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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: George8 who wrote (98497)4/2/2008 4:39:20 PM
From: Ed Ajootian  Read Replies (2) of 206227
 
George, Linn Energy (LINE) -- Looks like fugitive gave you a pretty good answer to your question.

I would turn your question around, it would seem to me that any MLP/LLC that did not record a huge loss for deriviatives in 4Q was being quite reckless and only through a phenomenal stroke of luck, didn't have to record a loss. Investors in these types of entities are not trying to be a hero, they are just looking for a predictable yield, one that would not be negatively impacted if commodity prices were to go down. If a company did not have a huge loss in 4Q, that meant they were exposed to commodity price swings. Being exposed to commodity prices means they would have risked having to reduce their distributions if there were an extended period of lower commodity prices.

If you thought LINE's loss was big in 4Q, wait 'till they announce 1Q, I'm expecting their unrealized derivative loss to be in the neighborhood of $3/4 Billion.
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