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Crosstex Energy Reports Third-Quarter 2007 Results

Recent Projects Expand Companies' Capacity and Contribute to

                            Record Quarter

DALLAS--(BUSINESS WIRE)--Nov. 8, 2007--The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) today reported earnings for the third quarter of 2007.

    Third-Quarter 2007 -- Crosstex Energy, L.P. Financial Results

The Partnership reported net income of $2.1 million in the third quarter of 2007, compared with net income of $0.9 million in the third quarter of 2006. The Partnership's distributable cash flow in the third quarter of 2007 was $31.9 million, or 4.7 times the amount required to cover its minimum quarterly distribution of $0.25 per unit and 1.4 times the amount required to cover its recently increased quarterly distribution of $0.59 per unit. Distributable cash flow in the third-quarter 2007 increased $10.8 million, or 51 percent, over distributable cash flow of $21.1 million in the third quarter of 2006. Distributable cash flow is a non-GAAP financial measure and is explained in greater detail under "Non-GAAP Financial Information." There is a reconciliation of this non-GAAP measure to net income in the tables at the end of this news release.

"We are aggressively pushing ahead with our growth strategy. Our record third quarter results demonstrate our ability to execute on our growth plans and highlight that our suite of assets and leadership team is well positioned to continue to generate solid performance," said Barry E. Davis, Crosstex President and Chief Executive Officer. "Our core North Texas area continued its rapid growth and other previously announced projects, including the Red River Lateral in North Louisiana and the St. James interconnect, expanded much needed capacity to our Crosstex LIG system, increased throughput and added new markets for our customers," Davis added.

In addition to the build-out of the Barnett Shale systems acquired from Chief last year, Crosstex recently announced the expansion of a low pressure gathering system in North Johnson County that will significantly increase its footprint in the region. In the third quarter, the company also completed a 200 million cubic feet per day gas processing plant and expanded gathering systems by connecting another 57 wells.

"The tremendous level of activity in the Barnett Shale continues to exceed our expectations," stated Davis. "As promised last quarter, we more than tripled our gas processing capacity in the area during the third quarter. We also announced plans for a 29-mile low-pressure gas gathering system and pipeline in North Johnson County. The new pipeline system allows us to expand our services to major E&P companies in the Barnett Shale," Davis added.

Third-quarter 2007 gross margin was $100.1 million, compared with $74.8 million in the corresponding 2006 period, a 34 percent increase. Gross margin from the Midstream segment rose 40 percent to $85.7 million in the third quarter of 2007 versus gross margin of $61.0 million for the same quarter last year. The increase is due to higher system throughput from continued expansion of gathering and transportation systems in the Barnett Shale and system expansion projects on our Crosstex LIG system as well as higher processing margins during the third quarter 2007.

Gross margin from the Treating segment increased 4 percent to $14.4 million compared with a gross margin of $13.8 million for the third quarter of 2006. The increase was due to a greater number of plants in service. The Partnership had 195 treating and dew point control plants in service at the end of the third-quarter 2007 versus 176 plants in service at the end of third-quarter 2006.

Operating expenses were $32.4 million in the third quarter of 2007 compared with $28.1 million in the third quarter of 2006. The increase was related to expansion of gathering assets in the Barnett Shale in North Texas and the completion of the Red River Lateral in April 2007. In the third quarter of 2007, general and administrative expenses rose to $16.1 million from $11.5 million in the year-ago quarter primarily due to staff additions to support the Partnership's expanding asset base. Interest expense was $20.5 million in the third quarter of 2007 versus $15.3 million in the year-ago quarter due to increased debt for growth activities.

The net loss per limited partner unit in the third quarter of 2007 was $0.10 per unit versus a net loss of $0.12 per unit in the corresponding quarter of 2006. The loss per limited partner unit was impacted by the $4.7 million preferential allocation of net income to the general partner in the third quarter of 2007, which represented the general partner's incentive distribution rights less certain stock-based compensation costs. This allocation reduced the limited partners' share of net income to a net loss of $2.6 million in the quarter.

    Third-Quarter 2007 -- Crosstex Energy, Inc. Financial Results

The Corporation reported net income of $2.2 million for the third quarter of 2007 compared with net income of $1.5 million for the comparable period in 2006. The Corporation's net income before income taxes and interest of noncontrolling partners in the net income of the Partnership was $1.8 million in the third quarter of 2007 compared with a net loss of $0.3 million in the third quarter of 2006.

The Corporation's share of Partnership distributions, including distributions on its 10 million participating limited partner units, its two percent general partner interest, and the incentive distribution rights, was $12.6 million in the third quarter of 2007. Its share of Partnership distributions in the third quarter of 2006 was $11.1 million. The recently announced increase in the Partnership's distribution of $0.02 per unit raised the Corporation's share of distributions by $0.7 million from $11.9 million in the second quarter of 2007 to $12.6 million in the third quarter of 2007.

Crosstex to Hold Earnings Conference Call Today

The Partnership and the Corporation will hold their quarterly conference call to discuss third-quarter 2007 results today, November 8, at 10:00 a.m. Central Time (11:00 p.m. Eastern Time). The dial-in number for the call is 1-800-299-9630, and the passcode is "Crosstex." Callers outside the United States should dial 1-617-786-2904, and the passcode is "Crosstex." A live Web cast of the call can be accessed on the Investors page of Crosstex Energy's Web site at www.crosstexenergy.com. A replay of the call can be accessed for 30 days by dialing 888-286-8010. International callers should dial 1-617-801-6888 for a replay. The passcode for all callers listening to the replay is 11815465. Interested parties also can visit the Investors page of Crosstex's Web site to listen to a replay of the call.

About the Crosstex Energy Companies

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, 13 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 billion cubic feet per day of natural gas, or approximately 7.0 percent of marketed U.S. daily production.

Crosstex Energy, Inc. owns the two percent general partner interest, a 38 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P.

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

Non-GAAP Financial Information

This press release contains a non-generally accepted accounting principle financial measure that we refer to as Distributable Cash Flow. Distributable Cash Flow includes earnings before noncash charges, less maintenance capital expenditures and amortization of costs of certain derivatives (puts). 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 and the amortization of put premiums. 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. The puts were acquired to hedge the future price of certain natural gas liquids. The net cost of the puts is being amortized against Distributable Cash Flow over their life.

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 among the following tables.

This press release contains forward-looking statements identified by the use of words such as "forecast," "anticipate," "expect" 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 Partnership's and the Corporation's assumptions and expectations are subject to a wide range of business risks, so they 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 operations 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; (6) the Partnership may not adequately address construction and operating risks; and (7) other factors discussed in the Partnership's and the Corporation's Form 10-K's for the year ended December 31, 2006 and other filings with the Securities and Exchange Commission. 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.

                        CROSSTEX ENERGY, L.P.
                 Selected Financial & Operating Data
          (All amounts in thousands except per unit numbers)

                          Three Months Ended      Nine Months Ended
                             September 30,          September 30,
                         --------------------- -----------------------
                             2007      2006       2007        2006
                         ----------- --------- ----------- -----------
                                          (Unaudited)
Revenues
    Midstream              $926,726  $837,942  $2,721,193  $2,368,907
    Treating                 15,956    16,643      48,563      46,223
    Profit from Energy
     Trading Activities         587       700       2,180       1,930
                         ----------- --------- ----------- -----------
                            943,269   855,285   2,771,936   2,417,060

Cost of Gas
    Midstream               841,580   777,644   2,503,523   2,210,465
    Treating                  1,617     2,870       6,208       7,359
                         ----------- --------- ----------- -----------
                            843,197   780,514   2,509,731   2,217,824

Gross Margin                100,072    74,771     262,205     199,236

Operating Expenses           32,404    28,073      89,716      72,874
General and
 Administrative              16,127    11,476      43,010      33,751
(Gain) Loss on Sale of
 Property                         2       132      (1,819)         23
(Gain) Loss on
 Derivatives                    526    (3,605)     (3,969)     (1,839)
Depreciation and
 Amortization                28,030    22,424      78,525      58,182
                         ----------- --------- ----------- -----------
    Total                    77,089    58,500     205,463     162,991

Operating Income             22,983    16,271      56,742      36,245

Interest Expense and
 Other                      (20,481)  (15,269)    (56,159)    (35,671)
                         ----------- --------- ----------- -----------
Net Income (Loss) before
 Minority Interest and
 Taxes                        2,502     1,002         583         574

Minority Interest in
 Subsidiary                    (136)      (41)       (186)       (223)
Income Tax Provision           (236)      (58)       (655)       (356)
                         ----------- --------- ----------- -----------
Income (Loss) before
 Cumulative Effect of
 Accounting Change            2,130       903        (258)         (5)
                         ----------- --------- ----------- -----------

Cumulative Effect of
 Accounting Change                -         -           -         689
                         ----------- --------- ----------- -----------
Net Income (Loss)          $  2,130  $    903  $     (258) $      684
                         =========== ========= =========== ===========
General Partner Share of
 Net Income (Loss)         $  4,737  $  4,143  $   13,444  $   12,181
                         =========== ========= =========== ===========
Limited Partners' Share
 of Net Income (Loss)      $ (2,607) $ (3,240) $  (13,702) $  (11,497)
                         =========== ========= =========== ===========

Net Income (Loss) per
 Limited Partners' Unit
 after Accounting Change:

    Basic and Diluted
     Common Unit           $  (0.10) $  (0.12) $    (0.51) $    (0.74)
                         =========== ========= =========== ===========
    Basic and Diluted
     Senior Subordinated
     A Unit                $      -  $      -  $        -  $     5.31
                         =========== ========= =========== ===========

Weighted Average Limited
 Partners' Units
 Outstanding:

    Basic and Diluted
     Common Units            26,718    26,602      26,682      26,245
                         =========== ========= =========== ===========
    Basic and Diluted
     Senior Subordinated
     A Units                      -         -           -       1,495
                         =========== ========= =========== ===========
                        CROSSTEX ENERGY, L.P.
       Reconciliation of Net Income to Distributable Cash Flow
 (All amounts in thousands except ratios and distributions per unit)

                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                   2007     2006       2007     2006
                               ---------- -------- ---------- --------
                                   (Unaudited)         (Unaudited)
Net Income (Loss)                $ 2,130  $   903    $  (258) $   684
Depreciation and Amortization
 (1)                              27,999   22,352     78,351   57,967
Stock-based Compensation           3,549    2,328      8,635    6,210
Financial Derivatives Mark-to-
 Market                            2,460   (2,357)       439    1,936
Cumulative Effect of Accounting
 Change                                -        -          -     (689)
Other                                 44    1,262        133    1,554
                               ---------- -------- ---------- --------
Cash Flow                         36,182   24,488     87,300   67,662

Amortization of Put Premiums      (2,708)  (1,305)    (6,176)  (2,992)
Maintenance Capital
 Expenditures                     (1,609)  (2,044)    (6,165)  (4,773)
                               ---------- -------- ---------- --------
Distributable Cash Flow          $31,865  $21,139    $74,959  $59,897
                               ========== ======== ========== ========
Minimum Quarterly Distribution
 (MQD)                           $ 6,818  $ 6,788    $20,513  $20,346
Distributable Cash Flow/MQD         4.67     3.11       3.65     2.94
Actual Distribution              $22,796  $20,274    $65,318  $59,167
Distribution Coverage               1.40     1.04       1.15     1.01

Distributions per Limited
 Partner Unit                    $  0.59  $  0.55    $  1.72  $  1.62
                               ========== ======== ========== ========

 (1) Excludes minority interest share of depreciation and amortization
  of $31,000 and $174,000 for the three and nine months ended
  September 30, 2007, respectively, and $72,000 and $215,000 for the
  three months and nine months ended September 30, 2006, respectively.
                        CROSSTEX ENERGY, L.P.
                            Operating Data


                               Three Months Ended   Nine Months Ended
                                  September 30,       September 30,
                               ------------------- -------------------
                                 2007      2006      2007      2006
                               --------- --------- --------- ---------

Pipeline Throughput (MMBtu/d)
 LIG Pipeline and Marketing    1,023,000   718,000   921,000   675,000
 South Texas                     429,000   373,000   396,000   378,000
 North Texas - Gathering         381,000   102,000   302,000    70,000
 North Texas - Transmission      297,000    24,000   188,000    23,000
 Other Midstream                 202,000   179,000   186,000   215,000
                               --------- --------- --------- ---------
Total Gathering and
 Transmission Volume           2,332,000 1,396,000 1,993,000 1,361,000

Natural Gas Processed and
 Fractionated (MMBtu/d)
 South Louisiana               1,473,000 1,561,000 1,439,000 1,471,000
 LIG System                      314,000   342,000   317,000   335,000
 South Texas                     219,000   228,000   221,000   213,000
 North Texas                     150,000    20,000   102,000    10,000
                               --------- --------- --------- ---------
Total Gas Volumes Processed and
 Fractionated                  2,156,000 2,151,000 2,079,000 2,029,000

Commercial Services Volume
 (MMBtu/d)                        92,000    95,000    95,000   152,000

North Texas Gathering (1)
 Wells Connected                      57        46       157        46

Treating Plants and Dew Point
 Control Plants in Service (2)       195       176       195       176

 (1) North Texas Gathering assets were acquired June 29, 2006.
 (2) Treating Plants and Dew Point Control Plants in Service
  represents plants in service on the last day of the period.
                        CROSSTEX ENERGY, INC.
                 Selected Financial & Operating Data
         (All amounts in thousands except per share numbers)

                           Three Months Ended     Nine Months Ended
                             September 30,          September 30,
                          -------------------- -----------------------
                             2007      2006       2007        2006
                          ---------- --------- ----------- -----------
                                          (Unaudited)
Revenues
 Midstream                 $926,726  $837,942  $2,721,193  $2,368,907
 Treating                    15,956    16,643      48,563      46,223
 Profit from Energy
  Trading Activities            587       700       2,180       1,930
                          ---------- --------- ----------- -----------
                            943,269   855,285   2,771,936   2,417,060

Cost of Gas
 Midstream                  841,580   778,527   2,503,523   2,210,465
 Treating                     1,617     2,870       6,208       7,359
                          ---------- --------- ----------- -----------
                            843,197   781,397   2,509,731   2,217,824

Gross Margin                100,072    73,888     262,205     199,236

Operating Expenses           32,420    28,080      89,749      72,907
General and Administrative   16,886    11,978      45,074      35,354
(Gain) Loss on Sale of
 Property                         2       132      (1,819)         23
(Gain) Loss on Derivatives      526    (3,605)     (3,969)     (1,839)
Depreciation and
 Amortization                28,042    22,436      78,560      58,225
                          ---------- --------- ----------- -----------
 Total                       77,876    59,021     207,595     164,670

Operating Income             22,196    14,867      54,610      34,566

Interest Expense and Other  (20,390)  (15,183)    (55,826)    (33,782)
                          ---------- --------- ----------- -----------
Income (Loss) before Gain
 on Issuance of
 Partnership Units, Income
 Taxes and Interest of
 Noncontrolling Partners
 in the Partnership's Net
 Loss                         1,806      (316)     (1,216)        784
Gain on Issuance of Units
 of the Partnership               -         -           -      18,955
Income Tax Provision         (1,121)     (670)     (2,714)    (11,242)
Interest of Noncontrolling
 Partners in the
 Partnership's Net Loss       1,495     2,502       8,377       7,323
                          ---------- --------- ----------- -----------
Net Income before
 Cumulative Effect of
 Accounting Change            2,180     1,516       4,447      15,820
                          ---------- --------- ----------- -----------
Cumulative Effect of
 Accounting Change                -         -           -         170
                          ---------- --------- ----------- -----------
Net Income                 $  2,180  $  1,516  $    4,447  $   15,990
                          ========== ========= =========== ===========

Net Income per Common
 Share after Accounting
 Change:

 Basic Earnings per Common
  Share                    $   0.05  $   0.03  $     0.10  $     0.39
                          ========== ========= =========== ===========

 Diluted Earnings per
  Common Share             $   0.05  $   0.03  $     0.10  $     0.39
                          ========== ========= =========== ===========

Weighted Average Shares
 Outstanding:

 Basic                       45,996    45,942      45,978      40,896
                          ========== ========= =========== ===========

 Diluted                     46,655    46,506      46,591      41,379
                          ========== ========= =========== ===========

 Dividends per Common
  Share                    $   0.24  $   0.21  $     0.69  $     0.62
                          ========== ========= =========== ===========

    CONTACT: Crosstex Energy
             Investor Contact:
             Crystal C. Bell, 214-721-9407
             Investor Relations Specialist
             or
             Media Contact:
             Jill McMillan, 214-721-9271
             Manager of Public & Industry Affairs

    SOURCE: Crosstex Energy