Falcone Sells Natural Gas Stock

Chidem Kurdas

Looks like Philip Falcone reversed course on Crosstex Energy, a natural gas producer and distributor. His Harbinger funds have been selling Crosstex shares since late July. This is surprising because in May he reportedly said at a conference that he liked Crosstex.

Last year, Harbinger Capital built a 9.6% stake in Crosstex and raised the possibility of an activist stance toward the energy firm, indicating that it may communicate with the shareholders, officers or board members about operations, governance and control.

Last month Crosstex announced that it is completing engineering studies, pipeline work and environmental permit applications for a natural gas liquids project that will expand its Louisiana fractionation facilities and extend access to these and Louisiana product markets through a new pipeline.

That was just a few days before Mr. Falcone started to sell Crosstex shares. Harbinger funds now own 7.6% of Crosstex, down two percentage points.

In May he said he expected the price to double to $18. And it has gone up high enough for Mr. Falcone to make a tidy profit on the shares he sold. But the rest of his Crosstex stake looks to lose value as slow growth tamps down on energy prices. Crosstex was down 5.3% today, fluctuating around $14.  Harbinger might continue selling.

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Tags: Crosstex Energy, Harbinger Capital, Philip Falcone