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Lower Prices Hurt Crosstex Energy

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On March 2, 2009, Crosstex Energy LP(XTEX Quote) reported that it fell to a net loss in Q4 FY08, hurt by lower natural gas liquid prices and the adverse effects of Hurricanes Gustav and Ike on volumes and processing margins. Net loss was $9.44 million compared to a net income of $14.15 million a year ago. Limited partners' interest in net loss was $7.99 million, or $0.19 per unit, compared to a net income of $8.34 million, or $0.19 per unit, in Q4 FY07. The quarterly consensus estimate was a loss of $0.21 per unit.

Total revenues plunged 29.2% to $769.11 million from $1.09 billion, hurt by declining midstream revenues. Midstream revenues, constituting 97.7% of total revenues, decreased 29.8% to $751.25 million. Profit from energy trading activities plummeted 46.7% to $1.02 million. On the positive side, revenue from treating increased 22.6% to $16.85 million.

Looking at the operational metrics, total gathering and transmission volume increased 12.2% to 2,633 billion British thermal units per day (BBtu/d); while total gas volumes processed were down 38.1% to 1,234 BBtu/d. Realized weighted average natural gas liquids prices dropped 49.3% to $0.72 per gallon. Meanwhile, commercial services volume slipped 6.3% to 90 BBtu/d. North Texas gathering wells connected decreased to 24 from 51 a year ago. Finally, treating plants in service rose 5.3% to 200, while gallons per minute (GPM) increased 10.0% to 10,615.

Recently, XTEX appointed Rhys Best as chairman of the company.

For FY08, limited partners' interest in net loss widened to $15.64 million, or $3.23 per unit, from $5.36 million, or $0.20 per unit, in FY07. Annual revenue grew 27.5% to $4.91 billion from $3.85 billion a year ago.

Looking forward to FY09, the partnership expects a net loss of $70.00 to $97.00 million, while its non-GAAP free cash flows are projected to range between $184.00 and $211.00 million.