DALLAS, Jul 7, 2004 (BUSINESS WIRE) -- Crosstex Energy, L.P.
(NasdaqNM:XTEX), a Texas-based midstream natural gas company, today
announced that it has executed a definitive agreement to acquire from
Williams (NYSE:WMB) certain onshore pipeline assets south of its
Transco Compressor Station 30 in Wharton County, Texas, for $27.4
million. These assets are part of a federally regulated interstate
pipeline system. Closing is subject to receipt of abandonment
authorization from interstate service, which would result in the
pipeline being integrated into Crosstex's existing intrastate
pipelines and no longer subject to Federal Energy Regulatory
Commission ("FERC") jurisdiction. The filing is expected to be made
with the FERC by Williams and Crosstex within the next three weeks.
Proceedings are expected to take three to nine months to complete.
Crosstex is also currently finalizing agreements with Williams to
acquire two unregulated pipeline assets that are interconnected with
the Transco assets for approximately $2.6 million.
"These assets will provide access to significant additional
supplies of rich and lean gas, opportunities to further optimize and
integrate operations on our intrastate Gulf Coast and CCNG systems,
and access to new markets in Texas," said Barry E. Davis, president
and chief executive officer of Crosstex. "In the future, these assets
will provide Crosstex additional opportunities to serve gas producers
and markets in deep south Texas, not currently accessed by our
existing pipeline systems, as well as enhance our overall position in
this key gas supply and market region."
The Transco assets, located in 15 counties in gas-rich South
Texas, are comprised of approximately 500 miles of 24 and 26-inch
pipeline. The lines extend from Hidalgo County in the south across the
company's CCNG and Gulf Coast systems to Wharton County in the north
and west to McMullen County. Current throughput is about 200,000
MMBTU/day, with a capacity of approximately 600,000 MMBTU/day.
Crosstex Energy, L.P., a midstream natural gas company
headquartered in Dallas, operates over 4,500 miles of pipeline, five
processing plants, and over 60 natural gas amine treating plants.
Crosstex currently provides services for over 1.5 BCF/day of natural
Crosstex Energy, Inc. (NasdaqNM:XTXI) owns the general partner, a
54.3% limited partner interest and the incentive distribution rights
of Crosstex Energy, L.P.
Additional information about the companies can be found at
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
All statements other than statements of historical facts included
herein, including statements regarding the possible benefits and
opportunities to be provided by the Transco assets, constitute
forward-looking statements. Although the company believes that the
expectations reflected in the forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to be correct.
SOURCE: Crosstex Energy, L.P.
Crosstex Energy, L.P., Dallas
Barry E. Davis, 214-953-9500
William W. Davis, 214-953-9500
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