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Started By
Message
re: LINE/LNCO - Anyone with an opinion?
Posted on 8/3/15 at 10:31 pm to cwill
Posted on 8/3/15 at 10:31 pm to cwill
quote:
Anyone holding an MLP E&P after 11/2014 doesn't understand MLPs.
MLP is a good structure for pipelines but I've never seen how it's a good model for an E&P. Linn is essentially in a death spiral and a lot of their recent acquisitions will probably again be available only this time at cheaper metrics.
1
Posted on 8/4/15 at 9:17 am to TigerDog83
G&P's are next
Posted on 8/4/15 at 2:42 pm to cwill
Luckily, LNCO isn't an MLP. It is a holding company that owns shares of an MLP.
Not sure how you arrived at your thesis, I'm assuming you are talking about the tax implications.
Not sure how you arrived at your thesis, I'm assuming you are talking about the tax implications.
Posted on 8/4/15 at 3:13 pm to TheHiddenFlask
quote:
Luckily, LNCO isn't an MLP. It is a holding company that owns shares of an MLP.
Not sure how you arrived at your thesis, I'm assuming you are talking about the tax implications.
A lot of people have issues with the idea of putting depleting assets and large commodity exposure (upstream/E&P) inside of a structure that is supposed to have stable cash flows and distributions, an MLP.
Posted on 8/4/15 at 4:24 pm to whodatigahbait
They definitely went crazy with what they would jam into an MLP. I'm pretty sure someone put a refinery in one.
Posted on 8/4/15 at 5:14 pm to TheHiddenFlask
I was speaking to LINE specifically and E&P MLPs generally. E&P MLPs were going to get killed by interest rates or a commodity price collapse. The latter happened first.
Posted on 8/4/15 at 5:44 pm to cwill
I bought LNCO recently, just as a trade.
I agree with you on that point.
I agree with you on that point.
Posted on 8/4/15 at 5:51 pm to TheHiddenFlask
Do you think LNCO survives an LINE implosion?
Posted on 8/4/15 at 5:57 pm to cwill
It can't, all it owns is LINE. LNCO is for folks that want or need to avoid a K-1.
eta: on the topic of stupid ideas for MLP's. I heard a lot worse two years ago at the height of all this mania. A couple lawyers that were hosting a MLP 101 session joked about putting food trucks that served drilling sites and pipeline construction spreads into an MLP. Everyone chuckled a bit, but it didn't seem that far fetched at the time.
eta: on the topic of stupid ideas for MLP's. I heard a lot worse two years ago at the height of all this mania. A couple lawyers that were hosting a MLP 101 session joked about putting food trucks that served drilling sites and pipeline construction spreads into an MLP. Everyone chuckled a bit, but it didn't seem that far fetched at the time.
This post was edited on 8/4/15 at 6:00 pm
Posted on 8/4/15 at 5:57 pm to cwill
^^ the same assets drive them both, they are the same company, just in different structures; both rise and fall together.
eta: check out ticker FUN
eta: check out ticker FUN
This post was edited on 8/4/15 at 6:03 pm
Posted on 8/4/15 at 7:06 pm to cwill
Obviously not. My point was that my purchase was a trade, not an investment. I bought it a couple weeks back. Definitely bleeding on this one, but I will live to fight another day.
I think Linn is a fine operator, the highly levered structure is tough, but the large number of wells makes it much more of a pure play than other stocks that have been beaten down.
I think Linn is a fine operator, the highly levered structure is tough, but the large number of wells makes it much more of a pure play than other stocks that have been beaten down.
Posted on 8/5/15 at 7:32 am to TheHiddenFlask
Posted on 8/9/15 at 11:23 am to Iowa Golfer
Accurate and fitting.
Posted on 8/18/15 at 2:04 pm to TheHiddenFlask
Bout to jump in LINE !
Posted on 8/18/15 at 3:50 pm to Zilla
quote:
Bout to jump in LINE !
might want to consider LNCO instead so you dont have the hassle of a K-1
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