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Crosstex Energy, Komandit ┼×irket Message Board

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  • rrb1981 rrb1981 Jan 10, 2006 10:01 PM Flag

    Any news on secondary offering?

    Good points. One thing I think that we are bound to see, in fact, I would say that it is inevitable, is that we will see a wave of consolidation in the MLP sector. I am actually shocked that we have not already seen it. I suspect we will see at least 2 or 3 deals in the next few years. The market is getting saturated with new upstart MLP's that are willing, and capable of overpaying for assets in order to grow. Remember, an MLP with a 100 million dollar market cap, a 15 million dollar deal is significant for them. The big MLP's will be able to better compete by combining to leverage asset interconnection and to cut overhead. Candidates: ??? My original guesses were MMP and BPL, because Carlye Riverstone owns the GP of both. I also think TPP and EPD will merge eventually. Would not be surprised to see TRP part with TCLP(they have already sold off most of the LP units that they owned and retain just the GP and a few LP units). Also might see something happen with PPX (has a financially motivated group that owns the GP). Actually will probably continue to see GP's enter the market (Atlas and Penn Virginia, Buckeye). Will it happen...no telling, but it looks like things are heading in that direction.

    As for Crosstex, they have a lot of great projects either in the works, or on the back burner. They are still a relatively small MLP and I expect many good things from them to come.