Linn Energy Cut to Underperform as Oppenheimer Sees Berry Deal 'Highly Unlikely'

Linn Energy

shares dropped nearly 7 percent Thursday after reporting its Q2 earnings. EBITDA for the quarter came in below consensus on weak production numbers. Oppenheimer has downgraded Linn Energy from Perform to Underperform Friday morning. The firm's Bernard Colson set a $23 price target. Colson called the results "another disappointing quarter." He stressed the importance of the Berry Petroleum deal

for Linn's future performance and said a failure to complete the deal would "reveal a fundamental flaw in current strategy." With LinnCo

trading significantly lower than when the terms were initially announced, Colson sees the transaction as "highly unlikely." Shares of Linn Energy are down 5 percent to nearly $24 at last check.