Crosstex Energy Inc. (XTXI +5.2%) is a smart play on rising cash flows at MLP Crosstex Energy LP...

|By:, SA News Editor

Crosstex Energy Inc. (XTXI +5.2%) is a smart play on rising cash flows at MLP Crosstex Energy LP (XTEX +3.5%), Barron's suggests. It's all about the beauty of incentive distribution rights, which motivates XTXI to manage the LP's assets effectively and grow the distribution. As the distribution increases, it receives a stepped-up percentage, up to 50%, making it levered to the LP's rising cash flows.