Strong 3Q Results Indicate Linn Energy, LLC (NASDAQ:LINE) Turnaround


Dallas, Texas 11/01/2013 (Financialstrend) – Linn Energy, LLC (NASDAQ:LINE) is an independent oil and gas producer with market cap of $6.47 billion. After close of business on October 28, the company announced the results from its 3 quarter operations. It reported net loss of $0.13 per share and revenue for the quarter came in at $538 million up 21% when compared to 3Q FY13. Production also increased substantially at 823 million cfe/ day as compared to 3Q production of 782 million.  The increase in revenue is all the more impressive since the price of gas through the past few months has been erratic and on the lower side.

On the back of strong jump in production and ready guidance for 4Q, analysts have opined that the oil and gas firm has managed to turn the corner considering the sustained increase in its daily output. The rating agency Raymond James went ahead and declared that the company has “finally turned the corner.” Other rating agencies like RBC have struck a cautions note specifically around the continued uncertainty over the proposed merger between Berry Petroleum, LinnCo and Linn Energy, LLC (NASDAQ:LINE). Readers should also note that the firm has announced dividend payout of $0.2416 per each share held by stock holders on record as of November 11. The stock is expected to ex dividend on November 6. The dividend is to be paid out on November 14. This year the company has provided a dividend yield of 11.12%.

All the uncertanity around its proposed merger has driven he stock price down 1.63% during trading on October 31, in spite of a good 3Q results announcement. The stock was trading at $27.7 per share down 29% from its 52 week high valuations. Analysts have tacked a price target of $32.92 per share over the next few months based on the building up in its operational momentum.