The companies noted that the Division of Corporation Finance of the Securities and Exchange Commission has advised that it has no further comments on Amendment No. 6 to the Joint Registration Statement on Form S-4.
First, the SEC inquiry has not concluded. This press release states that the SEC has no comment on the S-4, not that it has concluded its probe into Linn's accounting standards. Investors should be wary that an SEC enforcement action is still a possibility; the risk of this occurring, while probably diminished, is not zero. While the company has altered its terminology, its calculation of maintenance cap-ex as compared to growth cap-ex remains opaque and at the very least lead to questions regarding the sustainable of the distribution.
Second, now that we have entered November, Berry has stated it is easier for the company to exit the merger. The merger agreement does include an $84 million break-up fee, though some have suggested that the company could avoid paying this fee given the fact it has greater flexibility after 10/31/13. At the very least, it could be using this fact to leverage a better price.
What if the news had been the opposite?
In the words of Yogi Berra: "It ain't over 'til it's over."
Happy to see my LNCO shares appreciating this AM.
Interesting that BRY shares haven't moved in synchronicity.
CVR Refining also announced today a third quarter 2013 distribution of 30 cents per common unit. The distribution, as set by the board of CVR Refining GP, LLC, the general partner of CVR Refining, will be paid on Nov. 18, 2013, to unitholders of record on Nov. 11, 2013.
CVR Refining's third quarter cash distribution brings the cumulative cash distributions paid or declared for the first nine months of 2013 to $3.23 per common unit.
CVR Refining also updated its 2013 full year distribution outlook to $3.45 to $3.70 per common unit, which includes 18 cents from the pre-IPO period of Jan. 1, 2013, to Jan. 22, 2013. The updated outlook is a result of current market conditions, primarily the decrease in the Group 3 2-1-1 crack spread.
Plenty of foreign buyers are interested in US assets.
Now that the penalty period has passed, I could see much more interest from both domestic and foreign oil companies.
1. Good to see the investment with Anadarko bearing fruit. It's taken over a year to get there, but the production from Williston/Powder River basins grew by 59% year over year and is now 5% of total production. They have also increased capital spending in the Bakken, but the bulk of the increase is in the Salt River.
2. The Green River (Jonah Field) increased by 322% since last year, and is now 17% of the total production.
3. There will be no ethane rejection in October or November. Average ethane rejection during the 3rd quarter was 23 mmcf/day.
4. In addition to the S-4 registration, the SEC is holding up another filing pertaining to the November 2019 Senior Notes. Thus far, this has cost Linn $4 million in additional interest and will continue to increase by .25% every 90 days until the registration is declared effective.
5. When the deal was being discussed, Berry was led to believe that the distribution would be increased to $3.85 per year. That number may now be in jeopardy, and another possible roadblock to a Berry approval.
6. Berry's release of the "End Date" memo came from the S-4, and was not originated by Berry. It is of course up to debate as to why they released it when they did, and the manner which they did it.
If all the SEC is looking into is the hedging strategy, why is Linn having to amend the S-4, which ONLY has to do with the Berry merger?
When Linn was forming Linnco, there was a wealth of correspondence between Linn aand the SEC back and forth over a period of months, with the final SEC "approval" and Linn conducting the IPO very shortly after that.
I suspect when this is all ever, Linn will make some, if not all, of the correspondence public just as they did with the LNCO formation.
"without proper references"--- what a joke, when Norris posts ad nauseum with zero refereces nor purpose.
If you want to know where they come from, just ask, or Google it...do you know how to do that?
And I've always been forthcoming with my position(s). With all the non-topical garbage that's on here, it's no surprising you missed it, however.
Don't know where you saw the 28th, but last year it was on Nov. 2nd so likely they'll be issued tomorrow. I hope you aren't expecting a profit LOL.