DALLAS--(BUSINESS WIRE)--Mar. 6, 2013--
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ:XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ:XTXI) (the Corporation),
today announced that the Corporation has joined with the former
management of Enerven Compression Services to form a new company (E2)
that will provide services for producers in the liquids-rich window of
the Utica Shale play. The initial investment of approximately $50
million will include new natural gas compression and condensate
stabilization facilities. This investment will complement the
Partnership’s assets in the Ohio River Valley, which encompass crude
oil, condensate and logistics operations in the Utica and Marcellus
E2 will build, own and operate two gas gathering compressor stations and
condensate stabilization assets in Noble and Monroe counties in the
southern portion of the Utica Shale play in Ohio. The counties are
located immediately east of the Partnership’s assets in the Ohio River
Valley. These initial facilities are supported by a long-term, fee-based
contract with an active producer. E2 will serve as the manager and
operator of these assets with expected commercial operations to start up
during the third quarter of 2013.
The investment in E2 will be made by the Corporation, which owns the
Partnership’s General Partner. A wholly-owned subsidiary of the
Corporation has entered into a $75 million senior secured credit
facility in order to provide the financing for the Corporation’s
investment in E2. The Corporation will own approximately 93 percent of
E2 and has pre-determined rights to purchase the remaining ownership
interests of E2 in the future.
“Our investment in E2 is a strategic step in growing our platform in the
Ohio River Valley. Utilizing the Corporation for this investment
provides an additional source of capital for growth,” said Barry E.
Davis, Crosstex President and Chief Executive Officer. “We are pleased
to begin our partnership with the E2 management and expect this to be
the first of many similar transactions with them as we expand our
footprint in the Utica and Marcellus regions. Crosstex’s entrance into
condensate stabilization is another step in realizing our long-term
vision for offering additional condensate solutions in the Utica. We
will continue to leverage our condensate expertise and trucking business
to ensure our customers receive the highest possible value for their
condensate product,” Davis added.
About the Crosstex Energy Companies
Crosstex Energy, L.P. (NASDAQ: XTEX) is an integrated midstream energy
partnership headquartered in Dallas that offers diversified, tailored
customer solutions spanning the energy value chain with services and
infrastructure that link energy production with consumption. XTEX
operates approximately 3,500 miles of natural gas, natural gas liquids
and oil pipelines, 10 natural gas processing plants and four
fractionators, as well as barge and rail terminals, product storage
facilities, brine water disposal wells and an extensive truck fleet.
XTEX has the right platform, the right opportunities and the right
people to pursue its growth-focused business strategy.
Crosstex Energy, Inc. (NASDAQ: XTXI) owns combined general and limited
partner interests of approximately 19 percent 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 the Corporation’s expectations for the
investments in E2. 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
Jill McMillan, 214-721-9271
Public & Industry Affairs