Crosstex Energy Inc (XTXI) comprises almost exclusively of partnership interests in Crosstex Energy, L.P., (XTEX) a publicly traded limited partnership. XTEX has a 2 phase growth plan with phase 1 in progress and phase 2 under consideration. Both are $1B investments and are going to increase distributions over next 2 years. XTXI is going to benefit from this through ownership of 17.3% of XTEX's LP units and 100% of the GP + IDR interests.
At present, it is yielding around 2.5% (quite low compared to peers). By 4Q14E, they can pay $0.27 in dividend leading to a price of $31 (at 3.5% dividend yield). Given current price of $21, this translates into upside of $ 10 vs. downside...
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