NEW YORK (TheStreet) -- Shares of Linn Energy (LINE) were falling 9.2% to $4.01 on heavy trading volume Friday, continuing losses from Thursday after the oil company announced plans to suspend distributions later in 2015.
About 8.4 million shares of Linn Energy were traded by noon Friday, well above the company's average trading volume of about 3.6 million shares a day.
"After careful consideration, management has decided to recommend to the board of directors that it suspend payment of LINN's distribution and LinnCo's (LNCO) dividend at the end of the third quarter 2015 and reserve approximately $450 million in cash from annualized distributions," Chairman, President, and CEO Mark E. Ellis said in a statement Thursday morning.
Ellis said the company's board and management believe the suspensions is "in the best long-term" interest of the company's stake holders.
The suspension announcement came when Linn Energy reported its financial results for the second quarter.
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 several 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 deteriorating 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 Ratings Report