I've got the distribution at closer to $0.40 based on average price of $55/barrel and costs of $27/barrel. This dividend level would make MVO worth @ $9.69 per share. Its getting pretty close to that now.
That has to be the dumbest post I've ever read. You have got to be getting all your news from FOX.
No CFO would say something like that, and I doubt if a poster had a supposed 1hour conversation withthe CFO. The poster was blowing smoke.
I doubt you spoke to the CFO. No CFO would ever admit what you said this CFO admitted. If the sheriff was at the door and the movers were taking the furniture, the CFO would not admit what you said he admitted.
Linn is a heavily leveraged oil company. When oil goes down, Linn will go down more than the rest because of their leverage. When oil goes up, Linn will recover. The big question is when will oil go up. I'm a believer in a 3 year cycle that we are 7 months into. If and when oil recovers to the $85-$90 range, Linn should recover to $25-$30 stock price. If you look at other MLP's and trusts, they are all getting hammered just as bad as Linn and there are some real opportunities in some of them when oil recovers. They would be 'A' candidates to invest in, Linn would be a 'C' candidate. Look around at other issues before committing to Linn.
The problem is that this is a 3 year cycle. We're only 7 months into this 3 year cycle. A lot of oil companies hedge their production and have not even begun to feel the real pinch from lower oil prices. 2016 is when the pinch becomes very real and a lot of deals will get made. Its also when the production declines become very real and worldwide supply/demand flips around to a supply shortage and prices begin moving up again. Unfortunately, it looks like $85 barrel may be the top for the market due to abundance of shale oil available above that price.
Do you really think that you can move share price by posting on this message board ?
We're getting close to the time where smart money begins buying. As Warren Buffet is quoted, "Buy when there's panic in the street". You just have to ignore the few posters that take great joy in watching Linn go down. These people lost a lot and they are very bitter. They know who they are.
There's always some jerk that screams Iron Ore going to $200 or Iron Ore going to $1. They're just touting their position. They must be short something in the iron ore market.
"Melt season is underway, and sea ice in the Arctic is retreating rapidly. At the end of May, ice extent was at daily record low levels. By sharp contrast, sea ice extent in the Southern Hemisphere continues to track at daily record high levels." . . . . per NOAA, . . . "and that's the rest of the story."
Remember, oil is priced in dollars but valued against a market basket of currencies. Saudi's are receiving a."value" equivalent of @ $85 barrel for their oil due to the large increase in dollar value against foreign currencies.
If you eliminate the dividend and cap-ex, Linn has a very large positive cash flow, even without the hedges. Of course without cap-ex, Linn eventually goes out of business, but that would be 10 years down the road. If oil prices recover within the next 18 months, Linn is just fine. The bigger problem is NGL pricing, that's 10% of Linn's revenue and totally unhedged.
"Constitution 101: The Meaning and History of the Constitution " . . . One of the tenets of the Constitution is the separation of Church and State. Why is your first comment after this headline about the Church ???? Separation of Church and State is the only thing keeping the US from becoming like Iran. Too many nut job religious fanatics would want the Gov't instituting policies that would destroy our Constitutional form of gov't. And before you throw someone else's opinion up, remember, our Founding Fathers were not religious nut jobs.