follow us like us subscribe contact us
Adbar

Three Ideas for Energy Investors to Look Into

By Dan Dicker | Fri, 22 February 2013 19:58 | 0

I have three quick ideas for today’s column, with the hope that one of them will resonate with you.  Next week is my vacation week, so I hope that you will stay out of trouble until I can be with you again in the week of March 2nd. (We have a very interesting guest writer lined up for you though.)

First, Linn Energy (LINE), a core holding of mine, today bought Berry Energy (BRY) in an all stock deal, paying a 19% premium and more than the Reuters estimate of intrinsic value for the company.  In spite of all this, Linn shares are UP almost 5% this morning, not what you’d expect for a company that is supposedly overpaying for a target.  That’s how you know that Linn has been massively undervalued by the Street and deserves investment, even more so now. 

With the purchase Linn adds 30% of proven reserves where it counts, in liquids and crude production in California but particularly in the Permian basin, where Linn has already terrific infrastructure and Berry’s assets are a terrific fit.  Go on, add that to their very healthy and I believe extremely safe 8% dividend.  You want more?  Ok, I think Linn remains one of the best take-out targets in the patch – and anything under $40 is a gift.  Even with the jump today, it’s a buy.

SM energy proved today that the Eagle Ford and the Bakken are easily number one and number two in hot hot hot plays in domestic liquids and crude oil. …

To read the rest of this article Start a FREE subscription to our premium publication

Oil & Energy Insider - 30 day Free trial

30 day Free trial
A FREE Subscription Includes:
  • Investment advice normally reserved for hedge fund clients.
  • Market & sector research not available anywhere else.
  • Strategic advice from corporate & military intelligence analysts.
  • 9 Weekly Investment / intelligence reports.
  • Full access to all previous reports.
  • 30 days free trial.
Get FREE access to our research for 30 days

An essential resource for all investors in the energy sector whether you're a trader, fund manager or individual investor - this inside look at the energy markets is unlike any other report or service currently available.

About the author

More recent articles by Dan Dicker

Fri 11 April 2014
Japan’s Uncertain Energy Future
Fri 28 March 2014
On the Short End of a Slippery Stick
Fri 21 March 2014
Time to Look North of the Border
Fri 14 March 2014
US Energy Boom vs Russian Energy Influence
Fri 07 March 2014
The Unstoppable Upwards Trend of Energy Prices