Company Satisfies Debt Reduction Target; Reduces Outstanding Debt
by More Than $500 Million
DALLAS--(BUSINESS WIRE)--Oct. 1, 2009--
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation),
announced today the completion of the sale of the Partnership’s natural
gas treating business to Houston-based Kinder Morgan Energy Partners,
L.P. (NYSE: KMP), one of the largest pipeline transportation and energy
storage companies in North America. The purchase price was approximately
$266 million, including working capital and closing adjustments.
Crosstex will use the net proceeds from the transaction to pay down
approximately $259 million of the Partnership’s outstanding debt. This
debt repayment, in addition to repayments made with proceeds from
previous asset sales, fully satisfies the targeted debt reduction
established in the Partnership’s amendments to its debt facilities
entered into in the spring of this year.
“The completion of this sale is another important step forward in the
execution of our strategic plan. Asset sales have enabled us to reduce
debt by more than $500 million, improving our leverage position and
liquidity. We are focused on enhancing profitability by increasing
margins, reducing costs and achieving operating efficiencies throughout
our core assets in the Barnett and Haynesville shales and our natural
gas liquids business. We have made substantial progress, which is
reflected in our solid results and improved guidance for 2009,” said
Barry E. Davis, Crosstex President and Chief Executive Officer.
“We will continue to explore additional means to increase financial
flexibility and enhance our bottom line, with a goal of restoring
distributions and dividends to our unitholders and shareholders,” Davis
Goldman, Sachs & Co. served as the exclusive financial advisor to
Crosstex in connection with the transaction.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 3,300 miles of pipeline, 10 processing
plants and three fractionators. The Partnership currently provides
services for 3.2 billion cubic feet per day of natural gas, or
approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a
33 percent limited partner interest, and the incentive distribution
rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies 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 Partnership’s future liquidity, leverage,
business and results of operations and to the payment of dividends and
distributions. 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, but
are not limited to, risks discussed in the Partnership’s and the
Corporation’s 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
Jill McMillan, 214-721-9271
Public & Industry Affairs