Long-Term Debt | 9 Months Ended |
Sep. 30, 2013 |
Long-term Debt, by Current and Noncurrent [Abstract] | ' |
Long-Term Debt | ' |
Long-Term Debt |
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As of September 30, 2013 and December 31, 2012, long-term debt consisted of the following (in thousands): |
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| 30-Sep-13 | | 31-Dec-12 | | | | | | | | |
Bank credit facility (due 2016), interest based on Prime and/or LIBOR plus an applicable | $ | 76,000 | | | $ | 71,000 | | | | | | | | | |
margin, interest rate at September 30, 2013 and December 31, 2012 was 3.6% and 4.3%, | | | | | | | | |
respectively | | | | | | | | |
Senior unsecured notes (due 2018), net of discount of $8.3 million and $9.7 million, | 716,728 | | | 715,305 | | | | | | | | | |
respectively, which bear interest at the rate of 8.875% | | | | | | | | |
Senior unsecured notes (due 2022), which bear interest at the rate of 7.125% | 250,000 | | | 250,000 | | | | | | | | | |
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Debt classified as long-term | $ | 1,042,728 | | | $ | 1,036,305 | | | | | | | | | |
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Credit Facility. As of September 30, 2013, there was $62.3 million in outstanding letters of credit and $76.0 million in outstanding borrowings under the Partnership’s bank credit facility, leaving approximately $496.7 million available for future borrowing based on the borrowing capacity of $635.0 million. As of September 30, 2013, based on our maximum permitted consolidated leverage ratio (as defined in the amended credit facility), we could borrow approximately $271.4 million of additional funds. |
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In January 2013, the Partnership amended the credit facility to, among other things, (i) decrease the minimum consolidated interest coverage ratio (as defined in the amended credit facility, being generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest charges) to 2.25 to 1.0 for the fiscal quarters ending September 30, 2013 and December 31, 2013, with a minimum ratio of 2.50 to 1.0 for each fiscal quarter ending thereafter, (ii) increase the maximum permitted consolidated leverage ratio (as defined in the amended credit facility, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) to 5.50 to 1.0 for each fiscal quarter ending on or prior to December 31, 2013, with a maximum ratio of 5.25 to 1.0 for each fiscal quarter ending thereafter, and (iii) eliminate the existing and any future step-up in the maximum permitted consolidated leverage ratio for acquisitions. |
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In August 2013, the Partnership amended the credit facility to, among other things, (i) allow the Partnership to make additional investments in joint ventures and subsidiaries that are not guarantors of the Partnership's obligations under the amended credit facility, (ii) decrease the minimum consolidated interest coverage ratio (as defined in the amended credit facility, being generally computed as the ratio of consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges to consolidated interest charges) to 2.25 to 1.0 for the fiscal quarters ending March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, with a minimum ratio of 2.50 to 1.0 for each fiscal quarter ending thereafter and (iii) increase the maximum permitted consolidated leverage ratio (as defined in the amended credit facility, being generally computed as the ratio of total funded debt to consolidated earnings before interest, taxes, depreciation, amortization and certain other non-cash charges) to 5.50 to 1.0 for the fiscal quarters ending March 31, 2014, June 30, 2014 and September 30, 2014, with a maximum ratio of 5.25 to 1.0 for each fiscal quarter ending thereafter. |
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The credit facility is guaranteed by substantially all of our subsidiaries and is secured by first priority liens on substantially all of our assets and those of the guarantors, including all material pipeline, gas gathering and processing assets, all material working capital assets and a pledge of all of our equity interests in substantially all of our subsidiaries. We may prepay all loans under the credit facility at any time without premium or penalty (other than customary LIBOR breakage costs), subject to certain notice requirements. The credit facility requires mandatory prepayments of amounts outstanding thereunder with the net proceeds of certain asset sales, extraordinary receipts, equity issuances and debt incurrences, but these mandatory prepayments do not require any reduction of the lenders’ commitments under the credit facility. |
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All other material terms of the credit facility are described in Part II, “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Indebtedness” in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012. The Partnership expects to be in compliance with all credit facility covenants for at least the next twelve months. |
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Non-Guarantors. All senior unsecured notes are jointly and severally guaranteed by each of the Partnership’s current material subsidiaries (the "Guarantors"), with the exception of its regulated Louisiana subsidiaries (which may only guarantee up to $500.0 million of the Partnership’s debt) and Crosstex Energy Finance Corporation (a wholly owned Delaware corporation that was organized for the sole purpose of being a co-issuer of certain of the Partnership’s indebtedness, including the senior unsecured notes). Guarantors may not sell or otherwise dispose of all or substantially all of their properties or assets, or consolidate with or merge into another company if such a sale would cause a default under the terms of the senior unsecured notes. There are no significant restrictions on the ability of the Partnership or any Guarantor to obtain funds from its subsidiaries by dividend or loan. Since certain wholly owned subsidiaries do not guarantee the senior unsecured notes, the condensed consolidating financial statements of the Guarantors and non-guarantors for the three and nine months ended September 30, 2013 and 2012 are disclosed below in accordance with Rule 3-10 of Regulation S-X. Comprehensive income (loss) is not included in the condensed consolidating statements of operations of the Guarantors and non-guarantors for the three and nine months ended September 30, 2013 and 2012 as these amounts are not considered material. |
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Condensed Consolidating Balance Sheets |
September 30, 2013 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
ASSETS | | | | | | | | | | | |
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Total current assets | $ | 216,038 | | | $ | 11,074 | | | $ | — | | | $ | 227,112 | |
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Property, plant and equipment, net | 1,579,845 | | | 211,774 | | | — | | | 1,791,619 | |
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Total other assets | 597,623 | | | — | | | — | | | 597,623 | |
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Total assets | $ | 2,393,506 | | | $ | 222,848 | | | $ | — | | | $ | 2,616,354 | |
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LIABILITIES & PARTNERS’ CAPITAL | | | | | | | |
Total current liabilities | $ | 247,714 | | | $ | 7,423 | | | $ | — | | | $ | 255,137 | |
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Long-term debt | 1,042,728 | | | — | | | — | | | 1,042,728 | |
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Other long-term liabilities | 93,815 | | | — | | | — | | | 93,815 | |
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Partners’ capital | 1,009,249 | | | 215,425 | | | — | | | 1,224,674 | |
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Total liabilities & partners’ capital | $ | 2,393,506 | | | $ | 222,848 | | | $ | — | | | $ | 2,616,354 | |
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December 31, 2012 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
ASSETS | | | | | | | | | | | |
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Total current assets | $ | 246,165 | | | $ | 11,055 | | | $ | — | | | $ | 257,220 | |
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Property, plant and equipment, net | 1,276,097 | | | 195,151 | | | — | | | 1,471,248 | |
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Total other assets | 694,121 | | | — | | | — | | | 694,121 | |
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Total assets | $ | 2,216,383 | | | $ | 206,206 | | | $ | — | | | $ | 2,422,589 | |
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LIABILITIES & PARTNERS’ CAPITAL | | | | | | | | | | |
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Total current liabilities | $ | 273,151 | | | $ | 2,392 | | | $ | — | | | $ | 275,543 | |
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Long-term debt | 1,036,305 | | | — | | | — | | | 1,036,305 | |
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Other long-term liabilities | 101,660 | | | — | | | — | | | 101,660 | |
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Partners’ capital | 805,267 | | | 203,814 | | | — | | | 1,009,081 | |
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Total liabilities & partners’ capital | $ | 2,216,383 | | | $ | 206,206 | | | $ | — | | | $ | 2,422,589 | |
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Condensed Consolidating Statements of Operations |
For the Three Months Ended September 30, 2013 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
Total revenues | $ | 456,177 | | | $ | 17,955 | | | $ | (5,770 | ) | | $ | 468,362 | |
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Total operating costs and expenses | (527,346 | ) | | (8,613 | ) | | 5,770 | | | (530,189 | ) |
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Operating income (loss) | (71,169 | ) | | 9,342 | | | — | | | (61,827 | ) |
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Interest expense, net | (16,430 | ) | | — | | | — | | | (16,430 | ) |
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Other expense | (27 | ) | | — | | | — | | | (27 | ) |
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Income (loss) before non-controlling interest and income | (87,626 | ) | | 9,342 | | | — | | | (78,284 | ) |
taxes |
Income tax provision | (554 | ) | | — | | | — | | | (554 | ) |
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Net income (loss) attributable to Crosstex Energy, L.P. | $ | (88,180 | ) | | $ | 9,342 | | | $ | — | | | $ | (78,838 | ) |
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For the Three Months Ended September 30, 2012 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
(As Adjusted) |
| (In thousands) |
Total revenues | $ | 430,064 | | | $ | 20,468 | | | $ | (5,585 | ) | | $ | 444,947 | |
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Total operating costs and expenses | (438,876 | ) | | (9,859 | ) | | 5,585 | | | (443,150 | ) |
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Operating income (loss) | (8,812 | ) | | 10,609 | | | — | | | 1,797 | |
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Interest expense, net | (23,220 | ) | | (9 | ) | | — | | | (23,229 | ) |
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Other income | 5,950 | | | — | | | — | | | 5,950 | |
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Income (loss) before non-controlling interest and income | (26,082 | ) | | 10,600 | | | — | | | (15,482 | ) |
taxes |
Income tax provision | (665 | ) | | (7 | ) | | — | | | (672 | ) |
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Net loss attributable to non-controlling interest | — | | | 54 | | | — | | | 54 | |
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Net income (loss) attributable to Crosstex Energy, L.P. | $ | (26,747 | ) | | $ | 10,647 | | | $ | — | | | $ | (16,100 | ) |
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For the Nine Months Ended September 30, 2013 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
Total revenues | $ | 1,331,143 | | | $ | 56,461 | | | $ | (18,964 | ) | | $ | 1,368,640 | |
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Total operating costs and expenses | (1,401,180 | ) | | (25,134 | ) | | 18,964 | | | (1,407,350 | ) |
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Operating income (loss) | (70,037 | ) | | 31,327 | | | — | | | (38,710 | ) |
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Interest expense, net | (54,874 | ) | | — | | | — | | | (54,874 | ) |
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Other income | 262 | | | — | | | — | | | 262 | |
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Income (loss) before non-controlling interest and income | (124,649 | ) | | 31,327 | | | — | | | (93,322 | ) |
taxes |
Income tax provision | (2,097 | ) | | — | | | — | | | (2,097 | ) |
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Net income (loss) attributable to Crosstex Energy, L.P. | $ | (126,746 | ) | | $ | 31,327 | | | $ | — | | | $ | (95,419 | ) |
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For the Nine Months Ended September 30, 2012 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
(As Adjusted) |
| (In thousands) |
Total revenues | $ | 1,221,502 | | | $ | 64,946 | | | $ | (21,140 | ) | | $ | 1,265,308 | |
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Total operating costs and expenses | (1,213,993 | ) | | (28,715 | ) | | 21,140 | | | (1,221,568 | ) |
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Operating income | 7,509 | | | 36,231 | | | — | | | 43,740 | |
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Interest expense, net | (63,867 | ) | | (65 | ) | | — | | | (63,932 | ) |
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Other income | 5,975 | | | — | | | — | | | 5,975 | |
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Income (loss) before non-controlling interest and income | (50,383 | ) | | 36,166 | | | — | | | (14,217 | ) |
taxes |
Income tax provision | (1,493 | ) | | (14 | ) | | — | | | (1,507 | ) |
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Net loss attributable to non-controlling interest | — | | | 163 | | | — | | | 163 | |
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Net income (loss) attributable to Crosstex Energy, L.P. | $ | (51,876 | ) | | $ | 36,315 | | | $ | — | | | $ | (15,561 | ) |
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Condensed Consolidating Statements of Cash Flows |
For the Nine Months Ended September 30, 2013 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
Net cash flows provided by operating activities | $ | 46,028 | | | $ | 42,603 | | | $ | — | | | $ | 88,631 | |
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Net cash flows used in investing activities | $ | (368,318 | ) | | $ | (22,887 | ) | | $ | — | | | $ | (391,205 | ) |
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Net cash flows provided by (used in) financing activities | $ | 302,459 | | | $ | (19,716 | ) | | $ | 19,716 | | | $ | 302,459 | |
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For the Nine Months Ended September 30, 2012 |
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| Guarantors | | Non-Guarantors | | Elimination | | Consolidated |
| (In thousands) |
Net cash flows provided by (used in) operating activities | $ | (3,335 | ) | | $ | 47,916 | | | $ | — | | | $ | 44,581 | |
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Net cash flows used in investing activities | $ | (393,866 | ) | | $ | (547 | ) | | $ | — | | | $ | (394,413 | ) |
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Net cash flows provided by (used in) financing activities | $ | 328,207 | | | $ | (46,989 | ) | | $ | 46,989 | | | $ | 328,207 | |
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