Through a series of articles, Barron's described the Company as "the country's most overpriced large energy producer" for using non Generally Accepted Accounting Principles ("GAAP") accounting to mask considerable weakness in its distributable cash flows, calling into question the sustainability of its dividend. Further, Barron's questioned the Company's accounting for its derivative contracts by, for example, excluding the cost of its puts from its cash flow, while including the gains. As a result of this news, Linn units declined $1.97 per unit or more than 5%, to close at $33.75 per unit on May 6, 2013.
On July 1, 2013, the Company disclosed that the SEC opened an informal inquiry in connection with the Company's use of non-GAAP financial measures, its hedging strategies, and its acquisition of Berry Petroleum Company jointly with its affiliate, LinnCo, LLC. On this news, Linn shares declined $10.50 per unit or 31.5% within two trading sessions, to close at $22.79 per unit on July 3, 2013.
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