I'm not saying that...exactly.
What I said earlier was that now that the SEC has cleared Linn's S-4, they can manipulate the "available cash" whichever way they want to, and since we won't know how they calculate "old DCF" they can show it's accretive - whether it actually is or not.
As I proved earlier, using their former methods of calculating DCF, with the addition of 20 or so million more units, coverage is $2.55 per unit. Unless Berry has vastly improved it's cash flow metrics to include another $60,000,000 per year from increased revenue, they can't "get there from here." That's why I said it will be interesting to see how they justify this increased exchange ratio.
Under the terms of the transaction agreement, Weyerhaeuser will distribute ownership of WRECO to Weyerhaeuser shareholders in either a spin-off or split-off transaction, which will be immediately followed by a merger of WRECO with a subsidiary of TRI Pointe, with WRECO surviving the merger and becoming a wholly owned subsidiary of TRI Pointe. If Weyerhaeuser elects a spin-off, all Weyerhaeuser shareholders will participate pro-rata. In a split-off, Weyerhaeuser will conduct an exchange offer pursuant to which its shareholders will elect whether to exchange Weyerhaeuser shares for WRECO shares. Weyerhaeuser will determine which approach it will take prior to closing the transaction and no decision has been made at this time. Regardless of the method, upon closing of the merger, Weyerhaeuser shareholders will receive approximately 80.5 percent of TRI Pointe shares, on a fully diluted basis, and pre-transaction TRI Pointe shareholders will own the balance of the combined company's shares.
You aren't figuring in the extra 20-22 million shares they are adding. That's another $60 million per year they have to come up with somehow.
From a cynical point of view, yes. With the new method of using "available cash" instead of DCF, they are pretty much free to manipulate the numbers any which they want to.
From a valuation point of view, I think Berry is worth every penny (but not a penny more.)
Just waiting to see your proof that mine are wrong; again, as you don't know basic math, I don't expect to see much of anything from you, just pontificating. It's too bad you are such a waste of humanity.
It will be interesting to see how they justify any increase in the distribution with 21 million additional units to be issued.
When the deal was announced in February, the deal was marginally accretive then, and assumed a DCF of $830,000,000, and a coverage ratio of 1.02x.
With approximately 21 million more shares that's a total of 325 million outstanding. $830/325=$2.55, quite a ways from the current $2.90.
This doesn't count the other acquisition, but it won't make up the .35 difference, let alone include more for an increase.
The call has been moved up to tomorrow:
LINN Energy has rescheduled its previously announced conference call to Tuesday, November 5, 2013, at 10 a.m. Central (11 a.m. Eastern) to discuss the Berry merger and the Company's third quarter 2013 operational and financial results. The Company will issue a press release announcing additional details regarding the call on Monday, November 4, 2013.
LINN Energy, LLC (Nasdaq:LINE), LinnCo, LLC (Nasdaq:LNCO) and Berry Petroleum Company (NYSE:BRY) (the "Companies") announced today that the boards of directors of LINN Energy, LinnCo and Berry have unanimously approved an amended merger agreement. The Companies have executed an amendment to the existing merger agreement to provide for an increase in the exchange ratio (from 1.25 to 1.68 shares of LNCO for) each outstanding share of Berry common stock would receive in the merger and an extension of the end date to January 31, 2014.
Under the amended terms of the agreement, LinnCo has agreed to increase the number of common shares it is issuing to 1.68 common shares, from 1.25 common shares, for each common share of Berry outstanding prior to the merger for total consideration of approximately $4.9 billion, including the assumption of debt. The transaction, which is structured as a stock-for-stock merger of Berry with LinnCo followed by the acquisition of the Berry assets by LINN Energy, is expected to be tax-free to Berry shareholders.
"The transaction is expected to be accretive to LINN's cash available for distribution;"
I suspect they'll wait until mid 2014 to see exactly how accretive it is before they do anything.
Prospect Capital Corporation (NASDAQ: PSEC) ( "Prospect") announced today that Prospect has declared monthly cash distributions to shareholders in the following amounts and with the following record and payment dates:
11.0400 cents per share for April 2014 (record date of April 30, 2014 and payment date of May 22, 2014);
11.0425 cents per share for May 2014 (record date of May 30, 2014 and payment date of June 19, 2014); and
11.0450 cents per share for June 2014 (record date of June 30, 2014 and payment date of July 24, 2014).
Corn fell for a fourth day to trade near a three-year low on expectations that supplies in the U.S. will be bigger than the government estimates, and as rain in Argentina aided planting.
The contract for December delivery lost as much as 0.2 percent to $4.2625 a bushel on the Chicago Board of Trade and was at $4.2675 at 10:39 a.m. in Singapore. Futures dropped to $4.2575 on Nov. 1, the lowest level since August 2010. Prices fell 2.9 percent last week for a second weekly decline.
Corn lost 39 percent this year as the U.S. crop may reach an all-time high of 13.8 billion bushels, the U.S. Department of Agriculture estimates. Farmers may harvest 14.029 billion bushels, according to a survey of 36 analysts and trading firms by Bloomberg. In Argentina, drier weather early this week will favor planting after heavy rain helped ease dryness in some regions, MDA Information Systems LLC said Nov. 1.
“Seasonal harvest pressure continues to weigh heavily on the corn market,” Luke Mathews, a commodity strategist at Commonwealth Bank of Australia, wrote in a note today. “Excellent rainfall has arrived in Argentina, providing a much improved outlook for summer crop planting and establishment.”
About 59 percent of U.S. corn was harvested by Oct. 27, from 39 percent a week earlier, the USDA said on Oct. 28. The agency is scheduled to update its crop estimates on Nov. 8. Rains in Argentina’s Pampas region will accelerate planting, the Rosario Grains Exchange said Nov. 1.
Farmers around the world will gather a record 948.4 million metric tons in the season started July 1, the International Grains Council said Oct. 31. That’s up 5.2 million tons from its prior estimate and compares with a crop of 862.7 million tons in 2012-2013. The group lifted its estimate for Argentina by 1 million tons to 26 million tons, compared to 2012-2013 production of 30 million tons.
I can explain it to you, but I can't understand it for you.
Clearly, WJ Bryan reincarnated.
Exactly what Bryan would say....were separated at birth?