CITI will upgrade Linn and put a price target of $30 on them only after Linn reaches $30. This is just some 22 year old MBA do a CYA move.
Obama played with the cards he was dealt. Bush left him with a disaster that he had to deal with. I'm ammazed at how the Republicans never mention Bush's name and seem to deny any responsibility for the disaster of 2008-2009. Talk about revisionist thinking !
You sound surprised at this news. The rich have been running the US govt since 1776, and some of them have been real sleazy. Bush family fortune tied to Kuwait oil, Foundation of Kennedy family fortune was liquor smuggling during prohibition. And lets not forget our elected officials caught with #$%$. Why would people respect these officials when I wouldn't let them park my car ?
Don't forget the the country of Brazil holds a very large position in PBR and PBR is obligated to sell a large chunk of their oil to Brazil at a huge discount. PBR has got to be one of the worst investments in the world. Its controlled by a Socialist gov't and profit is not their main interest.
Keystone vote is a joke. The Dem incumbent is in a runoff election in La. Keystone is popular in La. Hence the Dems in the Senate have allowed Keystone to come up for a vote so the Dem incumbent can get reelected. Doesn't mean the vote will pass, just that its been allowed to come up for a vote.
Considering that Linn is only 36% oil and 64% Nat Gas and NGL's, what price did you use for their Nat Gas ? Also if they have 60% of their oil hedged next year at $91, than only 14.4% of their revenue is effected by oil price decline (36% X 40%). If oil prices decline 20%, Linn's revenue declines by 2.88% (14.4% X 20%). Also, what number did you use for the decline in their Maintenance cap-ex ? I've heard rumors of 350-400 million dollar reduction next year.
You do understand that the free market is what gave us Bread lines and Soup lines during the great depression along with 25% unemployment. It was the concept of allowing the free market to find its own level. I would hope that as a civilization we would have progressed from that level of thinking.
The bulk of this stock was owned by former BRY shareholders, which was 80% institutional. As people pull out of energy mutual funds, the funds have to sell off the underlying securities. There will be a certain amount of churn in this stock until all the institutions get out. Then LNCO should trade pretty close to LINE pricing.
The problem with renewables is what happens when the sun doesn't shine and/or the wind doesn't blow ? People still need power so there will always be power plants running on fossil fuel or nuclear fuel. Wind and solar power are supplements to existing power generation, not replacements for.
While everyone is running around yelling "the sky is falling", I would like to point out that Linn is more of a Natural Gas company than it is Oil company. And Nat Gas went up big yesterday, even though Linn is hedged for the next couple of years on Nat Gas. When you do the math on oil price declines and how it affects Linn's numbers, I see Linn at 36% oil and if they were unhedged, a 20% decline in oil prices would cause a 7.2% decline in their revenue. Not earth shaking. With hedges in place for the majority of their oil production, its a much smaller decline in revenue, easily offset by reductions in cap-ex.
Funny how the great expansion in US oil development and production has occurred during the Obama administration. How come you don't give him credit for growing US oil production ?
Credit Suisse analyst has about the same opinion. He thought the forward guidance was very weak, if not non-existent. Linn plans on giving some guidance on 2015 with the next quarters report, in February 2015 !!
I heard from the call that BRY earnings are restricted and not available to Linn, they must go to fund BRY development and BRY debt due to debt covenants. What a deal Linn got.