Based on proven recoverable reserves, divided by monthly production, equals @ 20 years of life left to the trust. Not counting any new development that the parent to this trust might undertake that would add to proven recoverable reserves. (Source is their website)
Ruger, Smith and Wesson, Winchester, just to name a few that benefit from this gun violence. Just saying, within every tragedy there is opportunity.
And what happens if the value of Linn's assets drop below the value of the outstanding debt ? Its not to far off right now.
This country has not built a new oil refinery since 1974. Refineries are operating at 95% of total capacity right now which is historically very high. If demand is equal to or exceeds supply of refined product, what happens to price ? That should answer your question. Gas prices should drop in the fall when demand slackens.
There are some very interesting oil trusts right now. All time lows in stock price with tremendous upside. And none of these trusts have debt.
I was in LInn at the time and felt that Mark Ellis "chased" the deal. Young, new, CEO out to prove himself worthy. Well, he's been weighed, measured, and found lacking. The only reason he hangs onto his job is because the Linn CEO votes the LNCO shares, which gives him effective control over the company.
MVO is a pure play on oil prices. Where have you been for the last 12 months, hiding under your bed ? Haven't you noticed that oil prices have crashed ?
Its all about the price of oil. Shale oil is the "expensive" oil, Mideast oil is the "cheap" oil.
"oil will not stay at this price very long." . . . I used to think so also. But when you look at worldwide oil production and growth in this production, and limits on US oil exports but no limits on US oil imports, I think we very well may see low oil prices for several years, maybe even the next decade. If that happens, the shale oil revolution becomes the shale oil bubble, and its popped.
The reason for the decline in exports was the shutdown for maintenance of several Chinese refineries. This took 1 million barrels per day of refining capacity offline. China is the Saudi's biggest customer.