Partnership Expands Crude and Condensate Midstream Services to
Utica Shale Play
DALLAS--(BUSINESS WIRE)--Jul. 2, 2012--
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation),
today announced that the Partnership has completed its previously
announced acquisition of privately held Clearfield Energy, Inc. for
approximately $210 million in cash. Clearfield is a 125-year-old crude
oil, condensate and water services company with operations in Ohio,
Kentucky and West Virginia. It is expected that the acquisition will be
immediately accretive to distributable cash flow.
“The Clearfield acquisition positions Crosstex in the rapidly developing
Utica and Marcellus shale plays and provides us with a substantial
growth platform in a new geographic area,” said Barry E. Davis, Crosstex
President and Chief Executive Officer. “Our core capabilities and strong
financial position empower us to leverage these well-positioned assets
and solid operations to accelerate future value creation. This
represents a significant addition to our crude and condensate business,
and our initial entry into salt water disposal. We also anticipate we
will take advantage of natural gas gathering and processing
opportunities that we plan to develop in the area.
“We welcome Clearfield’s talented employees into the Crosstex family.
Clearfield’s assets have a rich legacy and we look forward to upholding
the company’s strong tradition of outstanding customer service as we
pursue the opportunities ahead of us together,” Davis added.
The assets currently handle approximately 300,000 barrels per month of
crude and condensate in Ohio, Kentucky and West Virginia. They include a
4,500-barrel-per-hour crude oil barge-loading terminal on the Ohio
River; a 28,000-barrel-per-day crude oil rail-loading terminal on the
Ohio Central Railroad network that Crosstex expects to expand to a
56,000-barrel-per-day facility by year-end 2012; and 200 miles of crude
oil pipelines in Ohio and West Virginia. The assets also include more
than 500,000 barrels of above ground storage, six brine water disposal
wells with two additional wells under development and an extensive truck
fleet with a capacity of 35,000 barrels per day. Crosstex also acquired
more than 2,500 miles of unused right of way for future expansions.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 3,500 miles of pipeline, 10 processing
plants and four 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
22 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 regarding the Partnership and Clearfield Energy, Inc. and the
expected impact of the transaction, including the expected financial
results for the Partnership. 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. We therefore caution you against relying on any of
these forward-looking statements. 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