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Press Release
Crosstex Energy Reports Second-Quarter 2008 Results

DALLAS--(BUSINESS WIRE)--Aug. 8, 2008--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 second-quarter 2008.

    Second-Quarter 2008 -- Crosstex Energy, L.P. Financial Results

The Partnership's distributable cash flow in the second quarter of 2008 was $37.5 million, or 0.91 times the amount required to cover its recently increased quarterly distribution of $0.63 per unit. Distributable cash flow rose $11.3 million, or 43 percent, over distributable cash flow of $26.2 million in the second quarter of 2007. Distribution coverage for the trailing 12 months ended June 30, 2008 was 1.19 times the amount required to cover distributions. 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.

The Partnership reported net income of $21.7 million in the second quarter of 2008, including noncash mark-to-market income of $16.8 million from risk management activities. The bulk of this noncash income was related to the Partnership's interest rate hedges as future interest rates increased during the quarter. This noncash income was not included in the calculation of distributable cash flow. Net income for the second quarter of 2007 was $2.9 million, including noncash mark-to-market income of $1.3 million from risk management activities.

"We are pleased with second-quarter results and the continued progress we're making as a leading midstream player in the Barnett Shale of North Texas," said Barry E. Davis, Crosstex Chairman, President and Chief Executive Officer. "The issues we previously disclosed that delayed our second-quarter growth in North Texas have mostly been resolved. In the third quarter, we are also operating in an improved processing environment. We anticipate that third-quarter financial results will benefit significantly from these factors relative to the second quarter, which should keep us on track to meet our financial goals for the year.

"We are excited to see the developing opportunities in the Haynesville Shale gas play right in our backyard of North Louisiana and East Texas. They will provide ample long-term growth projects for us," added Davis. "So we can ensure good execution in these plays and throughout our operations, we recently brought in additional senior commercial talent and reorganized our teams to sharpen our focus on developing Haynesville and other emerging opportunities."

The Partnership's gross margin for the second quarter of 2008 increased 23 percent to $110.4 million, compared with $89.6 million in the corresponding 2007 period. Gross margin from the Midstream segment rose 27 percent to $95.7 million in the second quarter of 2008 versus $75.6 million for the year-ago quarter. The improvement was primarily due to the growth of the Partnership's pipeline and gathering systems in North Louisiana and North Texas and new processing capacity of 200 million cubic feet of gas per day (MMcf/d) in North Texas. Gross margin from the Treating segment increased approximately five percent to $14.7 million, compared with a gross margin of $14.0 million for the second quarter of 2007.

The net income per limited partner unit in the second-quarter 2008 was $0.23 per unit versus a net loss of $0.06 per unit in the corresponding quarter of 2007. The income per limited partner unit was impacted by the $11.4 million preferential allocation of net income to the general partner in the second quarter of 2008, 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 $10.3 million in the quarter.

During the second quarter of 2008, the Partnership had a $9.7 million increase in operating expenses and a $2.5 million increase in general and administrative expenses compared with the second quarter of 2007. Higher expenses were primarily associated with the buildout of the North Texas gathering systems and the northern Louisiana pipeline system expansion. Interest expense was $17.2 million in the second quarter of 2008 versus $18.6 million in the year-ago quarter due to lower interest rates. Depreciation and amortization expense increased $7.2 million in the second quarter of 2008 compared with the second quarter of 2007 primarily due to North Texas growth projects that were not in service in the second quarter of 2007.

    Second-Quarter 2008 -- Crosstex Energy, Inc. Financial Results

The Corporation reported net income of $17.5 million for the second quarter of 2008, compared with net income of $2.2 million for the comparable period in 2007. Net income for the second quarter of 2008 included a noncash gain of $14.7 million related to the issuance of 3.3 million Partnership units during the quarter. The Corporation's income before income taxes, gain on issuance of Partnership units, and interest of noncontrolling partners in the net income of the Partnership was $21.4 million in the second quarter of 2008, compared with $2.5 million in the second quarter of 2007.

The Corporation's share of Partnership distributions, including distributions on its 16.4 million common units, its two percent general partner interest and the incentive distribution rights, was $23.4 million in the second quarter of 2008. Its share of Partnership distributions in the second quarter of 2007 was $11.9 million. The recently announced increase in the Partnership's distribution of $0.01 per unit raised the Corporation's share of distributions by $0.6 million from $22.8 million in the first quarter of 2008 to $23.4 million in the second quarter of 2008.

The Corporation is not expected to pay significant taxes in either 2009 or 2010. However, it will continue to determine its dividend as if it were a taxpayer. The Corporation is currently adding approximately $5.0 million per quarter to its cash balances in lieu of such tax payments. This cash will continue to add to the Corporation's liquidity, which will be available for future corporate purposes.

Crosstex to Hold Earnings Conference Call Today

    The Partnership and the Corporation will hold their quarterly
conference call to discuss second-quarter 2008 results today, August
8, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The dial-in
number for the call is 1-888-679-8034, and the passcode is 32871523.
Callers outside the United States should dial 1-617-213-4847, and the
passcode is 32871523. Investors are advised to dial in to the call at
least 10 minutes prior to the call time to register. Participants may
preregister for the call at
https://www.theconferencingservice.com/prereg/
key.process?key=PRLKWXBRV. (Due to its length, this URL may need to be
copied/pasted into your Internet browser's address field. Remove the
extra space if one exists.)

Preregistrants will be issued a pin number to use when dialing in to the live call, which will provide quick access to the conference by bypassing the operator upon connection. Interested parties also can access a live Web cast of the call on the Investors page of Crosstex's Web site at www.crosstexenergy.com.

After the conference call, a replay can be accessed until September 8, 2008, by dialing 1-888-286-8010. International callers should dial 1-617-801-6888 for a replay. The passcode for all callers listening to the replay is 31633224. 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, 12 processing plants, four fractionators, and approximately 190 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 seven percent of marketed U.S. daily production.

Crosstex Energy, Inc. owns the two percent general partner interest, a 34 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 referred to as Distributable Cash Flow. Distributable Cash Flow includes earnings before non-cash charges, less maintenance capital expenditures and non-cash derivative activity. 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 in the second quarter of 2007 and six months ended June 30, 2007, 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 was amortized against Distributable Cash Flow over their life.

The Partnership believes 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. The reconciliation of this measure to net income is included among the following tables.

This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the Corporation based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the Corporation believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to future projects, future net income, future distributable cash flow, future capital expenditures, future cash expenses and future distributions. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the Corporation, which may cause the Partnership's and the Corporation's actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include the following: (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 Annual Reports on Form 10-K for the year ended December 31, 2007, 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       Six Months Ended
                              June 30,                June 30,
                       ----------------------- -----------------------
                          2008        2007        2008        2007
                       ----------- ----------- ----------- -----------
                             (Unaudited)             (Unaudited)
Revenues
   Midstream           $1,524,392  $  984,669  $2,776,573  $1,794,467
   Treating                17,992      16,256      34,333      32,607
   Profit from Energy
    Trading Activities        281         991       1,334       1,594
                       ----------- ----------- ----------- -----------
                        1,542,665   1,001,916   2,812,240   1,828,668

Cost of Gas
   Midstream            1,428,930     910,061   2,582,527   1,661,943
   Treating                 3,356       2,257       5,454       4,591
                       ----------- ----------- ----------- -----------
                        1,432,286     912,318   2,587,981   1,666,534

Gross Margin              110,379      89,598     224,259     162,134

Operating Expenses         39,640      29,956      81,545      57,313
General and
 Administrative            17,317      14,849      32,798      26,882
Gain on Sale of
 Property                  (1,381)       (971)     (1,659)     (1,821)
Gain on Derivatives       (16,788)     (1,280)     (9,722)     (4,494)
Depreciation and
 Amortization              32,740      25,509      65,242      50,495
                       ----------- ----------- ----------- -----------
   Total                   71,528      68,063     168,204     128,375

Operating Income           38,851      21,535      56,055      33,759

Interest Expense and
 Other                    (16,733)    (18,402)    (29,739)    (35,679)
                       ----------- ----------- ----------- -----------
Net Income (Loss)
 before Minority
 Interest and Taxes        22,118       3,133      26,316      (1,920)

Minority Interest in
 Subsidiary                   (50)        (30)       (194)        (50)
Income Tax Provision         (326)       (215)       (669)       (419)
                       ----------- ----------- ----------- -----------
Net Income (Loss)      $   21,742  $    2,888  $   25,453  $   (2,389)
                       =========== =========== =========== ===========
General Partner Share
 of Net Income (Loss)  $   11,401  $    4,538  $   22,051  $    8,707
                       =========== =========== =========== ===========
Limited Partners'
 Share of Net Income
 (Loss)                $   10,341  $   (1,650) $    3,402  $  (11,096)
                       =========== =========== =========== ===========

Net Income (Loss) per
 Limited Partners'
 Unit

   Basic Common Unit   $     0.23  $    (0.06) $    (2.96) $    (0.42)
                       =========== =========== =========== ===========

   Diluted Common Unit $     0.21  $    (0.06) $    (2.96) $    (0.42)
                       =========== =========== =========== ===========

   Basic and Diluted
    Sr. Sub Series C
    Unit               $        -  $        -  $     9.44  $        -
                       =========== =========== =========== ===========

Weighted Average
 Limited Partners'
 Units Outstanding:

   Basic                   44,510      26,685      39,745      26,664
                       =========== =========== =========== ===========

   Diluted                 48,669      26,685      39,745      26,664
                       =========== =========== =========== ===========

                        CROSSTEX ENERGY, L.P.
       Reconciliation of Net Income to Distributable Cash Flow
 (All amounts in thousands except ratios and distributions per unit)

                                                             Twelve
                                                             Months
                      Three Months Ended Six Months Ended     Ended
                           June 30,          June 30,       June 30,
                      ------------------ ----------------- -----------
                        2008      2007     2008     2007      2008
                      --------- -------- -------- -------- -----------
                         (Unaudited)        (Unaudited)    (Unaudited)
Net Income (Loss)     $ 21,742  $ 2,888  $25,453  $(2,389)  $  41,731
Depreciation and
 Amortization (1)       32,676   25,437   65,112   50,351   $ 123,376
Stock-based
 Compensation            3,736    2,852    6,366    5,086   $  13,563
Financial Derivatives
 Mark-to-Market        (15,640)      59   (7,113)  (2,022)  $  (4,198)
Other (2)               (1,076)      45   (1,079)      89   $    (916)
                      --------- -------- -------- -------- -----------
Cash Flow               41,437   31,281   88,739   51,115     173,556

Amortization of Put
 Premiums                    -   (2,517)       -   (3,468)  $  (5,696)
Maintenance Capital
 Expenditures           (3,975)  (2,597)  (7,567)  (3,629)  $ (13,770)
                      --------- -------- -------- -------- -----------
Distributable Cash
 Flow                 $ 37,462  $26,167  $81,172  $44,018   $ 154,090
                      ========= ======== ======== ======== ===========
Actual Distribution   $ 41,364  $21,683  $81,681  $42,522   $ 129,942
Distribution Coverage     0.91     1.21     0.99     1.04        1.19

Distributions per
 Limited Partner Unit $   0.63  $  0.57  $  1.25  $  1.13   $    2.45
                      ========= ======== ======== ======== ===========
(1) Excludes minority interest share of depreciation and amortization
     of $64,000 and $130,000 for the three and six months ended June
     30, 2008, respectively, and $72,000 and $144,000 for the three
     months and six months ended June 30, 2007, respectively.
(2) Includes taxes and gain from the disposition of assets.

                        CROSSTEX ENERGY, L.P.
                            Operating Data

                         Three Months Ended       Six Months Ended
                              June 30,                June 30,
                       ----------------------- -----------------------
                          2008        2007        2008        2007
                       ----------- ----------- ----------- -----------

Pipeline Throughput
 (MMBtu/d)
   South Texas            450,000     423,000     421,000     411,000
   LIG Pipeline and
    Marketing             972,000     950,000   1,011,000     903,000
   North Texas -
    Gathering             632,000     288,000     598,000     264,000
   North Texas -
    Transmission          346,000     266,000     334,000     186,000
   Other Midstream        204,000     186,000     208,000     179,000
                       ----------- ----------- ----------- -----------
Total Gathering and
 Transmission Volume    2,604,000   2,113,000   2,572,000   1,943,000

Natural Gas Processed
 (MMBtu/d)
   South Louisiana      1,376,000   1,466,000   1,417,000   1,430,000
   LIG System             344,000     320,000     356,000     319,000
   South Texas            206,000     231,000     210,000     223,000
   North Texas            195,000      92,000     186,000      78,000
                       ----------- ----------- ----------- -----------
Total Gas Volumes
 Processed              2,121,000   2,109,000   2,169,000   2,050,000

   Weighted Average
    Natural Gas
    Liquids Price
    ($/gallon)         $     1.58  $     1.13  $     1.53  $     1.04
   Weighted Average
    Natural Gas
    Liquids to Gas
    Ratio                     169%        167%        183%        158%

Commercial Services
 Volume (MMBtu/d)          90,000     100,000      85,000      95,000

North Texas Gathering
 (1)
   Wells Connected             46          62          89         100

Treating Plants in
 Service and GPM
   Treating and DPC
    plants in service
    (2)                       190         195         190         195
   Total GPM of
    treating plants in
    service (3)            10,141      10,233      10,141      10,233
(1) North Texas Gathering wells connected are as of the last day of
     the period and include Centralized Delivery Point ("CDP")
     connections where Crosstex connects multiple wells at a single
     meter station.
(2) Treating plants and Dew Point Control ("DPC") plants in Service
     represents plants in service as of the last day of the period.
(3) The numbers represent the total Gallons per Minute ("GPM")
     capacity of all the Amine Treating plants in service as of the
     last day of the period.

                        CROSSTEX ENERGY, INC.
                 Selected Financial & Operating Data
         (All amounts in thousands except per share numbers)

                         Three Months Ended       Six Months Ended
                              June 30,                June 30,
                       ----------------------- -----------------------
                          2008        2007        2008        2007
                       ----------- ----------- ----------- -----------
                             (Unaudited)             (Unaudited)
Revenues
   Midstream           $1,524,392  $  984,669  $2,776,573  $1,794,467
   Treating                17,992      16,256      34,333      32,607
   Profit from Energy
    Trading Activities        281         991       1,334       1,594
                       ----------- ----------- ----------- -----------
                        1,542,665   1,001,916   2,812,240   1,828,668

Cost of Gas
   Midstream            1,428,930     910,061   2,582,527   1,661,943
   Treating                 3,356       2,257       5,454       4,591
                       ----------- ----------- ----------- -----------
                        1,432,286     912,318   2,587,981   1,666,534

Gross Margin              110,379      89,598     224,259     162,134

Operating Expenses         39,643      29,965      81,551      57,329
General and
 Administrative            18,021      15,537      34,154      28,189
Gain on Derivatives       (16,788)     (1,280)     (9,722)     (4,494)
Gain on Sale of
 Property                  (1,381)       (971)     (1,659)     (1,821)
Depreciation and
 Amortization              32,821      25,521      65,335      50,518
                       ----------- ----------- ----------- -----------
   Total                   72,316      68,772     169,659     129,721

Operating Income           38,063      20,826      54,600      32,413

Interest Expense and
 Other                    (16,703)    (18,297)    (29,639)    (35,436)
                       ----------- ----------- ----------- -----------
Income (Loss) before
 Income Taxes, Gain on
 Issuance of Units of
 the Partnership, and
 Interest of
 Noncontrolling
 Partners in the
 Partnership's Net
 Income (Loss)             21,360       2,529      24,961      (3,023)
Gain on Issuance of
 Units of the
 Partnership               14,748           -      14,748           -
Income Tax Provision      (12,089)     (1,338)     (9,057)     (1,593)
Interest of
 Noncontrolling
 Partners in the
 Partnership's Net
 Income (Loss)             (6,567)      1,002      (2,494)      6,883
                       ----------- ----------- ----------- -----------

Net Income             $   17,452  $    2,193  $   28,158  $    2,267
                       =========== =========== =========== ===========

Net Income per Common
 Share

   Basic Earnings per
    Common Share       $     0.38  $     0.05  $     0.61  $     0.05
                       =========== =========== =========== ===========

   Diluted Earnings
    per Common Share   $     0.37  $     0.05  $     0.60  $     0.05
                       =========== =========== =========== ===========

Weighted Average
 Shares Outstanding:

   Basic                   46,294      45,977      46,278      45,970
                       =========== =========== =========== ===========

   Diluted                 46,633      46,576      46,620      46,565
                       =========== =========== =========== ===========

   Dividends per
    Common Share       $     0.38  $     0.23  $     0.74  $     0.45
                       =========== =========== =========== ===========

    CONTACT: Crosstex Energy
             Investors:
             Crystal C. Bell, 214-721-9407
             Investor Relations Specialist
             Chris.Bell@CrosstexEnergy.com
             or
             Media:
             Jill McMillan, 214-721-9271
             Manager, Public & Industry Affairs
             Jill.McMillan@CrosstexEnergy.com

    SOURCE: Crosstex Energy