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Gaining 7.91% ($0.33) this morning is Crosstex Energy Inc., (XTXI) http://www.crosstexenergy.com/ which is currently trading in the $4.50 range on the Nasdaq. XTXI has a new market cap of $208 million. XTXI has a 3-Month average daily trading volume of 540,417 shares and two hours into today's session had topped 403,707 shares traded.
As the Energy Sector continues its rally into an eighth day, XTXI has benefited along with other energy companies that are widely held by institutions, but two other factors have come into play that have given XTXI some its value back. At current trading prices, the stock is nearly 90% off its 52-week high and secondly, to service debt and get some cash flow going for general expenses, XTXI sold its gas treatment business to Kinder Morgan (KMP) for $266 million which was confirmed in an XTXI 8-K filing September 3rd.
The primary business of XTXI is operating a pipeline to move natural gas. In early August, XTXI sold some natural gas assets it owned in Texas and the south to Southcross Energy, a privately owned, Dallas-based natural gas transportation and processing company for $220 million.
The August and September sales of natural gas pools to its sometimes rivals has proven to investors that its core business comes first and its secondary accumulation of gas fields along the way will have to suffer the brunt of sacrifice as XTXI management waits for natural gas to comeback from taking a beating during the recession.
Still a seller and re-seller these days, XTXI operates approximately 5,700 miles of natural gas gathering and transmission pipelines, 12 natural gas processing plants, 4 fractionators, and 200 treating and dew point control plants.
At $4.50, XTXI is far, far below its 52-week high of $30.35 set on 09-17-08 and is well above its 52-week low of $0.75 set on 03-06-09. At $4.50, XTXI is ahead of both its 50-day and 200-day moving averages. XTXI has trailing twelve month revenues of $3.81 billion. Its shares out versus float ratio is near-parity.
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