Crosstex Energy, Inc. Q2 2008 Earnings Call Transcript

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2008-08-08 11:45:24.0

Tags: Crosstex Energy Inc.

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). And your first question comes from the line of Darren Horowitz of Raymond James. Please proceed sir.

Darren Horowitz

Good morning guys. First question is on Louisiana side, when you were addressing your continuing efforts in order to integrate those operations and address an incremental rich gas. Can you give us sense for what opportunities have been implemented, what you’re considering in maybe kind of quantify the benefit of that?

Bill Davis

Darren this is Bill, good morning. Yeah there is several things being done there or have been done as well. Among them there is gas that became available to us on the acquisition, the assets from El Paso that we have been directing to the LIG facilities because there are more margins available for processing that gas then at LIG and the El Paso previously on facilities. There is additionally rich gas on LIG system that were taking to the Unis facility today for processing, because that’s the best available facility for that particular set of gas. There is the potential – the LIG system runs through both the Gibson and the Plaquemine plants and we’re examining possibility of looping that line because the Gibson plant is that above capacity, and there is available capacity at Plaquemine plants so we’re examining the feasibility of looping the line between those two facilities to get the gas from Gibson and to the Plaquemine facility. We are also looking at the possibility of things like moving the truck loading facilities that are used at River Side to the Plaquemine facility to preop capacity at River Side for fractionation because of its fractionator at Plaquemine that’s under utilize. So there are – and there are number of other opportunities that we’re looking at, and including there is a shortage of fractionation capacity in the area and we’ve got a fractionator available at Unis and there is just lots of opportunity that we’re continuing to examine to increase the utilization of those facilities.

Darren Horowitz

Okay. When you look at a lot of those different opportunities Bill and you advance over the course of the next 12 to 18 months inclusive of all gathering and treating in any sort of fractionation in East Texas and Louisiana. At this point, what do you think the preliminary forecast for your CapEx could be?

Bill Davis

Well, around those particular projects that we are talking about it's not that significant a number Darren. But overall though when you start to talk about our overall capital expenditure opportunity and you plug in the Haynesville, you can just some pretty big numbers from an opportunity set, it's a question of what the capital availability looks like around those things.

 

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