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Crosstex Energy Completes Long-Term Supply Contracts for Cajun-Sibon Natural Gas Liquids Pipeline Extension and Fractionation Facilities Expansion

Company Sees Solid Customer Demand for Phase II Expansion

DALLAS--(BUSINESS WIRE)--Jul. 26, 2012-- The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), today announced that commercial contracting is complete for Phase I of the Partnership’s Cajun-Sibon natural gas liquids (NGL) extension and Eunice fractionator expansion. With contracts for third-party volumes in excess of 60,000 barrels per day and the Partnership’s equity volumes, the Partnership expects to begin operations at the project’s initial capacity of 70,000 barrels per day.

Phase I includes a 130-mile, 12-inch-diameter pipeline that will extend the Partnership’s existing 440-mile Cajun-Sibon NGL pipeline system and connect Crosstex’s Eunice NGL fractionation facility in south central Louisiana to Mont Belvieu supply pipelines in East Texas. As part of the project, the Eunice fractionator will also be expanded from 15,000 barrels to 55,000 barrels of NGL per day, increasing the Partnership’s interconnected fractionation capacity in Louisiana to approximately 97,000 barrels per day of NGLs.

The Partnership expects that Phase I facilities will be operational in the second quarter of 2013. The capital cost for the Phase I project is approximately $230 million. The pipeline extension and fractionation expansion allow the Partnership to provide gas producers and midstream companies an improved NGL transportation, fractionation and marketing alternative to Mont Belvieu. Key customers that have made long-term supply commitments to the project include BP Products North America, Inc., Markwest Energy East Texas Gas Company, L.L.C., and TexStar Midstream Services, L.P., as well as other significant midstream companies.

Crosstex also announced that it is finalizing engineering and has begun negotiating long-term agreements for Phase II of the project, which is being developed in response to the strong interest shown by both midstream and producer customers. Phase II would provide transportation and fractionation capacity for an incremental 50,000 barrels of NGL per day as an alternative to Mont Belvieu. If implemented, the Phase II expansion could be completed in 2014.

“We are focused on executing Phase I and II of the Cajun-Sibon projects. We are extremely pleased that both producers and midstream companies alike continue to show great enthusiasm for these projects. They substantiate the value of alternatives to the Mont Belvieu fractionation and liquids markets,” said Barry E. Davis, Crosstex President and Chief Executive Officer.

About the Crosstex Energy Companies

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 3,500 miles of natural gas, natural gas liquids, and oil pipelines, 10 processing plants and four fractionators. The Partnership also operates barge terminals, rail terminals, product storage facilities, brine water disposal wells, and an extensive truck fleet.

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 with respect to forecasts regarding capacity, cash flow, incremental investment and timing for becoming operational for the projects 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

Crosstex Energy
Jill McMillan, 214-721-9271
Director, Public & Industry Affairs
Jill.McMillan@CrosstexEnergy.com