DALLAS--(BUSINESS WIRE)--Sept. 11, 2006--Crosstex Energy, Inc.
(NASDAQ: XTXI) announced today that its Board of Directors has
approved, subject to stockholder approval, an amendment to its
Restated Certificate of Incorporation that would allow the corporation
to effect a 3-for-1 stock split in the form of a stock dividend. If
approved, the amendment will increase Crosstex's authorized number of
shares of capital stock from 20 million shares, consisting of 19
million shares of common stock and 1 million shares of preferred
stock, to 150 million shares, consisting of 140 million shares of
common stock and 10 million shares of preferred stock.
Crosstex will file a definitive proxy statement with the
Securities and Exchange Commission that will be used to seek approval
of the amendment by its stockholders at a special meeting to be held
on October 26, 2006. Stockholders of record at the close of business
September 20, 2006 will be entitled to notice of and to vote at the
The corporation currently plans to use a number of the additional
shares of common stock to effect a 3-for-1 stock split, subject to
favorable market conditions and stockholder approval of the amendment
to the Restated Certificate of Incorporation. The corporation
currently has no other plans to use the additional shares, although
they would be available to use for other corporate purposes.
In connection with the proposed special meeting of stockholders to
vote on the proposal to amend Crosstex's Restated Certificate of
Incorporation, Crosstex will file a definitive proxy statement with
the Securities and Exchange Commission. Pursuant to the proxy
statement, Crosstex's Board of Directors will be soliciting proxies
from Crosstex's stockholders.
Stockholders are advised to read the proxy statement when it
becomes available because it will contain important information.
Investors and other security holders can obtain copies of the proxy
statement free of charge when it becomes available by directing a
request to Crosstex Energy, Inc., Investor Relations, 2501 Cedar
Springs Road, Suite 100, Dallas, Texas 75201, telephone (214)
953-9500. Free copies of the proxy statement also can be obtained when
it becomes available by accessing the Securities and Exchange
Commission's website at http://www.sec.gov.
About the Crosstex Energy Companies
Crosstex Energy, L.P. (NASDAQ: XTEX), a midstream natural gas
corporation headquartered in Dallas, operates over 5,000 miles of
pipeline, twelve processing plants, four fractionators, and
approximately 160 natural gas amine treating plants and 25 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. 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
In this press release, the statements regarding Crosstex's plans
to hold a special stockholders' meeting and mail a proxy statement to
Crosstex's stockholders and statements regarding a proposed vote by
Crosstex's stockholders on the proposal to amend Crosstex's Restated
Certificate of Incorporation to increase Crosstex's authorized number
of shares of common and preferred stock and statements regarding plans
to effect a stock split are forward-looking statements. These
statements are based on currently available information and
assumptions and expectations that the corporation believes are
reasonable. However, the corporation's assumptions and expectations
are subject to a wide range of business risks. The corporation has no
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events, or otherwise.
CONTACT: Crosstex Energy, Inc.
William W. Davis, 214-953-9500
Jill McMillan, 214-721-9271
SOURCE: Crosstex Energy, Inc.