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Crosstex Energy, Komandit ┼×irket Message Board

  • joefridaye joefridaye Feb 1, 2010 5:04 PM Flag

    24 PE firms chasing Midstream Acquisitions

    This interesting tidbit came from the DEP/Enterprise conference call by the CEO Mike Creel:

    "Recently, we were told there are 24 private equity teams chasing acquisition in the midstream space. It sounds like the acquisition market is going to be expensive again and probably we will rely on leveraged returns. We believe our focus on the organic growth available to us around our system and managing our cash cost of capital will continue to enable us to provide our partners with growth in distributable cash flow per unit."

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    • Joe...makes it sound like they want distributions to go up to make any takeover attempt costly.

    • Excellent find. This is where I think XTEX is headed. The debt refinance issue possibilities are good. The growth possibilities are good. I just don't know if they want to sell someday.

      • 3 Replies to jdb_1234
      • ...well we know they have been talking about wanting to expand. They currently have 6% of the U.S. natural gas market...they might pick up some weaker pipeline and fractionator companies (my worry here is that the big boys like Chevron, BP, ExxonMobil, etc., all have their hooks baited as well and the winner will be the one to not only get to the fishing hole first but throws enough scrum in the water to start a feeding frenzy).

        I personally think our best bets are gonna be the pipeline and midstream companies from Canada that got caught South of the border before they could run like hell when the socialist Harper government went on his October massacre of 2008 to wipe out as much of the Canadian energy business as possible. Bottom line...still probably some good pipelines and routes, fractionators, and storage units that belonged to the Canadians and now Canadian management wants to get rid of them, i.e the assets, take the money and run to the Caymans before "The Internationale" becomes the new national anthem of Canada.

      • Its gonna take some deep pockets to acquire 6% of the nation's NG usage market.

      • The way I feel jdb,,,but we don't want to sell to cheap...hold these people at bay for 3 years.

        If you get a chance to look at a royal screwing the shareholders got look at HTE. BV 15.60CDN sold to the Korean National Oil Company for $10CDN, which came out to $9.50 for U.S. holders, after brokerage fees, and I can't remember, CDN taxes because we had to pay 15 percent of our dividends every month to the left wing Harper government.