DALLAS, Dec. 13 /PRNewswire-FirstCall/ --- Crosstex Energy, L.P.
(Nasdaq: XTEX) (the Partnership) today announced that it had entered into
agreements with producers in the Fort Worth Basin that would support a major
pipeline project to bring gas out of the Barnett Shale and into major
pipelines that serve markets in Texas and the Midwestern and Eastern United
"This project gives us a significant presence in an area that shows high
demand for our services. We already have sufficient commitments to construct
a pipeline with initial capacity of 200 MMcf/d of natural gas throughput, and
expect more commitments to follow," said Barry E. Davis, President and Chief
Executive Officer. "As we mentioned in our earnings call last month, key to
our growth strategy is a balanced focus between organic growth and
acquisitions. We believe organic projects such as this can be more accretive
to earnings per dollar of investment than an acquisition in today's
Based on commitments it has received from producers to date, Crosstex will
build a 110-mile, 24-inch pipeline from a point north of Fort Worth, Texas
(Justin area) to interconnect with Natural Gas Pipeline of America and Houston
Pipeline Company in Lamar County, Texas. The estimated capital cost of the
project is $80 million and it is expected to be completed by January 2006. At
an 80 percent utilization, cash flow to the partnership from the project is
estimated to be approximately $15 million in the first year of operation.
Crosstex has engaged an engineering firm to complete a project feasibility
study by January 15, 2005.
Crosstex is also in discussions with companies that represent additional
production that is available to be committed to the project prior to the
middle of January. Crosstex will at that time make a decision regarding
expanding the capacity of the pipeline to handle any additional commitments.
The Partnership can fund initial construction expenditures for the project
from its revolving bank facility. As the project progresses, these borrowings
will be refinanced with a combination of equity and fixed-rate term debt.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a mid-stream 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 gas.
Crosstex Energy Inc. owns the general partner, a 54.3 percent limited
partner interest and the incentive distribution rights of Crosstex Energy,
Additional information about the Crosstex 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 or incorporated herein, including
statements about the future demand for our services, expected commitments,
estimated cash flows and expansion decisions, constitute forward-looking
statements. Although the companies believe that the expectations reflected in
the forward-looking statements are reasonable, they can give no assurance that
such expectations will prove to be correct.
Contact: Barry E. Davis, President and Chief Executive Officer
William W. Davis, Executive V.P. and Chief Financial Officer
Phone: (214) 953-9500
SOURCE Crosstex Energy, L.P.
/CONTACT: Barry E. Davis, President and Chief Executive Officer, or
William W. Davis, Executive V.P. and Chief Financial Officer, both of Crosstex
Energy, L.P., +1-214-953-9500/
/Web site: http://www.crosstexenergy.com /
CO: Crosstex Energy, L.P.; Crosstex Energy Inc.
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1211 12/13/2004 16:03 EST http://www.prnewswire.com