sxe

[mkarpoff]

I don't mean to pry into your wallet, but the sxe report looks excellent so I was wondering why, at this price, you aren't adding it to your portfolio?

[dan_s]

SXE is in our High Yield Income Portfolio. Personally, I cannot own everything but I may add it to one of our IRA accounts soon. Note that I do not buy or sell anything within 72 hours after publishing a profile of the newsletter. That does not mean I will not buy it next week.

Honestly, I had not taken a hard look at SXE in several months and I was very impressed by the progress they have made. I do think they are just a couple quarters away from raising their distributions to unitholders. You should listen to the webcast on their website.

[Maverick]

Dan,

Do you have any concerns about the debt levels of SXE? They are higher than their peers and they are pretty close to hitting their debt covenant limits. Their commodity exposure and unit price decline cannot be helping.

I would really appreciate your thoughts.

[dan_s]

SXE financial will look a lot better when they report 4th quarter results. This midstream MLP is in the ramp up stage. The best thing for you to do is to listen to the webcast of their December 9th presentation at the Wells Fargo 2014 Energy Symposium in New York.

The replay of the webcast is available on the SXE website. The slide presentation will be available on Southcross’ website at www.southcrossenergy.com under the “Investors” section.

Keep in mind that SXE gathers, processes and transports production from the heart of the Eagle Ford where production continues to ramp up.