|Crosstex Energy Services, Inc. Receives Equity Investment From Yorktown Energy Partners|
|Dallas, Texas, May 26, 2000 - Crosstex Energy Services, Inc. today announced it has closed on a transaction with Yorktown Energy Partners IV, LP, a New York based private equity energy fund. Under the transaction, Energy Transfer, led by Ray Davis and Kelcy Warren, sold its majority ownership interest in Crosstex to Yorktown. Yorktown has also provided additional equity capital to finance future growth.
“The sale by Energy Transfer to Yorktown was consistent with their original plan. The success the company has experienced allowed them to obtain an excellent rate of return on their investment. We are excited to have Yorktown as a new financial partner. The capital infusion by Yorktown will allow us to continue our aggressive growth strategy and assures our ability to buy and build the facilities necessary to deliver our customers' natural gas to market,” said Barry Davis, President and Chief Executive Officer of Crosstex.
Crosstex has emerged as one of a few independent midstream natural gas companies among the giants created by the “mega-mergers” in the industry. Since 1992, the management of Crosstex has led the development of a grass roots energy services company by providing natural gas gathering, treating, processing, and natural gas and crude oil marketing services to independent oil & gas producers.
Managed by Yorktown Partners LLC, Yorktown Energy Partners IV, LP, is a private equity energy fund.