Crosstex Energy (XTEX) -4.2% AH after announcing a public offering of 7.5M common units plus an...


Crosstex Energy (XTEX) -4.2% AH after announcing a public offering of 7.5M common units plus an offering of 2.7M common units to certain funds affiliated with Magnetar Capital. Net proceeds will be used for capital expenditures on currently identified projects, including the Cajun-Sibon natural gas liquids pipeline expansion, and for general partnership purposes.

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Comments (5)
  • bu1956
    , contributor
    Comments (41) | Send Message
     
    There is something inheritingly unfair about this.
    The stock price goes down because the PO is always priced below the market and has large underwriting costs associated with it.
    Every existing stock holder and long call option holder gets screwed.
    Check out the price action on CLMT which announced a PO yesterday and is down over $2 today.
    Happy I wasn't in that one.
    8 Jan 2013, 04:48 PM Reply Like
  • Tom in Texas
    , contributor
    Comments (384) | Send Message
     
    bu1956, you are wrong. I'm happy to be in CLMT since my avg. pps was 21.475 with a YOC of 11.55%. Sure, if you bought recently you'd be kicking yourself for not waiting, or you could buy more and average down.
    8 Jan 2013, 05:03 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    I think all unit holders knew that capital was needed to complete the capital projects. Given the drastic rise lately I assume they decided to strike while the getting is good.

     

    It all comes down to execution for the projects - if they are successful then in 2015 its a $20-$25 value - if not then we'll be stringing along $13.
    8 Jan 2013, 06:22 PM Reply Like
  • investing4me
    , contributor
    Comments (81) | Send Message
     
    I'm rather upset about this! I read not too long ago on here that someone was saying based on COH, new expenditures, etc they may have to do a PO.

     

    I have been long XTEX for over 4yrs now... I purchased on 10/30/2008 @ 15.05 a share and have reinvested all distributions. My cost basis per share is 13.29 and @ today's close I am up 18.57%.

     

    As mad as I am, I will stay in XTEX for at least 2 more years to try and reap the cash that should be kicking in later this year and through 2014 with these 2 new expansions coming online.
    9 Jan 2013, 01:55 AM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Why are you upset? How did you think we'd complete these capital projects? All unitholders had to know that this would happen as management has said they would use equity as part of the funding mechanism.

     

    If management does a good job on execution and we see good DCF growth once the projects are done then I"m happy. It won't be until 2014 that we start to see the benefits and maybe even 2015 until we see larger boosts in distributions.
    9 Jan 2013, 02:14 AM Reply Like
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