LINN Energy LLC, the nose-diving owner of the company that operates the Placerita Oil Field, took another hit Friday when another analyst downgraded its shares to “sell” and said bankruptcy is right around the corner.
“We believe the company will likely file for Chapter 11 after the next round of borrowing base redetermination and/or post a covenant breach,” said oil and gas analyst Faisel Khan of Citi Research, who recommended dumping the stock and gave a price target of $0.
LINN announced Feb. 4 it was drawing down the balance of its credit line to cover regular business expenses and that it has regained a merger and restructuring expert to aid its balance sheet. It also said adopted an incentive program whereby company CEO Mark E. Ellis and other senior executives would receive hefty bonuses if they stay on board throughout the quarter, and millions more if they stay the full calendar year.
Shares of the Houston-based LINN and its affiliate LinnCo were trading around $30 when they purchased the Placerita operator Berry Petroleum Co. a little over two years ago for $4.9 billion. Berry shareholders were to receive 1.68 LinnCo shares for each Berry share.
If they held onto their shares, they saw their investment slip away as oil prices fell over the last two years. LINN shares were valued at only about $1 when the companies made their Feb. 4 announcement; as of Friday, LINN shares were trading for 38 cents and LinnCo for 17 cents.
Khan of Citi said LINN’s unsecured creditors are unlikely to recover anything.
“Based on current transactions we see in the market and including $1.9 bil. in hedges as well as cash on the balance sheet, we believe that the recovery factor on Linn’s unsecured credit will be low. This is reflected in the company’s bond prices that are trading at pennies to a dollar,” he wrote.
The Los Angeles County Department of Public Health confirmed the first death due to the West Nile virus for the 2021 season in Los Angeles County. The patient, a resident of the eastern region of Los Angeles County, was hospitalized and died from WNV-associated neuro-invasive disease.
Los Angeles County Public Health officials on Friday confirmed 25 new deaths and 1,823 new cases of COVID-19 countywide, with 35,090 total cases in the Santa Clarita Valley. Additionally, Public Health announced that the Los Angeles County Health Officer Order will be modified today to require vaccination verification or a negative test prior to entry to all mega-events and event venues by Oct. 7.
The Los Angeles County Board of Supervisors approved an ordinance Wednesday that would require developers of various types of residential, commercial and industrial projects to provide public art in private developments in the amount of 1% of the building valuation or pay 1% of the building valuation toward a public art fund.
The Santa Clarita City Council received a brief report Tuesday about Camps Scott and Scudder, two Saugus facilities recommended by the Juvenile Justice Coordinating Council’s Juvenile Justice Realignment Block Grant Ad-Hoc Subcommittee in May to become the new homes of violent juvenile offenders in Los Angeles County.
During Child Passenger Safety Week, Sept. 19 through 25, the California Highway Patrol will educate the public on the importance of ensuring children are riding in a properly fitted and installed child passenger safety seat.
The atmosphere on the outdoor patio of the Holiday Inn Express in Valencia was fun and lively during the Santa Clarita Valley Chamber of Commerce’s Latino Business Alliance’s Hispanic Heritage Month event Wednesday evening.
In the same week Los Angeles County Sheriff’s Department officials said they’ll be expanding the limitations on deputies drawing their AR-15’s in the field, some Santa Clarita Valley activists said they still want to see more changes to law enforcement policy
Officials from Henry Mayo Newhall Hospital reported two additional deaths Thursday, bringing the total number of COVID-19 deaths to 165 since the onset of the pandemic, hospital spokesman Patrick Moody confirmed.
Supervisor Kathryn Barger has read a motion to accept a portion of Sloan Canyon Road near Castaic High School into the county system of highways in an effort to ensure roadway safety and prevent future crashes.
Los Angeles County Sheriff’s Station deputies are looking for the scoop after multiple Baskin- Robbins ice cream shops were burglarized overnight Tuesday, including two locations in the Santa Clarita Valley.