|Q.||What is the relationship between Crosstex Energy, L.P. and Crosstex Energy, Inc.?|
|A.||Crosstex Energy, L.P. is a master limited partnership (MLP). Crosstex Energy, Inc. is the general partner of Crosstex Energy, L.P. and, as such, indirectly owns combined general and limited partner interests of approximately 19% and the incentive distribution rights of Crosstex Energy, L.P. (escalating rights to share in the MLP’s cash distributions to the extent quarterly distributions exceed $0.25 per common unit).|
|Q.||What are the ticker symbols for Crosstex Energy, L.P. and Crosstex Energy, Inc.?|
|A.||Crosstex Energy, L.P. – XTEX|
Crosstex Energy, Inc. – XTXI
|Q.||What stock exchange are Crosstex Energy, L.P. and Crosstex Energy, Inc. equity securities traded on?|
|A.||Crosstex Energy, Inc. (NASDAQ: XTXI) and Crosstex Energy, L.P. (NASDAQ: XTEX) are listed and traded on the NASDAQ exchange.|
|Q.||What is the difference between an investment in Crosstex Energy, L.P. and Crosstex Energy, Inc.?|
Crosstex Energy, L.P. is a master limited partnership, or MLP. Generally, MLPs are are not subject to federal income tax, and items of income, gain, loss and deduction are passed through to the partners. The Partnership’s equity is traded in common units.
Crosstex Energy, Inc. is a “C” corporation and its equity is traded in common shares. Generally, a corporation pays tax on its income. Some or all corporate income is retained and passed through to shareholders as dividends, and shareholders pay tax on the dividends they receive.
Click here to view a security comparison of XTEX and XTXI.
|Q.||Who is Crosstex's Transfer Agent?
|A.||Crosstex Energy, Inc. and Crosstex Energy, L.P. have the same Transfer Agent: |
American Stock Transfer
59 Maiden Lane
New York, NY 10038
|Q.||What is the tax treatment of Crosstex Energy, L.P. distributions?|
Crosstex Energy, L.P.’s cash distributions generally are treated as return of capital and reduce a partner’s cost basis in his or her partnership units. (The investor’s original basis is the price paid for the units. The basis is adjusted down with each distribution and allocation of deductions and losses, and up with each income allocation.) When a partner sells the units, the difference between the sales price and the adjusted basis will be a taxable gain or loss. The partner will not be taxed on distributions until he or she sells his units and pays tax on a gain, which includes distributions, or the cost basis in the units becomes “0.” A unitholder will receive IRS Form K-1 for tax purposes.
|Q.||What is the amount of Crosstex Energy, L.P.’s quarterly cash distribution on the partnership units?|
|A.||The fourth quarter 2012 distribution on the Partnership’s common units will be $0.33 per unit. The distribution is payable February 14, 2013 to unitholders of record February 1, 2013.|