LINN Energy Takes a New Approach to Combat its Greatest Foe

Photo credit: Apache. 

LINN Energy (NASDAQ: LINE  ) seems to have finally realized that the weapons in its current arsenal simply couldn't combat its biggest foe. And while most investors probably think I'm talking about short-sellers or the financial media, this foe is actually the company's struggles to overcome its decline rate. This is what has given fuel to the fire set by those negative on LINN Energy, without which they wouldn't have much to back up their arguments.

LINN Energy's decline rate probably isn't something most investors even know exists, though the company has mentioned it in nearly every acquisition it has made over the past few years. Now we are seeing the company put greater focus on reducing the overall decline rate of its portfolio by reshaping that portfolio. This is why the company recently decided to exit its position in the Granite Wash and Cleveland plays and replace that production with Devon Energy's (NYSE: DVN) low-decline natural-gas assets.

The following slideshow is intended to help investors better grasp the overall picture of the problem with decline rates. It details Devon Energy's decline rates in the Permian Basin, as well as what Apache (NYSE: APA  ) experiences in the Granite Wash and Cleveland plays. Those are compared to the type of decline rates LINN Energy wants in its portfolio. 

Do you know this energy tax "loophole"?
LINN Energy is taking advantage of a special tax "loophole" that's putting more money into the pockets of investors like you. It's a loophole you really need to know. You can take better advantage of this profitable opportunity by grabbing our brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.


Read/Post Comments (0) | Recommend This Article (9)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3031067, ~/Articles/ArticleHandler.aspx, 11/23/2014 5:34:27 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 17,810.06 91.06 0.51%
S&P 500 2,063.50 10.75 0.52%
NASD 4,712.97 11.10 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

11/21/2014 4:00 PM
LINE $23.54 Up +0.14 +0.60%
Linn Energy, LLC CAPS Rating: ****
APA $75.70 Up +1.46 +1.97%
Apache Corp CAPS Rating: ****
DVN $67.20 Up +0.44 +0.66%
Devon Energy CAPS Rating: ****

Advertisement