The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
“Partnership”) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the
“Corporation” and, together with the Partnership, “Crosstex”), today
announced that the Partnership is continuing to expand its gas gathering
and processing capabilities in the Permian Basin through a new long
term, fee-based agreement with a major oil and gas producer in the
region. This agreement builds upon the approximately $210 million in
investments that Crosstex has already made in the Permian Basin to take
advantage of growing production in the region, including its joint
venture with Apache Corporation, the Mesquite fractionator and the
Bearkat gathering and processing complex.
In conjunction with the agreement, the Partnership is constructing a new
35-mile, 12-inch diameter high-pressure pipeline that will provide
critical gathering capacity for the previously announced Bearkat natural
gas processing complex. The incremental investment for the new pipeline
extension project is expected to be approximately $70 million.
The new-build pipeline, located in the eastern portion of the Wolfberry
oil play, will originate at the Partnership’s Bearkat gas processing
facility, currently under construction in Glasscock County. The pipeline
will have a capacity of approximately 100 million cubic feet per day and
will provide gas takeaway solutions for constrained producer customers
in Howard, Martin and Glasscock counties. Right-of-way acquisition is
underway and the pipeline is expected to be operational in the second
half of 2014.
“The Permian Basin has been an important area of growth for Crosstex and
this arrangement strategically expands our footprint in West Texas.
Looking to the future as we work to complete our transaction with Devon
Energy to create EnLink Midstream, we are confident that having a solid
and scalable gathering and processing footprint in the Permian will be
an integral part of our success,” said Barry E. Davis, Crosstex
President and Chief Executive Officer.
About the Crosstex Energy Companies
Crosstex Energy, L.P. (NASDAQ: XTEX) is an integrated midstream energy
partnership headquartered in Dallas that offers diversified, tailored
customer solutions spanning the energy value chain with services and
infrastructure that link energy production with consumption. XTEX
operates approximately 3,500 miles of natural gas, natural gas liquids
and oil pipelines, 10 natural gas processing plants and four
fractionators, as well as barge and rail terminals, product storage
facilities, brine disposal wells and an extensive truck fleet. XTEX has
the right platform, the right opportunities and the right people to
pursue its growth-focused business strategy.
Crosstex Energy, Inc. (NASDAQ: XTXI) owns the general partner interest,
the incentive distribution rights and a portion of the limited partner
interests in Crosstex Energy, L.P. as well as the majority interest in
E2, a services company focused on the Utica Shale play in the Ohio River
Valley.
Additional information about the Crosstex companies can be found at www.crosstexenergy.com.
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 forecasts regarding capacity, cash flow,
incremental investment, project costs and timing for completing the
projects described herein, as well as the Partnership's and the
Corporation’s future growth 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. 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.
Copyright Business Wire 2014