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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 Gulf Coast Pipeline System from Tejas Gas Corporation|
|Dallas, Texas, November 7, 2000 – Crosstex Energy Services, Inc. today announced the acquisition of Tejas Gas Transmission, L.L.C., owner of the Gulf Coast Pipeline System and its supply and marketing affiliate, G C Marketing Company. The Gulf Coast System is a 484-mile Texas intrastate pipeline system with a mainline from Refugio County in South Texas running northeast along the Gulf Coast to the Brazos River in Fort Bend County near Houston.
The system has two supply pipeline laterals off of the mainline gathering natural gas from approximately 500 wellheads and 6 plant tailgates. In addition, it has three laterals delivering natural gas directly to large industrial and utility consumers along the Gulf Coast. The system interconnects with multiple third-party pipelines offering both supply and sales. Current throughput on the system is approximately 120,000 Mcf/d.
“The purchase of the Gulf Coast System provides Crosstex with a large footprint on the Gulf Coast of Texas. Crosstex will provide all of the services necessary to maintain and strengthen the long established key relationships with burner-tip customers. In addition, we will enhance our producer relationships by expanding the upstream/field services we provide to include gathering, compression, treating and processing,” said Jim Wales, Executive Vice President of Crosstex.
“This transaction is part of an aggressive growth strategy being pursued with new funding received in May of this year from Yorktown Energy Partners IV, LP, a $400 million New York based private equity energy fund. It is a big step in our plan to become a major midstream pipeline company,” said Barry Davis, President and Chief Executive Officer of Crosstex.
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.