DALLAS, June 29 /PRNewswire-FirstCall/ -- Crosstex Energy, L.P.
(Nasdaq: XTEX) (the Partnership) announced it has completed the previously
announced purchase of the natural gas gathering pipeline systems and related
facilities of privately owned Chief Holdings LLC for $480 million. This
transaction resulted from a joint bid by Crosstex and Devon Energy Corporation
(NYSE: DVN) to acquire Chief's assets in the prolific Barnett Shale.
"This acquisition solidifies Crosstex Energy's already strong position in
the Barnett Shale, which is the largest gas shale in the continental United
States," said Barry E. Davis, President and Chief Executive Officer. "The
assets we acquired from Chief, paired with our North Texas Pipeline, enable
Crosstex to deliver a continuing supply of natural gas to expanding markets,
strengthen our important alliance with Devon Energy, and further bolster our
strategies for organic growth and consolidation in the play."
As previously announced, contemporaneous with the closing of the
acquisition, the Partnership issued 12.8 million senior subordinated series C
units in a private placement for $360 million, and amended its revolving bank
facility to increase the facility to $1 billion. This new equity and debt
financing will fund not only the Chief acquisition, but the Partnership's
other announced capital projects. The senior subordinated series C units will
convert to common units in February 2008, and until that time will not
participate in the cash distributions of the Partnership. One-half of the
senior subordinated series C units were acquired by Crosstex Energy, Inc.
(Nasdaq: XTXI), which financed the acquisition of the units through a private
placement of 2.5 million shares of common stock.
Through this acquisition, Crosstex acquired approximately 250 miles of
existing pipeline with up to an additional 400 miles of planned pipelines
located in Parker, Tarrant, Denton, Palo Pinto, Erath, Hood, Somervell, Hill
and Johnson counties. The assets also include a 125-million-cubic-feet-per-
day carbon dioxide treating plant and compression facilities with 26,000
horsepower. Approximately 160,000 net acres owned by Chief, now operating
under Devon, and 60,000 net acres owned by other producers will be dedicated
to the systems.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in
Dallas, operates over 5,000 miles of pipeline, ten processing plants, four
fractionators, and approximately 150 natural gas amine treating plants and 22
dew point control plants. Crosstex currently provides services for over 3.0
Bcf/day of natural gas, or approximately 6.0 percent of marketed U.S. daily
production based on August 2005 Department of Energy data.
Crosstex Energy, Inc. (Nasdaq: XTXI) owns the two percent general partner
interest, a 42 percent limited partner interest, and the incentive
distribution rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at
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 securities mentioned above have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or any state
securities laws, and unless so registered, the securities may not be offered
or sold in the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities
Act and applicable state securities laws. This announcement shall not
constitute an offer to sell or a solicitation of an offer to buy any of these
SOURCE Crosstex Energy, L.P.
/CONTACT: investors, William W. Davis, Executive V.P. and Chief Financial
Officer of Crosstex Energy, L.P., +1-214-953-9500; or media, Jill McMillan,
Public Relations Specialist, +1-214-636-1260, for Crosstex Energy, L.P./
/Web site: http://www.crosstexenergy.com /
(XTEX DVN XTXI)
CO: Crosstex Energy, L.P.; Chief Holdings LLC; Devon Energy Corporation;
Crosstex Energy, Inc.
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0598 06/29/2006 11:14 EDT http://www.prnewswire.com