A Mt. Lebanon-based natural gas producer, seeking to capitalize on a robust market for energy stocks, hopes to raise $219 million this week though an initial public offering.

Linn Energy LLC expects to sell 11.8 million partnership units in the three-year-old company for between $19 and $21 per unit. The securities, akin to shares but with limitations and unique risks that lessen their appeal to casual investors, would trade on Nasdaq's National Market System under the ticker symbol LINE.

The company was formed by industry veteran Michael Linn, 53, in May 2003 with the backing of Quantum Energy Partners, a Houston-based private equity fund. Like most start-ups, it has yet to turn a profit despite growing revenue, largely because of costs associated with getting the business up and running.

Linn said $122 million of the IPO proceeds will be used to repay debt. About $90 million will be used to purchase ownership interests in the company from Mr. Linn, Quantum and other investors, allowing them to take some of their money off the table. And about $1.8 million will also be paid as bonuses to Mr. Linn and other top executives.

Since it was launched, Linn has spent $203.2 million to acquire wells in the Central Appalachian region. It now has 2,105 producing wells in Pennsylvania, West Virginia, Virginia and New York and reserves of 190 billion cubic feet. The wells produce 21.6 million cubit feet of natural gas per day.

The company employs about 100, including 24 in Pittsburgh.

Spiking natural gas prices have produced only losses for Linn thus far. The company posted a loss of $62.9 million for the first nine months of last year on sales of $24.4 million. The results included a hedge-related loss of $38.3 million.

Despite the red ink and the higher risk they pose, sophisticated investors may be attracted by the tax advantages of owning units in a limited liability company as well as by the quarterly payments Linn is proposing. In its prospectus, Linn said it intends to make quarterly distributions of 40 cents per unit to investors.

Because of their complexity, most advisers don't recommend LLCs to unsophisticated investors.

Linn is the third regional company to take advantage of investor demand for energy shares through an IPO over the last two years.

Atlas America, a Moon-based natural gas an oil producer, went public in May 2004. It was followed last August by Superior Well Services, an Indiana, Pa., company that helps independent oil and natural gas companies pump energy from their wells.

Investors may be tempted by the success of those offerings. Atlas went public at $15.50 and closed yesterday at $70.15, up $1.76. Superior debuted at $13 and finished yesterday at $23.75, up 53 cents.