Crosstex Energy Inc. (XTXI, Financial) filed Quarterly Report for the period ended 2010-09-30.
Crosstex Energy Inc. has a market cap of $412.2 million; its shares were traded at around $8.78 with and P/S ratio of 0.3. Crosstex Energy Inc. had an annual average earning growth of 18.4% over the past 5 years.XTXI is in the portfolios of David Swensen of Yale University, Whitney Tilson of T2 Partners Management, LP, Glenn Greenberg of Brave Warrior Capital, Inc., Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
· The LIG segment contributed gross operating margin growth of $0.4 million for the three months ended September 30, 2010 over the same period in 2009. Approximately $1.9 million of gross operating margin growth on the gathering and transmission system was primarily due to improved pricing and higher firm transport volumes on the northern part of the system related to the Haynesville Shale. This increase was offset by a gross operating margin decline of $1.2 million at the processing plants on the system, which was mainly driven by a lower NGL to gas ratio in the third quarter of 2010 compared to the third quarter of 2009.
· The PNGL segment had gross operating margin growth of $3.1 million for the comparable periods due to increased liquids marketing activity and the continued favorable processing environment. The primary contributor to this gross operating margin growth in the PNGL segment was the $1.8 million increase from NGL marketing activities. In addition, the Riverside facility had a gross operating margin increase of $1.2 million for the comparable period due to fractionation fees related to the increase in processed volumes.
General and Administrative Expenses. General and administrative expenses were $12.0 million for the three months ended September 30, 2010 compared to $16.7 million for the three months ended September 30, 2009, a decrease of $4.7 million, or 28.2%. The decrease is primarily a result of the following:
Depreciation and Amortization. Depreciation and amortization expenses were $28.2 million for the three months ended September 30, 2010 compared to $30.3 million for the three months ended September 30, 2009, a decrease of $2.1 million, or 6.8%. The decrease includes a reduction of $2.7 million due to a change in estimated depreciable lives based on the 2009 depreciation study regarding processing plants and is partially offset by $0.5 million of depreciation on the Eunice natural gas liquids processing plant and fractionation facility purchased during the fourth quarter of 2009.
Interest Expense. Interest expense was $20.3 million for the three months ended September 30, 2010 compared to $27.9 million for the three months ended September 30, 2009, a decrease of $7.6 million, or 27.0%. The decrease in interest expense between the periods was primarily due to expense associated with interest rate swaps included in the third quarter of 2009 and reductions in debt outstanding beyond amounts associated with asset sales. Net interest expense consists of the following (in millions):
Read the The complete Report
Crosstex Energy Inc. has a market cap of $412.2 million; its shares were traded at around $8.78 with and P/S ratio of 0.3. Crosstex Energy Inc. had an annual average earning growth of 18.4% over the past 5 years.XTXI is in the portfolios of David Swensen of Yale University, Whitney Tilson of T2 Partners Management, LP, Glenn Greenberg of Brave Warrior Capital, Inc., Jim Simons of Renaissance Technologies LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
Gross Operating Margin and NGL Marketing Activities. Gross operating margin was $83.6 million for the three months ended September 30, 2010 compared to $82.5 million for the three months ended September 30, 2009, an increase of $1.1 million, or 1.3%. The increase was primarily due to the growth in our NGL marketing activities.· The LIG segment contributed gross operating margin growth of $0.4 million for the three months ended September 30, 2010 over the same period in 2009. Approximately $1.9 million of gross operating margin growth on the gathering and transmission system was primarily due to improved pricing and higher firm transport volumes on the northern part of the system related to the Haynesville Shale. This increase was offset by a gross operating margin decline of $1.2 million at the processing plants on the system, which was mainly driven by a lower NGL to gas ratio in the third quarter of 2010 compared to the third quarter of 2009.
· The PNGL segment had gross operating margin growth of $3.1 million for the comparable periods due to increased liquids marketing activity and the continued favorable processing environment. The primary contributor to this gross operating margin growth in the PNGL segment was the $1.8 million increase from NGL marketing activities. In addition, the Riverside facility had a gross operating margin increase of $1.2 million for the comparable period due to fractionation fees related to the increase in processed volumes.
General and Administrative Expenses. General and administrative expenses were $12.0 million for the three months ended September 30, 2010 compared to $16.7 million for the three months ended September 30, 2009, a decrease of $4.7 million, or 28.2%. The decrease is primarily a result of the following:
Depreciation and Amortization. Depreciation and amortization expenses were $28.2 million for the three months ended September 30, 2010 compared to $30.3 million for the three months ended September 30, 2009, a decrease of $2.1 million, or 6.8%. The decrease includes a reduction of $2.7 million due to a change in estimated depreciable lives based on the 2009 depreciation study regarding processing plants and is partially offset by $0.5 million of depreciation on the Eunice natural gas liquids processing plant and fractionation facility purchased during the fourth quarter of 2009.
Interest Expense. Interest expense was $20.3 million for the three months ended September 30, 2010 compared to $27.9 million for the three months ended September 30, 2009, a decrease of $7.6 million, or 27.0%. The decrease in interest expense between the periods was primarily due to expense associated with interest rate swaps included in the third quarter of 2009 and reductions in debt outstanding beyond amounts associated with asset sales. Net interest expense consists of the following (in millions):
Read the The complete Report
