Phase II Project to Increase Transloading Capacity
by 15,000 Barrels of Oil per Day
DALLAS--(BUSINESS WIRE)--May. 7, 2012--
Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex
Energy, Inc. (NASDAQ: XTXI) (the Corporation) announced today that the
Partnership is increasing its capacity to transload crude oil from rail
cars to both barges and pipelines at its Riverside fractionation
facility in southern Louisiana from approximately 4,500 barrels of crude
oil per day to approximately 14,500 barrels of crude per day.
Construction of the Phase II expansion project at Riverside, located on
the Mississippi River, will be operational in the first quarter of 2013.
The Partnership has entered into a long-term supply agreement which
fully underwrites the expansion.
The Phase II development at Riverside will include new storage tank
facilities, upgraded pipeline connections and improved barge delivery
capabilities on the Mississippi River. The Phase I modification of the
Riverside facility, which allowed crude as well as natural gas liquids
(NGL) to be transloaded from rail to barge, has been in operation since
January 2012. The expansion project is expected to cost approximately
$16 million. The average annual cash flow from Phases I and II is
estimated to be approximately $10 million.
“We continue to execute on our growth strategy by expanding and
upgrading our existing assets to take advantage of crude opportunities,”
said Barry E. Davis, Crosstex President and Chief Executive Officer. “We
are in an ideal physical location to take advantage of premium markets
in southern Louisiana and growing domestic crude supply. This represents
substantial fee-based margin for us, and we’re continuing to evaluate
additional projects that would develop this business further.”
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, Texas, operates approximately 3,300 miles of pipeline, ten
processing plants and four fractionators. Crosstex Energy, L.P.
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 forecasts regarding capacity, cash flow,
incremental investment and timing for becoming operational for the
project discussed above, as well as the Partnership’s future growth 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, L.P.
Crosstex Energy, L.P.
Jill McMillan, 214-721-9271
Public & Industry Affairs