P/E multiples are not the best way to value pipeline or G & P MLPs. Read the Alerian MLP Primer on Alerian's website, learn about DCF and distribution rates if you gave not already done so. Then concentrate on XTEX' downsides as well as the upsides when you compare it with its peers.
Excellent comment. XTEX has come a long way in a year, but that is because they fell so low. They almost went out of business. Some good asset sales and some good luck in improving processing margins have got them back to where we can reasonably hope for a resumption of distributions. But we can't expect early 2008 level distributions anytime in the foreseeable future. XTEX has a lot fewer assets than they had 18 months ago and they have more units. We are also unlikely to see the processing margins we had in mid-2008 any time soon.
True point. However management was quoted in the Seekingalpha article I put in another post they wish to use some of their refi to expand their pipeline network, something which was told to me today by the investor relationns people. So, do they build new pipelines or do they look for distressed pipeline companies that have a network that would fit nicely into their already existing network. I don't think it is any secret they want to expand their pipelines past TX,LA and MS.