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Crosstex Energy, AŞ Message Board

  • guintogg guintogg Jul 14, 2010 6:29 PM Flag

    XTXI will Some day Close the Gap Lisa


    Your gloating all over your self saying I told you so , gotta laugh at that.

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    • The CEO of Crosstex owns almost 4 times as much XTXI as XTEX according to my information from Scottrade. I think Lisa has been correct in her analysis of the past 6 months, however, giong forward I do see both moving higher with XTXI moving forward faster and closing the gap gradually. It is unquestionably in the incentive of the CEO to grow the company, which will benefit XTXI more than XTEX if he is successful. Which I believe he will be. I have tremendous respect for Mr. Davis.

    • "Actually if ever a buy out was talked about xtxi could easily pass xtex in a case such as and it will come a day when xon or some one like this will want the whole thing."

      That is false too.
      Apart from the fact that XOM would not be interested in a pipsqueak G&P like Crosstex, in the event of a merger/buyout (more likely with another MLP) they would come up with a conversion ratio for XTEX and XTXI units which would likely correspond closely to market valuations at the time. So, no, XTXI would not suddenly vault ahead in the event of a buyout.

    • You still don't understand why that history is no longer applicable even though it has been explained several times.

      When there was no distribution in sight, there was nothing to differentiate XTEX and XTXI. That will no longer be the case. XTEX will have significantly higher yield and will be valued accordingly.

      Prior to that XTEX was a larger company and so with the IDR structure got a larger piece of Crosstex cash flow. Now that Crosstex had to deleverage the situation is reversed. XTEX will get to keep and distribute a relatively larger portion.

      Keeping repeating that it will close the gap because it did before, simply exposes the fact that you do not understand the relationship between XTEX and XTXI and how and how much money XTXI gets from XTEX.

      If you try to understand these (rather simple) concepts you may have a better chance to make money.

    • It will take years and by then XTEX holders will have collected so much more in distributions that XTXI will never catch up in terms of total return.