Philip Falcone is the chief executive officer, chief investment officer and senior managing director of Harbinger Capital Partners. Mr. Falcone formed Harbinger in 2001. Prior to Harbinger Mr. Falcone served as head of high yield trading for Barclays Capital. Mr. Falcone held a similar position with Gleacher Natwest Inc. from 1997 to 1998. Prior to joining Gleacher, Mr. Falcone was a senior high yield trader at First Union Capital Markets in Charlotte, N.C. Before joining First Union in 1995, he structured the leveraged buyout of AAB Manufacturing Corporation, a Newark, N.J.-based consumer products manufacturing company. Mr. Falcone began his career in 1985, trading high yield and distressed securities at Kidder, Peabody & Co. Mr. Falcone received an A.B. in economics from Harvard University.
My largest position by far is light squared. It is not public today but will be public one day.
There is a vast market opportunity in demand explosion over the next few years. I have been accumulating spectrum. I have 59MHZ of spectrum for 4G network.
This is all about building the pipe by allowing a huge amount of companies to access the wireless market. This is not only the wireless players.
I brought in key management, including the former Orange CEO (I believe it is an Israeli cell phone company).
Crosstex - XTXI is one of the few generally traded assets in E&P sector. (The capital structure is very complex, I had a little trouble following.)
The key structure is the MLP which owns the assets. However, XTXI owns the partnership. The structure is attractive, however. The leverage associated with it and assets of MLP are very attractive.
There is no corporate level tax; it must pay out all excess cash. It holds $2billion of lines, processing and trading plants. Louisiana Interstate gas line, and processing natural gas liquids -- 450m of natural gas pipelines.
The ratio of oil to gas pricing is key here. This is not about drilling but rather processing, and transporting. Because they are located in Louisiana they are not regionally constrained. They can transport the end product across the country or export it.
Eighty percent of business is at contracted rate, based on the actual rate of natural gas proceeded in the pipeline.
There are key areas of growth for the company.
Organic growth should be 10-15%.
We think EBITDA of $230 million very easily can be achieved.
When you buy XTXI you are buying part of the GP.
With a 1.1x coverage ratio and $230 million EBITDA this year the stock price should easily double. 2012 EBITDA could be $240-250 million. A big move in the dividend could cause this huge bump.
In the first quarter there was $50 million EBITDA which is a $200 million run rate. The stock could easily get to $18-20 from a current price of $9.
This is as much of a gas play as an oil play. However, if the ratio of gas-natural gas increases this company will benefit dramatically.
Disclosure: None
http://www.valuewalk.com/
My largest position by far is light squared. It is not public today but will be public one day.
There is a vast market opportunity in demand explosion over the next few years. I have been accumulating spectrum. I have 59MHZ of spectrum for 4G network.
This is all about building the pipe by allowing a huge amount of companies to access the wireless market. This is not only the wireless players.
I brought in key management, including the former Orange CEO (I believe it is an Israeli cell phone company).
Crosstex - XTXI is one of the few generally traded assets in E&P sector. (The capital structure is very complex, I had a little trouble following.)
The key structure is the MLP which owns the assets. However, XTXI owns the partnership. The structure is attractive, however. The leverage associated with it and assets of MLP are very attractive.
There is no corporate level tax; it must pay out all excess cash. It holds $2billion of lines, processing and trading plants. Louisiana Interstate gas line, and processing natural gas liquids -- 450m of natural gas pipelines.
The ratio of oil to gas pricing is key here. This is not about drilling but rather processing, and transporting. Because they are located in Louisiana they are not regionally constrained. They can transport the end product across the country or export it.
Eighty percent of business is at contracted rate, based on the actual rate of natural gas proceeded in the pipeline.
There are key areas of growth for the company.
Organic growth should be 10-15%.
We think EBITDA of $230 million very easily can be achieved.
When you buy XTXI you are buying part of the GP.
With a 1.1x coverage ratio and $230 million EBITDA this year the stock price should easily double. 2012 EBITDA could be $240-250 million. A big move in the dividend could cause this huge bump.
In the first quarter there was $50 million EBITDA which is a $200 million run rate. The stock could easily get to $18-20 from a current price of $9.
This is as much of a gas play as an oil play. However, if the ratio of gas-natural gas increases this company will benefit dramatically.
Disclosure: None
http://www.valuewalk.com/
