Crosstex Energy 8-K Crosstex Energy Reports Third-quarter 2006 Results

Exhibit 99.1

FOR IMMEDIATE RELEASE
November 8, 2006

Investor Contact:	Crystal C. Bell, Investor Relations Specialist
	Phone: (214) 721-9407
Media Contact:	Jill McMillan, Public Relations Specialist
	Phone: (214) 721-9271

CROSSTEX ENERGY REPORTS THIRD-QUARTER 2006 RESULTS

DALLAS,November 8, 2006 — The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) today reported earnings for the third quarter of 2006.

Crosstex Energy, L.P. Financial Results

The Partnership reported net income of $0.9 million in the third quarter of 2006, compared with net income of $1.1 million in the third quarter of 2005. The net loss per limited partner unit in the third quarter of 2006 was $0.12 per unit versus a net loss of $0.05 per unit in the corresponding quarter of 2005. The loss per limited partner unit was impacted by the preferential allocation of net income to the general partner of $4.1 million in the third quarter of 2006, which represented the general partner’s incentive distribution rights less certain stock-based compensation costs. This allocation reduced the limited partners’ share of net income to a net loss of $3.2 million in the quarter.

The Partnership’s Distributable Cash Flow in the third quarter of 2006 was $21.1 million, or 3.11 times the amount required to cover its Minimum Quarterly Distribution of $0.25 per unit and 1.04 times the amount required to cover its current distribution of $0.55 per unit. Distributable Cash Flow was $17.9 million in the third quarter of 2005. Distributable Cash Flow is a non-GAAP financial measure and is explained in greater detail under “Non-GAAP Financial Information.” There is a reconciliation of this non-GAAP measure to net income in the tables at the end of this news release.

“We are pleased that our quarterly operating results allow us to continue our strong track record of distribution and dividend increases,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “The outstanding performance of our Louisiana Intrastate Gas System and Mississippi assets continued to offset the shortfalls of our South Louisiana processing plants due to the 2005 hurricanes. We have developed a plan and mobilized a team to enhance our focus on innovative strategies designed to provide these plants with new gas supplies during the coming year.

“As previously communicated, we look forward to significant improvement in the North Texas Pipeline as firm transport commitments will double by the end of the fourth quarter,” Davis added.

The Partnership’s gross margin increased 90 percent to $74.8 million in the third quarter of 2006 from $39.4 million in the corresponding 2005 period. Gross margin from the Midstream business segment rose $31.2 million, or 107 percent, to $60.3 million. The increase was due to improved processing economics and growth in processed volumes of 356 percent. This volume growth was the result of the November 2005 acquisition of South Louisiana processing assets from El Paso Corporation and significantly higher throughput in our Louisiana Intrastate Gas processing plants. Additionally, the Partnership completed construction of its North Texas Pipeline and began transporting gas from the Barnett Shale in April 2006.

Gross margin from the Treating business segment rose $4.2 million, or 40 percent, to $14.5 million in the third quarter of 2006. The increase was attributable to dramatic growth in the number of treating plants in service. There were 154 treating plants in service at the end of the third quarter of 2006 versus 111 at the end of the third quarter of 2005.

Crosstex Energy, Inc. Financial Results

The Corporation reported net income of $1.5 million for the third quarter of 2006, compared with net income of $800 thousand for the comparable period in 2005. The Corporation’s net loss before income taxes and interest of non-controlling partners in the net income of the Partnership was $0.3 million in the third quarter of 2006, compared with income of $0.9 million in the third quarter of 2005.

The Corporation’s share of Partnership distributions, including distributions on the Corporation’s 10 million participating limited partner units, its two percent general partner interest and the incentive distribution rights, was $11.1 million in the third quarter of 2006. Its share of Partnership distributions in the third quarter of 2005 was $7.7 million. The recently announced increase in the Partnership’s distribution of $0.01 per unit raised the Corporation’s share of distributions by $0.3 million from $10.8 million in the second quarter of 2006 to $11.1 million in the third quarter of 2006.

Earnings Call

The Partnership and the Corporation will hold their quarterly conference call to discuss third quarter results today, November 8, at 10:00 a.m. Central Time (11:00 p.m. Eastern Time). The dial-in number for the call is 1-800-299-7635, and the passcode is “Crosstex.” A live Webcast of the call can be accessed on the investor relations page of Crosstex Energy’s Web site at www.crosstexenergy.com. The call will also be available for replay for 30 days by dialing 888-286-8010, passcode 18461086, or by going to the investor relations events page of Crosstex Energy’s Web site.

About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000 miles of pipeline, 12 processing plants, four fractionators, and approximately 160 natural gas amine-treating plants in service and approximately 35 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 2006 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 at www.crosstexenergy.com

Non-GAAP Financial Information

This press release contains a non-generally accepted accounting principle financial measure that we refer to as Distributable Cash Flow. Distributable Cash Flow includes earnings before non-cash charges, less maintenance capital expenditures and amortization of costs of certain derivatives (puts) plus proceeds from the sale of idle equipment. The amounts included in the calculation of these measures are computed in accordance with generally accepted accounting principles (GAAP), with the exception of maintenance capital expenditures and the amortization of put premiums. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of our assets and to extend their useful lives. The puts were acquired to hedge the future price of certain natural gas liquids. The net cost of the puts is being amortized against Distributable Cash Flow over their life.

We believe this measure is useful to investors because it may provide users of this financial information with meaningful comparisons between current results and prior reported results and a meaningful measure of the Partnership’s cash flow after it has satisfied the capital and related requirements of its operations. Distributable Cash Flow is not a measure of financial performance or liquidity under GAAP. It should not be considered in isolation or as an indicator of the Partnership’s performance. Furthermore, it should not be seen as a measure of liquidity or a substitute for metrics prepared in accordance with GAAP. Our reconciliation of this measure to net income is included among the following tables.

This press release contains forward-looking statements identified by the use of words such as “forecast,” “anticipate” and “estimate.” These statements are based on currently available information and assumptions and expectations that the Partnership and the Corporation believe are reasonable. However, the Partnership’s and the Corporation’s assumptions and expectations are subject to a wide range of business risks, so they can give no assurance that actual performance will fall within the forecast ranges. Among the key risks that may bear directly on the Partnership’s and the Corporation’s results of operations and financial condition are: (1) the amount of natural gas transported in the Partnership’s gathering and transmission lines may decline as a result of competition for supplies, reserve declines and reduction in demand from key customers and markets; (2) the level of the Partnership’s processing and treating operations may decline for similar reasons; (3) fluctuations in natural gas and NGL prices may occur due to weather and other natural and economic forces; (4) there may be a failure to successfully integrate new acquisitions; (5) the Partnership’s credit risk management efforts may fail to adequately protect against customer nonpayment; (6) the Partnership may not adequately address construction and operating risks and (7) other factors discussed in the Partnership’s and the Corporation’s Form 10-K’s for the year ended December 31, 2005,Form 10-Q’s for the quarter ended June 30, 2006, and other 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.

(Tables follow)

CROSSTEX ENERGY, L.P.
Selected Financial & Operating Data
(All amounts in thousands except per unit numbers)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenues
Midstream	$	837,235		$	769,334		$	2,367,231		$	1,928,330
Treating		17,350			13,117			47,899			34,064
Profit from Energy Trading Activities		700			306			1,930			1,157
		855,285			782,757			2,417,060			1,963,551
Cost of Gas
Midstream		777,644			740,519			2,210,465			1,851,418
Treating		2,870			2,792			7,359			5,996
		780,514			743,311			2,217,824			1,857,414
Gross Margin		74,771			39,446			199,236			106,137
Operating Expenses		28,073			13,874			72,874			37,598
General and Administrative		11,476			8,127			33,751			22,337
(Gain) Loss on Derivatives		(3,605	)		13,273			(1,839	)		13,679
(Gain) Loss on Sale of Property		132			(7,632	)		23			(7,797	)
Depreciation and Amortization		22,424			7,828			58,182			22,134
Total		58,500			35,470			162,991			87,951
Operating Income		16,271			3,976			36,245			18,186
Interest Expense and Other		(15,269	)		(2,730	)		(35,671	)		(8,943	)
Net Income before Minority Interest and Taxes		1,002			1,246			574			9,243
Minority Interest in Subsidiary		(41	)		(106	)		(223	)		(331	)
Income Tax Provision		(58	)		(68	)		(356	)		(176	)
Net Income before Cumulative Effect of Accounting Change		903			1,072			(5	)		8,736
Cumulative Effect of Accounting Change		—			—			689			—
Net Income	$	903		$	1,072		$	684		$	8,736
General Partner Share of Net Income	$	4,143		$	1,990		$	12,181		$	5,216
Limited Partners’ Share of Net Income	$	(3,240	)	$	(918	)	$	(11,497	)	$	3,520
Net Income per Limited Partners’ Unit
before Accounting Change:
Basic	$	(0.12	)	$	(0.05	)	$	(0.47	)	$	0.19
Diluted	$	(0.12	)	$	(0.05	)	$	(0.47	)	$	0.18
Weighted Average Limited Partners’
Units Outstanding:
Basic		26,602			18,157			26,245			18,126
Diluted		26,602			18,157			26,245			19,371

CROSSTEX ENERGY, L.P.
Reconciliation of Net Income to Distributable Cash Flow
(All amounts in thousands except ratios and distributions per unit)

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Net Income	$	903		$	1,072		$	684		$	8,736
Depreciation and Amortization (1)		22,352			7,760			57,967			21,932
Stock-Based Compensation		2,328			1,143			6,210			2,659
(Gain) Loss on Sale of Idle Property		132			(7,632	)		132			(7,797	)
Proceeds from Sale of Idle Property		783			5,400			783			9,313
Financial Derivatives Mark-to-Market		(2,357	)		11,547			1,936			11,547
Cumulative Effect of Acctg. Change		—			—			(689	)		—
Deferred Tax Benefit		347			(95	)		639			(286	)
Cash Flow		24,488			19,195			67,662			46,104
Amortization of Put Premiums		(1,305	)		—			(2,992	)		—
Maintenance Capital Expenditures		(2,044	)		(1,251	)		(4,773	)		(3,727	)
Distributable Cash Flow	$	21,139		$	17,944		$	59,897		$	42,377
Minimum Quarterly Distribution (MQD)	$	6,788		$	5,120		$	20,346		$	13,955
Distributable Cash Flow/MQD		3.11			3.50			2.94			3.04
Actual Distribution	$	20,274		$	11,663		$	59,167		$	33,137
Distribution Coverage		1.04			1.54			1.01			1.28
Distributions per Limited Partner Unit	$	0.55		$	0.49		$	1.62		$	1.42

(1) Excludes minority interest share of depreciation and amortization of $72,000 and $215,000 for the three and nine months ended September 30, 2006, respectively, and $68,000 and $202,000 for the three months and nine months ended September 30, 2005, respectively.

CROSSTEX ENERGY, L.P.
Operating Data

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006			2005
Pipeline Throughput (MMBtu/d)
South Texas		464,000		465,000		473,000			448,000
LIG Pipeline & Marketing		718,000		564,000		675,000			616,000
North Texas		126,000		—		93,000	(1)		—
Other Midstream		179,000		157,000		181,000			132,000
Total Gathering & Transmission Volume		1,487,000		1,186,000		1,422,000			1,196,000
Natural Gas Processed
MMBtu/d		2,060,000		452,000		1,934,000			450,000
Commercial Services Volume (MMBtu/d)		95,000		188,000		152,000			186,000
Treating Plants in Service (2)		154		111		154			111

(1)	North Texas first date of service was April 1, 2006. Average daily throughput for the nine months ended September 30, 2006 is from the first service date through September 30, 2006.
(2)	Plants in Service represents plants in service on the last day of the quarter.

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

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2006			2005			2006			2005
Revenues
Midstream	$	837,235		$	769,334		$	2,367,231		$	1,928,330
Treating		17,350			13,117			47,899			34,064
Profit from Energy Trading Activities		700			306			1,930			1,157
		855,285			782,757			2,417,060			1,963,551
Cost of Gas
Midstream		778,527			740,519			2,210,465			1,851,418
Treating		2,870			2,792			7,359			5,996
		781,397			743,311			2,217,824			1,857,414
Gross Margin		73,888			39,446			199,236			106,137
Operating Expenses		28,081			13,882			72,907			37,613
General and Administrative		11,977			8,471			35,354			23,295
(Gain) Loss on Derivatives		(3,605	)		13,273			(1,839	)		13,679
(Gain) Loss on Sale of Property		132			(7,633	)		23			(7,797	)
Depreciation and Amortization		22,436			7,839			58,225			22,169
Total		59,021			35,832			164,670			88,959
Operating Income		14,867			3,614			34,566			17,178
Interest Expense and Other		(15,183	)		(2,669	)		(33,782	)		(8,668	)
Income before Gain on Issuance of Partnership Units, Income Taxes and Interest of Non-controlling Partners in the Partnership’s Net Income		(316	)		945			784			8,510
Income Tax Provision		(670	)		(494	)		(11,242	)		(2,528	)
Gain on Issuance of Units of the Partnership		—			—			18,955			—
Interest of Non-controlling Partners in the Partnership’s Net (Income) Loss		2,502			304			7,323			(1,909	)
Net Income before Cumulative Effect of Accounting Change		1,516			755			15,820			4,073
Cumulative Effect of Accounting Change		—			—			170			—
Net Income	$	1,516		$	755		$	15,990		$	4,073
Net Income per Common Share before Accounting Change:
Basic Earnings per Common Share	$	0.10		$	0.06		$	1.16		$	0.32
Diluted Earnings per Common Share	$	0.10		$	0.06		$	1.15		$	0.32
Weighted Average Shares Outstanding:
Basic		15,314			12,760			13,632			12,615
Diluted		15,502			12,962			13,793			12,944
Dividends Per Common Share	$	0.64		$	0.46		$	1.86		$	1.30