Date of Graduation
5-2016
Document Type
Thesis
Degree Name
Bachelor of Science in Business Administration
Degree Level
Undergraduate
Department
Finance
Advisor/Mentor
Rennie, Craig
Committee Member/Reader
Santamaria, Sergio
Abstract
This paper is a case study of LINN Energy, LLC over the period of Q1 2013 to Q4 2015. Due to volatility in commodity prices, energy companies choose to hedge their future production using forwards, futures, swaps, and options strategies. I selected LINN Energy as the subject for this study due to the breadth of detailed historical hedging information available through the company’s website. LINN Energy disclosed much more than is required for independent oil and gas companies, making them the perfect case study for this thesis. LINN Energy, LLC is one of the few publicly traded LLC’s and is based out of Houston, Texas. They operate domestically and, due to a combination of the current downturn in the energy market and expiring hedge contracts, will likely be facing Chapter 11 bankruptcy within the next year.
Citation
Nelson, R. E. (2016). Hedging in Energy: The Case of LINN Energy, LLC. Finance Undergraduate Honors Theses Retrieved from https://scholarworks.uark.edu/finnuht/25