Linn Energy, LinnCo Reveal Informal SEC Inquiry

Linn Energy LLC (NASDAQ:LINE) and Linn Co LLC (NASDAQ:LNCO) declared that they have got the information from the staff of Securities and Exchange Commission (SEC) that a private non public inquiry has been started regarding Linn and Linn Co.

Linn Energy, LinnCo Reveal Informal SEC Inquiry

Documents required by SEC

SEC has said that all documents and communications that can be useful in the enquiry should be kept safe. Some of the documents that SEC wants the company to keep are related to Linn Co’s proposed merger with Berry Petroleum Company, and Linn and Linn Co’s use of non-GAAP financial measures and hedging strategy, says a statement released by the company.

SEC further said that the inquiry should not create any negative image of the company and should not reflect that SEC staff holds any negative views on any company. The companies are contributing to the inquiry in the best possible way.

It cannot be forecasted on what would be the impact of inquiry on planned merger of Linn Co with Berry Petroleum Company.

Q1 earnings

For the first quarter of 2013, adjusted EBITDA of the company came in at $356 million. Loss posted by Linn Energy LLC (NASDAQ:LINE) amounted to $221.8 million or $0.96 per share. Adjusted net income for the company came in at $37 million or $0.16 per share. Linn Energy will pay a cash dividend of $0.725 per share.

About Linn Energy

Linn Energy LLC (NASDAQ:LINE) is an independent oil and natural gas development company which has around 4.8 Tcfe of proved reserves in producing U.S. basins as of December 31, 2012. Mission of Linn Energy is to acquire, expand and increase the cash flow from the enhanced business of long life oil and natural gas assets.

The purpose for the creation of Linn CO was to increase the ability of Linn Energy to raise additional equity capital in order to fulfill its acquisition and growth strategy.

Leon Cooperman positive 

Leon Cooperman, chairman and CEO of Omega Advisors, is positive on investment in Linn Energy LLC (NASDAQ:LINE). Cooperman in his letter dated June 17 said that Omega Advisors has full faith on the professionalism and reliability of the Linn Energy LLC’s management. Omega Advisors are positive on the future growth and financial performance of the company.

Analyst firms and media does not hold the same view as Leon Cooperman and are saying that the company will fail to continue the high yielding dividend and that the real value of the share should be less by 50 percent from where it is standing presently.