LINE reported that during 3Q three Oklahoma Hogshooter wells located in its Mayfield area were turned to sales at rates that within the range of its first 9 wells. Despite the strong initial rates, the company is now running only two rigs in the Mayfield area down from four last quarter.
We believe the decision to reduce rigs in the Mayfield area comes from a combination of a lack of permitting and potential longer-term underperformance (no long-term data given by management), and the desire to move capital to less exploratory areas.
Questions/Uncertainty Still Cloud Near-Term Outlook
Management is not holding a conference call to review its 3Q results which we believe will cause investors to remain cautious and skeptical in the near-term until additional clarity is given regarding the proposed LNCO/BRY merger. We believe that there are three key questions/issues that need to be addressed (and should be in the coming weeks): 1.) When will the S-4 go effective?, 2.) will the merger agreement be extended?, 3.) how much will LINE management increase its offer price for BRY?
Rating Buy, PT: $33
We reiterate our Neutral rating and $34 fair value estimate pending finalization of the SEC review of the merger and a conclusion to the SEC review of the MLPs accounting. Our estimates are under review.
Transportation expenses were up again in the Q, nearly doubling to $36 mn or 47 cents/Mcfe from $18 mn or 25 cents/Mcfe. The increase is likely due to continued midstream infrastructure capacity constrains in some producing areas, particularly the Permian basin. Several infrastructure expansion projects are in process in the basin that should help to alleviate congestion in the second half of the year.
Didn't mean to come off as being bad - I wasn't. Just pointing out that the question of LNCO' s purpose for Linn to be able to raise equity for acquisitions was never an issue with the SEC.
That's never been a question. The SEC approved the formation of LNCO and the purpose was spelled out in the S-1. The SEC never brought up as an issue LNCO's purpose during the exchange of correspondence while the S-1s were being developed and amended.
LINN Energy, LLC (NASDAQ: LINE) and LinnCo, LLC (NASDAQ: LNCO)
Month Record Date LINE / LNCO
Payable Date Payment Amount Annualized
April 2013 July 10, 2013 July 15 / 16, 2013 $0.2416 $2.90
May 2013 August 12, 2013 August 14 / 15, 2013 $0.2416 $2.90
June 2013 September 10, 2013 September 13 / 16, 2013 $0.2416 $2.90
July 2013 October 10, 2013 October 14 / 15, 2013 $0.2566 $3.08
August 2013 November 11, 2013 November 14 / 15, 2013 $0.2566 $3.08
September 2013 December 10, 2013 December 13 / 16, 2013 $0.2566 $3.08
October 2013 January 10, 2014 January 14 / 15, 2014 $0.2566 $3.08
November 2013 February 10, 2014 February 14 / 18, 2014 $0.2566 $3.08
December 2013 March 10, 2014 March 14 / 17, 2014 $0.2566 $3.08
Actually they are a month late. This was from a Linn news release dated 4/25/13. When did they rescind it?
It's worth noting that most McDonald's locations in the U.S. stopped serving Heinz ketchup a long time ago. Only the stores in the areas around Pittsburgh (the home of Heinz) and Minneapolis currently carry Heinz, John Bennett, vice president of food-service ketchup, condiments and sauces for Heinz, told the Wall Street Journal in 2011.
McDonald's representatives refused to say which company supplies ketchup to the majority of McDonald's American restaurants at the moment,
Sabine Pass LNG (Sabine Pass) filed an application with FERC to increase the authorized LNG production capacity of the first four liquefaction trains at the proposed LNG export facility in Cameron Parish, La. from an aggregate of 803 Bcf/year to an aggregate of 1006 Bcf/year. Sabine Pass states that the 803 Bcf/year authorization was based on the conservative nameplate capacity of those production trains and that Sabine Pass has calculated the peak LNG production and export capability of those facilities to be approximately 1006 Bcf/year. Sabine Pass seeks to match the authorization with the peak capability of the facilities
PLEASE put me on ignore like you said you would.
Or are my remarks so important to you, you just can't resist reading (and commenting) on each and every one?
So far, PVR reported (today) just like they always did, and I will go out on a long limb and say that every other MLP will report just as they always have.
Regardless of whether you liked it or not, every other MLP in the universe uses it to calculate their DCF coverage. And, as of August 8, 2013, Linn defined thusly:
The Company defines DCF as adjusted EBITDA with the following adjustments:
Maintenance capital expenditures; and
Provision for legal matters.
As Linn is now going off on their own to calculate some other number as yet undefined, it would be beneficial to know what it is so one can measure apples to apples.
Linn no longer uses DCF, and if it was, the numbers Frederick used were not the proper ones to use anyhow.
If you were to attempt to calculate it, you'd need the Adjusted EBITDA, maintenance capex, and interest payments (along with any legal payments/costs).
Since Linn no longer provides Adjusted EBITDA, you have to figure that also.
The "excess cash" number is meaningless.