DALLAS--(BUSINESS WIRE)--Dec. 11, 2012--
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ:XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation),
today provided preliminary guidance for 2013.
The Partnership estimates 2013 adjusted EBITDA will be between $220
million and $250 million and distributable cash flow will be in the
range of $130 million to $160 million. These estimates are based on
various commodity price scenarios and other assumptions that are
addressed in the presentation posted on the Investors page of Crosstex’s
website at www.crosstexenergy.com.
It is expected that the Partnership will generate sufficient
distributable cash flow to support distributions in the range of $1.36
to $1.46 per unit for 2013, assuming actual results are within the range
of guidance. It is also expected that the Corporation could pay
dividends in the range of $0.53 to $0.63 per share for 2013, assuming
the receipt of per-unit distributions from the Partnership in the range
stated above. The payment and amount of distributions and dividends will
be subject to approval by the Boards of Directors of the Partnership and
the Corporation and to economic conditions and other factors existing at
the time of determination.
“We will continue to execute our strategy to enhance scale and
diversification and focus on growing our fee-based business, which we
expect will contribute approximately 86 percent to gross operating
margin in 2013,” said Barry E. Davis, Crosstex President and Chief
Executive Officer. “Next year we will also continue to successfully
transform our business so that we derive over 40 percent of total gross
operating margin from fee-based crude and natural gas liquids
businesses. The growth projects scheduled to come on line during 2013
should position us for distribution and dividend growth in the second
half of the year.”
Crosstex to Hold Guidance Conference Call Today
The Partnership and the Corporation will hold a conference call to
discuss preliminary 2013 guidance today, December 11, at 10:00 a.m.
Central time (11:00 a.m. Eastern time). The dial-in number for the call
is 1-888-679-8038. Callers outside the United States should dial
1-617-213- 4850. The passcode is 41694762 for all callers. 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=PPH99U76L.
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 the live webcast of the call on the Investors page of Crosstex’s
website at www.crosstexenergy.com.
After the conference call, a replay can be accessed until March 10,
2013, 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 77935674. Interested parties also can visit the Investors
page of Crosstex’s website 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 3,500 miles of natural gas, natural gas
liquids and oil pipelines, 10 processing plants and four fractionators.
The Partnership also operates barge terminals, rail terminals, product
storage facilities, brine water disposal wells and an extensive truck
fleet.
Crosstex Energy, Inc. owns combined general and limited partner
interests of 22 percent 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 adjusted EBITDA and
distributable cash flow. Adjusted EBITDA is defined as net income (loss)
plus interest expense, provision for income taxes and depreciation and
amortization expense, impairments, stock-based compensation, loss on
extinguishment of debt, (gain) loss on noncash derivatives, transaction
costs associated with successful transactions, minority interest and
certain severance and exit expenses, and accrued expense of a legal
judgment under appeal, less gain on sale of property. Distributable cash
flow is defined as earnings before certain noncash charges and the gain
on the sale of assets less maintenance capital expenditures. 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.
Adjusted EBITDA and distributable cash flow, as defined above, 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.
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, as
well as the Partnership’s future growth 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, NGLs and crude oil; (2) the
Partnership’s substantial indebtedness could limit its flexibility and
adversely affect its financial health; (3) the Partnership may not be
able to obtain funding, which would impair its ability to grow; (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, NGLs and crude oil transported
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,
fractionation, crude oil handling and brine disposal 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, 2011, 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.
Source: Crosstex Energy
Crosstex Energy
Jill McMillan, 214-721-9271
Director,
Public & Industry Affairs
Jill.McMillan@CrosstexEnergy.com
