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Crosstex Energy, Inc. Reports Fourth Quarter and Full Year 2004 Results

DALLAS, March 10, 2005 /PRNewswire-FirstCall via COMTEX/ -- Crosstex Energy, Inc. (Nasdaq: XTXI) (the Corporation) today reported net income of $2.4 million for the fourth quarter of 2004, compared to net income of $1.0 million for the comparable period in 2003. The Corporation's annual income before income taxes, gain on issuance of units of Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) and interest of non-controlling partners in the Partnership's net income was $22.1 million in 2004 and $10.4 million in 2003. Net income for the year declined from $13.4 million in 2003 to $8.7 million in 2004 due to the inclusion of an $18.4 million gain on the sale of Partnership units pursuant to a secondary offering in the 2003 results, partially offset by improved operating results in the current year.

The Corporation's share of Partnership distributions, including distributions on its ten million limited partner units, its two percent general partner interest, and the incentive distribution rights, was $6.5 million in the fourth quarter of 2004, compared to $4.4 million in the fourth quarter of 2003, an increase of 48 percent. The recently announced increase in the Partnership's distribution increased the Corporation's share of the distribution by $0.5 million, from $6.0 million in the third quarter of 2004 to $6.5 million for the fourth quarter.

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 .

(table to follow)



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

                                Three Months Ended      Twelve Months Ended
                                   December 31,             December 31,
                                 2004        2003         2004         2003
    Revenues
         Midstream             $620,840    $244,130    $1,948,021    $989,697
         Treating                 8,163       6,513        30,755      23,966
                                629,003     250,643     1,978,776   1,013,663
    Cost of Gas
         Midstream              594,580     230,898     1,861,204     946,412
         Treating                 1,182       1,257         5,274       7,568
                                595,762     232,155     1,866,478     953,980

    Gross Margin                 33,241      18,488       112,298      59,683

    Operating Expenses           11,627       4,697        38,197      17,758
    General and Administrative    7,058       4,201        21,175      11,593
    Impairments                     ---         ---           981         ---
    Stock Based Compensation        260         696         1,029       5,345
    (Gain) Loss on Sale
     of Property                    ---         ---           (12)        ---
    (Profit) Loss on Energy
     Trading Activities            (715)       (414)       (2,507)     (1,905)
    Depreciation and Amortization 6,535       4,241        23,034      13,542

           Total                 24,765      13,421        81,897      46,333

    Operating Income              8,476       5,067        30,401      13,350

    Interest Expense             (2,949)     (1,124)       (9,115)     (3,103)
    Other Income                    548         129           802         179
           Total Other
            Income (Expense)     (2,401)       (995)       (8,313)     (2,924)

    Income Before Income Taxes
     and Interest of Non-
     controlling Partners in the
     Partnership's Net Income     6,075       4,072        22,088      10,426
    Gain on Issuance of Units
     of the Partnership             ---         280           ---      18,360
    Interest of Non-controlling
     Partners in the
     Partnership's Net Income    (2,023)     (2,077)       (8,239)     (5,181)
    Income Tax Provision         (1,645)     (1,324)       (5,149)    (10,157)
    Net Income                   $2,407        $951        $8,700     $13,448

    Preferred Stock Dividends      $---        $885          $132      $3,584

    Net Income Available
     to Common                   $2,407         $66        $8,568      $9,864

    Diluted Earnings per
     Common Share                 $0.19       $0.02         $0.67       $1.10

    Weighted Average Shares
     Outstanding:
       Diluted                   12,932       3,486 (A)    12,899      12,271

     (A)  Basic shares outstanding only.  Excludes the effect of conversion of
          Preferred shares that are anti-dilutive.


     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, Inc.

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