DALLAS, Jun 21, 2010 (BUSINESS WIRE) -- The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), announced today that the Partnership has entered into a 10-year firm transportation agreement with a major Barnett Shale producer for an additional 50 million cubic feet of natural gas per day on its North Texas gathering system. Crosstex is constructing a compressor station on an existing gathering line to accommodate the customer’s transportation requirements. The project is scheduled to be completed and operational in the first quarter of 2011. Incremental investment required for the project is estimated to be less than $10 million and the annual cash flow from the agreement is expected to be approximately $8 million.
“This agreement is a prime example of how our strategic position in the Barnett Shale adds value. We are able to make relatively low-cost, incremental investments that generate high returns and enhance the utilization of our core assets,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We will continue to look for opportunities in North Texas where our operations are located in the heart of the Barnett Shale, one of the most significant shale plays in the U.S.”
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 3,300 miles of pipeline, nine processing plants and three fractionators. The Partnership currently provides services for 3.2 billion cubic feet of natural gas per day, or approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a 25 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 10-year transportation agreement, the projected cash-flow, and the effect of such agreement on the Partnership’s future liquidity, leverage, business 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, 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
Meggan Stall, Public Relations Specialist, 214-721-9487