Attached files

file filename
8-K - CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES - CROSSTEX ENERGY INCa11-6626_18k.htm

Exhibit 99.1

 

GRAPHIC

 

FOR IMMEDIATE RELEASE

 

FEBRUARY 25, 2011

 

Contact:

 

Jill McMillan, Director, Public & Industry Affairs

 

 

Phone: (214) 721-9271

 

 

Jill.McMillan@CrosstexEnergy.com

 

CROSSTEX ENERGY REPORTS FOURTH-QUARTER AND FULL-YEAR 2010 RESULTS

 

Provides Preliminary 2011 Guidance

 

DALLAS, February 25, 2011 — The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) today reported earnings for the fourth-quarter and full-year 2010.

 

Fourth-Quarter 2010 — Crosstex Energy, L.P. Financial Results

 

The Partnership’s adjusted EBITDA increased $7.5 million, or 18 percent, to $50.2 million, and distributable cash flow rose $10.6 million, or 61 percent, to $28.1 million in the fourth quarter of 2010 as compared to the fourth quarter of 2009. 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 posted a net loss of $2.4 million in the fourth quarter of 2010 compared with net income of $55.9 million in the fourth quarter of 2009. Net income in the fourth quarter of 2009 included a gain of $86.3 million on the sale of discontinued operations.

 

“In 2010, we made great progress to build a stronger company, and I am pleased with our accomplishments.  Today we are a leaner, more efficient organization with renewed financial stability evidenced by the strong 1.6 times cash coverage of our fourth quarter distribution.” said Barry E. Davis, Crosstex President and Chief Executive Officer.  “Crosstex is well positioned, well capitalized and well managed, and our 2011 vision is to be the best midstream energy solutions provider for our customers.  Our strategy is focused on performance and long-term growth and we plan to take advantage of the abundant opportunities in this robust midstream environment.”

 

The Partnership’s fourth-quarter 2010 gross operating margin was $89.4 million, an $8.8 million increase over the fourth quarter of 2009. The increase was primarily the result of optimization of Crosstex’s gathering and transmission system assets and growth of the Partnership’s natural gas liquids (NGL) business. Gross operating margin is a non-GAAP financial measure and is explained in greater detail under “Non-GAAP Financial Information.” There is a calculation of this non-GAAP measure in the tables at the end of this news release.

 

-more-

 



 

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 north Texas (NTX); the pipelines and processing plants in Louisiana (LIG); and the south Louisiana processing and NGL assets, including gas and NGL marketing activities (PNGL). Operating activity for assets sold in the comparative periods that were not considered discontinued operations is included in the corporate segment. Each business segment’s contribution to the fourth-quarter 2010 gross operating margin change versus the fourth-quarter 2009, and the factors affecting those contributions, are described below:

 

·                  The NTX segment’s gross operating margin increased $7.4 million, including $3.7 million due to a charge associated with an adverse arbitration award recorded in the fourth quarter of 2009. The remainder of the variance results from system optimization and higher volumes on the transmission system, partially offset by lower gathering volumes for the fourth quarter of 2010 versus the fourth quarter of 2009. It is expected that the recently announced expansions and supply additions to the Partnership’s north Texas gathering system should increase volumes significantly in 2011.

·                  The PNGL segment’s gross operating margin rose $2.9 million primarily due to increased NGL marketing and fractionation activity. Crosstex management continues to focus on the NGL business as a key part of the Partnership’s growth strategy.

·                  The LIG segment’s gross operating margin decreased $0.1 million primarily the result of lower processing volumes which were partially offset by higher transport volumes.

·                  The corporate segment’s gross operating margin, which included 2009 margins for assets that were sold and not considered discontinued operations, decreased $1.4 million due to the January 2010 sale of the Partnership’s east Texas assets.

 

The Partnership’s fourth-quarter 2010 operating expenses of $26.7 million increased $1.0 million, or four percent, from the fourth quarter of 2009. General and administrative expenses declined $3.5 million, or 22 percent, versus the fourth quarter of 2009 largely due to decreased labor costs and lower professional fees and services costs. Depreciation and amortization expense for the fourth quarter of 2010 increased $0.3 million, or one percent, compared with the fourth quarter of 2009. Interest expense declined to $19.8 million for the fourth quarter of 2010 from $28.0 million for the fourth quarter of 2009 primarily due to expense associated with interest rate swaps included in the fourth quarter of 2009 and reductions in debt outstanding beyond amounts associated with asset sales.

 

The net loss per basic and diluted limited partner common unit for the fourth quarter of 2010 was $0.11 compared with net income of $1.09 per basic common unit and $1.07 per diluted common unit for the fourth quarter of 2009. The 2009 income per basic limited partner common unit included $1.67 of gain on sale of discontinued operations.

 

Full-Year 2010 — Crosstex Energy, L.P. Financial Results

 

The Partnership realized adjusted EBITDA of $186.9 million and distributable cash flow of $91.2 million in 2010 compared with adjusted EBITDA of $158.7 million and distributable cash flow of $61.7 million in 2009.  The Partnership reported a net loss of $25.8 million in 2010, compared with net income of $104.4 million in 2009. Net income for the year 2009 included $183.7 million of gain on the sale of discontinued operations.

 

2



 

The Partnership’s 2010 gross operating margin increased to $338.3 million from $311.2 million for 2009.  This improvement was primarily related to higher margins on the Partnership’s gathering and transmission assets, as well as a favorable NGL market. Each business segment’s contribution to the increase and the factors affecting those contributions are described below:

 

·                        The LIG segment contributed $16.6 million of gross operating margin growth in 2010 as compared to 2009. The gathering and transmission assets generated approximately $11.6 million of gross operating margin growth primarily due to improved pricing and higher volumes on the northern part of the system.  LIG processing plants contributed a $4.9 million gain, which was enhanced by the improved processing environment.

·                        The improved processing and NGL marketing environments significantly contributed to the $13.7 million increase in the PNGL segment’s gross operating margin in 2010 as compared to 2009.  In addition to the improved marketing environment, the volume of fractionated NGL’s was significantly increased by rail and truck product deliveries.

·                        The NTX segment had gross operating margin improvement of $2.8 million in 2010. A $3.7 million charge associated with an adverse arbitration award was included in 2009. Increased losses of $4.5 million under a certain supply agreement were offset by improvements in a number of areas that enhanced liquids recoveries and unit margins, in addition to better processing margins.

·                        The corporate segment’s gross operating margin decreased approximately $6.0 million in 2010 as compared to 2009, primarily the result of the sale of the Partnership’s east Texas assets in January 2010.

 

The Partnership’s operating expenses declined $5.3 million in 2010, or five percent, to $105.1 million versus $110.4 million in 2009 primarily the result of decreased plant and compressor rent expense which was partially offset by cost related to the expansion of the Partnership’s operations in Louisiana.  General and administrative expenses in 2010 decreased by $11.4 million from 2009 largely due to workforce reductions completed in 2009 and lower legal and professional costs.  Depreciation and amortization expense decreased $7.5 million in 2010 compared with 2009 primarily due to the extension of the useful lives of various assets in accordance with the findings of an engineering study completed in the fourth quarter of 2009. Interest expense decreased from $95.1 million in 2009 to $87.0 million in 2010 primarily due to the reduction in expense associated with interest rate swaps.

 

The net loss per limited partner common unit was $1.12 in 2010 compared with net income of $1.44 per basic common unit and $1.40 per diluted common unit in 2009. Income per basic common unit for 2009 included $3.66 of gain on sale of discontinued operations.

 

Crosstex Energy, Inc. Financial Results

 

The Corporation reported a $2.1 million net loss in the fourth quarter of 2010 compared with net income of $12.1 million in the fourth quarter of 2009.  The net loss in 2010 was $11.7 million compared with net income of $15.6 million in 2009.

 

The Corporation, on a stand-alone basis, had $5.1 million of cash on hand and no debt at the end of 2010.

 

In accordance with U.S. accounting standards, the Partnership and the Corporation classified certain assets, liabilities and results of their operations as discontinued operations for the 2009 accounting periods presented. Summary financial data tables in this release include amounts reclassified as discontinued operations for the 2009 periods presented.

 

3



 

Crosstex Provides Preliminary 2011 Guidance

 

The following are the Partnership’s low and high estimates of 2011 adjusted EBITDA and distributable cash flow based on various commodity price scenarios and other varying assumptions. Assuming actual results are within the range of guidance, it is expected the Partnership could generate sufficient distributable cash flow to support distributions in the range of $1.04 to $1.20 per unit for the year; and the Corporation expects it could pay dividends in the range of $0.32 to $0.40 per share for 2011, assuming the receipt of a per unit distribution from the Partnership in the range stated above. The payment and amount of any distributions and dividends will be subject to approval by the Boards of Directors of the Partnership and Corporation and to economic conditions and other factors existing at the time of determination.

 

CROSSTEX ENERGY, L.P.

Forecast for Total Year 2011

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Distributable Cash Flow

(All amounts in millions except prices and ratios)

 

 

 

Low

 

High

 

Net income

 

$

(27

)

$

4

 

Depreciation and amortization

 

119

 

119

 

Stock-based compensation

 

8

 

8

 

Interest expense

 

83

 

82

 

Taxes and other

 

2

 

2

 

Adjusted EBITDA*

 

185

 

215

 

Interest expense

 

(83

)

(82

)

Cash taxes and other

 

(2

)

(2

)

Maintenance capital expenditures

 

(14

)

(11

)

Distributable cash flow*

 

$

86

 

$

120

 

 

 

 

 

 

 

Growth Capital

 

$

50

 

$

150

 

 

 

 

 

 

 

Key Assumptions for Forecast

 

 

 

 

 

Weighted Average Liquids Price ($/gallon)

 

0.83

 

1.18

 

Crude ($/Bbl)

 

60.21

 

85.69

 

Natural Gas ($/MMBtu)

 

4.50

 

3.50

 

Natural Gas Liquids to Gas Ratio

 

208.5

%

381.6

%

 


* Adjusted EBITDA and Distributable cash flow are non-GAAP financial measures and are explained in greater detail under “Non-GAAP Financial Information.”

 

Processing Sensitivities:

 

Percent of Liquids Contracts - $0.10 change in Weighted Average Liquids Price

 

$3.6 Million

Processing Margin Contracts - 5% change in Natural Gas Liquids to Gas Ratio (1)

 

$3.2 Million

 


(1) Assumes constant gas price of $4.25/MMBtu.

 

4



 

Crosstex to Hold Earnings Conference Call Today

 

The Partnership and the Corporation will hold their quarterly conference call to discuss fourth-quarter and full- year 2010 results today, February 25, at 10:00 a.m. Central time (11:00 a.m. Eastern time).The dial-in number for the call is 1-888-680-0860, and the passcode is 12762265. Callers outside the United States should dial 1-617-213-4852, and the passcode is 12762265. Investors are advised to dial in to the call at least 10 minutes prior to the call time to register. Participants may preregister for the call at https://www.theconferencingservice.com/prereg/key.process?key=P9AL3JYP8. Preregistrants will be issued a pin number to use when dialing in to the live call, which will provide quick access to the conference by bypassing the operator upon connection. Interested parties also can access a live web cast of the call on the Investors page of Crosstex’s web site at www.crosstexenergy.com.

 

After the conference call, a replay can be accessed until May 25, 2011, by dialing 1-888-286-8010. International callers should dial 1-617-801-6888 for a replay. The passcode for all callers listening to the replay is 23059216. Interested parties also can visit the Investors page of Crosstex’s web site to listen to a replay of the call.

 

About the Crosstex Energy Companies

 

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 3,300 miles of pipeline, nine processing plants and three fractionators. The Partnership currently provides services for 3.2 billion cubic feet of natural gas per day, or approximately six percent of marketed U.S. daily production.

 

Crosstex Energy, Inc. owns the two percent general partner interest, a 25 percent limited partner interest and the incentive distribution rights of Crosstex Energy, L.P.

 

Additional information about the Crosstex companies can be found at www.crosstexenergy.com.

 

Non-GAAP Financial Information

 

This press release contains non-generally accepted accounting principle financial measures that the Partnership refers to as gross operating margin, adjusted EBITDA and distributable cash flow. Gross operating margin is defined as revenue minus purchased gas and NGLs. Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, impairments, loss on extinguishment of debt, stock-based compensation, noncash derivative items, gain on the sale of assets and other miscellaneous noncash items. Distributable cash flow is defined as earnings before certain noncash charges and the gain on the sale of assets less maintenance capital expenditures. The amounts included in the calculation of these measures are computed in accordance with generally accepted accounting principles (GAAP) with the exception of maintenance capital expenditures.  Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and to extend their useful lives.

 

The Partnership believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and prior-reported results and a meaningful measure of the Partnership’s cash flow after it has satisfied the capital and related requirements of its operations.

 

5



 

Gross operating margin, adjusted EBITDA and distributable cash flow, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of the Partnership’s performance. Furthermore, they should not be seen as measures of liquidity or a substitute for metrics prepared in accordance with GAAP. A reconciliation of these measures to net income (loss) is included among the following tables.

 

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the Corporation based upon management’s experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the Corporation believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to the Partnership’s and the Corporation’s guidance and future outlook, distribution and dividend guidelines and future estimates and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the Corporation, which may cause the Partnership’s and the Corporation’s actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include the following: (1) the Partnership’s profitability is dependent upon prices and market demand for natural gas and NGLs; (2) the Partnership’s substantial indebtedness could limit its flexibility and adversely affect its financial health; (3) the Partnership may not be able to obtain funding which would impair its ability to grow; (4) the Partnership and the Corporation do not have diversified assets; (5) drilling levels may decrease due to deterioration in the credit and commodity markets; (6) the Partnership’s credit risk management efforts may fail to adequately protect against customer nonpayment; (7) the Partnership’s use of derivative financial instruments does not eliminate its exposure to fluctuations in commodity prices and interest rates; (8) the Partnership may not be successful in balancing its purchases and sales; (9) the amount of natural gas transported in the Partnership’s gathering and transmission lines may decline as a result of reduced drilling by producers, competition for supplies, reserve declines and reduction in demand from key customers and markets; (10) the level of the Partnership’s processing operations may decline for similar reasons; (11) operational, regulatory and other asset-related risks, including weather conditions such as hurricanes, exist because a significant portion of the Partnership’s assets are located in southern Louisiana; and (12) other factors discussed in the Partnership’s and the Corporation’s Annual Reports on Form 10-K for the year ended December 31, 2010, and other filings with the Securities and Exchange Commission. The Partnership and the Corporation have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

(Tables follow)

 

6



 

CROSSTEX ENERGY, L.P.

Summary Financial Data

(All amounts in thousands except per unit numbers)

 

 

 

Three Months Ended

 

Years Ended

 

 

 

December 31,

 

December 31

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

Unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midstream revenues

 

$

427,235

 

$

432,823

 

$

1,792,676

 

$

1,583,551

 

Purchased gas and NGLs

 

337,803

 

352,177

 

1,454,376

 

1,272,329

 

Gross operating margin

 

89,432

 

80,646

 

338,300

 

311,222

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

26,694

 

25,662

 

105,060

 

110,394

 

General and administrative

 

12,745

 

16,238

 

48,414

 

59,854

 

Gain on sale of property

 

486

 

234

 

(13,881

)

(666

)

(Gain) loss on derivatives

 

2,228

 

3,728

 

9,100

 

(2,994

)

Impairments

 

 

1,994

 

1,311

 

2,894

 

Depreciation and amortization

 

29,454

 

29,163

 

111,551

 

119,088

 

Total operating costs and expenses

 

71,607

 

77,019

 

261,555

 

288,570

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

17,825

 

3,627

 

76,745

 

22,652

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

(19,847

)

(27,952

)

(87,035

)

(95,078

)

Loss on extinguishment of debt

 

 

 

(14,713

)

(4,669

)

Other income

 

(19

)

664

 

295

 

1,400

 

Total other income (expense)

 

(19,866

)

(27,288

)

(101,453

)

(98,347

)

Loss from continuing operations before non-controlling interest and income taxes

 

(2,041

)

(23,661

)

(24,708

)

(75,695

)

Income tax provision

 

(312

)

(547

)

(1,121

)

(1,790

)

Loss from continuing operations before discontinued operations

 

(2,353

)

(24,208

)

(25,829

)

(77,485

)

Discontinued operations:

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net of tax

 

 

(6,174

)

 

(1,796

)

Gain on sale of discontinued operations, net of tax

 

 

86,324

 

 

183,747

 

Discontinued operations, net of tax

 

 

80,150

 

 

181,951

 

Net income (loss)

 

$

(2,353

)

$

55,942

 

$

(25,829

)

$

104,466

 

Less: Net income from continuing operations attributable to the non-controlling interest

 

31

 

69

 

19

 

60

 

Net income (loss) attributable to Crosstex Energy, L.P.

 

$

(2,384

)

$

55,873

 

$

(25,848

)

$

104,406

 

Preferred interest in net income attributable to Crosstex Energy, L.P.

 

$

3,824

 

$

 

$

13,750

 

$

 

Beneficial conversion feature attributable to preferred units

 

$

 

$

 

$

22,279

 

$

 

General partner interest in net income (loss)

 

$

(776

)

$

391

 

$

(4,371

)

$

(819

)

Limited partners’ interest in net income (loss)

 

$

(5,432

)

$

55,482

 

$

(57,506

)

$

105,225

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per limited partners’ unit:

 

 

 

 

 

 

 

 

 

Basic common unit

 

$

(0.11

)

$

1.09

 

$

(1.12

)

$

1.44

 

Diluted common unit

 

$

(0.11

)

$

1.07

 

$

(1.12

)

$

1.40

 

Basic and diluted senior subordinated series D unit

 

$

 

$

 

$

 

$

8.85

 

Weighted average limited partners’ units outstanding:

 

 

 

 

 

 

 

 

 

Basic common units

 

50,221

 

49,156

 

49,960

 

48,161

 

Diluted common units

 

50,221

 

50,189

 

49,960

 

49,467

 

Series A convertible preferred units outstanding

 

14,706

 

 

14,706

 

 

 

7



 

CROSSTEX ENERGY, L.P.

Reconciliation of Net Income (Loss) to Adjusted EBITDA and Distributable Cash Flow

(All amounts in thousands except ratios and per unit amounts)

 

 

 

Three Months Ended

 

Years Ended

 

 

 

December 31

 

December 31

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(Unaudited)

 

(Unaudited)

 

Net income (loss) attributable to Crosstex Energy, L.P.

 

$

(2,384

)

$

55,873

 

$

(25,848

)

$

104,406

 

Depreciation, amortization and impairments

 

29,454

 

31,157

 

112,862

 

121,982

 

Stock-based compensation

 

2,170

 

2,466

 

9,276

 

8,742

 

Interest expense, net

 

19,847

 

27,952

 

87,035

 

95,078

 

Loss on extinguishment of debt

 

 

 

14,713

 

4,669

 

Gain on sale of property

 

486

 

234

 

(13,881

)

(666

)

(Income) loss from discontinued operations, net of tax

 

 

6,174

 

 

1,796

 

Gain from sale of discontinued operations, net of tax

 

 

(86,324

)

 

(183,747

)

Noncash derivatives, taxes and other

 

588

 

5,190

 

2,723

 

6,422

 

Adjusted EBITDA from continuing operations

 

50,161

 

42,722

 

186,880

 

158,682

 

 

 

 

 

 

 

 

 

 

 

Interest expense (1)(2)(3)

 

(19,847

)

(21,180

)

(83,385

)

(86,413

)

Cash taxes and other cash expenses

 

(333

)

(471

)

(1,517

)

(2,259

)

Maintenance capital expenditures

 

(1,875

)

(3,567

)

(10,751

)

(8,294

)

Distributable cash flow from continuing operations

 

$

28,106

 

$

17,504

 

$

91,227

 

$

61,716

 

Actual distribution (common and preferred)

 

$

17,616

 

$

 

$

40,698

 

$

 

Distribution coverage

 

1.6

x

n/a

 

2.2

x

n/a

 

 

 

 

 

 

 

 

 

 

 

Distributions declared per limited partner unit

 

$

0.26

 

$

 

$

0.51

 

$

 

Distributions declared per preferred unit

 

$

0.26

 

$

 

$

0.935

 

$

 

 


(1)

 

Excludes debt issuance cost amortization of $678 thousand as a result of the repayment of senior secured notes from the proceeds of the preferred unit sale and an asset sale for the year ended December 31, 2010.

 

 

 

(2)

 

Excludes senior secured note make-whole and call premium paid-in-kind interest in the amount $894 thousand for the year ended December 31, 2010, and $5,099 thousand and $9,461 thousand for the three months and year ended December 31, 2009, respectively.

 

 

 

(3)

 

Excludes noncash interest rate swap mark to market of $1,673 thousand and $(797) thousand for the three months and year ended December 31, 2009.

 

8



 

CROSSTEX ENERGY, L.P.

Operating Data

 

 

 

Three Months Ended

 

Years Ended

 

 

 

December 31

 

December 31

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

 

 

 

 

 

 

 

 

Pipeline Throughput (MMBtu/d)

 

 

 

 

 

 

 

 

 

LIG

 

921,000

 

881,000

 

902,000

 

900,000

 

NTX - Gathering

 

711,000

 

764,000

 

730,000

 

793,000

 

NTX - Transmission

 

333,000

 

331,000

 

339,000

 

318,000

 

Corporate (1)

 

 

26,000

 

 

29,000

 

Total Gathering and Transmission Volume

 

1,965,000

 

2,002,000

 

1,971,000

 

2,040,000

 

 

 

 

 

 

 

 

 

 

 

Natural Gas Processed (MMBtu/d)

 

 

 

 

 

 

 

 

 

PNGL

 

840,000

 

892,000

 

874,000

 

747,000

 

LIG

 

276,000

 

291,000

 

283,000

 

269,000

 

NTX

 

206,000

 

203,000

 

209,000

 

219,000

 

Total Gas Volumes Processed

 

1,322,000

 

1,386,000

 

1,366,000

 

1,235,000

 

 

 

 

 

 

 

 

 

 

 

Commercial Services Volume (MMBtu/d)

 

175,000

 

39,000

 

99,000

 

75,000

 

 

 

 

 

 

 

 

 

 

 

NGL’s Fractionated (Gal/d)

 

885,000

 

794,000

 

922,000

 

686,000

 

 

 

 

 

 

 

 

 

 

 

Realized weighted average

 

 

 

 

 

 

 

 

 

Natural Gas Liquids price ($/gallon)

 

1.12

 

1.03

 

1.03

 

0.81

 

Actual weighted average

 

 

 

 

 

 

 

 

 

Natural Gas Liquids-to-Gas price ratio

 

331

%

280

%

263

%

225

%

 

 

 

 

 

 

 

 

 

 

North Texas Gathering (2)

 

 

 

 

 

 

 

 

 

Wells connected

 

16

 

12

 

100

 

84

 

 


(1)

 

Includes volumes for assets sold and not considered discontinued operations.

(2)

 

North Texas Gathering wells connected are as of the last day of the period and include Centralized Delivery Point (“CDP”) connections where Crosstex connects multiple wells at a single meter station.

 

9



 

CROSSTEX ENERGY, INC.

Summary Financial Data

(All amounts in thousands except per unit numbers)

 

 

 

Three Months Ended

 

Years Ended

 

 

 

December 31

 

December 31

 

 

 

2010

 

2009

 

2010

 

2009

 

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Midstream revenues

 

$

427,235

 

$

432,823

 

$

1,792,676

 

$

1,583,551

 

Purchased gas and NGLs

 

337,803

 

352,177

 

1,454,376

 

1,272,329

 

 

 

 

 

 

 

 

 

 

 

Gross operating margin

 

89,432

 

80,646

 

338,300

 

311,222

 

 

 

 

 

 

 

 

 

 

 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

Operating expenses

 

26,695

 

25,661

 

105,060

 

110,394

 

General and administrative

 

13,272

 

16,852

 

51,172

 

62,491

 

(Gain) loss on sale of property

 

486

 

234

 

(13,881

)

(666

)

(Gain) loss on derivatives

 

2,228

 

3,728

 

9,100

 

(2,994

)

Impairments

 

 

1,994

 

1,311

 

2,894

 

Depreciation and amortization

 

29,472

 

29,182

 

111,625

 

119,162

 

Total operating costs and expenses

 

72,153

 

77,651

 

264,387

 

291,281

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

17,279

 

2,995

 

73,913

 

19,941

 

 

 

 

 

 

 

 

 

 

 

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense, net of interest income

 

(19,844

)

(27,953

)

(87,028

)

(95,078

)

Loss on extinguishment of debt

 

 

 

(14,713

)

(4,669

)

Other income

 

(20

)

664

 

294

 

1,449

 

Total other income (expense)

 

(19,864

)

(27,289

)

(101,447

)

(98,298

)

Income (loss) from continuing operations before non-controlling interest and income taxes

 

(2,585

)

(24,294

)

(27,534

)

(78,357

)

Income tax benefit (provision)

 

696

 

3,614

 

6,021

 

6,020

 

Loss from continuing operations, net of tax

 

(1,889

)

(20,680

)

(21,513

)

(72,337

)

Discontinued operations:

 

 

 

 

 

 

 

 

 

Loss from discontinued operations, net of tax

 

 

(5,331

)

 

(1,519

)

Gain from sale of discontinued operations, net of tax

 

 

75,134

 

 

159,961

 

Net income (loss)

 

(1,889

)

49,123

 

(21,513

)

86,105

 

Less: Interest of non-controlling partners in the Partnership’s net income (loss):

 

 

 

 

 

 

 

 

 

Interest of non-controlling partners in the Partnership’s continuing operations

 

199

 

(15,217

)

(9,862

)

(48,069

)

Interest of non-controlling partners in the Partnership’s discontinued operations

 

 

(3,988

)

 

(1,137

)

Interest of non-controlling partners in the Partnership’s gain on sale of discontinued operations

 

 

56,224

 

 

119,669

 

Total Interest of non-controlling partners in the Partnership’s net income (loss)

 

199

 

37,019

 

(9,862

)

70,463

 

Net income (loss) attributable to Crosstex Energy, Inc.

 

$

(2,088

)

$

12,104

 

$

(11,651

)

$

15,642

 

Net income (loss) per common share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.04

)

$

0.26

 

$

(0.24

)

$

0.33

 

Diluted

 

$

(0.04

)

$

0.25

 

$

(0.24

)

$

0.33

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

46,894

 

46,517

 

46,732

 

46,476

 

Diluted

 

46,894

 

46,746

 

46,732

 

46,535

 

Dividends declared per common share

 

$

0.08

 

$

 

$

0.15

 

$

 

 

10