Current LINE Stock Info

MLP Pioneer Cuts Dividend and Capex by more than 50%
LINN Energy LLC (ticker: LINE), a top-15 independent oil and natural gas development company, has announced reductions of more than 50% in both capital expenditures and dividends in 2015. LINN Energy has an unconventional approach in the oil in gas industry, with LINE executing on oil and gas development while the sole purpose of its subsidiary, LinnCo, LLC (ticker: LNCO), is to own LINN units and raise additional capital. The strategy has assisted LINE’s acquisition strategy, which has amou...

Analyst Commentary

R.W. Baird (1.6.15)

We revised our revised our estimates on LINE's 2015 outlook and distribution cut (Bellamy). Last week, Linn Energy (LINE/LNCO) cut its distribution by -57% and reduced its 2015 capital budget by -53% Y/Y, driven by significantly lower crude oil prices. We applaud LINE for being proactive, which we called for in our recent upstream downgrade note (Link). However, despite the distribution cut bringing 2015 coverage to 1.16x in our model, we estimate coverage of 0.90x in 2016

Raymond James (1.6.15)

Distribution Cut Unfortunate, But LINN Stronger Because of It

Recommendation: LINN’s distribution cut announcement, while surprising in the timing and the magnitude, strengthens LINN’s overall financial flexibility and boosts the company’s sustainability through this period of commodity price weakness. LINN is now the only Upstream MLP that is expected to be cash flow neutral. However, given the lower distribution rate, we are lowering our price target from $18 to $14. We reiterate our Outperform rating.  

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