Energy Prospectus

The units have really hit the skids, slicing under $10 yesterday. The action in the units suggests a distribution cut, when the distribution is next announced, which should be early next week. Thoughts anyone?

No clue, hoping it's just tied to the MLP sector selloff and not anything specific to SXE. At $1.60/yr, we're paid to wait at a nice high yield

On May 8 SXE said: "Southcross expects its Adjusted EBITDA for the second quarter of 2015 will be approximately $17 million to $20 million reflecting some continuing financial impact from restoring the Gregory facility to full capacity and relatively flat rich gas volumes on its system compared to first quarter 2015 volumes."

My forecast model, which you can download from the EPG website, is based on the low end of this EBITDA forecast.

DALLAS--(BUSINESS WIRE)--Jul. 6, 2015-- Southcross Energy Partners, L.P. (NYSE:SXE) (“Southcross”) today announced the completion of a 60,000 bbls/d Y-grade pipeline connecting Southcross’ Woodsboro processing facility to Southcross Holdings LP’s (“Holdings”) 63,000 bbls/d Robstown Fractionator (“Robstown”) near Corpus Christi, Texas and a 20,000 bbls/d propane pipeline from Southcross’ Bonnie View Fractionator to the Corpus Christi area for delivery to end-use customers (collectively, the “NGL Pipelines”). The NGL Pipelines were part of the drop-down transaction announced in May 2015 with construction expected to be complete in July 2015. In addition, the first of the two fractionation trains at Robstown is operating at approximately 32,000 bbls/d of Y-grade. The second fractionation train at Robstown is currently in the commissioning phase and remains on target to be operational by August 2015.

“We are pleased to report that the NGL Pipelines have been completed ahead of schedule and under budget,” said John Bonn, president and chief executive officer of Southcross’ general partner. “The NGL Pipelines, together with the continued progress toward the completion of the Robstown fractionation complex, are a critical component of our fully integrated processing and fractionation complex in the South Texas area. Our integrated system is an important part of the Southcross Advantage and provides us with competitive and economic advantages through increased operating efficiency, flexibility and system reliability.”
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This raises my confidence in my 2nd half 2015 revenue forecast. - Dan

From first quarter 10-Q
Distributions
Our agreement of limited partnership, which was amended and restated on August 4, 2014 in order to establish the Class B Convertible Units (as
amended and restated, the “Partnership Agreement”), requires that within 45 days after the end of each quarter, we distribute all of our available cash to
unitholders of record on the applicable record date, as determined by our General Partner. We intend to make a minimum quarterly distribution to the holders of our common units and subordinated units of $0.40 per unit, or $1.60 on an annualized basis, to the extent we have sufficient cash from our operations after the establishment of cash reserves and the payment of costs and expenses, including reimbursements of expenses to our General Partner. However, there is no guarantee that we will pay the minimum quarterly distribution on our units in any quarter. Beginning with the third quarter of 2014, until such time that we have a distributable cash flow divided by cash distributions ratio (“Distributable Cash Flow Ratio”) of at least 1.0, Holdings, the holder of all of our subordinated units, waived the right to receive distributions on any subordinated units that would cause the Distributable Cash Flow Ratio to be less than 1.0.