Linn Energy: When Will The Pain Stop? – Seeking Alpha – Albert Alfonso

About a week ago, I discussed the impact of lower oil prices on Linn Energy (NASDAQ:LINE) (NASDAQ:LNCO). In that article, I noted that Linn Energy was starting to recover, up 30% over 2 days due to the closing of several major transactions, a large reduction of debt, and rumors of lower capital spending for 2015. However, this brief rally was snuffed out almost as fast as it started. The main culprit, in my opinion, are lower natural gas prices.LINE data by YChartsA look at natural gasOver the past few days, natural gas prices have been extremely volatile. The main concerns here are a forecasted mild winter and larger than expected increases in natural gas inventories.So far, December 2014 has been one of the warmest on record, keeping demand for natural gas low for uses such as home heating and power consumption. In addition, natural gas inventories have risen faster than anticipated, thanks to robust supply growth from the Marcellus Shale, while the most recent net drawdown came in below consensus estimates.

via Linn Energy: When Will The Pain Stop? – Linn Energy, LLC (NASDAQ:LINE) | Seeking Alpha.

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