DALLAS, Sep 26, 2008 (BUSINESS WIRE) -- Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) announced today
that the majority of its assets in Texas and Louisiana sustained minimal
physical damage as a result of Hurricane Ike. Most of the Partnership's
facilities along the Gulf Coast are resuming or have resumed operations.
However, the Sabine plant, because of its proximity to the Louisiana
Gulf coast, sustained some damage that is still being assessed. It is
expected the plant will not be operational for at least four to six
weeks. In addition, several offshore production platforms and pipelines
transporting gas production to the Pelican and Bluewater processing
plants were damaged by the storm, and it is unclear when offshore
production will return in full. Consequently, it is anticipated that
Pelican and Bluewater volumes could remain at a lower level until those
repairs are completed by the owners of the platforms and pipelines.
The Partnership is negotiating with owners of other plants that
sustained significant damage to process displaced gas from those plants
in Crosstex's facilities.
The Partnership estimates that the combined negative impact of
Hurricanes Gustav and Ike on third-quarter cash flows will be
approximately $12-14 million. The Partnership has not quantified the
impact of the reduced operations at the Sabine, Pelican and Bluewater
plants on fourth-quarter financial results. In addition, the Partnership
is currently unable to estimate potential increases, if any, in its
processing business from gas redirected to its facilities from other
damaged plants in the region.
"Our employees encountered two back-to-back
hurricanes in just a few days, and we are extremely fortunate that they
made it through Hurricane Ike safely and the majority of our property
that was affected incurred only minor damage,"
said Barry E. Davis, Crosstex Chairman, President and Chief Executive
Officer. "We are exceptionally proud of our
employees who reached out and helped each other recover from the storm."
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 5,700 miles of pipeline, 12 processing
plants, four fractionators, and approximately 190 natural gas
amine-treating plants and dew point control plants. Crosstex currently
provides services for over 4.0 Bcf/day of natural gas, or approximately
eight percent of marketed U.S. daily production.
Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) owns the two
percent general partner interest, a 34 percent limited partner interest,
and the incentive distribution rights of Crosstex Energy, L.P.
Additional information about the Partnership can be found at www.crosstexenergy.com.
This press release contains forward-looking statements within the
meaning of the federal securities laws. These statements are based on
certain assumptions made by the Partnership and the Corporation based
upon management's experience and perception of historical trends,
current conditions, expected future developments and other factors the
Partnership and the Corporation believe are appropriate in the
circumstances. These statements include, but are not limited to,
statements with respect to the impact of Hurricanes Gustav and Ike on
the Corporation's and Partnership's
operations, financial condition and results of operations. Such
statements are subject to a number of assumptions, risks and
uncertainties, many of which are beyond the control of the Partnership
and the Corporation, which may cause the Partnership's and the
Corporation's actual results to differ materially from those implied or
expressed by the forward-looking statements. These risks include the
following: (1) the amount of natural gas transported in the
Partnership's gathering and transmission lines may decline as a result
of competition for supplies, reserve declines and reduction in demand
from key customers and markets; (2) the level of the Partnership's
processing and treating operations may decline for similar reasons; (3)
fluctuations in natural gas and NGL prices may occur due to weather and
other natural and economic forces; (4) there may be a failure to
successfully integrate new acquisitions; (5) the Partnership's credit
risk management efforts may fail to adequately protect against customer
nonpayment; (6) the Partnership may not adequately address construction
and operating risks; and (7) other factors discussed in the
Partnership's and the Corporation's Annual Reports on Form 10-K for the
year ended December 31, 2007, and other filings with the Securities and
Exchange Commission. The Partnership and the Corporation have no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events, or otherwise.
SOURCE: Crosstex Energy, L.P.
Crosstex Energy, L.P.
Crystal C. Bell, 214-721-9407
Investor Relations Specialist
Jill McMillan, 214-721-9271
Manager, Public & Industry Affairs