Crosstex Energy Announces Guidance for 2006; Company Hosts Second Annual Analyst Meeting
March 20 2006 - 7:04AM
PR Newswire (US)
DALLAS, March 20 /PRNewswire-FirstCall/ -- The Crosstex Energy
companies, Crosstex Energy, L.P. (NASDAQ:XTEX) (the Partnership)
and Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation), are
hosting their second annual analyst meeting today at The Stockyards
Hotel in Fort Worth, Texas. The analyst meeting will showcase
several members of Crosstex's senior management team and will
include discussions concerning strategic planning, industry trends
and market opportunities, as well as provide 2006 guidance. "As
Crosstex continues to experience rapid growth, our analyst meeting
allows us to keep our shareholders well informed on our current and
future plans to maximize growth opportunities and maintain our
success," stated Barry E. Davis, President and Chief Executive
Officer. "We continue our commitment to open communication with our
investors, remaining accountable to our partners in success." 2006
Guidance The Partnership anticipates it will generate net income in
2006 of between $18.0 million and $26.0 million, and its estimate
of Distributable Cash Flow for the year is in the range of $84.5
million to $95.5 million. Total maintenance capital expenditures
are expected to be between $10 and $14 million in 2006. The
Partnership currently expects to pay total distributions for this
year between $2.10 and $2.20 per unit. Based on that range the
Corporation would receive total distributions between $40.6 million
and $44.3 million from the Partnership. The Corporation anticipates
direct cash expenses associated with its operations outside of the
Partnership of approximately $1.5 million. The Corporation expects
that it will incur only nominal current year income tax expense due
to tax loss carryforwards and other tax benefits it expects to use
in 2006. However, it will continue to set its dividends as if it
were a taxpayer. Therefore, it expects to pay dividends of between
$2.40 and $2.65 per share in 2006. Webcast/Conference Call The
meeting will also be available live by conference call or webcast
for those not able to attend. The dial-in number for the call is
866-713-8563, passcode 56314586. The call will start on Monday,
March 20 at 8:30 a.m. CST and continue until 12 p.m. CST. A live
webcast of the call can be accessed on the investor relations page
of Crosstex Energy's website at http://www.crosstexenergy.com/ .
The call will also be available for replay for 30 days by dialing
888-286-8010, passcode 84439270, or by going to the investor
relations events page of the Company's website. The PowerPoint
presentations for today's analyst meeting have also been posted on
http://www.crosstexenergy.com/ under Investor Information. About
the Crosstex Energy Companies Crosstex Energy, L.P., a mid-stream
natural gas company headquartered in Dallas, operates over 5,000
miles of pipeline, nine processing plants, four fractionators, and
approximately 150 natural gas amine treating plants and 22 dew
point control plants. Crosstex currently provides services for over
3.0 Bcf/day of natural gas, or approximately 6.0 percent of
marketed U.S. daily production based on August 2005 Department of
Energy data. Crosstex Energy, Inc. owns the two percent general
partner interest, an approximately 38 percent limited partner
interest, and the incentive distribution rights of Crosstex Energy,
L.P. Additional information about the Crosstex companies can be
found at http://www.crosstexenergy.com/ . Non-GAAP Financial
Information This press release contains non-generally accepted
accounting principle financial measures of earnings before non-cash
charges and less maintenance capital expenditures, which we refer
to as Distributable Cash Flow. 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 our assets and to extend their useful lives.
We believe this measure is useful to investors because it 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.
Distributable Cash Flow is not a measure of financial performance
or liquidity under GAAP. It should not be considered in isolation
or as an indicator of the Partnership's performance. Furthermore,
it should not be seen as a measure of liquidity or a substitute for
metrics prepared in accordance with GAAP. Our reconciliation of
this measure to net income is included in the following table. This
press release contains forward-looking statements identified by the
use of words such as "forecast," "anticipate," "plan" and
"estimate." These statements are based on currently available
information and assumptions and expectations that the Partnership
and the Corporation believe are reasonable. However, the
assumptions and expectations are subject to a wide range of
business risks, so they can give no assurance that actual
performance will fall within the forecast ranges. Among the key
risks that may bear directly on the Partnership's and the
Corporation's results of operation and financial condition are: (1)
the amount of natural gas transported in the Partnership's
gathering and transmission lines may decline as a result of
competition for supplies, reserve declines and reduction in demand
from key customers and markets; (2) the level of the Partnership's
processing and treating operations may decline for similar reasons;
(3) fluctuations in natural gas and natural gas liquids prices may
occur due to weather and other natural and economic forces; (4)
there may be a failure to successfully integrate new acquisitions;
(5) the Partnership's credit risk management efforts may fail to
adequately protect against customer nonpayment; (6) natural
disasters such as hurricanes may significantly disrupt operations;
and (7) the Partnership may not adequately address construction and
operating risks. 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. (Table follows) CROSSTEX ENERGY, L.P. Forecast for
2006 Net Income Reconciliation to Distributable Cash Flow (In
millions) Range Low High Net Income $ 18.0 $ 26.0 Interest 41.0
40.0 Depreciation and Amortization 76.0 76.0 Stock Based
Compensation (A) 9.0 8.0 Adjusted Cash Flow 144.0 150.0 Interest
41.0 40.0 Authorization of Net Cost 4.5 4.5 Maintenance Capital
Expenditures 14.0 10.0 Distributable Cash Flow $ 84.5 $ 95.5 (A)
Stock based compensation expense is based on current generally
accepted accounting principles. The Partnership has not yet
evaluated the impact of complying with FAS 123 (revised 2005),
which will require the expensing of options based upon fair value
measurement beginning with the partnership's third quarter
financial results. DATASOURCE: Crosstex Energy, L.P.; Crosstex
Energy, Inc. CONTACT: Jill McMillan, +1-214-721-9271, or , for
Crosstex Energy, L.P. Web site: http://www.crosstexenergy.com/
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