Shares of Linn Energy LLC (NASDAQ:LINE) are down big this morning after the company announced plans to “explore strategic alternatives related to its capital structure”. Linn Energy, along with their parent company LinnCo, LLC (NASDAQ:LNCO) could be looking at a possible bankruptcy filing, and we all know that would spell doom for the stock.
Much of these problems stem from the ever decreasing price of oil, which has led to plenty of issues with financing. Linn Energy LLC (NASDAQ:LINE)
“Efficient management of our stable asset base and aggressive cost management are driving meaningful value even in today’s difficult commodity price environment,” explained Mark E. Ellis, Chairman, President and Chief Executive Officer. “However, given commodity pricing pressure and the impact that market challenges are expected to have on our industry and the long-term financial outlook of our Company, we believe it is prudent to explore opportunities to strengthen our balance sheet and ensure we have adequate financial flexibility to manage through prolonged commodity price headwinds. By proactively undertaking this process now with the help of our advisors, we believe we can implement a comprehensive solution that will position LINN for long-term success.”
The stock is down 57.08% or $0.685 following the news, hitting $0.515 per share. Approximately 1.23M shares traded hands. LINE shares have declined 86.59% since July 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 79.29%.
From a total of 8 analysts covering Linn Energy Llc (NASDAQ:LINE) stock, 0 rate it a “Buy”, 3 a “Sell”, and 5 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $8 while the lowest target price is $0.50. The mean of all analyst targets is $3.86 which is 649.51% above today’s ($0.515) stock price. Linn Energy Llc was the topic of 13 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Stifel Nicolaus downgraded shares on October 6 to a “Hold” rating. Credit Suisse downgraded shares to a”Underperform” rating and a $5 target share price in their report from a July 31. Citigroup maintained LINE stock in a recent report from September 14 with a “Neutral” rating. Finally, RBC Capital Markets downgraded the stock to a “Sector Perform” rating in a report they issued on an August 3.
The institutional sentiment decreased to 0.51 in Q2 2015. It’s down 0.45, from 0.96 in 2015Q2. The ratio turned negative, as 56 funds sold all their Linn Energy LLC shares they owned while 58 reduced their positions. 29 funds bought stakes while 29 increased their total positions. Institutions now own 18.44 million shares which is 14.93% less than the previous share count of 21.68 million in 2015Q2.
Weybosset Research & Management Llc holds 0.49% of its total portfolio in Linn Energy LLC, equating to 242,279 shares. Cetera Advisors Llc owns 797,746 shares representing 0.2% of their total US portfolio. Moreover, Goodwin Daniel L has 0.12% of their total portfolio invested in the company, equating to 158,800 shares. The Maryland-based Arrow Investment Advisors Llc has a total of 0.09% of their portfolio invested in the stock. Old Second National Bank Of Aurora, a Illinois-based fund reported 30,525 shares owned.
Linn Energy, LLC is an oil and natural gas company. The company has a market cap of $182.88 million. The Firm is focused on acquiring, developing and maximizing cash flow from a portfolio of oil and natural gas assets. It currently has negative earnings. The Company’s properties are located in the United States, in the Rockies, the Hugoton Basin, California, east Texas and north Louisiana (TexLa), the Mid-Continent, the Permian Basin, Michigan/Illinois and south Texas.