in both 2013 quarters would have been negative.

    On the bright side, in q2 2013 oil/ngas/NGLs sales increased $25.5 M from q1 2013.

    But q2's production of 780 MMcfe/d was down from 796 MMcfe/d in q1 2013.

    There numbers are scary to analysts trying to model future quarters, and feed price volatility.

    ...Three Months Ended.............. Three Months Ended
    ...June 30, 2013....2012...............March 30, 2013....2012
    (in thousands, except per unit amounts)

    Oil, natural gas and natural gas liquids sales
    $ 488,207........$ 347,227............$ 462,732........$ 348,895

    Gains on oil and natural gas derivatives
    326,733........ 439,647..............(108,370)........ 1,290

    Marketing revenues
    17,222........ 10,841................. 9,852........ 12,131
    Other revenues
    6,663........ 2,882................... 4,846........ 1,874

    TOTAL REVENUES
    838,825........ 800,597.............. 369,060........354,090

    Total Revenues from oil & gas, ignoring derivatives gain or loss:
    512,092........ 360,950............. 477,430........ 362,900

    Percent of Total Revenues derived from derivatives gains........
    .39%........ 43%

    NET INCOME
    $ 345,157........$ 237,086..........$ (221,885)........$ (6,202)

    Sentiment: Buy

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    • Are you as lonely as you appear. You typed one message and provided the first two responses to it??? That is a sign of real loneliness.

    • Declining production:

      Production
      780 MMcfe/d in the 2nd quarter of 2013
      796 MMcfe/d in the 1st quarter of 2013
      800 MMcfe/d in the 4th quarter of 2012
      782 MMcfe/d in the 3rd quarter of 2012
      471 MMcfe/d for the first quarter 2012
      (this is before the $2 B in acquisitions]

    • Expenses and net income, just to complete the picture:

      EXPENSES:

      Lease operating expenses
      83,584..........70,129..........172,305..........141,765

      Transportation expenses
      29,298..........21,815..........56,481.......... 32,377

      Marketing expenses
      9,360.......... 6,458..........16,734..........7,150

      General and administrative expenses
      46,305..........41,185..........104,871..........84,506

      Exploration costs
      818.......... 407.......... 3,044.......... 817

      Depreciation, depletion and amortization
      198,629..........143,506..........396,070.......... 260,782

      Impairment of long-lived assets
      (14,851).......... 146,499..........42,202.......... 146,499

      Taxes, other than income taxes
      32,397.......... 30,656..........72,068..........55,851

      (Gains) losses on sale of assets and other, net
      (959).......... (2).......... 2,213..........1,492

      TOTAL
      384,581..........460,653..........865,988.......... 731,239

      OTHER INCOME AND (EXPENSES):

      Interest expense, net of amounts capitalized
      (103,847)..........(94,390)..........(204,206) (171,909)
      Loss on extinguishment of debt
      (4,187).......... —.......... (4,187)..........—

      Other, net
      (2,182).......... (7,956)..........(3,825)..........(11,225)

      (110,216) (102,346)..........(212,218)..........(183,134)

      Income before income taxes
      344,028..........237,598..........129,679..........240,314

      Income tax expense (benefit)
      (1,129).......... 512.......... 6,407.......... 9,430

      Net income
      $ 345,157 $ 237,086..........$ 123,272.......... $ 230,884

      Net income per unit:
      Basic..........
      $ 1.47.......... $ 1.19..........$ 0.52..........$ 1.17

      Diluted
      $ 1.46.......... $ 1.19..........$ 0.52..........$ 1.16

    • and that ladies and gents is why they hedge!

 
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