DALLAS, Jul 22, 2004 (BUSINESS WIRE) -- Crosstex Energy, L.P.
(NasdaqNM:XTEX) and Crosstex Energy Inc. (NasdaqNM:XTXI) today
announced that they will each restate their annual financial
statements for 2002 due to the discovery of errors in each of their
2002 Consolidated Statement of Operations. The correction of the
errors will not impact reported 2003 or quarterly 2004 Net Income, or
previously issued 2004 guidance. The restatement is expected to have
the effect of reducing Net Income for Crosstex Energy, L.P. by $1.7
million in 2002, from $2.0 million reported to $0.3 million as
restated. The adjustment to Crosstex Energy Inc.'s 2002 Net Income has
not yet been quantified, but it is expected to be less than the
adjustment to the Partnership's Net Income. The adjustments to both
entities' financial statements are subject to change pending the final
outcome of the review by the Companies' external auditors.
The Companies determined during the course of internal reviews
that, due to a clerical error, certain reconciling items arising
during 2002 accounting had not been properly cleared. The Companies
have implemented improvements in their accounting systems to ensure
that these types of errors do not occur again.
The reduction in Net Income will have the effect of reducing
Partners' Equity on the Partnership's Consolidated Balance Sheets at
Dec. 31, 2002 and 2003, and March 31, 2004 and Stockholders' Equity on
the Corporation's Consolidated Balance Sheets on those same dates, by
the same amount as the reduction in Net Income. The adjustments also
require the restatement of the Partnership's Consolidated Statements
of Changes in Partners' Equity and the Corporation's Consolidated
Statements of Changes in Stockholders' Equity for the years ended Dec.
31, 2002 and 2003 and the three months ended March 31, 2004, and each
Companies' Consolidated Statement of Operations for the year ended
Dec. 31, 2002, Consolidated Statement of Comprehensive Income for the
year ended Dec. 31, 2002 and Consolidated Statement of Cash Flows for
the year ended Dec. 31, 2002.
As material adjustments to the previously reported financial
statements will be required, investors should not rely on the
financial information contained in the financial statements mentioned
above in either Crosstex Energy, L.P.'s or Crosstex Energy Inc.'s
Annual Report on Form 10-K for the period ended Dec. 31, 2003 or
Quarterly Report on Form 10-Q for the quarter ended March 31, 2004.
Amended Form 10-Ks for the period ended Dec. 31, 2003 and Amended Form
10-Qs for the quarter ended March 31, 2004 will be filed as soon as
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. owns the general partner, a 54.3 percent
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 adjustments to the 2002,
2003 and quarterly 2004 financial statements, 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.
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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