The issue is that oil prices can't stay at these levels for very long. Eventually, within 12 months or so, oil prices have to retrace back up at least to the $50's/barrel. What's ROYT stock worth at $50/barrel ? More than it's trading at now.
Ellis was a mistake, never should have been given the helm at Linn. With the establishment of LNCO, the CEO votes 40% of Linn's shares so there was no getting rid of Ellis. He'll ride this company right into the ground. The best shareholders can hope for is a sale of Linn. Shareholders might recover 20% from current price but Ellis will walk away with a "Golden Parachute". Its just how business works.
Sorry, you must be too busy searching for Obama's birth certificate to notice the wanton political thrust of these Hillary "Investigations".
The worst thing to be in America is working middle class. We pay for everything, and our children will pay for what we're borrowing today.
What happens when Linn's credit redetermination occurs in November and the creditors cut their credit line to below their outstanding credit ? Linn will have to come up with cash, either from forced asset sales or selling stock at depressed levels. Neither option is good for stock holders.
I don't disagree but remember who owns those politicians, the rich. The rich had the politicians pass laws to make it easy to outsource jobs, in some instances, with tax credits to pay all the expenses !! The outsourced jobs are still part of US companies, just at much reduced cost and no US labor laws to contend with, which max's profits, which max's bonuses for executives. Its good to be rich in the US right now.
Losing good paying jobs is always bad. The strong dollar has wiped out and will wipe out more good paying jobs than any decline in oil prices ever will. The Chinese have created 400 million new jobs in the last two decades. Where do you think those jobs came from ? The US and Europe. We used to make things in this country, now we buy things made in China. Everyone enjoys buying a big screen TV at Walmart for $200 but then complains about there being no good jobs around. The two are connected.
1. Cheap oil benefits the US economy
2. Let the Saudi's pump their oil, we keep our oil in the ground for future use.
3. Strategicaly, the US is in a win/win position.
2 questions. 1. At what point does this trust end ? 2. At what point does the pipeline shutdown for lack of flow ? This trust is in the last half of its life cycle. How close to the end is dependant on production and expenses. Do your due diligence. Don't pay more for a share than you can reasonably expect back in dividends + return on your investment.
We were in a commodity "super cycle". Explosive growth in India and China put extreme pressure on commodity demand. Prices took off as this demand exceeded supply. Industries, seeing this increased demand, expanded their supply of these commodities. This took time, 5-8 years. Now you are seeing the results. There is excess supply of virtually every commodity, iron ore, oil, nat gas, copper, etc. And with the rate of growth of China and India slowing, reducing the pressure on demand, this increased supply means a glut of everything which translates into much lower prices for everything. The end of the "super cycle". Don't expect prices of these commodities to recover to their former levels. Its a new dynamic.
"Then why has not BP sold this to help pay for the GOM spill?" . . . . BP has already sold this. That's why its a trust. BP sold an interest to the trust and now BP manages the operation, for a fee.
If you are risk adverse, stay away from anything related to commodities. Commodities are very volatile. Invest in quality bonds and/or S&P index funds. You'll sleep better.