New Gathering System to Service Major Gas Producers in North
DALLAS--(BUSINESS WIRE)--Aug. 30, 2007--Crosstex Energy, L.P.
(NASDAQ: XTEX) (the Partnership) today announced it will construct a
29-mile natural gas pipeline in north Johnson County, Texas, to
provide greater takeaway capacity to natural-gas producers in the
Barnett Shale formation. Total capital costs are estimated to be
approximately $80 million.
The ultimate capacity of the low-pressure and high-pressure
gathering system will be approximately 400 million cubic feet of gas
per day (MMcf/d) when all phases of pipeline construction are
completed, which is planned for the second quarter of 2008. Initially,
the pipeline will transport approximately 80 MMcf/d, and is scheduled
to begin deliveries in the third quarter of 2007. Full capacity
utilization is expected by 2009, and cash returns are expected to be
commensurate with other Crosstex investments.
Crosstex has secured commitments from numerous gas producers to
move gas through the new pipeline. Some of the commitments are from
major exploration and production companies that operate in the Barnett
Shale, including Chesapeake Energy, the anchor shipper. The north
Johnson County pipeline project will include 20-inch and 24-inch
pipeline and three compressor stations totaling 36,000 horsepower.
"We're continuing to expand our significant position in the
Barnett Shale by making a sizable investment to meet the growing
demand of producers in the hottest natural gas play in the United
States," said Barry E. Davis, Crosstex President and Chief Executive
Officer. "We are constructing the first large-diameter low-pressure
gathering lines into what is becoming the new heart of the Barnett
Shale. The expansion will provide new and existing Crosstex customers
with much-needed outlets to Texas markets and access to long-haul
transportation pipelines to other major U.S. markets."
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company
headquartered in Dallas, operates over 5,000 miles of pipeline, 12
processing plants, four fractionators, and approximately 200 natural
gas amine-treating plants and dew point control plants. Crosstex
currently provides services for over 3.5 Bcf/day of natural gas, or
approximately 7.0 percent of marketed U.S. daily production.
Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) owns the
two percent general partner interest, a 38 percent limited partner
interest, and the incentive distribution rights of Crosstex Energy,
Additional information about the Crosstex companies can be found
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
herein 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. The expectations are subject to
the "Risk Factors" described in the companies' filings with the
Securities and Exchange Commission. These filings are available on the
companies' Web sites or upon request.
CONTACT: Crosstex Energy, L.P.
Crystal C. Bell, 214-721-9407
Investor Relations Specialist
Jill McMillan, 214-721-9271
Public Relations Specialist
SOURCE: Crosstex Energy, L.P.