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After steadily working its way up from a two-star
rankover the past few years, enough top-performing CAPS
members have landed on the bull side of
Crosstex Energy (Nasdaq: XTXI) recently to
have it flirting with
five-starstatus. A total of 337 members have given their
opinion on the natural gas firm, with many of them offering
analysis and commentary explaining the 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 sharesof natural gas producers like
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
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This article was originally published as
A Big Upgrade for Crosstex Energyon
Fool.com
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