Oil and Gas Plays to Energize Your Portfolio
LINE is an independent oil and natural gas company that engages in the acquisition and development of oil and gas properties. The company's properties are primarily located in the Mid-Continent, the Permian Basin, Michigan, California, and the Williston Basin in the United States. "Eureka", "black gold" and "Texas tea" are terms that come to mind when I think of these energy zones.
As the company's Web site states, "Linn Energy's mission is to acquire, develop and maximize cash flow from a growing portfolio of long-life oil and natural gas assets."
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As of Dec. 31, 2011, it had proved reserves of 3,370 billion cubic feet equivalent of oil and gas, and natural gas liquids, as well as operated 7,759 gross productive wells. It's no secret that investment educator and CNBC entertainer extraordinaire Jim Cramer has liked LINE for a long time.
Why, just the other day in a mighty interesting article titled "Four Deals in the Oil Patch?" Cramer waxed eloquent on his latest take on LINE:
Linn's been a leader in developing properties cash off by others, including BP and then quickly bringing great returns to shareholders. I love that Linn offered Linn Co, with its bountiful 7% plus yield for non-taxable accounts. The company's growing its holdings like weeds, yet it stays at a ridiculously low $7 billion valuation.
On Thursday, LINE's shares rose to $37.33 on a huge spike in volume, bringing the market cap up to $7.45 billion. As the five-year chart below illustrates for our viewing pleasure, LINE has come a long way, and with the one-year analysts' consensus estimate price target of over $44, has even more room to rise.