Tuesday, October 27, 2009
Dave Mock :: Townhall.com Columnist
A Big Upgrade for Crosstex Energy
by Dave Mock
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Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks-- and the track recordsof the firm behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPSto monitor the collective opinions of more than 140,000 members, many of whom demonstrate better investing insight than published analysts do.

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 head over to CAPS to rate the companyand check out all the information and opinions the community offers, absolutely free.

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This article was originally published as A Big Upgrade for Crosstex Energyon Fool.com

Copyright © 2009 The Motley Fool, LLC. All rights reserved.

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Dave Mock is a Motley Fool contributor.

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