NEW YORK, Dec 28 (Reuters) - Despite plummeting natural-gas and oil prices in the past six months that sent Linn Energy's stocks falling, and frozen capital markets that could make it hard for the company to make acquisitions, concerns about the oil and gas driller are probably unwarranted, Barron's wrote in its Dec. 29 edition.
Linn, which is a master limited partnership that pays out about 60 percent to 70 percent of its quarterly cash flow to shareholders in tax-advantaged distributions, has used hedging to lock in the high prices of last summer's energy price bubble for the next three to four years, Barron's wrote.
on its third-quarter distribution of 63 cents per unit, the company is offering a current yield of more than 20 percent, Barron's wrote.
One Citigroup (nyse: C - news - people ) analyst said Linn's distribution level is 'relatively secure,' and has a one-year price target on its stock of $22, while another, at RBC Capital Markets, has a target price of $27, Barron's wrote.
Linn Energy shares closed at $11.98 on Friday in trading on the Nasdaq.
Linn Energy, LLC (Linn Energy) is an independent oil and gas company focused on the development and acquisition of long-lived properties in the United States. The Company’s oil, gas and natural gas liquids (NGL) properties are located in three regions in the United States: Mid-Continent, which includes the core operating areas Texas Panhandle and Oklahoma; Appalachian Basin, which includes fields in West Virginia and Pennsylvania, and Western, which includes the Brea Olinda Field of the Los Angeles Basin in California. The Company’s proved reserves, at December 31, 2007, were 1,616.1 billion cubic feet equivalent (Bcfe), of which approximately 64% were gas, 20% were oil, and 16% were NGL. Approximately 73% were classified as proved developed. At December 31, 2007, Linn Energy operated 5,638, or 77%, of its 7,305 gross productive wells
No comments:
Post a Comment