Linn Energy LLC (LINE, Financial) filed Quarterly Report for the period ended 2009-09-30.
Linn Energy LLC is an independent oil and gas company focused on the development and acquisition of long-lived properties which complement its asset profile in producing basins within the United States. Its goal is to provide stability and growth in distributions to our unitholders through a combination of continued successful drilling and acquisitions. Linn Energy Llc has a market cap of $3.07 billion; its shares were traded at around $25.29 with a P/E ratio of 18.2 and P/S ratio of 2.1. The dividend yield of Linn Energy Llc stocks is 9.9%.
At September 30, 2009, the Company had long-term debt outstanding under its Credit Facility of approximately $1.25 billion, which incurred interest at floating rates (see Note 6). A 1% increase in LIBOR would result in an estimated $12.5 million increase in annual interest expense. The Company has entered into interest rate swap agreements based on LIBOR to minimize the effect of fluctuations in interest rates (see Note 7).
At September 30, 2009, the average public bond yield spread utilized to estimate the impact of the Company s credit risk on derivative liabilities was approximately 4.90%. A 1% increase in the average public bond yield spread would result in an estimated $1.1 million increase in net income for the three months and nine months ended September 30, 2009. At September 30, 2009, the credit default swap spreads utilized to estimate the impact of counterparties credit risk on derivative assets ranged between 0% and 2.02%. A 1% increase in each of the counterparties credit default swap spreads would result in an estimated $4.7 million decrease in net income for the three months and nine months ended September 30, 2009.
In October 2008, the Board of Directors of the Company authorized the repurchase of up to $100.0 million of the Company s outstanding units from time to time on the open market or in negotiated purchases. The repurchase plan does not obligate the Company to acquire any specific number of units and may be discontinued at any time. The Company did not repurchase any units during the three months ended September 30, 2009. At September 30, 2009, approximately $85.4 million was available for unit repurchase under the program.
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Linn Energy LLC is an independent oil and gas company focused on the development and acquisition of long-lived properties which complement its asset profile in producing basins within the United States. Its goal is to provide stability and growth in distributions to our unitholders through a combination of continued successful drilling and acquisitions. Linn Energy Llc has a market cap of $3.07 billion; its shares were traded at around $25.29 with a P/E ratio of 18.2 and P/S ratio of 2.1. The dividend yield of Linn Energy Llc stocks is 9.9%.
Highlight of Business Operations:
The Company enters into derivative contracts with respect to a portion of its projected production through various transactions that provide an economic hedge of the risk related to the future prices received. The Company does not enter into derivative contracts for trading purposes (see Note 7). At September 30, 2009, the fair value of contracts that settle during the next 12 months was an asset of approximately $260.6 million and a liability of $5.4 million for a net asset of approximately $255.2 million. A 10% increase in the index oil and gas prices above the September 30, 2009, prices for the next 12 months would result in a net asset of approximately $170.0 million which represents a decrease in the fair value of approximately $85.2 million; conversely, a 10% decrease in the index oil and gas prices would result in a net asset of approximately $341.9 million which represents an increase in the fair value of approximately $86.7 million.At September 30, 2009, the Company had long-term debt outstanding under its Credit Facility of approximately $1.25 billion, which incurred interest at floating rates (see Note 6). A 1% increase in LIBOR would result in an estimated $12.5 million increase in annual interest expense. The Company has entered into interest rate swap agreements based on LIBOR to minimize the effect of fluctuations in interest rates (see Note 7).
At September 30, 2009, the average public bond yield spread utilized to estimate the impact of the Company s credit risk on derivative liabilities was approximately 4.90%. A 1% increase in the average public bond yield spread would result in an estimated $1.1 million increase in net income for the three months and nine months ended September 30, 2009. At September 30, 2009, the credit default swap spreads utilized to estimate the impact of counterparties credit risk on derivative assets ranged between 0% and 2.02%. A 1% increase in each of the counterparties credit default swap spreads would result in an estimated $4.7 million decrease in net income for the three months and nine months ended September 30, 2009.
In October 2008, the Board of Directors of the Company authorized the repurchase of up to $100.0 million of the Company s outstanding units from time to time on the open market or in negotiated purchases. The repurchase plan does not obligate the Company to acquire any specific number of units and may be discontinued at any time. The Company did not repurchase any units during the three months ended September 30, 2009. At September 30, 2009, approximately $85.4 million was available for unit repurchase under the program.
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