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Linn Energy, LLC Message Board

lexpress56 3 posts  |  Last Activity: Jul 15, 2015 2:49 PM Member since: May 9, 2007
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  • Reply to

    New presentation

    by dtjoaquin Jul 14, 2015 4:51 PM
    lexpress56 lexpress56 Jul 15, 2015 2:49 PM Flag

    And it does not recite liquidity of $800m; it says potential liquidity events totaling $870m

  • Reply to

    2 JV's and the sale of the pipeline!!

    by sammc1960 Jun 25, 2015 5:10 PM
    lexpress56 lexpress56 Jun 26, 2015 10:30 AM Flag

    Sammc: The JV figures do not represent pure liquidity. Looking at some past JV deals done in the area, the largest of which (I think) was the big one Chesapeake and EVEP did with total, the cash component of these deals is around 7-8%. For example, EVEP got $90m at closing for contributing 77,000 acres to the JV, which is a bit less that $1200 an acre of cash on a deal valued at $15,000 an acre at the time. Assuming, MHR did a $500m deal with the Total JV metrics, it would mean MHR would receive around $40m of cash at closing. Who knows what GE will negotiate, but those are the metrics of the Total sale and the point again is simply that the stated value of the deal -- $500m -- is not a cash figure. GLTA Longs. Lex

  • Reply to

    so they will sell the entire pipeline interest

    by johns.patrick Jun 25, 2015 10:16 AM
    lexpress56 lexpress56 Jun 25, 2015 12:17 PM Flag

    Slab: I agree with the general assessment provided GE uses at LEAST 60% of proceeds to reduce debt and/or take out some of the preferred as MHR just has to reduce its cost of capital. Now what would really make the stock move is to couple the sale with a large JV announcement as the combination would turn the company from a high risk play over to the other end of the spectrum as a low risk play. Reduce debt by over 50%, use someone else's money to ramp up development in Ohio, and let MHR develop its stacked acreage in both the Utica and Marcellus using lower cost pad drilling at Stalder, Stewart Winland, and another Tyler county pad. Selling EHP is a great first move, but boy would it be fun to see a two-step move. Just my two cents. Lex

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