DALLAS, Jul 1, 2003 (BUSINESS WIRE) -- Crosstex Energy, L.P.
(NasdaqNM:XTEX), a Texas-based midstream natural gas company, today
announced that it has completed the previously-announced acquisition
of a package of assets in Mississippi, Texas, Alabama and Louisiana
from Duke Energy Field Services, L.P. for $67.35 million, after the
effect of certain purchase price adjustments.
The acquisition increases Crosstex's total miles of gathering and
transmission pipeline from approximately 1,700 to approximately 2,500,
an increase of 47%, and increases volumes handled by Crosstex to over
one billion cubic feet per day, based on 2003 first quarter volumes
for Crosstex and the acquired assets.
"We are pleased to close this transaction, and express our thanks
to the Duke personnel with whom we have worked to complete the
acquisition," said Barry E. Davis, President and Chief Executive
Officer of Crosstex. "We are excited about the assets we have acquired
and the personnel operating them, who today become a part of the
Crosstex employee team."
The assets acquired were:
-- The AIM Pipeline System (to be renamed Crosstex Mississippi
Pipeline). Crosstex Mississippi Pipeline is a gathering and
transmission system that gathers wellhead production in
south-central Mississippi and markets gas to industrial and
power plant users. Covering 15 counties, the system consists
of 625 miles of 4" through 20" pipeline. Recent throughput on
the system has averaged approximately 82 MMcfd.
-- A 12.4 percent interest in the Seminole Gas Processing Plant
operated by Amerada Hess. Located in Gaines County, Texas, the
Seminole Plant provides CO2 separation, NGL extraction, and
sulfur recovery services for several major oil companies. The
facility has dedicated long-term reserves from the Seminole
San Andres Unit, with a stable dedicated utilization of the
CO2 made available for tertiary oil recovery. The plant is in
the process of completing a capacity expansion from 150 MMcfd
to 210 MMcfd.
-- The Conroe Gas Plant and Gathering System, which is a
cryogenic gas processing plant with 10 miles of gathering
pipelines located within the Conroe Field Unit in Montgomery
County, Texas. Recent throughput on the system has been about
-- The Black Warrior Pipeline System (to be renamed the Crosstex
Alabama Gathering System), which consists of approximately 125
miles of 4" to 12" gathering systems in Alabama. The primary
gas supply is from coalbed methane gas from the Black Warrior
Basin, with recent average throughput of approximately 13,800
MMBtu per day.
-- Two small systems, Aurora Centana and Cadeville in Louisiana.
Crosstex Energy, L.P., a mid-stream natural gas company
headquartered in Dallas, operates approximately 2,500 miles of
pipeline, three processing plants, and approximately 40 natural gas
amine treating plants. Crosstex currently provides services for over
1,000,000 MMBtu/day of natural gas. Crosstex Energy was ranked first
in the Mastio & Co. 2002 Producer Purchaser Satisfaction Survey of
nearly 400 gas producers. Additional information about Crosstex can be
found at www.crosstexenergy.com.
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 may 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 or William W. Davis, 214/953-9500
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