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Crosstex Energy, Inc.
Trades on the NASDAQ Exchange under the symbol XTXI.
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Crosstex Increases Capacity at Gregory Processing Plant; Initiates Service to New Industrial Markets in the Corpus Christi Area

DALLAS--(BUSINESS WIRE)--Sept. 15, 2003--Crosstex Energy, L.P. (NasdaqNM:XTEX), a Texas-based midstream natural gas company, today announced that it has recently completed a significant capacity expansion at its Gregory Processing Plant north of Corpus Christi, Texas. With natural gas volumes coming into the system at record levels and significant new volumes on the horizon, the plant expansion was necessary to continue to serve producers' current production and future drilling plans.

In addition, the company announced the completion of construction that will allow it to initiate service into industrial markets in the Corpus Christi area. Long-term contracts executed in conjunction with the projects will provide for additional volumes totaling 40,000 MMBtu/d to be delivered into these markets.

"In-house projects such as these demonstrate our commitment and ability to grow organically through expansion of existing and acquired assets," stated Barry Davis, President and Chief Executive Officer. "Volumes at the Gregory plant have more than doubled from 76,500 MMBtu/d when we purchased the facility in 2001 to 165,000 MMBtu/d today. By adding 20 miles of pipe from the plant tailgate and signing on two new long-term customers in the area, we have also increased our delivery capacity of this gas into the Corpus Christi industrial market."

The Gregory Processing Plant and the Gregory Gathering System, which gathers gas for transport to the plant, were acquired in May 2001. The extensive gathering system encompasses approximately 300 miles of pipeline, with a total throughput capacity in excess of 200,000 Mcf/d. It is connected to wellheads in San Patricio, Nueces, and Aransas Counties, the Corpus Christi Bay area, Mustang Island, and adjacent coastal areas.

Through processing optimization efforts in the latter part of 2002, the plant's capacity was expanded from 75,000 Mcf/d to 90,000 Mcf/d. On August 28, Crosstex started up an additional 60,000 Mcf/d plant along with 4,400 hp of compression, bringing the total processing capacity to 150,000 Mcf/d. The plant removes natural gas liquids from the rich gas produced into the gathering system. The plant also has fractionation capabilities to produce 210,000 gallons of natural gas liquids each day, which serve the local Corpus Christi market.

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 biannual Mastio & Co. 2002 Producer Purchaser Satisfaction Survey of nearly 400 gas producers. Additional information about Crosstex can be found at www.crosstexenergy.com.

This news release contains forward-looking statements, which are statements that are not historical in nature. Forward-looking statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or any underlying assumption proves incorrect, actual results may vary materially from those anticipated, estimated or projected. Among the key factors that could cause actual results to differ materially from those referred to in the forward-looking statements, are: (1) the amount of natural gas transported in our gathering and transmission lines may decline as a result of competition for supplies, reserve declines and reduction in demand from key customers and markets; (2) the level of our processing and treating operations may decline for similar reasons; (3) fluctuations in natural gas and NGL prices may occur due to weather and other natural and economic forces; (4) there may be a failure to successfully integrate new acquisitions; (5) our credit risk management efforts may fail to adequately protect against customer nonpayment; and (6) we may not adequately address construction and operating risks. These and other risks and assumptions are described in the prospectus relating to the offering and other reports that are available from the United States Securities and Exchange Commission.


    CONTACT: Crosstex Energy, Dallas
             Barry E. Davis, 214-953-9500
             President and Chief Executive Officer
             or
             William W. Davis, 214-953-9500
             Sr. V.P. and Chief Financial Officer

    SOURCE: Crosstex Energy

 
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