Linn Energy LLC

NGLs prices remain uptrend despite the falling last week, which is positive to producers.

NGL prices traded higher last week, helping wet gas producers. NGL prices are an important indicator to track in the energy space.

After its debt swap announcement, CHK’s stock initially spiked to $4.63 on May 12, 2016, but closed at $4.17, down 4.3% compared to the previous close.

The representative NGL barrel reached highs of up to ~$50 per barrel in early February, given the strength in propane prices due to a cold winter as well as natural gas prices that pushed ethane prices up.

This week saw NGL prices trade up by 5%, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June, a positive medium-term indicator.

Natural gas liquid prices recovered somewhat last week, likely off the back of higher crude oil prices.

Linn Energy’s (LINE) bloodbath continued on Friday with a single day loss of 15.13% as crude oil continued to fall due to excess supply concerns.

LINE’s EBITDA shows that it has been struggling with its earnings power lately. It has struggled despite a steady rise in its oil and gas production. LINE’s debt exploded from just over $3 billion in 3Q11 to over $9.5 billion in 2Q14.

As we discussed previously in this series, National Fuel Gas (NFG) noted in its latest fiscal 3Q14 results that its earnings growth was driven by higher earnings in its Midstream and Upstream businesses.

Natural gas liquids prices fell on the week but remain up significantly since lows in June.

The top upstream MLP losers include Legacy Reserves (LGCY), Linn Energy (LINE), Mid-Con Energy Partners (MCEP), and BreitBurn Energy Partners (BBEP).

The two most recent recommendations are by UBS and Scotia Howard Weil, and they rate LINE “sell” and “sector perform,” with target prices of $2 and $5, respectively.

Natural gas liquids traded down on the week, though they remain up significantly since mid-2013 lows.

Upstream companies’ earnings are significantly tied to crude oil and natural gas prices. UNG tracks daily movements in natural gas futures. It rose 0.44% yesterday.

The Alerian MLP ETF, which comprises 23 midstream energy MLPs, fell 2.4% on October 22, 2015, along with the entire midstream sector.

Top upstream MLP losers include Eagle Rock Energy Partners (EROC), Vanguard Natural Resources (VNR), LRR Energy (LRE), and Linn Energy (LINE).

This week saw NGL prices trade up, a positive short-term indicator. Plus, note that NGL prices are up significantly since late June—a positive medium-term indicator.

NGL prices traded down by 4% on the week, as most of the composition experienced a drop in price. However, the representative NGL barrel remains up over 50% since lows in June.

The triple top pattern is formed in the uptrend. In this pattern, three consecutive peaks are formed. The peaks have roughly the same price level.

Natural gas liquids prices increased last week and remain up considerably since mid-year, helping companies with significant wet gas production.

The influx of supply of natural gas liquids had caused ethane and propane prices in particular to collapse in late 2012 and early 2013.

In the rectangle pattern, it’s advisable to buy stock at support and sell at resistance. This pattern is formed in the uptrend and downtrend.

The head and shoulder pattern is the most common reversal pattern. It forms at the trend’s peak. The pattern has three peaks—left shoulder, head, and right shoulder.

Price patterns are trends that occur in stock charts. The charts are used in technical analysis. The pattern forms recognizable shapes. Price patterns are used to forecast the prices.

Natural gas liquids prices have remained rangebound, which is a neutral for producers of NGLs.

The price on a representative mix of natural gas liquids declined slightly last week, resulting in a negative indicator for wet gas producers.

Higher crude oil prices supported NGL prices last week, positively affecting wet gas producers.

Natural gas liquids took a leg lower, and are down significantly from the beginning of the year.

Natural gas liquids prices edged higher last week, in a positive for wet gas producers such as Linn Energy.

Natural gas liquids prices traded roughly flattish on the week in a neutral indicator for upstream energy companies.

Linn Energy (LINE) and LinnCo LLC (LNCO) filed for protection under Chapter 11 of the Bankruptcy Code on Wednesday, May 11.

According to data released on March 16, 2016, US crude oil inventories rose 0.3% in the week ending March 11, 2016.

During 1Q15, Linn Energy recorded noncash impairment charges of ~$533 million associated with proved oil and natural gas properties.

In 1Q15, Marathon Oil’s North American exploration and production sales volume increased 33%, compared with an 8% volume decline in its international operations.

Marathon Oil’s 2Q15 adjusted loss per share is expected to be $0.32, a mild improvement over the $0.37 adjusted loss per share in 1Q15.

In 1Q15, EOG Resources’ adjusted EBITDAX fell 58% to $747.7 million from $1.79 billion a quarter ago. Compared to the figure last year, the fall amounted to 68%.

The decline in the natural gas rig count slowed down in the past four weeks. Four rigs went offline in the preceding four weeks, and 43 went offline in the four weeks before that.

Encana’s (ECA) 1Q15 production decreased compared to production in the same quarter last year. Its overall crude oil equivalent production volume decreased by 20%, down to 430.1 Mboebpd.

In 1Q15, adjusted revenues exceeded estimates by ~6%. On average, adjusted revenues have almost matched consensus estimates in the past 13 quarters.

Between 1Q12–1Q15, Continental Resources’ adjusted revenues increased 13%. From 1Q14–1Q15, the company’s adjusted revenues decreased 37%.

The oil and gas rig count signals how confident producers are about drilling for oil and gas. Falling rig counts indicate a decline in upstream activity.

EOG estimates its realized crude oil price to remain below the West Texas Intermediate price and its natural gas price to remain below the Henry Hub price in 2015.

In the last 12 months to May 1, the total US crude oil and natural gas rig count dropped by 949, or 51%. The number of active oil rigs decreased by 848, or 56%.

In 1Q15, EOG’s adjusted earnings exceeded estimates by 233%. On average, adjusted EPS exceeded consensus EPS by ~13% in the past 13 quarters.

From January 2009 to September 2014, US crude oil production increased 67%, and crude oil production in the seven major shale plays increased 258%.

This week saw NGL prices trade higher—a positive short-term indicator. Besides, despite falling from highs reached in February, NGL prices remain up significantly since late June 2013.