Energy Trade

The Right Time For Crosstex Energy

In mid-May, Crosstex Energy LP (XTEX) EVP and CFO Michael Garberding stated in a presentation to Bank of America Merrill Lynch that, "Today is the right time for Crosstex." He cited the company's $1 billion investment into infrastructure growth and expansion that would lead to strong earnings growth and a more secure financial future for the company. Concurrent with his other comments on further investments coming, last week the company announced that 7.2 million common units would be sold in an underwritten public offering. Crosstex Energy said it plans to use the net proceeds of the issue for expansion of the Cajun-Sibon natural gas liquids pipeline. The offering discounted the shares about 5%, and I believe this gives investors a...

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