Ken Lee

Crosstex Energy - Interesting Assets, But What To Buy?

Crosstex is a family of midstream companies which was founded in 1996. Crosstex Energy, L.P, ("XTEX"), the family's master limited partnership, or MLP, was taken public in December 2002, and Crosstex Energy, Inc. ("XTXI"), the MLP's general partner was taken public in 2004.

XTXI versus XTEX

XTXI does not hold any operating assets. Rather, XTXI's assets consist almost exclusively of partnership interests in XTEX, with XTXI owning a 2% general partner interest, 16.4 million XTEX common units (~22%), and 100% of XTEX's incentive distribution rights (IDRs). XTXI's cash flows consist of cash distributions from XTEX, from which XTXI pays cash dividends to its shareholders.

XTEX is an MLP focused on the gathering, processing, transportation and marketing of natural gas and...

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