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Crosstex Energy, Inc.
Trades on the NASDAQ Exchange under the symbol XTXI.
Press Release

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Crosstex Announces Guidance for 2005; Company Hosts First Annual Analyst Meeting

DALLAS, March 29, 2005 /PRNewswire-FirstCall via COMTEX/ -- The Crosstex Energy companies, Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) and Crosstex Energy, Inc. (Nasdaq: XTXI) (the Corporation), are hosting their first annual analyst meeting today in New Orleans. The analyst meeting will showcase several members of Crosstex's senior management team and will include discussions concerning strategic planning, industry trends and market opportunities, as well as provide 2005 guidance.

"We have experienced significant growth over the past several years," stated Barry E. Davis, President and Chief Executive Officer. "Our analyst meeting is a forum to provide insight to where we see the growth opportunities over the next year in the midst of a changing environment and how we plan to capitalize on those opportunities. It also represents our commitment to continued open dialogue and accountability to our investors."

2005 Guidance

The Partnership has forecasted net income and Distributable Cash Flow for 2005 in the attached table. The Partnership anticipates it will generate net income in 2005 of between $29.5 million and $35.9 million, and its estimate of Distributable Cash Flow for the year is in the range of $49.1 million to $55.5 million, a 16 to 31 percent increase over 2004. At this level, the Partnership will cover the current $0.45 quarterly distribution by between 1.21 and 1.36 times. Of the increase in distributable cash flow, $9.0 million is due to the anticipated sale of idle plant equipment. Total maintenance capital expenditures are expected to be $9.4 million in 2005.

Assuming the $0.45 quarterly distribution rate per unit is maintained for the entire year, the Corporation will receive cash distributions from the Partnership of $26.1 million in 2005. It anticipates direct cash expenses associated with its operations outside of the Partnership of approximately $1.1 million. The Corporation expects that it will incur only nominal current year income tax expense due to tax loss carryforwards and other tax benefits it expects to use in 2005. Additionally, the Corporation expects to receive cash flow of approximately $3.1 million related to the exercising of employee stock options and a receivable from Enron. Assuming the $1.56 per share annual dividend rate is maintained for the entire year and no additional issuances of shares, the total dividends for the year will be $19.3 million. In such a case, cash inflows are expected to exceed expenses and the dividend by approximately $8.4 million.

The PowerPoint presentations for today's analyst meeting have been posted on the home page, under Investor Information, on Crosstex Energy's Web site at http://www.crosstexenergy.com .

About the Crosstex Energy Companies

Crosstex Energy, Inc. owns the general partner, a 54 percent limited partner interest and the incentive distribution rights of Crosstex Energy, L.P.

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 80 natural gas amine treating plants. Crosstex currently provides services for over 1.9 BCF/day of natural gas.

Additional information about the Crosstex companies can be found at http://www.crosstexenergy.com .

Non-GAAP Financial Information

This press release contains non-generally accepted accounting principle financial measures of earnings before non-cash charges and less maintenance capital expenditures, which we refer to as Distributable Cash Flow. The amounts included in the calculation of these measures are computed in accordance with generally accepted accounting principles (GAAP), with the exception of maintenance capital expenditures. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of our assets and to extend their useful lives. We believe this measure is useful to investors because it may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of the Partnership's cash flow after it has satisfied the capital and related requirements of its operations. Distributable Cash Flow is not a measure of financial performance or liquidity under GAAP. It should not be considered in isolation or as an indicator of the Partnership's performance. Furthermore, it should not be seen as a measure of liquidity or a substitute for metrics prepared in accordance with GAAP. Our reconciliation of this measure to net income is included in the following tables.

This press release contains forward-looking statements identified by the use of words such as "forecast", "anticipate", "plan" and "estimate". These statements are based on currently available information and assumptions and expectations that the Partnership and the Corporation believe are reasonable. However, the assumptions and expectations are subject to a wide range of business risks, so it can give no assurance that actual performance will fall within the forecast ranges. Among the key risks that may bear directly on the Partnership's and the Corporation's results of operation and financial condition are: (1) the amount of natural gas transported in the Partnership's 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 the Partnership's 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) the Partnership's credit risk management efforts may fail to adequately protect against customer nonpayment; and (6) the Partnership may not adequately address construction and operating risks. 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.

(table to follow)



                             CROSSTEX ENERGY, L.P.
                         Forecast for 2005 Net Income
                   Reconciliation to Distributable Cash Flow
                                 (In millions)

                                                        Range
                                                   Low          High
    Net Income                                    $29.5        $35.9
    Interest                                       11.6         11.4
    Depreciation and Amortization                  27.0         27.0
    Stock Based Compensation (A)                    1.0          1.0
    Loss (Gain) on Sale of Property                (8.0)        (8.0)
    Proceeds from Sale of Property                  9.0          9.0
    Adjusted Cash Flow                             70.1         76.3

    Interest                                      (11.6)       (11.4)
    Maintenance Capital Expenditures               (9.4)        (9.4)

    Distributable Cash Flow                       $49.1        $55.5


     (A)  Stock based compensation expense is based on current generally
          accepted accounting principles.  The Company has not yet evaluated
          the impact of complying with FAS 123 (revised 2004), which will
          require the expensing of options based upon fair value measurement
          beginning with the company's third quarter financial results.

     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.; Crosstex Energy, Inc.

Barry E. Davis, President and Chief Executive Officer, or William W. Davis, Executiv
V.P. and Chief Financial Officer, both for Crosstex Energy, L.P. and Crosstex Energy
Inc., +1-214-953-9500
http://www.prnewswire.com

 
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