The Linn companies expect the acquisition to add $0.40 a share to distributable cash flow in the first full year following the close of the transaction. Linn Energy’s management intends to recommend to its board that the company’s dividend be increased from $2.90 to $3.08 annually, and the LinnCo distribution is expected to increase by $0.02 a share in the March quarter, rising to an annual rate of $2.90. LinnCo also expects to increase its distribution to $3.08.
Berry shareholders will receive 1.25 shares of LinnCo in exchange for each share of Berry stock they hold, valuing the shares at about $46.24, a premium of about 20% to last night’s closing price for Berry shares.
Shares of Berry are trading up 21.6% in the premarket this morning, at $46.95 in a 52-week range of $30.21 to $57.26. Shares of Linn Energy are up 3.9%, at $38.09 in a 52-week range of $34.27 to $42.57. LinnCo shares are up 5.2%, at $38.92 in a post-IPO range of $35.15 to $40.40.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.