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Crosstex Energy Completes Acquisition of Assets From Duke Energy Field Services

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
        30 MMcfd.

    --  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

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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