CROSSTEX ENERGY, L.P.
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
FOR THE YEAR ENDED DECEMBER 31, 2012 AND THE NINE MONTHS ENDED
SEPTEMBER 30, 2013
Introduction
In October 2013, Crosstex Energy, L.P. (the "Partnership") entered into an agreement with Devon Energy Corporation ("Devon") pursuant to which Devon would contribute to the Partnership 50% of the outstanding equity in Devon Midstream Holdings, L.P. ("Midstream Holdings") in exchange for the issuance by the Partnership of 120,542,441 units representing a new class of limited partnership interests in the Partnership (collectively, the "business combination"). At the effective time of the business combination, Midstream Holdings will own Devon's midstream assets in the Barnett Shale in North Texas and the Cana and Arkoma Woodford Shales in Oklahoma, as well as Devon's interest in Gulf Coast Fractionators in Mt. Belvieu, Texas.
In connection with the agreement, Crosstex Energy, Inc. ("Crosstex") also entered into an Agreement and Plan of Merger with Devon and certain of its wholly-owned subsidiaries. Following the consummation of the business combination, New Public Rangers, L.L.C. ("New Public Rangers"), a newly formed holding company will own the remaining 50% limited partner interest in Midsteam Holdings. Devon will own the managing member of New Public Rangers, and New Public Rangers will indirectly own 100% of Crosstex Energy GP, LLC, the general partner of the Partnership (the "General Partner").
Unless the context requires otherwise, for purposes of this pro forma presentation, all references to "we," "our," or "us" refer to the Partnership and its directly owned and indirectly owned subsidiaries following the business combination, including Midstream Holdings.
The unaudited pro forma financial statements of the Partnership are based on the historical financial statements of Devon Midstream Holdings, L.P. Predecessor (the "Predecessor"), which comprises all of Devon's U.S. midstream assets and operations, including minor assets that are not included in the business combination. Under the acquisition method of accounting, Midstream Holdings will be the acquirer in the transactions because its parent company, Devon, will obtain control through the indirect control of the General Partner after the business combination. Consequently, Midstream Holdings' assets and liabilities will retain their carrying values. Additionally, the Partnership's assets acquired and liabilities assumed by Midstream Holdings as the Predecessor in the business combination will be recorded at their fair values measured as of the acquisition date. The excess of the purchase price over the estimated fair values of the Partnership's net assets acquired will be recorded as goodwill.
The unaudited pro forma consolidated balance sheet as of September 30, 2013 assumes the business combination and related transactions occurred on September 30, 2013. The unaudited pro forma consolidated statements of operations for the year ended December 31, 2012 and for the nine months ended September 30, 2013 assume the business combination and related transactions occurred on January 1, 2012. The unaudited pro forma consolidated financial statements do not present the Partnership's actual results of operations had the business combination and related transactions been completed at the dates indicated. In addition, they do not project the Partnership's results of operations for any future period. The unaudited pro forma consolidated financial statements reflect the following significant assumptions and transactions:
The unaudited pro forma consolidated financial statements and accompanying notes have been prepared in conformity with accounting principles generally accepted in the United States of America. These accounting principles are consistent with those used in, and should be read together with, the Predecessor's historical combined financial statements and related notes, which are included elsewhere in this filing.
The adjustments reflected in the unaudited pro forma consolidated financial statements are based on currently available information and certain estimates and assumptions. Therefore, actual results may differ from the pro forma adjustments. However, management believes that the estimates and assumptions used provide a reasonable basis for presenting the significant effects of the business combination and the related transactions. Management also believes the pro forma adjustments give appropriate effect to the estimates and assumptions and are applied in conformity with accounting principles generally accepted in the United States of America.
CROSSTEX ENERGY, L.P.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
|
September 30, 2013 | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Predecessor Historical |
Adjustments for Non- Contributed Assets(a) |
Predecessor Historical, As Adjusted |
Crosstex Energy, L.P. Historical |
Pro Forma Adjustments (b) |
Pro Forma, As Adjusted |
|||||||||||||
|
(in millions) |
||||||||||||||||||
Assets |
|||||||||||||||||||
Current assets: |
|||||||||||||||||||
Cash |
$ | | $ | | $ | | $ | | $ | | $ | | |||||||
Accounts receivable |
0.4 | | 0.4 | 205.7 | | 206.1 | |||||||||||||
Inventories, prepaid expenses and other |
8.9 | (1.0 | ) | 7.9 | 21.4 | | 29.3 | ||||||||||||
Assets held for sale |
9.3 | (9.3 | ) | | | | | ||||||||||||
Total current assets |
18.6 | (10.3 | ) | 8.3 | 227.1 | | 235.4 | ||||||||||||
Net property, plant and equipment |
1,868.4 | (101.5 | ) | 1,766.9 | 1,791.6 | 256.4 | (c) | 3,814.9 | |||||||||||
Intangible assets, net of accumulated amortization |
| | | 320.8 | 80.1 | (c) | 400.9 | ||||||||||||
Goodwill |
401.7 | | 401.7 | 153.8 | 1,324.4 | (d) | 1,879.9 | ||||||||||||
Equity investment |
55.9 | | 55.9 | 99.6 | 122.4 | (c) | 277.9 | ||||||||||||
Assets held for sale |
10.5 | (10.5 | ) | | | | | ||||||||||||
Other long-term assets |
0.6 | | 0.6 | 23.5 | (23.5) | (c) | 0.6 | ||||||||||||
Total assets |
$ | 2,355.7 | $ | (122.3 | ) | $ | 2,233.4 | $ | 2,616.4 | $ | 1,759.8 | $ | 6,609.6 | ||||||
Liabilities and Partners' Equity |
|||||||||||||||||||
Current liabilities: |
|||||||||||||||||||
Accrued expenses and other |
$ | 52.2 | $ | (4.5 | ) | $ | 47.7 | $ | 255.1 | $ | 21.6 | (c) | $ | 324.4 | |||||
Current liabilities associated with assets held for sale |
1.0 | (1.0 | ) | | | | | ||||||||||||
Total current liabilities |
53.2 | (5.5 | ) | 47.7 | 255.1 | 21.6 | 324.4 | ||||||||||||
Long term debt |
| | | 1,042.7 | 92.5 | (c) | 1,135.2 | ||||||||||||
Asset retirement obligations |
14.7 | (7.1 | ) | 7.6 | | | 7.6 | ||||||||||||
Deferred income taxes |
443.2 | (28.6 | ) | 414.6 | 65.9 | (406.8) | (e) | 73.7 | |||||||||||
Other |
2.3 | (2.3 | ) | | 28.0 | 79.6 | (c) | 107.6 | |||||||||||
Total liabilities |
513.4 | (43.5 | ) | 469.9 | 1,391.7 | (213.1 | ) | 1,648.5 | |||||||||||
Partners' equity: |
|||||||||||||||||||
Crosstex Energy, L.P equity |
| | | 1,224.7 | 2,651.2 | (f) | 3,875.9 | ||||||||||||
Predecessor |
1,839.8 | (76.3 | ) | 1,763.5 | | (1,763.5 | )(f) | | |||||||||||
Total Partners' equity attributable to Predecessor/Crosstex Energy, L.P. |
1,839.8 | (76.3 | ) | 1,763.5 | 1,224.7 | 887.7 | 3,875.9 | ||||||||||||
Non-controlling interests |
2.5 | (2.5 | ) | | | 1,085.2 | (f) | 1,085.2 | |||||||||||
Total partners' equity |
1,842.3 | (78.8 | ) | 1,763.5 | 1,224.7 | 1,972.9 | 4,961.1 | ||||||||||||
Total liabilities and partners' equity |
$ | 2,355.7 | $ | (122.3 | ) | $ | 2,233.4 | $ | 2,616.4 | $ | 1,759.8 | $ | 6,609.6 | ||||||
See accompanying notes to the pro forma consolidated financial statements.
CROSSTEX ENERGY, L.P.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
|
Nine Months Ended September 30, 2013 | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Predecessor Historical |
Adjustments for Non- Contributed Assets(a) |
Predecessor Historical, As Adjusted |
Crosstex Energy, L.P. Historical |
Pro Forma Adjustments |
Pro Forma, As Adjusted |
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|
(in millions, except per unit data) |
||||||||||||||||||
Operating revenues: |
|||||||||||||||||||
Operating revenuesaffiliates |
$ | 1,605.9 | $ | (48.9 | ) | $ | 1,557.0 | $ | | $ | (1,083.1 | )(g) | $ | 473.9 | |||||
Operating revenues |
158.2 | (22.1 | ) | 136.1 | 1,368.6 | (160.2 | )(g) | 1,344.5 | |||||||||||
Total operating revenues |
1,764.1 | (71.0 | ) | 1,693.1 | 1,368.6 | (1,243.3 | ) | 1,818.4 | |||||||||||
Operating expenses: |
|||||||||||||||||||
Product purchasesaffiliates |
1,181.6 | (11.2 | ) | 1,170.4 | | (1,170.4 | )(g) | | |||||||||||
Product purchases |
125.4 | (16.2 | ) | 109.2 | 1,068.5 | (122.7 | )(g)(h) | 1,055.0 | |||||||||||
Operations and maintenance |
92.9 | (15.6 | ) | 77.3 | 113.2 | | 190.5 | ||||||||||||
Operations and maintenanceaffiliates |
33.8 | (6.9 | ) | 26.9 | | | 26.9 | ||||||||||||
Depreciation and amortization |
147.1 | (8.5 | ) | 138.6 | 101.5 | (15.5 | )(i) | 224.6 | |||||||||||
General and administrative |
33.7 | (1.4 | ) | 32.3 | 50.1 | | 82.4 | ||||||||||||
Non-income taxes |
13.0 | (1.7 | ) | 11.3 | | | 11.3 | ||||||||||||
Asset impairments |
2.5 | (2.5 | ) | | 72.6 | (72.6 | )(j) | | |||||||||||
Other, net |
0.7 | (0.2 | ) | 0.5 | 1.1 | | 1.6 | ||||||||||||
Total operating expenses |
1,630.7 | (64.2 | ) | 1,566.5 | 1,407.0 | (1,381.2 | ) | 1,592.3 | |||||||||||
Operating income |
133.4 | (6.8 | ) | 126.6 | (38.4 | ) | 137.9 | 226.1 | |||||||||||
Interest expense |
| | | (54.9 | ) | 18.5 | (k) | (36.4 | ) | ||||||||||
Income from equity investment |
10.2 | | 10.2 | (0.1 | ) | | 10.1 | ||||||||||||
Income before income taxes |
143.6 | (6.8 | ) | 136.8 | (93.4 | ) | 156.4 | 199.8 | |||||||||||
Income tax expense (benefit) |
51.7 | (2.5 | ) | 49.2 | 2.0 | (47.4 | )(l) | 3.8 | |||||||||||
Net income (loss) from continuing operations |
91.9 | (4.3 | ) | 87.6 | (95.4 | ) | 203.8 | 196.0 | |||||||||||
Non-controlling interests |
| | | | 83.7 | (m) | 83.7 | ||||||||||||
Net income (loss) attributable to Crosstex Energy, L.P. |
$ | 91.9 | $ | (4.3 | ) | $ | 87.6 | $ | (95.4 | ) | $ | 120.1 | $ | 112.3 | |||||
Preferred interest in net income (loss) attributable to Crosstex Energy, L.P. |
$ | 23.5 | $ | (23.5 | ) | $ | | ||||||||||||
General partner interest in net income (loss) |
$ | (3.0 | ) | $ | 8.7 | (n) | $ | 5.7 | |||||||||||
Limited partners' interest in net income (loss) attributable to Crosstex Energy, L.P. |
$ | (115.9 | ) | $ | 222.5 | $ | 106.6 | ||||||||||||
Net income (loss) attributable to Crosstex Energy, L.P. per limited partners' unit: |
|||||||||||||||||||
Basic and diluted per common unit |
$ | (1.38 | ) | $ | 0.48 | ||||||||||||||
Weighted average units outstanding: |
|||||||||||||||||||
Basic and diluted common units |
82.6 | 138.2 | 220.8 | ||||||||||||||||
See accompanying notes to the pro forma consolidated financial statements.
CROSSTEX ENERGY, L.P.
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
|
Year Ended December 31, 2012 | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Predecessor Historical |
Adjustments for Non- Contributed Assets(a) |
Predecessor Historical, As Adjusted |
Crosstex Energy, L.P. Historical |
Pro Forma Adjustments |
Pro Forma, As Adjusted |
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|
(in millions, except per unit data) |
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Operating revenues: |
|||||||||||||||||||
Operating revenuesaffiliates |
$ | 1,816.5 | $ | (62.6 | ) | $ | 1,753.9 | $ | | $ | (1,137.1 | )(g) | $ | 616.8 | |||||
Operating revenues |
184.3 | (30.4 | ) | 153.9 | 1,791.2 | (189.0 | )(g) | 1,756.1 | |||||||||||
Total operating revenues |
2,000.8 | (93.0 | ) | 1,907.8 | 1,791.2 | (1,326.1 | ) | 2,372.9 | |||||||||||
Operating expenses: |
|||||||||||||||||||
Product purchasesaffiliates |
1,324.2 | (13.9 | ) | 1,310.3 | | (1,310.3 | )(g) | | |||||||||||
Product purchases |
140.3 | (22.5 | ) | 117.8 | 1,397.5 | (135.2 | )(g)(h) | 1,380.1 | |||||||||||
Operations and maintenance |
127.2 | (19.5 | ) | 107.7 | 130.9 | | 238.6 | ||||||||||||
Operations and maintenanceaffiliates |
43.8 | (10.0 | ) | 33.8 | | | 33.8 | ||||||||||||
Depreciation and amortization |
159.8 | (14.4 | ) | 145.4 | 162.2 | (52.3 | )(i) | 255.3 | |||||||||||
General and administrative |
43.6 | (1.9 | ) | 41.7 | 61.3 | | 103.0 | ||||||||||||
Non-income taxes |
13.2 | (1.3 | ) | 11.9 | | | 11.9 | ||||||||||||
Asset impairments |
50.1 | (33.7 | ) | 16.4 | | | 16.4 | ||||||||||||
Other, net |
(3.0 | ) | (0.5 | ) | (3.5 | ) | (4.4 | ) | | (7.9 | ) | ||||||||
Total operating expenses |
1,899.2 | (117.7 | ) | 1,781.5 | 1,747.5 | (1,497.8 | ) | 2,031.2 | |||||||||||
Operating income |
101.6 | 24.7 | 126.3 | 43.7 | 171.7 | 341.7 | |||||||||||||
Interest expense |
| | | (86.5 | ) | 24.0 | (k) | (62.5 | ) | ||||||||||
Income from equity investment |
2.0 | | 2.0 | 3.2 | | 5.2 | |||||||||||||
Income before income taxes |
103.6 | 24.7 | 128.3 | (39.6 | ) | 195.7 | 284.4 | ||||||||||||
Income tax expense (benefit) |
37.3 | 8.9 | 46.2 | 0.7 | (44.5 | )(l) | 2.4 | ||||||||||||
Net income (loss) from continuing operations |
66.3 | 15.8 | 82.1 | (40.3 | ) | 240.2 | 282.0 | ||||||||||||
Non-controlling interests |
| | | (0.2 | ) | 114.3 | (m) | 114.1 | |||||||||||
Net income (loss) attributable to Crosstex Energy, L.P. |
$ | 66.3 | $ | 15.8 | $ | 82.1 | $ | (40.1 | ) | $ | 125.9 | $ | 167.9 | ||||||
Preferred interest in net income (loss) attributable to Crosstex Energy, L.P. |
$ | 20.8 | $ | (20.8 | ) | $ | | ||||||||||||
General partner interest in net income (loss) |
$ | (0.5 | ) | $ | 9.0 | (n) | $ | 8.5 | |||||||||||
Limited partners' interest in net income (loss) attributable to Crosstex Energy, L.P. |
$ | (60.4 | ) | $ | 219.8 | $ | 159.4 | ||||||||||||
Net income (loss) attributable to Crosstex Energy, L.P. per limited partners' unit: |
|||||||||||||||||||
Basic and diluted per common unit |
$ | (1.01 | ) | $ | 0.82 | ||||||||||||||
Weighted average units outstanding: |
|||||||||||||||||||
Basic and diluted common units |
58.9 | 136.7 | 195.6 | ||||||||||||||||
See accompanying notes to the pro forma consolidated financial statements.
CROSSTEX ENERGY, L.P.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation
The unaudited pro forma consolidated financial statements give effect to the business combination and related transactions under the acquisition method of accounting. Under the acquisition method of accounting, Midstream Holdings will be the acquirer in the transactions because its parent company, Devon, will obtain control of the Partnership through the indirect control of the General Partner after the business combination. Consequently, Midstream Holdings' assets and liabilities will retain their carrying values. Additionally, the Partnership's assets acquired and liabilities assumed by Midstream Holdings as the Predecessor in the business combination will be recorded at their fair values measured as of the acquisition date. The excess of the purchase price over the estimated fair values of the Partnership's net assets acquired will be recorded as goodwill. The pro forma adjustments have been prepared as if the business combination and related transactions had taken place on September 30, 2013 in the case of the pro forma balance sheet and on January 1, 2012 in the case of the pro forma statements of operations. These transactions and adjustments are described in Note 3 to these unaudited pro forma consolidated financial statements.
The unaudited pro forma consolidated financial statements should be read in conjunction with (i) the Predecessor's historical consolidated financial statements and related notes, as well as Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Exhibit 99.3, (ii) the Partnership's Annual Report on Form 10-K for the year ended December 31, 2012 and (iii) the Partnership's quarterly report on Form 10-Q for the quarterly period ended September 30, 2013.
2. Summary of Significant Accounting Policies
The accounting policies used in preparing the unaudited pro forma consolidated financial statements are those used by the Predecessor as set forth in its audited historical combined financial statements contained in Exhibit 99.4.
3. Pro Forma Adjustments and Assumptions
The accompanying unaudited pro forma financial statements give pro forma effect to the following:
CROSSTEX ENERGY, L.P.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Pro Forma Adjustments and Assumptions (Continued)
The following table summarizes the preliminary estimate of the purchase price and it's allocation to the assets acquired and liabilities assumed (in millions, except unit price).
Midstream Holdings carryover basis: |
||||
Total carryover basis |
$ | 1,763.5 | ||
Adjustment for change in Predecessor tax |
406.8 | |||
Adjusted carryover basis |
2,170.3 | |||
Less: Amount attributable to noncontrolling interests |
(1,085.2 | ) | ||
Midstream Holdings consideration to controlling interests |
1,085.1 | |||
Total consideration before noncontrolling interests |
$ | 2,170.3 | ||
Crosstex Energy, L.P. outstanding units: |
||||
Common units held by public unitholders |
73.7 | |||
Common units held by Crosstex |
18.0 | |||
Preferred units held by public unitholders |
16.6 | |||
Restricted units |
1.2 | |||
Restricted units not subject to vesting |
(0.2 | ) | ||
Total subject to exchange |
109.3 | |||
Crosstex Energy, L.P. common unit price(1) |
$ | 25.50 | ||
Crosstex Energy, L.P. common units fair value |
2,787.1 | |||
Crosstex Energy, L.P. outstanding unit options value |
3.7 | |||
Crosstex Energy, L.P. consideration |
$ | 2,790.8 | ||
Total consideration and fair value of noncontrolling interests |
$ | 4,961.1 | ||
The preliminary allocation of the purchase price is as follows (in millions).
Midstream Holdings carryover basis |
$ | 2,170.3 | ||
Crosstex Energy, L.P. fair values: |
||||
Current assets |
227.1 | |||
Property, plant and equipment, net |
2,048.0 | |||
Intangible assets |
400.9 | |||
Equity investment |
222.0 | |||
Goodwill |
1,478.2 | |||
Other current liabilities |
(276.7 | ) | ||
Long-term debt |
(1,135.2 | ) | ||
Deferred income taxes |
(65.9 | ) | ||
Other long-term liabilities |
(107.6 | ) | ||
Total consideration and fair value of noncontrolling interests |
$ | 4,961.1 | ||
CROSSTEX ENERGY, L.P.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Pro Forma Adjustments and Assumptions (Continued)
The Partnership's fair values are based on preliminary management estimates. Management considered forecasted discounted future cash flows for the Partnership assets together with replacement costs to estimate the fair value of property, plant and equipment and the related customer relationship values included in intangible assets. The fair value of long-term debt was based on third-party market quotations for the Partnership's senior unsecured notes. The increase in accrued expenses and other long-term liabilities primarily relates to the recognition of a $99.7 million liability associated with an onerous performance obligation which was fair valued based on forecasted discounted cash obligations under the related contract.
|
Predecessor, As Adjusted |
Crosstex Energy, L.P. | Non-controlling Interest | Total Partners's Equity | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Historical Equity |
$ | 1,763.5 | $ | 1,224.7 | $ | | $ | 2,988.2 | |||||
Pro forma adjustments: |
| ||||||||||||
Step-up of Partnership Units previously outstanding |
| 1,562.4 | | 1,562.4 | |||||||||
Contribution of only 50% of Midstream Holdings |
(881.8 | ) | | 881.8 | | ||||||||
Change in tax status |
203.4 | 203.4 | 406.8 | ||||||||||
Partnership unit options |
| 3.7 | | 3.7 | |||||||||
Total pro forma adjustments |
(678.4 | ) | 1,566.1 | 1,085.2 | 1,972.9 | ||||||||
Pro forma partner's equity |
$ | 1,085.1 | $ | 2,790.8 | $ | 1,085.2 | 4,961.1 | ||||||
CROSSTEX ENERGY, L.P.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Pro Forma Adjustments and Assumptions (Continued)
Additionally, Crosstex received revenues from Midstream Holdings during the periods presented. These revenues are reclassified from operating revenues to operating revenuesaffiliates as presented in the following table.
|
Nine Months Ended September 30, 2013 |
Year Ended December 31, 2012 |
|||||
---|---|---|---|---|---|---|---|
|
(in millions) |
||||||
Operating revenuesaffiliates: |
|||||||
Conversion to fixed-fee contracts |
$ | 32.2 | $ | 100.3 | |||
Cease taking title to products |
(1,170.4 | ) | (1,310.3 | ) | |||
Reclassification of affiliate revenues |
55.1 | 72.9 | |||||
Operating revenuesaffiliates pro forma adjustments |
(1,083.1 | ) | (1,137.1 | ) | |||
Operating revenues: |
|||||||
Conversion to fixed-fee contracts |
4.1 | 1.7 | |||||
Cease taking title to products |
(109.2 | ) | (117.8 | ) | |||
Reclassification of affiliate revenues |
(55.1 | ) | (72.9 | ) | |||
Operating revenues total pro forma adjustments |
(160.2 | ) | (189.0 | ) | |||
Total operating revenues total pro forma adjustments |
$ | (1,243.3 | ) | $ | (1,326.1 | ) | |
Cease taking title to products: |
|||||||
Product purchasesaffiliates |
$ | (1,170.4 | ) | $ | (1,310.3 | ) | |
Product purchases |
$ | (109.2 | ) | $ | (117.8 | ) |
|
Nine Months Ended September 30, 2013 |
Year Ended December 31, 2012 |
|||||
---|---|---|---|---|---|---|---|
|
(in millions) |
||||||
Contract changes in adjustment (g) above |
$ | (109.2 | ) | $ | (117.8 | ) | |
Performance obligation in adjustment (h) |
(13.5 | ) | (17.4 | ) | |||
Product purchases total pro forma adjustment |
$ | (122.7 | ) | $ | (135.2 | ) | |
CROSSTEX ENERGY, L.P.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. Pro Forma Adjustments and Assumptions (Continued)
|
Nine Months Ended September 30, 2013 |
Year Ended December 31, 2012 |
|||||
---|---|---|---|---|---|---|---|
|
(in millions) |
||||||
Crosstex Energy, L.P.'s amortization of debt issuance costs(1) |
$ | 4.6 | $ | 5.4 | |||
Amortization of debt fair value(2) |
13.9 | 18.6 | |||||
Interest expense adjustment |
$ | 18.5 | $ | 24.0 | |||
|
Nine Months Ended September 30, 2013 |
Year Ended December 31, 2012 |
|||||
---|---|---|---|---|---|---|---|
|
(in millions) |
||||||
GP share of income (loss) |
$ | 2.6 | $ | 2.1 | |||
Increase in IDR |
6.1 | 6.9 | |||||
Net General Partner Adjustment |
$ | 8.7 | $ | 9.0 | |||