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After steadily working its way up from a two-star rank over the past few years, enough top-performing CAPS members have landed on the bull side of Crosstex Energy (Nasdaq: XTXI) recently to leave it flirting with five-star status. A total of 337 members have given their opinion on the natural gas firm, with many offering analysis and commentary to explain their recent optimism.
Many energy companies, from major integrated oil and gas players like ConocoPhillips (NYSE: COP) and ExxonMobil (NYSE: XOM), to smaller midstream natural gas company Crosstex Energy have had to deal with lower gas prices, brought on by oversupply and soft demand. Along with its subsidiary Crosstex Energy, L.P., Crosstex has recently been working to cut down its large debt load. It recently sold its natural gas treating business to Kinder Morgan (NYSE: KMP), and the company will use the net proceeds to knock down about $260 million of outstanding debt, adding to the several hundred million it's already paid down through other asset sales. It also recently cut some lease operating expenses with the purchase of a natural gas liquids processing plant and facility that it had managed in Louisiana.
Investors have been busy bidding up shares of natural gas producers such as Chesapeake Energy (NYSE: CHK), Range Resources (NYSE: RRC), and Ultra Petroleum (NYSE: UPL) in recent months in anticipation of a rebound in natural gas, and CAPS members expect Crosstex will also benefit from a natural gas recovery. Some expect the spread between natural gas and crude oil to narrow, and believe Crosstex is well positioned for future growth over 5000 miles of pipeline.
Do you think Crosstex Energy deserves its raised status? Add your thoughts in the comments box below on this page, or head over to CAPS to rate the company and check out all the information and opinions the community offers, absolutely free.
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