One other thing, the coverage ratio applies to XTEX, not XTXI. XTXI is a c-corp, XTEX is the MLP, the MLP's report distributable cash flow, the c-corp usually does not report dcf, and gaap earnings is a useless number, a better indication for XTXI is after tax cash flow. This can be arrived at by taking the total distributions from XTEX (from both LP units and incentive distribution rights "the GP take") and then using a conservative 35% tax rate. Next divide that over 15.1 million XTXI shares outstanding.
Thanks for the tutorial rrb. I was going to wait until the final proxy was submitted but the prelim was good enough. As for the coverage ratio issue, I just went brain dead. I now feel comfortable going up to a buy rating since I think the fundamentals are still strong. The only thing holding me back from a "Strong Buy" recommendation is I'd like to see the 3Q earnings first. I was a little disappointed that we didn't get to a $0.65 dividend in 2Q and we seem to be a little behind in trying to reach a $3.00 annual div by the end of the year (that's 4Q reported in Feb 07). It's still an excellent long term performer given some alternative investments and technicals do indicate a rise in the price.