The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ:XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation), today reported results for the first-quarter of 2012.
First-Quarter 2012 Compared with First-Quarter 2011 – Crosstex Energy, L.P. Financial Results
The Partnership realized adjusted EBITDA of $58.5 million and distributable cash flow of $35.6 million for the first quarter of 2012, compared with adjusted EBITDA of $53.6 million and distributable cash flow of $30.9 million for the first quarter of 2011. Adjusted EBITDA and distributable cash flow are non-GAAP financial measures and are explained in greater detail under “Non-GAAP Financial Information.” There is a reconciliation of these non-GAAP measures to net income in the tables at the end of this news release.
The Partnership reported net income of $3.0 million for the first quarter of 2012 versus net income of $0.1 million for the first quarter of 2011.“Our existing businesses performed extremely well during the first quarter of 2012,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We made great progress on our growth projects in our new operating areas that complement our existing businesses. With our strong balance sheet, we are well positioned to pursue the many exceptional business opportunities in this robust industry environment and continue to create value for our investors.” The Partnership’s first-quarter 2012 gross operating margin of $99.8 million increased $10.0 million over gross operating margin for the first quarter of 2011. The increase was primarily due to an increase in gathering and transmission volumes. Gross operating margin is a non-GAAP financial measure and is explained in greater detail under “Non-GAAP Financial Information.” There is a reconciliation of this non-GAAP measure to operating income in the tables at the end of this news release. The Partnership reports results by operating segment principally based on regions served. Reportable segments consist of the natural gas gathering, processing and transmission operations in the Barnett Shale in north Texas and in the Permian Basin in west Texas (NTX); the pipelines and processing plants in Louisiana (LIG); and the south Louisiana processing and natural gas liquids (NGL) assets, including NGL fractionation and marketing activities (PNGL). Each business segment’s contribution to the increase in the first-quarter 2012 gross operating margin as compared to the first-quarter 2011, and the factors affecting those contributions, are described below:
- The NTX segment’s gross operating margin improved by $6.8 million. The positive impacts of increased gathering, transmission and processed volumes in the Barnett Shale and the commencement of operations in the Permian Basin were partially offset by increased losses on a certain delivery contract for the first quarter of 2012.
- The PNGL segment’s gross operating margin increased by $4.6 million primarily as a result of NGL fractionation and marketing activities and the sale of NGL’s upon the expiration of a third party fractionation agreement.
- The LIG segment’s gross operating margin decreased by $1.5 million, primarily the result of reduced processing margins partially offset by increased margins from the gathering and transmission assets.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV