Despite increased throughput in its Barnett Shale gathering and transmission and in its Haynesville Shale transmission, Dallas-based Crosstex Energy LP recorded a net loss of $10.32 million (minus 19 cents/share) in 2Q2009, compared with net income of $21.74 million (21 cents/share) in 2Q2008, the company said Friday.
Crosstex Energy Inc. reported a net loss of $3.1 million (minus 7 cents) in 2Q2009, compared with net income of $17.5 million (37 cents) in 2Q2008.
Weighted average natural gas liquids prices (NGL) were less than half the levels attained in 2Q2008, and processing volumes at the company’s South Louisiana plants were 50% less than those achieved in 2Q2008, Crosstex said. As a result of the reduction in NGL prices and processing volumes, 2Q2009 processing margins declined by approximately $9.2 million compared with 2Q2008. The decline was offset by $7.5 million from greater throughput on Crosstex’s gathering and transmission systems, particularly in the Haynesville Shale and the Barnett Shale, and a $2.2 million increase in the treating segment’s gross margin.
The most significant event for Crosstex during the second quarter was the announcement that it would sell its natural gas gathering assets in Mississippi, Alabama and South Texas for $220 million to Southcross Energy LLC (see Daily GPI, June 11), Crosstex CEO Barry E. Davis said during a conference call with financial analysts.
“Moving forward, we are actively seeking other asset sales that we believe are in the best interest of the company and our stakeholders — but we will only complete additional sales if we believe the price is right,” Davis said.
Crosstex completed the sale to Southcross, a Dallas-based portfolio company of Charlesbank Capital Partners, on Thursday (see Daily GPI, Aug. 7). Crosstex said it will use the net proceeds from the transaction to repay approximately $212 million of its outstanding debt, which will satisfy the targets for debt reductions in September and December established in the partnership’s recent amendments to its debt facilities.
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