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Crosstex Energy, Inc.
Trades on the NASDAQ Exchange under the symbol XTXI.
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Crosstex Announces Major Pipeline for Barnett Shale Gas; Company Has Sufficient Commitments to Support 110 Mile Pipeline

DALLAS, Dec. 13 /PRNewswire-FirstCall/ --- Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) today announced that it had entered into agreements with producers in the Fort Worth Basin that would support a major pipeline project to bring gas out of the Barnett Shale and into major pipelines that serve markets in Texas and the Midwestern and Eastern United States.

"This project gives us a significant presence in an area that shows high demand for our services. We already have sufficient commitments to construct a pipeline with initial capacity of 200 MMcf/d of natural gas throughput, and expect more commitments to follow," said Barry E. Davis, President and Chief Executive Officer. "As we mentioned in our earnings call last month, key to our growth strategy is a balanced focus between organic growth and acquisitions. We believe organic projects such as this can be more accretive to earnings per dollar of investment than an acquisition in today's environment."

Based on commitments it has received from producers to date, Crosstex will build a 110-mile, 24-inch pipeline from a point north of Fort Worth, Texas (Justin area) to interconnect with Natural Gas Pipeline of America and Houston Pipeline Company in Lamar County, Texas. The estimated capital cost of the project is $80 million and it is expected to be completed by January 2006. At an 80 percent utilization, cash flow to the partnership from the project is estimated to be approximately $15 million in the first year of operation. Crosstex has engaged an engineering firm to complete a project feasibility study by January 15, 2005.

Crosstex is also in discussions with companies that represent additional production that is available to be committed to the project prior to the middle of January. Crosstex will at that time make a decision regarding expanding the capacity of the pipeline to handle any additional commitments.

The Partnership can fund initial construction expenditures for the project from its revolving bank facility. As the project progresses, these borrowings will be refinanced with a combination of equity and fixed-rate term debt.

About the Crosstex Energy Companies

Crosstex Energy, L.P., a mid-stream natural gas company headquartered in Dallas, operates over 4,500 miles of pipeline, five processing plants, and over 60 natural gas amine treating plants. Crosstex currently provides services for over 1.5 BCF/day of natural gas.

Crosstex Energy Inc. owns the general partner, a 54.3 percent limited partner interest and the incentive distribution rights of Crosstex Energy, L.P.

Additional information about the Crosstex companies 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, including statements about the future demand for our services, expected commitments, estimated cash flows and expansion decisions, constitute forward-looking statements. Although the companies believe that the expectations reflected in the forward-looking statements are reasonable, they can give no assurance that such expectations will prove to be correct.

     Contact:  Barry E. Davis, President and Chief Executive Officer
               William W. Davis, Executive V.P. and Chief Financial Officer
               Phone:  (214) 953-9500

SOURCE  Crosstex Energy, L.P.
    -0-                             12/13/2004
    /CONTACT:  Barry E. Davis, President and Chief Executive Officer, or
William W. Davis, Executive V.P. and Chief Financial Officer, both of Crosstex
Energy, L.P., +1-214-953-9500/
    /Web site: /

CO:  Crosstex Energy, L.P.; Crosstex Energy Inc.
ST:  Texas

-- DAM027 --
1211 12/13/2004 16:03 EST

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