Exhibit 99.1
FOR IMMEDIATE RELEASE
MARCH 1, 2010
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Contact:
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Jill McMillan, Director, Public & Industry Affairs |
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Phone: (214) 721-9271 |
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Jill.McMillan@CrosstexEnergy.com |
CROSSTEX ENERGY REPORTS FOURTH-QUARTER AND FULL-YEAR 2009 RESULTS
Provides Preliminary 2010 Guidance
DALLAS, March 1, 2010 — The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), today reported earnings
for the fourth-quarter and full-year 2009.
Fourth-Quarter 2009 — Crosstex Energy, L.P. Financial Results
The Partnership realized adjusted cash flow of $42.3 million in the fourth quarter of 2009 compared
with $61.3 million in the fourth quarter of 2008. Adjusted cash flow is a non-GAAP financial
measure and is explained in greater detail under “Non-GAAP Financial Information.” There is a
reconciliation of this non-GAAP measure to net income (loss) in the tables at the end of this news
release. Fourth-quarter 2008 adjusted cash flow included other income of $20.0 million associated
with the assignment of certain contract rights to a nonaffiliated third party. Additionally, assets
sold during 2009 contributed $18.3 million to fourth-quarter 2008 realized adjusted cash flow.
The Partnership reported net income of $55.9 million in the fourth quarter of 2009, compared with a
net loss of $9.4 million in the fourth quarter of 2008. Fourth-quarter 2009 results included an
$86.3 million gain on the sale of the Partnership’s Treating assets, while fourth-quarter 2008
results included a $49.8 million gain on the sale of the Partnership’s interest in the Seminole gas
processing plant. Fourth-quarter 2009 results also included a $6.1 million loss from discontinued
operations that was mainly related to the write-off of debt issuance costs and senior note make
whole expense due to the repayment of notes with the proceeds from asset sales.
“We are extremely pleased with the significant progress we made executing our plan in 2009,” said
Barry E. Davis, Crosstex President and Chief Executive Officer. “We have focused on optimizing
results from our core assets in north Texas and Louisiana while investing in high-return projects,
realigning our cost structure, lowering our business risks and significantly reducing our leverage.
“We recently completed our long-term recapitalization and reducing our leverage will continue to be
a priority as we conservatively manage our business. We have established financial guidelines that
we will follow when making decisions regarding the restoration of our distribution and dividend.
Based on our current assumptions, distributions could be paid from the results of operations of the
fourth quarter of 2010,” added Davis.
-more-
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 2 of 10
The Partnership’s gross margin from continuing operations for the fourth quarter of 2009 increased
to $80.6 million from $65.2 million in the fourth quarter of 2008. This improvement was related to
higher margins from the Partnership’s gathering and transmission business and increases in the
natural gas processing business as a result of a more favorable natural gas liquids (NGL) market in
the 2009 period. Gross margin from the south Louisiana processing and NGL business increased by
$10.7 million, as a result of improvements in the NGL marketing business and increased plant inlet
volumes. Gross margin from LIG gathering, transmission and processing increased by $7.9 million due to higher
margins and a more favorable NGL market. Gross
margin derived from north Texas operations declined $7.1 million compared with the fourth-quarter
2008. The decrease was primarily related to a $3.7 million charge associated with a final
arbitration decision in a producer lawsuit and declines in throughput. Fourth-quarter 2009 north
Texas volumes declined from the third quarter of 2009 mainly due to the renegotiation of a key
producer contact, which reduced gathering volumes and increased transmission volumes.
Fourth-quarter 2009 operating expenses declined $6.4 million, or 20 percent, compared with the
fourth quarter of 2008, as a result of the Partnership’s continued focus on expense reduction.
Fourth-quarter 2009 general and administrative expense was $16.2 million, including a one-time
charge of $1.0 million for severance expenses related to asset sales, a decline of $4.7 million
versus the same period a year ago. Depreciation and amortization expense of $29.2 million in the
fourth quarter of 2009 rose slightly over the fourth quarter of 2008 amount of $28.3 million.
Interest expense declined to $28.0 million in the fourth quarter of 2009 from $41.0 million in the
fourth quarter of 2008, primarily the result of the debt paydown associated with asset sales during
the year.
The net income per limited partner common unit in the fourth quarter of 2009 was $1.09 basic and
$1.07 diluted compared with a net loss per limited partner common unit of $0.18 basic and diluted
in the fourth quarter of 2008.
Full-Year 2009 — Crosstex Energy, L.P. Financial Results
The Partnership realized adjusted cash flow of $203.8 million in 2009 compared with $245.1 million
in 2008. The reduction in realized adjusted cash flow is mainly due to the sale of assets during
2009. The Partnership reported net income of $104.5 million in 2009, compared with $11.1 million in
2008. Results for 2009 included a $183.7 million gain on the sale of Partnership assets compared
with a gain of $49.8 million recorded in 2008. The Partnership’s net income in 2009 also included a
loss from discontinued operations related to the asset sales of $1.8 million compared to income of
$25.0 million in 2008.
The Partnership’s gross margin from continuing operations for 2009 increased to $311.2 million from
$307.8 million in 2008. This improvement was primarily related to higher margins on the
Partnership’s gathering and transmission assets, which was partially offset by a decline in the
natural gas processing business due to a less favorable NGL market. The LIG system’s gross margin
increased by $14.0 million year over year primarily due to improved pricing and higher volumes on
the northern portion of the system, which was offset by a $15.1 million decline in processing
margins in Louisiana. Gross margin derived from north Texas operations rose $10.2 million compared
with 2008. The growth was primarily related to increased gathering and plant inlet volumes versus
the previous year, which was partially offset by the previously mentioned arbitration charge.
-more-
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 3 of 10
The Partnership’s 2009 operating expense declined $15.4 million, or 12 percent, to $110.4 million
versus $125.8 million in 2008. General and administrative expense for 2009 decreased by $9.0
million from 2008, including the effect of a one-time charge of $1.9 million for severance
expenses. Depreciation and amortization expense increased $11.6 million in 2009 compared with 2008
due to the Partnership’s investment in its north Texas and Louisiana assets. Interest expense rose
to $95.1 million in 2009 from $75.0 million 2008. The increase in interest expense results
primarily from an increase in interest rates pursuant to the February 2009 amendments to the
Partnership’s debt agreements.
The net income per limited partner common unit for 2009 was $1.44 basic and $1.40 diluted compared
with a net loss per limited partner common unit of $3.19 basic and diluted in 2008.
Crosstex Energy, Inc. Financial Results
The Corporation reported net income of $12.1 million in the fourth quarter of 2009 compared with a
loss of $4.5 million in the comparable 2008 period. The Corporation’s loss from continuing
operations before income taxes (which includes interest of non-controlling partners in the net
income of the Partnership) was $24.3 million in the fourth quarter of 2009, compared with $64.3
million in the fourth quarter of 2008.
Net income for the year 2009 was $15.6 million compared with net income of $24.2 million in 2008.
The Corporation’s loss from continuing operations before income taxes (which includes interest of
non-controlling partners in the net income of the Partnership) was $78.4 million in 2009, compared
with $65.6 million in 2008.
The Corporation had $9.9 million of cash on hand and no debt at the end of the fourth-quarter 2009.
In accordance with U.S. accounting standards, the Partnership and Corporation classified the
results of their operations for assets sold as discontinued operations for all accounting periods
presented. Tables of selected financial data in which amounts have been reclassified as
discontinued operations for each period presented are included in this news release.
-more-
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 4 of 10
Crosstex Provides Preliminary 2010 Guidance
The following is the Partnership’s low and high estimates of 2010 adjusted cash flow and
distributable cash flow based upon two commodity price scenarios. The Partnership has established
financial guidelines that will govern its considerations as to the timing and amount of any future
distribution payments, including achieving a ratio of total debt to adjusted cash flow of less than
4.5 to 1 (pro forma for the payment of any distribution), strong coverage from cash flow to
continue to allow the Partnership to delever and a positive outlook for its business. Assuming
actual results are within the range of guidance, the Partnership expects it could generate
sufficient distributable cash flow to pay up to $0.30 per unit in distributions relating to the
fourth quarter of 2010 with strong coverage from cash flows generated in such quarter; and the
Corporation expects it could pay up to $0.10 per share in dividends, assuming the receipt of a
$0.30 per unit distribution from the Partnership. The payment and amount of any distributions and
dividends will be subject to approval by the respective Boards of Directors and to economic
conditions and other factors existing at the time of determination.
Crosstex Energy, L.P.
Forecast for 2010 Net Income
Reconciliation to Distributable Cash Flow*
(In millions except prices and ratios)
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Total Year 2010 |
|
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Low |
|
|
High |
|
Net income (loss) |
|
$ |
(41 |
) |
|
$ |
(10 |
) |
Depreciation and amortization |
|
|
113 |
|
|
|
113 |
|
Stock-based compensation |
|
|
6 |
|
|
|
6 |
|
Interest |
|
|
80 |
|
|
|
79 |
|
Taxes and other |
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
Adjusted cash flow * |
|
$ |
160 |
|
|
$ |
190 |
|
|
|
|
|
|
|
|
Interest |
|
|
(80 |
) |
|
|
(79 |
) |
Taxes and other |
|
|
(3 |
) |
|
|
(3 |
) |
Maintenance capital expenditures |
|
|
(15 |
) |
|
|
(12 |
) |
|
|
|
|
|
|
|
Distributable cash flow * |
|
$ |
62 |
|
|
$ |
96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Growth Capital |
|
$ |
25 |
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$ |
30 |
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Key Assumptions for Forecast |
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Weighted Average Liquids Price ($/gallon) |
|
$ |
0.80 |
|
|
$ |
1.09 |
|
Crude ($/Bbl) |
|
$ |
69.37 |
|
|
$ |
94.52 |
|
Natural Gas ($/MMBtu) |
|
$ |
6.00 |
|
|
$ |
5.00 |
|
Natural Gas Liquids to Gas Ratio |
|
|
149.9 |
% |
|
|
245.0 |
% |
|
|
|
| * |
|
Adjusted cash flow and Distributable cash flow are non-GAAP financial measures and are explained in greater detail under “Non-GAAP Financial Information.” |
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| Processing Sensitivities: |
|
Impact |
Percent of Liquids Contracts — $0.10 change in Weighted Average Liquids Price |
|
$2.9 million |
Processing Margin Contracts — 5% change in Natural Gas Liquids to Gas Ratio (1) |
|
$1.8 million |
|
|
|
| (1) |
|
Assumes constant gas price of $5.79/MMBtu. |
-more-
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 5 of 10
Crosstex to Hold Earnings Conference Call Today
The Partnership and the Corporation will hold their quarterly conference call to discuss
fourth-quarter and full-year 2009 results today, March 1, at 10:00 a.m. Central time (11:00 a.m.
Eastern time). The dial-in number for the call is 1-888-679-8034. Callers outside the United States
should dial 1-617-213-4847. The passcode for all callers is 88621274. Investors are advised to dial
in to the call at least 10 minutes prior to the call time to register. Participants may preregister
for the call at https://www.theconferencingservice.com/prereg/key.process?key=PUBWL748L.
Preregistrants will be issued a pin number to use when dialing in to the live call, which will
provide quick access to the conference by bypassing the operator upon connection. Interested
parties also can access a live Web cast of the call on the Investors page of Crosstex’s Web site at
www.crosstexenergy.com.
After the conference call, a replay can be accessed until June 8, 2010, by dialing 1-888-286-8010.
International callers should dial 1-617-801-6888 for a replay. The passcode for all callers
listening to the replay is 91226576. Interested parties also can visit the Investors page of
Crosstex’s Web site to listen to a replay of the call.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates
approximately 3,300 miles of pipeline, nine processing plants and three fractionators. The
Partnership currently provides services for 3.2 billion cubic feet per day of natural gas, or
approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a 25 percent limited partner
interest and the incentive distribution rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at www.crosstexenergy.com.
Non-GAAP Financial Information
This press release contains non-generally accepted accounting principle financial measures that the
Partnership refers to as Distributable Cash Flow and Adjusted Cash Flow. Distributable Cash Flow is
defined as earnings before certain noncash charges, less maintenance capital. Adjusted Cash Flow
is defined as net income before interest, income taxes, depreciation, amortization and impairments,
stock-based compensation, noncash mark-to-market items gain on the sale of assets and other
miscellaneous noncash items. The amounts included in the calculation of these measures are computed
in accordance with generally accepted accounting principles (GAAP), with the exception of
maintenance capital expenditures. Maintenance capital expenditures are capital expenditures made
to replace partially or fully depreciated assets in order to maintain the existing operating
capacity of the assets and to extend their useful lives.
The Partnership believes these measures are useful to investors because they may provide
users of this financial information with meaningful comparisons between current results and
prior-reported results and a meaningful measure of the Partnership’s cash flow after it has
satisfied the capital and related requirements of its operations.
-more-
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 6 of 10
Distributable Cash Flow and Adjusted Cash Flow are not measures of financial performance or
liquidity under GAAP. They should not be considered in isolation or as an indicator of the
Partnership’s performance. Furthermore, they should not be seen as measures of liquidity or a
substitute for metrics prepared in accordance with GAAP. A reconciliation of these measures to net
income (loss) is included among the preceding and following tables.
This press release contains forward-looking statements within the meaning of the federal securities
laws. These statements are based on certain assumptions made by the Partnership and the Corporation
based upon management’s experience and perception of historical trends, current conditions,
expected future developments and other factors the Partnership and the Corporation believe are
appropriate in the circumstances. These statements include, but are not limited to, statements with
respect to the Partnership’s and the Corporation’s guidance and future outlook, distribution and
dividend guidelines and future estimates, financing plans, financial condition, liquidity and
results of operations. Such statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Partnership and the Corporation, which
may cause the Partnership’s and the Corporation’s actual results to differ materially from those
implied or expressed by the forward-looking statements. These risks include the following: (1) the
Partnership’s profitability is dependent upon prices and market demand for natural gas and NGL’s;
(2) the Partnership’s substantial indebtedness could limit its flexibility and adversely effect its
financial health (3) the Partnership may not be able to obtain funding due to the deterioration of
the credit and capital markets and current economic conditions; (4) the Partnership and the
Corporation do not have diversified assets; (5) drilling levels may decrease due to deterioration
in the credit and commodity markets; (6) the Partnership’s credit risk management efforts may fail
to adequately protect against customer nonpayment; (7) the Partnership’s use of derivative
financial instruments does not eliminate its exposure to fluctuations in commodity prices and
interest rates; (8) the Partnership may not be successful in balancing its purchases and sales; (9)
the amount of natural gas transported in the Partnership’s gathering and transmission lines may
decline as a result of reduced drilling by producers, competition for supplies, reserve declines
and reduction in demand from key customers and markets; (10) the level of the Partnership’s
processing operations may decline for similar reasons; (11) operational, regulatory and other
asset-related risks, including weather conditions such as hurricanes, exist because a significant
portion of the Partnership’s assets are located in southern Louisiana; and (12) other factors
discussed in the Partnership’s and the Corporation’s Annual Reports on Form 10-K for the year ended
December 31, 2009, and other filings with the Securities and Exchange Commission. The Partnership
and the Corporation have no obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events, or otherwise.
(Tables follow)
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 7 of 10
CROSSTEX ENERGY, L.P.
Selected Financial Data
(All amounts in thousands except per unit numbers)
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Years Ended |
|
| |
|
December 31 |
|
|
December 31 |
|
| |
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
| |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream |
|
$ |
403,895 |
|
|
$ |
422,708 |
|
|
$ |
1,453,346 |
|
|
$ |
3,072,646 |
|
Gas and NGL marketing activities |
|
|
1,882 |
|
|
|
1,023 |
|
|
|
5,744 |
|
|
|
3,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
405,777 |
|
|
|
423,731 |
|
|
|
1,459,090 |
|
|
|
3,076,011 |
|
Midstream purchased gas |
|
|
325,131 |
|
|
|
358,526 |
|
|
|
1,147,868 |
|
|
|
2,768,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
80,646 |
|
|
|
65,205 |
|
|
|
311,222 |
|
|
|
307,786 |
|
Operating expenses |
|
|
25,662 |
|
|
|
32,059 |
|
|
|
110,394 |
|
|
|
125,754 |
|
General and administrative |
|
|
16,238 |
|
|
|
20,881 |
|
|
|
59,854 |
|
|
|
68,864 |
|
(Gain) loss on derivatives |
|
|
3,728 |
|
|
|
(4,333 |
) |
|
|
(2,994 |
) |
|
|
(8,619 |
) |
(Gain) loss on sale of property |
|
|
234 |
|
|
|
76 |
|
|
|
(666 |
) |
|
|
(947 |
) |
Impairments |
|
|
1,994 |
|
|
|
29,373 |
|
|
|
2,894 |
|
|
|
29,373 |
|
Depreciation and amortization |
|
|
29,163 |
|
|
|
28,332 |
|
|
|
119,088 |
|
|
|
107,521 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
|
77,019 |
|
|
|
106,388 |
|
|
|
288,570 |
|
|
|
321,946 |
|
Operating income (loss) |
|
|
3,627 |
|
|
|
(41,183 |
) |
|
|
22,652 |
|
|
|
(14,160 |
) |
Interest expense, net |
|
|
(27,952 |
) |
|
|
(40,989 |
) |
|
|
(95,078 |
) |
|
|
(74,971 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(4,669 |
) |
|
|
— |
|
Other income |
|
|
664 |
|
|
|
20,100 |
|
|
|
1,400 |
|
|
|
27,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(27,288 |
) |
|
|
(20,889 |
) |
|
|
(98,347 |
) |
|
|
(47,201 |
) |
Loss from continuing operations before non-controlling interest and income taxes |
|
|
(23,661 |
) |
|
|
(62,072 |
) |
|
|
(75,695 |
) |
|
|
(61,361 |
) |
Income tax provision |
|
|
(547 |
) |
|
|
(314 |
) |
|
|
(1,790 |
) |
|
|
(2,369 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations, net of tax |
|
|
(24,208 |
) |
|
|
(62,386 |
) |
|
|
(77,485 |
) |
|
|
(63,730 |
) |
Income (loss) from discontinued operations, net of tax |
|
|
(6,174 |
) |
|
|
3,215 |
|
|
|
(1,796 |
) |
|
|
25,007 |
|
Gain on sale of discontinued operations, net of tax |
|
|
86,324 |
|
|
|
49,805 |
|
|
|
183,747 |
|
|
|
49,805 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
55,942 |
|
|
|
(9,366 |
) |
|
|
104,466 |
|
|
|
11,082 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income from continuing operations
attributable to the non-controlling interest |
|
|
69 |
|
|
|
73 |
|
|
|
60 |
|
|
|
311 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Crosstex Energy, L.P. |
|
$ |
55,873 |
|
|
$ |
(9,439 |
) |
|
$ |
104,406 |
|
|
$ |
10,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General partner interest in net income (loss) |
|
$ |
681 |
|
|
$ |
(1,446 |
) |
|
$ |
(819 |
) |
|
$ |
26,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Limited partners’ interest in net income (loss) |
|
$ |
55,192 |
|
|
$ |
(7,993 |
) |
|
$ |
105,225 |
|
|
$ |
(15,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per limited partners’ unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic common unit |
|
$ |
1.09 |
|
|
$ |
(0.18 |
) |
|
$ |
1.44 |
|
|
$ |
(3.19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common unit |
|
$ |
1.07 |
|
|
$ |
(0.18 |
) |
|
$ |
1.40 |
|
|
$ |
(3.19 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted senior subordinated
series C unit |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted senior subordinated
series D unit |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
8.85 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average limited partners’ units outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic common units |
|
|
49,156 |
|
|
|
44,904 |
|
|
|
48,161 |
|
|
|
42,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted common units |
|
|
50,189 |
|
|
|
44,904 |
|
|
|
49,467 |
|
|
|
42,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 8 of 10
CROSSTEX ENERGY, L.P.
Reconciliation of Net Income (Loss) to Adjusted Cash Flow and Distributable Cash Flow
(All amounts in thousands except ratios, distributions per unit and footnotes)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
Years Ended |
| |
|
December 31 |
|
December 31 |
| |
|
2009 |
|
2008 |
|
2009 |
|
2008 |
| |
|
(Unaudited) |
|
(Unaudited) |
Net income (loss) attributable to Crosstex Energy,
L.P. |
|
$ |
55,873 |
|
|
$ |
(9,439 |
) |
|
$ |
104,406 |
|
|
$ |
10,771 |
|
Depreciation, amortization and impairments (1) |
|
|
31,085 |
|
|
|
64,616 |
|
|
|
132,342 |
|
|
|
163,050 |
|
Stock-based compensation |
|
|
2,465 |
|
|
|
2,992 |
|
|
|
8,742 |
|
|
|
11,243 |
|
Interest expense, net (2) |
|
|
33,343 |
|
|
|
48,451 |
|
|
|
129,929 |
|
|
|
104,935 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
4,669 |
|
|
|
— |
|
Gain on sale of property |
|
|
(86,090 |
) |
|
|
(49,729 |
) |
|
|
(184,413 |
) |
|
|
(50,752 |
) |
Taxes and other |
|
|
5,620 |
|
|
|
4,383 |
|
|
|
8,091 |
|
|
|
5,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted cash flow |
|
|
42,296 |
|
|
|
61,274 |
|
|
|
203,766 |
|
|
|
245,126 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (2)(3)(4) |
|
|
(26,571 |
) |
|
|
(24,136 |
) |
|
|
(121,265 |
) |
|
|
(82,830 |
) |
Cash taxes and other |
|
|
(748 |
) |
|
|
37,697 |
|
|
|
(3,395 |
) |
|
|
36,352 |
|
Maintenance capital expenditures |
|
|
(3,712 |
) |
|
|
(5,494 |
) |
|
|
(10,939 |
) |
|
|
(18,310 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributable cash flow |
|
$ |
11,265 |
|
|
$ |
69,341 |
|
|
$ |
68,167 |
|
|
$ |
180,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual distribution |
|
$ |
— |
|
|
$ |
11,456 |
|
|
$ |
— |
|
|
$ |
122,942 |
|
Distribution coverage |
|
|
|
|
|
|
6.05 |
|
|
|
|
|
|
|
1.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions declared per limited partner unit |
|
$ |
— |
|
|
$ |
0.25 |
|
|
$ |
— |
|
|
$ |
2.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
|
Excludes minority interest share of depreciation and amortization of $72 thousand and $290 thousand
for the three months and year ended December 31, 2009, respectively, and $80 thousand and $286
thousand for the three months and year ended December 31, 2008, respectively. Includes
depreciation, amortization and impairments related to discontinued operations of $10.7 million for
the year ended December 31, 2009, and $7.0 million and $26.4 million for the three months and year
ended December 31, 2008, respectively. |
| |
| (2) |
|
Includes interest expense allocated to discontinued operations of $5.4 million and $34.9 million
for the three months and year ended December 31, 2009, respectively, and $7.5 million and $30.0
million for the three months and year ended December 31, 2008, respectively. |
| |
| (3) |
|
Excludes $2.2 million and $4.3 million of debt issuance cost amortization for the three months and
year ended December 31, 2009, respectively, and $2.9 million and $5.2 million of senior secured
note make-whole and call premium paid-in-kind interest resulting from repayment of such notes from
the proceeds of asset sales, for the three months and year ended December 31, 2009, respectively. |
| |
| (4) |
|
Excludes noncash interest rate swap mark to market of $1.7 million and $(797) thousand for the
three months and year ended December 31, 2009, respectively, and $24.3 million and $22.1 million
for the three months and year ended December 31, 2008, respectively. |
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 9 of 10
CROSSTEX ENERGY, L.P.
Operating Data
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Years Ended |
|
| |
|
December 31 |
|
|
December 31 |
|
| |
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
Pipeline Throughput (MMBtu/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIG Pipeline & Marketing |
|
|
881,000 |
|
|
|
922,000 |
|
|
|
900,000 |
|
|
|
960,000 |
|
North Texas — Gathering |
|
|
764,000 |
|
|
|
775,000 |
|
|
|
793,000 |
|
|
|
670,000 |
|
North Texas — Transmission |
|
|
331,000 |
|
|
|
308,000 |
|
|
|
318,000 |
|
|
|
330,000 |
|
Other Midstream |
|
|
26,000 |
|
|
|
32,000 |
|
|
|
29,000 |
|
|
|
42,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gathering and Transmission Volume |
|
|
2,002,000 |
|
|
|
2,037,000 |
|
|
|
2,040,000 |
|
|
|
2,002,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Processed (MMBtu/d) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
South Louisiana |
|
|
892,000 |
|
|
|
530,000 |
|
|
|
747,000 |
|
|
|
1,098,000 |
|
LIG System |
|
|
291,000 |
|
|
|
268,000 |
|
|
|
269,000 |
|
|
|
310,000 |
|
North Texas |
|
|
203,000 |
|
|
|
226,000 |
|
|
|
219,000 |
|
|
|
200,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Gas Volumes Processed |
|
|
1,386,000 |
|
|
|
1,024,000 |
|
|
|
1,235,000 |
|
|
|
1,608,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized weighted average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids price ($/gallon) |
|
|
1.03 |
|
|
|
0.72 |
|
|
|
0.81 |
|
|
|
1.36 |
|
Actual weighted average |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas Liquids to Gas ratio |
|
|
280 |
% |
|
|
129 |
% |
|
|
225 |
% |
|
|
176 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Services Volume (MMBtu/d) |
|
|
39,000 |
|
|
|
90,000 |
|
|
|
75,000 |
|
|
|
85,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North Texas Gathering (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wells connected |
|
|
12 |
|
|
|
24 |
|
|
|
84 |
|
|
|
158 |
|
|
|
|
| (1) |
|
North Texas Gathering wells connected are as of the last day of the period and include Centralized
Delivery Point (“CDP”) connections where Crosstex connects multiple wells at a single meter station. |
Crosstex Energy Reports Fourth-Quarter and Full-Year 2009 Results
Page 10 of 10
CROSSTEX ENERGY, INC.
Selected Financial Data
(All amounts in thousands except per share numbers)
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
|
Years Ended |
|
| |
|
December 31 |
|
|
December 31 |
|
| |
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
| |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream |
|
$ |
403,895 |
|
|
$ |
422,708 |
|
|
$ |
1,453,346 |
|
|
$ |
3,072,646 |
|
Gas and NGL marketing activities |
|
|
1,882 |
|
|
|
1,023 |
|
|
|
5,744 |
|
|
|
3,365 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues |
|
|
405,777 |
|
|
|
423,731 |
|
|
|
1,459,090 |
|
|
|
3,076,011 |
|
Midstream purchased gas |
|
|
325,131 |
|
|
|
358,526 |
|
|
|
1,147,868 |
|
|
|
2,768,225 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin |
|
|
80,646 |
|
|
|
65,205 |
|
|
|
311,222 |
|
|
|
307,786 |
|
Operating expenses |
|
|
25,661 |
|
|
|
32,060 |
|
|
|
110,394 |
|
|
|
125,762 |
|
General and administrative |
|
|
16,852 |
|
|
|
22,322 |
|
|
|
62,491 |
|
|
|
72,377 |
|
(Gain) loss on derivatives |
|
|
3,728 |
|
|
|
(4,333 |
) |
|
|
(2,994 |
) |
|
|
(8,619 |
) |
(Gain) loss on sale of property |
|
|
234 |
|
|
|
76 |
|
|
|
(666 |
) |
|
|
(947 |
) |
Impairments |
|
|
1,994 |
|
|
|
30,177 |
|
|
|
2,894 |
|
|
|
30,177 |
|
Depreciation and amortization |
|
|
29,182 |
|
|
|
28,350 |
|
|
|
119,162 |
|
|
|
107,652 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating costs and expenses |
|
|
77,651 |
|
|
|
108,652 |
|
|
|
291,281 |
|
|
|
326,402 |
|
Operating income (loss) |
|
|
2,995 |
|
|
|
(43,447 |
) |
|
|
19,941 |
|
|
|
(18,616 |
) |
Interest expense, net |
|
|
(27,953 |
) |
|
|
(40,956 |
) |
|
|
(95,078 |
) |
|
|
(74,861 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(4,669 |
) |
|
|
— |
|
Other income |
|
|
664 |
|
|
|
20,143 |
|
|
|
1,449 |
|
|
|
27,898 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total other income (expense) |
|
|
(27,289 |
) |
|
|
(20,813 |
) |
|
|
(98,298 |
) |
|
|
(46,963 |
) |
Loss from continuing operations before income taxes
and gain on issuance of Partnership units |
|
|
(24,294 |
) |
|
|
(64,260 |
) |
|
|
(78,357 |
) |
|
|
(65,579 |
) |
Income tax benefit |
|
|
3,614 |
|
|
|
9,118 |
|
|
|
6,020 |
|
|
|
1,375 |
|
Gain on issuance of Partnership units |
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
14,748 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing operations, net of tax |
|
|
(20,680 |
) |
|
|
(55,142 |
) |
|
|
(72,337 |
) |
|
|
(49,456 |
) |
Income (loss) from discontinued operations, net of tax |
|
|
(5,331 |
) |
|
|
2,925 |
|
|
|
(1,519 |
) |
|
|
21,466 |
|
Gain from sale of discontinued operations, net of tax |
|
|
75,134 |
|
|
|
42,753 |
|
|
|
159,961 |
|
|
|
42,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (loss) |
|
|
49,123 |
|
|
|
(9,464 |
) |
|
|
86,105 |
|
|
|
14,763 |
|
Less: Interest of non-controlling partners in the Partnership’s
net income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest of non-controlling partners in the Partnership’s
continuing operations |
|
|
(15,217 |
) |
|
|
(37,914 |
) |
|
|
(48,069 |
) |
|
|
(55,704 |
) |
Interest of non-controlling partners in the Partnership’s
discontinued operations |
|
|
(3,988 |
) |
|
|
2,135 |
|
|
|
(1,137 |
) |
|
|
15,454 |
|
Interest of non-controlling partners in Partnership’s gain
sale of discontinued operations |
|
|
56,224 |
|
|
|
30,780 |
|
|
|
119,669 |
|
|
|
30,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest of non-controlling partners in the Partnership |
|
|
37,019 |
|
|
|
(4,999 |
) |
|
|
70,463 |
|
|
|
(9,470 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Crosstex Energy, Inc. |
|
$ |
12,104 |
|
|
$ |
(4,465 |
) |
|
$ |
15,642 |
|
|
$ |
24,233 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.26 |
|
|
$ |
(0.09 |
) |
|
$ |
0.33 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
$ |
0.25 |
|
|
$ |
(0.09 |
) |
|
$ |
0.33 |
|
|
$ |
0.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
46,517 |
|
|
|
46,335 |
|
|
|
46,476 |
|
|
|
46,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
46,746 |
|
|
|
46,483 |
|
|
|
46,535 |
|
|
|
46,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
|
$ |
— |
|
|
$ |
0.09 |
|
|
$ |
— |
|
|
$ |
1.15 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
