Enlink Midstream Partners Lp (NYSE:ENLK)

CAPS Rating: 1 out of 5

An independent midstream energy company, which is engaged in the gathering, transmission, treating, processing and marketing of natural gas and natural gas liquids, or NGLs.


Player Avatar TMFUltraLong (99.95) Submitted: 1/5/2010 2:41:44 AM : Underperform Start Price: $6.70 ENLK Score: -247.67

I really don't care how popular natural gas is right now because there aren't enough sticks in the world to shake at Crosstex's massive pile of debt to even put a dent in it. 1.1 billion dollars in debt and a monsterous wave of quarterly losses that would make Captain Ahab proud. Crosstex grossly mismanaged their balance sheet when times were good and got caught with their hand in the cookie jar two years ago. I consider them extremely lucky to have even survived and would consider a pullback all but a certainty from these levels.


Report this Post 4 Replies
Member Avatar jamespeer (24.31) Submitted: 1/5/2010 10:39:22 AM
Recs: 0

They have returned to profitability in the 3rd quarter and a penny must have dropped somewhere as their cash flow management was unusually sound in Q3 09 as well, however, we can't ignore the laughable amount of cash they have on the balance sheet compared to their huge debt. I do agree that the share price has come up too fast and a pullback is inevitable...

Member Avatar XMFCinco (29.99) Submitted: 1/5/2010 4:41:45 PM
Recs: 0

They pulled in nearly 100M in "other" income, which made an otherwise pretty lousy quarter look good. If you take that away (it wasn't there any previous quarters) they would have lost around 25M, worse than each of the 3 quarters before!!! Not sure where the got this money but "other" is always sketchy. They also brought their cash flow well up with: "Sale of Property, Plant & Equipment" at 245.28M: i mean... ok, that's nice but it doesn't mean this is a good company that's growing. The equity nevertheless rose healthily in the 3rd quarter... Still, 70 some M in sales and 1.1B in debt, quick ratio of 0.80... doesn't look good.

Member Avatar Garyestein (68.09) Submitted: 3/1/2010 1:00:53 PM
Recs: 0

I agree their balance sheet and XTXI's balance sheet are both a mess. But as trades they both have been money makers just have to have tight stops and understand there pattern by analyzing the chart. Don't fight the tape the tape is your friend. But your absolutely right these stocks are not investment material they are however trades.

Member Avatar fr4ji9 (< 20) Submitted: 4/29/2010 1:08:01 PM
Recs: 0

If my understanding of their balance sheet is correct, they do seem to be paying down their debt, but the stock price does seem to have topped out. I am just waiting for Long Term to kick in before liquidating my 240% gain.

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