Linn Energy posts 2Q loss on oil, gas derivatives

Independent oil and gas company Linn Energy LLC on Thursday reported a second-quarter loss that nearly tripled from a year ago on a significantly higher loss on oil and gas derivatives.

The company reported a net loss of $725.4 million, or $6.35 per share, in the second quarter of 2007 compared to a loss of $259 million, or $2.28 per share, in the second quarter of 2007.

Linn Energy said that when excluding one-time items, its 2008 second-quarter net income would have been $80.4 million, or 70 cents per share.

Revenue from oil, natural gas and natural gas liquids climbed to $255.6 million from $32.5 million in the year-ago quarter.

Analysts surveyed by Thomson Financial, on average, expected earnings of 57 cents per share on revenue of $230.1 million. Analysts typically exclude one-time items from their estimates.

The second-quarter's one-time charges include a non-cash loss of $773.4 million, or $6.76 per share, from the change in fair value of commodity hedges covering future production, a non-cash gain of $35.8 million, or 31 cents per share, on interest rate hedges and a realized loss of $68.2 million, or 60 cents per share, from hedge cancellations.

Linn Energy shares were up 72 cents, or 3.7 percent, to $20.22 in afternoon trading.