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|Crosstex Energy, Inc. |
Trades on the NASDAQ Exchange under the symbol XTXI.
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|Crosstex Energy Services, Inc. Acquires Corpus Christi Natural Gas Company|
|Dallas, Texas, May 11, 2001 – Crosstex Energy Services, Inc. today announced the acquisition of Corpus Christi Natural Gas Company, LP (CCNG) from an affiliate of Shell U.S. Gas & Power Company. The acquisition includes CCNG's gathering, processing, transmission, marketing, and industrial pipeline affiliates. The CCNG System consists of approximately 520 miles of gathering and transmission pipelines, the Rosita gas treating plant and the Gregory gas processing/fractionation facility. In a geographically related transaction, Crosstex has also acquired the 200-mile South Texas Pettus gathering system from Plains Resources.
The CCNG mainline system has 350,000 Mcf/d of throughput capacity transporting gas to the Texas Gulf Coast and interconnects with major industrial and utility consumers in the Corpus Christi area. The system interconnects with multiple third-party pipelines offering both supply and sales, including the Tejas Gas Pipeline, L.P. Banquette hub. The Rosita Gas Treating Plant consists of two 140 GPM amine treating units with a combined treating capacity of 40,000 Mcf/d. The Gregory Processing Plant is a cryogenic turbo-expander plant with an inlet design capacity of 100,000 Mcf/d and includes a 300-mile gathering system.
“The purchase of the Gulf Coast System from Tejas last fall gave Crosstex a large presence in the upper Gulf Coast of Texas. The purchase of Corpus Christi Natural Gas Company extends our position south into the lower Gulf Coast and west into Duval County. Crosstex will continue to provide all of the services necessary to maintain and strengthen the long established relationships with Corpus Christi Natural Gas burner-tip customers. In addition, we will enhance our producer relationships by expanding the capacity of our upstream/field service facilities at Gregory and Rosita, along with additional opportunities for gathering, processing, treating, and compression” said Jim Wales, Executive Vice President of Crosstex.
“This transaction is the continuation of our aggressive growth strategy which is currently focused in the Gulf Coast area. It will increase our owned facilities to over 1,400 miles of pipelines and 17 operating treating and processing plants,” said Barry Davis, President and Chief Executive Officer of Crosstex. “There is significant synergy between the CCNG assets and our existing pipeline and plant assets in the area. Additionally, there are a number of identified follow-on acquisitions and facility expansions that will come as a result of this transaction. Through Yorktown Energy Partners IV, LP, a $400 million New York based private equity energy fund and its co-investors, we have the capital available to develop those opportunities and continue our growth strategy. “
Crosstex has emerged as one of a few independent midstream natural gas companies among the giants created by the “mega-mergers” in the industry. Since 1992, Crosstex has created a grass roots energy services company by providing natural gas gathering, treating, processing, compression, and natural gas and crude oil marketing services to independent oil & gas producers.
Managed by Yorktown Partners LLC, Yorktown Energy Partners IV, LP, is a private equity energy fund.