Southcross Energy Partners – SXE – Q3 Results and 2013 Guidance

Southcross Energy Partners, L.P. (NYSE: SXE), announced financial and operating results of Southcross Energy LLC, the predecessor of Southcross for the third quarter of 2012. Southcross closed its initial public offering of common units on November 7, 2012.

SXE – Third Quarter 2012 Highlights

• Processed natural gas volumes averaged 166,140 million BTU per day during the third quarter 2012, an increase of 42% from third quarter 2011,
• NGL production grew due to greater volumes of liquids-rich gas from Eagle Ford shale customers and averaged 8,337 barrels per day during the third quarter 2012, an increase of 101% from third quarter 2011,
• Adjusted EBITDA (as defined below) of $3.0 million during the third quarter 2012 was negatively impacted by approximately $3.6 million related primarily to previously-disclosed operating issues at Southcross’ third-party gas processor, and
• Key expansion capital expenditure projects continue to proceed well.

SXE – 2013 Guidance Highlights

• For calendar year 2013, Southcross is providing guidance of $58 million to $65 million in Adjusted EBITDA and growth capital expenditures of $100 million to $125 million.

“We are pleased with the successful completion of our initial public offering in November and are encouraged by our progress on our key capital projects, our Bonnie View fractionation facility and our Bee Line gas pipeline,” said David W. Biegler, Southcross’ Chairman, President and Chief Executive Officer. “We have achieved full operation of Bonnie View which, along with the on-going expansion of the facility expected to be completed in February 2013, will eliminate our partial dependence on the operating performance of our third-party gas processor. Completion of these key projects will enable us to realize the benefits of our Eagle Ford strategy and, we believe, drive incremental cash flow to benefit our unitholders.”

SXE – 2013 Financial Guidance

Southcross is providing its guidance forecast for the fiscal year ending December 31, 2013 for the following items:

• Adjusted EBITDA of $58 million to $65 million, and
• Expansion capital expenditures of $100 million to $125 million.

Southcross believes that its achievement of this guidance should facilitate distribution growth to its limited partners of at least 10% in 2013.

About Southcross Energy Partners, L.P. – SXE

Southcross Energy Partners, L.P. (SXE) is a master limited partnership that provides natural gas gathering, processing, treating, compression and transportation services and NGL fractionation and transportation services for its producer customers. The Partnership also sources, purchases, transports and sells natural gas and NGLs to its power generation, industrial and utility customers. The Partnership’s assets are located in South Texas, Mississippi and Alabama and include three gas processing plants, two fractionation plants and 2,590 miles of pipeline. The Partnership’s South Texas assets are located in or near the Eagle Ford shale region. SXE is headquartered in Dallas, Texas.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.