HEDGING - LINN has hedged approximately 100% on expected natural gas production through 2017 at an average price ranging from $4.48 to $5.12 per MMBtu. For expected oil production, the Company’s hedged approximately 90% for the remainder of 2015 at an average price of approximately $88 per barrel and approximately 70% in 2016 at an average price of approximately $90 per barrel. **** WITH HEDGES_ That book of locked in revenue is the runway length for Linn to use its free cash generation to either work on further expense reductions, which would come primarily from debt buy backs and/or increase production and revenue levels. ----- we’ve seen 20% to 25% on the order of 20%, 25% savings essentially across all of our capital programs on the drill side … -- This is the third quarter in a row we’ve exceeded expectation. *** DEBT- lnco - announced today that LINN has entered into a series of privately negotiated transactions to exchange an aggregate principal amount of $2 billion of the Company’s senior unsecured notes (the “Unsecured Notes”) for an aggregate principal amount of $1 billion of newly issued senior secured second lien notes (the “Second Lien Notes”). These exchanges are expected to improve LINN’s balance sheet and reduce interest expense. “These exchanges result in a material debt reduction and also improve our cash interest expense by approximately $16 million per year.” Strategic advantages of these exchanges:
• Reduce total debt by $1 billion,
• Decrease annualized interest expense by approximately $16 million;
• Reduce the nearest senior unsecured debt maturities (due in 2019) by approximately $1.4 billion, or 53 percent, subject to the potential Springing Maturity of the Second Lien Notes; and
• Preserve $500 million of second lien capacity for potential future issuance of new secured debt.
This is a must buy down here. It's priced for BK and the disconnect from realty should make the stock fly. The stock should be noticed today as a top performers. This and others in the sector just have to survive and this one has a huge chance for out standing gains.
He is right. You are valueless and clueless. Options, saddled, puts and year over year hedging in the past as these guys are masters at the game. Your am idiot and don't know the company. They buy older fields and partner for fields that are well established . most companies want the first few years of easy oil
. lnco can use their technology to get tough oil and they over hedge at times. The critics say , over hedging in the past, now it is consider ed,,,job well done. Their are many ways to hedge. These shorts are due for a squeeze. The for you to go. Your smarter friends are going
I just doubled down. Market all time low. It's scaring these turds into lying about their shorts and the companies hedges, debt and opportunities. Their partnerships and business plan has not changed..... They hedge every year and are the best in the business doing it.. The major publications say they use hedging throughout the years to their advantage. Strong fields and heavy hedging is their trademark. These shorts are idiots and don't know what they are talking about
You are an idiot. They can hedge and create all kinds of stradles, options , for supporting the oil. Are you a grown up or idiot. Go to morning Star as they are putting the debt further out. Being short is one thing but stupid and giving false info is another. Are you saying you don't think banks will work with them? Many companies are in default and its not unusually. This does not mean they can't pay it off in time. The market and industry is down and most are loosing money. Are you need to investing? It'd called bottom fishing and capitalizing on the week sector as in once in a lifetime opertunity.
The markets are high and rae materials and oil are the only games in town ready to doubles
My 401 won't let me by line. Only lnco. The company pays the taxed instead of passing then to ,,,( the holders). Lnco was created for that purpose and know clows say its bad. This will be very bad for shorts soon enough
Similar questions were asked at the conference call and it was no problem and none event. I'm sure it's shorts placing fear. What is a fact as this is way to cheap. It is coilef and ready to jump up
It has hedges tell then. It's just finding the bottom. I think we are close. This will double before oil and gas reach those levels. The moment this breaks above top support of 51 this goes ballistic
"We also believe the Western Catarina Midstream Transaction provides a solid foundation for next year's business activity. Our base case forecast currently shows our Adjusted EBITDA ranging from $54 million to $60 million in 2016. Based on this forecast, we currently anticipate Distributable Cash Flow of between $14.4 million and $20.4 million in 2016, which would provide coverage on projected distributions to our common unitholders of approximately 2.2x at the midpoint of our forecast."
"Our base case 2016 forecast assumes divestiture of our Mid-Continent operated assets this year with no additional acquisition or divestiture activity. However, with recent disruptions in the energy markets and line of sight to over $1 billion in midstream and production assets managed under the Sanchez Oil & Gas Corporation operating platform, we see significant opportunities for growth. As a result, we currently target a 15% compound annual growth rate in our distribution per unit through 2019."
The Company's liquidity remains strong with a current cash position in excess of $450 million in addition to this completely unused bank credit facility. We expect to fully fund our 2016 capital program through cash on hand and cash flow from operations without drawing down on the Company's revolving credit facility and would expect to enter 2017 with a positive cash balance."
HEDGING - As of September 30, 2015, the Company has hedged approximately 62% of estimated natural gas production for the fourth quarter 2015 based upon the midpoint of guidance in the form of swaps, three way collars and enhanced swaps. Gas hedging for 2016= 14,640,000 MmBTUs . Oil hedged for 2016- 2,562,000 BBLS at 70$ Swaps , collars , puts . "In addition, during the fourth quarter Sanchez Energy entered into additional derivative contracts covering anticipated future gas production in 2016 and 2017. As of November 19, 2015, Sanchez Energy has approximately 6.6 million barrels of anticipated crude production and 35.3 Bcf of gas production for 2016 hedged, or approximately 12,471.7 MBOE (34,076 BOE/D), which represents approximately 68% of its anticipated total 2016 production at the mid-point of its 4Q 2015 guidance range. Further detail regarding current hedges for anticipated future production is included herein."
Gas Total Gas Hedged Calendar Year 2015 61,000
Gas Total Gas Hedged Calendar Year 2016 99,154
Gas Total Gas Hedged Calendar Year 2017 76,562
Oil Total Oil Hedged Calendar Year 2015 14,000
Oil Total Oil Hedged Calendar Year 2016 18,000
shorts will be our fuel. They cant push it under 40 to stay down there. The pattern is 40 to 48.
They are to stupid to step it up to congress . OBAMA has made idiots of all you GOP want to bees. How do you like him being proven right about all of his major decisions? Worse congress ever is your BOHNERS legacy.