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Crosstex Energy, AŞ Message Board

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  • kokohapmton kokohapmton Sep 20, 2005 6:37 PM Flag

    Dividend Model Projections Part 1

    The Barnett Shale expansion w/ a cost of $15m for $17m of cash flo would be approximately $.50/share to $.75/share - this is just a wild guess, but there would obviously be very little cost of capital b/c there is very little capital required. Just the 50% IDR would be $17.5*.5=8.75m, divided by 13m shares is $.67/share, not including the distribution on the 10m xtex shares owned by xtxi.

    What is the math if the El Paso deal comes down to a 7x multiple? $15m more w/ no capital required would again be $.58/xtxi share just based on the 50% IDR. Those two stupidly simple estimates get you to $5.34/xtxi share. That in turn gets you to $133.5/share at a 4% yield.

    I'm waiting for some poor market maker to start selling LEPS....