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 second-quarter 2012.
Second-Quarter 2012 Compared with Second-Quarter 2011 – Crosstex Energy, L.P. Financial Results
The Partnership realized adjusted EBITDA of $48.7 million and distributable cash flow of $23.4 million for the second quarter of 2012, compared with adjusted EBITDA of $55.4 million and distributable cash flow of $32.9 million for the second 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 (loss) in the tables at the end of this news release.
The Partnership reported a net loss of $2.4 million for the second quarter of 2012 versus net income of $1.7 million for the second quarter of 2011.
“We continue to focus on our long term goal of enhancing our scale and diversification even though sharply lower natural gas liquids prices affected our current results,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We have made progress in new operating areas that complement our existing businesses, including the recent acquisition of our crude, condensate and water services business in the Ohio River Valley and the completion of long-term commercial supply contracts for Phase I for our Cajun-Sibon pipeline extension project.”
The Partnership’s second-quarter 2012 gross operating margin of $90.3 million decreased $6.3 million from gross operating margin of $96.6 million for the second quarter of 2011. The decline was mainly due to a less favorable processing environment, which was partially offset by increased gathering and processing activity in the north Texas region during the quarter. 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 selected financial data table at the end of this news release.