On a positive note, the firms believe the partnership remains optimally positioned to continue to lever off its geographic footprint; however, the key to profitability hinges on both execution and integration. XTEX is trying to counteract the negative impact from hurricane effects, the uncertain capital markets, and reduced drilling budgets from producers. As the focus is on liquidity and solvency issues in the near term, the analysts believe the outlook for Crosstex remains rather uncertain. Although commendable for making decisive adjustments to the partnership’s strategy, the analysts contend that these efforts will continue to overhang XTEX units until tangible evidence of regaining financial footing materializes.

The partnership faces an uphill struggle to deleverage the balance sheet while maintaining its core assets and riding out the weak environment for NGLs. The partnership’s ability to accomplish this while continuing as a viable MLP is uncertain.