Why Linn Energy (LINE) Stock Closed Down Today
NEW YORK (TheStreet) -- Shares of Linn Energy (LINE) fell 8.6% to close at $2.55 on Friday as oil prices fell after the U.S. October jobs report helped strengthen the dollar.
WTI crude oil for December delivery was down 1.75% to $44.41 a barrel on Friday afternoon, and Brent crude oil for December delivery was down 0.85% to $47.57 a barrel.
In its monthly report, the Labor Department said that U.S. nonfarm payrolls grew by 271,000 jobs in October. The increase helped the dollar hit six and a half month highs against a basket of currencies, according to Reuters.
Oil is priced in dollars, so a strong dollar makes the commodity more expensive to those using other currencies, which helps bring down the price.
Houston-based Linn Energy reported its third quarter earnings before the market opened on Thursday, posting a loss of $4.47 a share for the quarter. The disappointing results may also be dragging down the stock.
"Our stable asset base continues to exceed expectations with strong results in the third quarter," CEO Mark Ellis said in a statement regarding the company's financial results. "We also continue to make exceptional progress in reducing costs across the Company which allowed us to generate an excess of net cash of approximately $111 million. In addition, we are evaluating opportunities to improve our capital structure and sustainability in this challenging commodity price environment."
TheStreet Ratings team rates LINN ENERGY LLC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate LINN ENERGY LLC (LINE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: LINE
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