SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 10-Q
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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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for the quarterly period ended June 30, 2004 |
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OR |
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o |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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for the transition period from to |
Commission file number: 000-50067
CROSSTEX ENERGY, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
52-2235832
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2501 CEDAR SPRINGS, SUITE 600
DALLAS, TEXAS 75201
(Address of principal executive offices)
(Zip Code)
(214) 953-9500
(Registrant’s telephone number,
including area code)
Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). Yes o No x
As of July 30, 2004, the Registrant had 12,125,791 shares of common stock outstanding.
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Item |
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DESCRIPTION |
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Page |
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PART I—FINANCIAL INFORMATION |
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3 |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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19 |
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28 |
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31 |
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CHANGES IN SECURITIES, USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES |
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32 |
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32 |
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As generally used in the energy industry and in this document, the following terms have the following meanings:
/d—per day
MMBtu—million
British thermal units.
2
CROSSTEX ENERGY, INC.
Consolidated Balance Sheets
(In thousands)
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June 30, |
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December 31, |
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(Unaudited) |
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(Restated) |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
13,743 |
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$ |
1,479 |
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Accounts receivable: |
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Trade |
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15,090 |
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10,238 |
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Accrued revenues |
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201,401 |
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124,517 |
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Imbalances |
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494 |
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447 |
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Related party |
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50 |
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617 |
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Note receivable |
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677 |
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535 |
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Other |
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2,445 |
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2,628 |
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Fair value of derivative assets |
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7,569 |
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4,080 |
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Prepaid expenses and other |
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4,926 |
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2,013 |
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Total current assets |
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246,395 |
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146,554 |
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Property and equipment |
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340,053 |
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229,641 |
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Accumulated depreciation |
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(33,648 |
) |
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(24,751 |
) |
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Total property and equipment, net |
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306,405 |
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204,890 |
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Account receivable from Enron (net allowance of $6,931) |
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1,312 |
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1,312 |
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Intangible assets, net |
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5,886 |
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5,366 |
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Goodwill, net |
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6,164 |
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6,164 |
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Investment in limited partnerships |
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410 |
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2,560 |
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Other assets, net |
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3,920 |
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3,639 |
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Total assets |
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$ |
570,492 |
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$ |
370,485 |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Drafts payable |
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$ |
26,983 |
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$ |
10,446 |
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Accounts payable |
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4,589 |
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6,325 |
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Accrued gas purchases |
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202,185 |
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119,900 |
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Accounts payable—related party |
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213 |
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448 |
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Preferred dividends payable |
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— |
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3,471 |
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Accrued imbalances payable |
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1,558 |
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212 |
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Fair value of derivative liabilities |
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3,369 |
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2,487 |
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Current portion of long-term debt |
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50 |
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50 |
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Other current liabilities |
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21,203 |
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10,920 |
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Total current liabilities |
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260,150 |
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154,259 |
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Deferred tax liability |
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35,250 |
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19,103 |
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Long-term debt |
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124,650 |
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60,700 |
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Fair value of derivative liabilities |
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25 |
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— |
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Interest of non-controlling partners in the Partnership |
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69,192 |
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67,157 |
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Stockholders’ equity |
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81,225 |
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69,266 |
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Total liabilities and stockholders’ equity |
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$ |
570,492 |
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$ |
370,485 |
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See accompanying notes to consolidated financial statements.
3
CROSSTEX ENERGY, INC.
Consolidated Statements of Operations (Continued)
(In thousands, except per share amounts)
(Unaudited)
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Three months ended |
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