On Sep 4, LINN Energy, LLC (LINE), an exploration and production (E&P) firm, announced the pricing of a two part senior note offering totaling $1.1 billion. Both these offerings are anticipated to close on Sep 9.
A $450 million offering, carrying an interest rate of 6.5% and having maturity in 2019, was priced at 102% of par and also included accrued interest from May 15, 2014. This offering is similar to the $750 million offering made by the company in May 2011 and will be considered as a single class of debt securities.
A second offering of $650 million, due 2021 and carrying an interest of 6.5% was priced at 98.619% of par. LINN Energy mentioned that the proceeds from these offerings would be used to settle debt under its bridge loan agreement and credit facility.
Based in Houston, TX, LINN Energy is an independent E&P company involved in the acquisition and development of oil and natural gas properties. The company plans to develop a portfolio of long-life oil and natural gas assets.
Last month, the company reported second-quarter earnings of $1.85 per share that beat the Zacks Consensus Estimate by a massive $1.42, resulting in a 330.23% positive surprise. Notably, the company has fared well in the recent past, surpassing the estimates in three of the trailing four quarters with an average beat of 91.74%.
Currently, LINN Energy has a Zacks Rank #3 (Hold), implying that it is expected to perform in line with the broader U.S. market in the next one to three months.
Meanwhile, one can consider better-ranked players from the same sector like WPX Energy, Inc. (WPX), Cimarex Energy Co. (XEC) and Halcon Resources Corp. (HK). While WPX Energy sports a Zacks Rank #1 (Strong Buy), Cimarex Energy and Halcon Resources hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment