The NG gas business is experiencing a Paradyme shift. One indicator is, of couse, NG inventory levels. But inventory doesn't gauge the volume of NG being generated and sold. The truth is, the volumes are much higher, the earnings for NG companies will be significantly higher due to these new volume levels. That's the beauty of natural gas industry right now: New found reserves combined with higher demand and uses for NG equal more volume production for XTXI.
XTXI will benefit from cold winter for heating and hot summer for power generation. Utility power companies have geared up to buy more NG for gas powered plants.
I have a family member who works in the field in the Central Texas region for a large E&P company. He was told a month ago to prepare for the shutdown of existing, producing wells, due to an anticipated drop in the price of NG. this could mean nothing. If this means anything, it is that bigshots (@ one company) are calling for a lowering of supply due to anticipated poor demand. This could be because greater imports of liquified NG from abroad, current inventory excess, or even some factor outside of the energy business, like a double dip recession. It could be any number of known factors, plus a dozen unknown ones. Crosstex is a cork floating in a sea of news, and it's rise or fall goes both ways. One must not look at the next wave that comes along and assume it is a tsunami.
I am averaged in to this stock at a great price and we have drop about into the LOW $5 range before I see red. So I am happy to let this one ride! Further, if you are a short person (not in stature) or a day trader enjoy the ride. If you are a long term holder looking for appreciation. buy on a dip and hold. NG is not going away folks? and Crosstex is a very large pipe and processing company that is feeling the affect just like almost every line operator is feeling. No worries - While the area I live is not serviced by Crosstex - the entire area in Northwest Wisconsin is continuing to lay 8"-12" MAIN NG pipe - you will find that happening everywhere and while we can not lay pipe in the winter (we burn NG and Propane)in the summer we see the effect of the construction of new pipe line throughout the state. Storage may be an issue now but over the next 2 to 5 years we will not have any storage issues as we have increased use of NG in both commercial and residential use. of course this is just based on my opinion and that is only as good as the PhD I hold (a piece of paper to burn for warmth when we run out of natural gas)
Not sure what O&G Company you talking about but we are grabing gears 10 to 18 rigs in Hanesville and 8 to 18 rigs in the Eagleford and 4 to 8 in the Barnett shale. All been approved by Co. Pres. and will happen between last week and first of second quarter. Also there has been some talk around here about congress passing something around June of this year. Might explain why gas companies aren't taking there foot off the gas petal just yet.