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Crosstex Energy, AŞ Message Board

  • rrb1981 rrb1981 Mar 11, 2006 11:08 AM Flag

    Conference Call

    Listened to conference call. Sounds like Crosstex is ready to hit another growth phase.

    1) Barnett Shale pipeline to be finished by April 1. Again, that was a 100 million dollar project with around 17 million in cash flow.

    2) Getting ready to start another gethering system in the Barnett Shale to extend deeper into Barnett Shale area.

    3) Sounds like N. LIG pipeline project has a green light and they will give details on the 2006 Guidance Conference Call.

    4) Sounds like the S. LIG project has transformed somewhat and they will give more color during the 2006 Guidance Call in a few weeks.

    5) Sounds like they are now entering an optimization phase in Louisiana in terms of small expansions, interconnects etc as they had outlined when they bought the El Paso assets.

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    • For some reason I cannot access the call on the Crosstex site. Any word as to teh date of the guidance call?

      • 2 Replies to sergeilovespapa
      • To listen to the cc, disable your browser's popup blocker.

        They specifically mentioned 4-5 times that the guidance call will be in 2 weeks.

      • You should be able to access the call (I had no problems accessing it over several computers, one of which had dial-up!!!) unless it is a computer specific problem (Windows Media Player), or connection speed etc. If you can listen, I highly recommend listening.

        As to the guidance date, if they mentioned it, I missed it. I specifically remember them stating it would be "in several weeks". I take that to mean 3 or 4 weeks.

        The project depth and quality that XTEX has right now is unbelievable. What is more important that these large projects (Barnett Shale gathering system, North LIG and South LIG) is the multitude of very very small optimization projects that will take place in Louisiana over the next 3-5 years. No doubt many of these will be very small, but due to the existing assets, many of these projects will carry multiples that are 4x or less. I am giving examples of projects that require say 200K, and produce cash flow increases of say 70K a year. Again, not large, but the payback multiple is huge. These small bunts and singles type hits will make the El Paso deal look like another LIG in a few years especially when you string dozens of them together over a few years time.