UPDATE: Oppenheimer Initiates Coverage on Crosstex Energy LP, 2014 Growth Outlook Less Certain

In a report published Wednesday, Oppenheimer analyst Bernard Colson initiated coverage on

with a Perform rating. In the report, Oppenheimer noted, “We initiate coverage of Crosstex Energy (XTEX) with a Perform rating and do not assign a PT. Exposure to dry natural gas declines and frac spread has resulted in a difficult 2012 and 1H13. However, the start up of Cajun Sibon Phase 1 is expected to lead to a resumption of distribution growth in 2H13. The 2014 growth outlook is less certain, with preferred units converting to cash distribution payment and ongoing spending on Cajun Sibon Phase 2. These issues, combined with our view that XTEX will require equity to finance organic spending and reduce leverage, result in a Perform rating. We believe the units are currently fairly valued and would look to get more constructive at lower levels.” Crosstex Energy LP closed on Tuesday at $18.72.