We are pleased with but unsurprised by third-quarter results for Crosstex Energy XTEX and general partner Crosstex Energy Inc. XTXI. Asset sales during the quarter provided a $97 million gain, bringing net income into positive territory but masking the continued loss-making condition of Crosstex's core assets. However, we're pleased to see adjusted cash flow of $51 million, which is only slightly below the $54 million reported the same quarter last year. Crosstex generated distributable cash flow of $14 million during the quarter and $57 million year to date, though we continue not to expect a reinstated distribution until the company can refinance its debt. On this front, $550 million in debt repayments year to date reflects good progress toward deleveraging. Looking at operational performance, gathering and transmission throughput is down sequentially and year over year, and our fears regarding slowing well connects in North Texas are proving well founded, as Crosstex connected only 11 new wells this quarter, compared with 17 last quarter and 46 a year ago. Offsetting this was an increase in processing volume in South Louisiana and better margins and cost controls, resulting in a 23% increase in earnings before interest, taxes, depreciation, and amortization compared with the third quarter of 2008, to $38 million. We think Crosstex is on the road to recovery, and we think the next milestone will be a successful debt refinancing.
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More Analyst Research
Crosstex Energy, L.P. Full Analyst Report
Analyst Notes
10-20-09 | 8:59AM Crosstex Buys Processing Asset
08-31-09 | 8:55AM Crosstex Sells Treating Business
08-07-09 | 9:22AM Crosstex Reports 2Q Results
06-12-09 | 2:50PM Revisiting Our Numbers on Asset Sale
06-10-09 | 9:22AM Crosstex Sells Assets
05-08-09 | 10:03AM Crosstex Reports 1Q Results
More Analyst Research
Crosstex Energy, Inc. Full Analyst Report
Analyst Notes
10-20-09 | 8:59AM Crosstex Buys Processing Asset
08-31-09 | 8:55AM Crosstex Sells Treating Business
08-07-09 | 9:22AM Crosstex Reports 2Q Results
06-12-09 | 2:50PM Revisiting Our Numbers on Asset Sale
06-10-09 | 9:22AM Crosstex Sells Assets
05-08-09 | 10:03AM Crosstex Reports 1Q Results
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