Crosstex Energy L.P. Ltd. Partnership In (XTEX, Financial) filed Quarterly Report for the period ended 2009-03-31.
Crosstex Energy a mid-stream natural gas company operates over 1700 miles of pipeline two processing plants and 49 natural gas treating plants. Crosstex currently provides services for over 700 MMBtu/day of natural gas. Crosstex Energy L.P. Ltd. Partnership In has a market cap of $146.6 million; its shares were traded at around $3.26 with a P/E ratio of 13. Crosstex Energy L.P. Ltd. Partnership In had an annual average earning growth of 15.7% over the past 5 years.
The weaker processing environment contributed to a significant decline in the gross margin for our processing plants in Louisiana for the quarter ended March 31, 2009. The Plaquemine and Gibson plants reported gross margin declines of $5.4 million and $5.3 million, respectively. The Eunice plant, which is still impacted by supply disruptions from hurricane activity in 2008, experienced a margin decline of $4.6 million for the three months ended March 31, 2009 over the same period in 2008. The Pelican, Sabine Pass and Blue Water plants combined for an additional gross margin decline of $2.9 million. System expansion in the north Texas region and increased throughput on the gathering systems contributed $8.3 million of gross margin growth for the quarter ended March 31, 2009 over the same period in 2008. The processing facilities in the north Texas region, which were also impacted by a weaker NGL market, reported a gross margin decline of $1.5 million. A decrease in throughput volume on the east Texas system resulted in to a margin decline of $0.8 million for the comparable periods.
Treating gross margin was $14.3 million for the three months ended March 31, 2009 compared to $11.1 million for the three months ended March 31, 2008, an increase of $3.2 million, or 29.2%. Treating plants, dew point control plants, and related equipment in service totaled 185 plants at both March 31, 2009 and March 31, 2008. Timing, size and increased monthly fees on plants placed in service versus plants coming out of service and increased fees on existing month to month treating contracts make up $3.1 million of positive gross margin variances. Field services provided to producers also contributed gross margin growth of $0.1 million for the comparable periods.
$2.7 million, or 9.3%. Midstream depreciation and amortization increased $3.1 million due to the north Texas assets and was offset by a $0.4 million decline due to the first quarter 2009 disposition of the Arkoma system and the Seminole gas processing plant.
Interest Expense. Interest expense was $22.3 million for the three months ended March 31, 2009 compared to $24.6 million for the three months ended March 31, 2008, a decrease of $2.3 million, or 9.3%. The decrease relates primarily to the decrease in LIBOR rates and interest rate swap expense. Net interest expense consists of the following (in millions):
Income Taxes. Income tax expense was $0.6 million for the three months ended March 31, 2009 compared to $0.3 million for the three months ended March 31, 2008, an increase of $0.3 million. The increase relates primarily to the Texas margin tax.
Read the The complete ReportXTEX is in the portfolios of Glenn Greenberg of Chieftain Capital Management Inc.
Crosstex Energy a mid-stream natural gas company operates over 1700 miles of pipeline two processing plants and 49 natural gas treating plants. Crosstex currently provides services for over 700 MMBtu/day of natural gas. Crosstex Energy L.P. Ltd. Partnership In has a market cap of $146.6 million; its shares were traded at around $3.26 with a P/E ratio of 13. Crosstex Energy L.P. Ltd. Partnership In had an annual average earning growth of 15.7% over the past 5 years.
Highlight of Business Operations:
Gross Margin and Profit on Energy Trading Activities. Midstream gross margin was $68.6 million for the three months ended March 31, 2009 compared to $82.2 million for the three months ended March 31, 2008, a decrease of $13.6 million, or 16.5%. The decrease was primarily due to our processing operations which were negatively impacted by lower NGL prices than in the first quarter of 2008, combined with a decline in inlet volumes. This decrease was partially offset by gross margin gains on our gathering and transmission systems due to expansion projects and increased throughput. Profit on energy trading activities decreased for the comparative periods by approximately $0.2 million.The weaker processing environment contributed to a significant decline in the gross margin for our processing plants in Louisiana for the quarter ended March 31, 2009. The Plaquemine and Gibson plants reported gross margin declines of $5.4 million and $5.3 million, respectively. The Eunice plant, which is still impacted by supply disruptions from hurricane activity in 2008, experienced a margin decline of $4.6 million for the three months ended March 31, 2009 over the same period in 2008. The Pelican, Sabine Pass and Blue Water plants combined for an additional gross margin decline of $2.9 million. System expansion in the north Texas region and increased throughput on the gathering systems contributed $8.3 million of gross margin growth for the quarter ended March 31, 2009 over the same period in 2008. The processing facilities in the north Texas region, which were also impacted by a weaker NGL market, reported a gross margin decline of $1.5 million. A decrease in throughput volume on the east Texas system resulted in to a margin decline of $0.8 million for the comparable periods.
Treating gross margin was $14.3 million for the three months ended March 31, 2009 compared to $11.1 million for the three months ended March 31, 2008, an increase of $3.2 million, or 29.2%. Treating plants, dew point control plants, and related equipment in service totaled 185 plants at both March 31, 2009 and March 31, 2008. Timing, size and increased monthly fees on plants placed in service versus plants coming out of service and increased fees on existing month to month treating contracts make up $3.1 million of positive gross margin variances. Field services provided to producers also contributed gross margin growth of $0.1 million for the comparable periods.
$2.7 million, or 9.3%. Midstream depreciation and amortization increased $3.1 million due to the north Texas assets and was offset by a $0.4 million decline due to the first quarter 2009 disposition of the Arkoma system and the Seminole gas processing plant.
Interest Expense. Interest expense was $22.3 million for the three months ended March 31, 2009 compared to $24.6 million for the three months ended March 31, 2008, a decrease of $2.3 million, or 9.3%. The decrease relates primarily to the decrease in LIBOR rates and interest rate swap expense. Net interest expense consists of the following (in millions):
Income Taxes. Income tax expense was $0.6 million for the three months ended March 31, 2009 compared to $0.3 million for the three months ended March 31, 2008, an increase of $0.3 million. The increase relates primarily to the Texas margin tax.
Read the The complete ReportXTEX is in the portfolios of Glenn Greenberg of Chieftain Capital Management Inc.
