DALLAS, Dec 15, 2009 (BUSINESS WIRE) -- The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation),
announced today that the Partnership has entered into an agreement to
sell its gathering and treating assets in East Texas for $40 million to
Waskom Gas Processing Company. Proceeds from the sale will be used to
pay down the Partnership's outstanding debt and for general corporate
purposes. The sale is expected to close in January 2010 and is subject
to customary closing conditions.
"Our East Texas assets are very complimentary to Waskom's gas processing
assets. This strategic synergy allowed us to sell our primarily
fee-based East Texas assets at an attractive price. We are pleased that
this sale allows us to further strengthen our balance sheet as we work
to refinance our existing debt, with the goal of restoring distributions
and dividends to our unitholders and shareholders," said Barry E. Davis,
Crosstex President and Chief Executive Officer.
"We remain focused on our core assets in the Barnett and Haynesville
shales and our natural gas liquids business. We will continue to take
advantage of low-cost, high-return growth projects in these areas,"
Crosstex's East Texas system consists of approximately 60 miles of
intrastate natural gas gathering pipelines, two compressor stations and
three processing refrigeration plants. The system's throughput capacity
is approximately 75,000 million British thermal units per day.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates approximately 3,300 miles of pipeline, 10 processing
plants and three fractionators. The Partnership currently provides
services for 3.2 billion cubic feet of natural gas per day, or
approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a
33 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.
About Waskom Gas Processing Company
Waskom Gas Processing Company is a Texas General Partnership. Waskom's
general partners are Centerpoint Energy Gas Processing Company, a
wholly-owned subsidiary of CenterPoint Energy Field Services and
CenterPoint Energy, Inc. (NYSE: CNP) and Prism Gas Systems I, L.P., the
operator of WGPC, and a wholly-owned subsidiary of Martin Midstream
Partners L.P. (NASDAQ: MMLP).
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 the expected closing of the sale of the
Partnership's assets in East Texas and the effect of such sale on the
Partnership's future liquidity, leverage, business and results of
operations.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, but are not limited to, risks discussed in the
Partnership's and the Corporation's filings with the Securities and
Exchange Commission and, with respect to the sale of the East Texas
assets, risks related to the satisfaction of the various conditions to
closing, including approval of the transaction by various third parties
and regulatory authorities.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
SOURCE: Crosstex Energy
Jill McMillan, 214-721-9271
Director, Public & Industry Affairs