Exhibit 99.1
CROSSTEX ANNOUNCES MAJOR PIPELINE EXPANSION;
$225 MILLION PROJECT TO ADD APPROXIMATELY $40 MILLION OF CASH FLOW
DALLAS, May 25 /PRNewswire-FirstCall/ -- Crosstex Energy, L.P.
(Nasdaq: XTEX) (the Partnership) today announced plans to expand and extend
the Crosstex LIG pipeline system to access natural gas production that is
actively being developed in Northwest Louisiana and to receive up to
700 million cubic feet of natural gas per day (MMcf/d) from East Texas, which
will be delivered by a new interstate pipeline to be built by Kinder Morgan
Energy Partners, L.P. (NYSE: KMP).
"This expansion is consistent with our growth strategy of using successful
past acquisitions as a platform from which to build," said Barry E. Davis,
President and Chief Executive Officer. "As drilling activity increases, we're
seeing opportunities for organic growth that our industry hasn't seen in many
years, and we believe that the synergy of our existing assets combined with
the relationships we have in this industry will give us a competitive
advantage in these expansion projects."
KMP announced today its open season for firm transportation shippers for
their proposed Kinder Morgan Carthage Pipeline. This expansion is needed as
producers have been very successful developing large volumes of new gas
production from the Bossier and Barnett Shale formations. The pipeline take-
away capacity from these new fields has been limited, with most of the new
capacity delivering the new production to the Carthage, Texas area where many
interstate pipelines converge. Capacity to move gas east from Carthage has
been limited. KMP and Natural Gas Pipeline Company of America, a subsidiary
of Kinder Morgan, Inc. (NYSE: KMI), have developed a much needed project,
which when connected to the Crosstex LIG system will expand take-away capacity
by up to 700 MMcf/d. Crosstex and KMP have worked closely together to plan
this expansion of capacity out of East Texas.
In North Louisiana, producers drilling in fields such as Caspiana, Elm
Grove, Holly and Sligo have successfully developed new gas reserves. However,
they are now facing limited take-away capacity from the production area into
the gas transmission grid. The Partnership's extension of its existing system
will be a competitive option for those producers, offering multiple
interconnects to move gas into the Partnership's intrastate markets as well as
interconnects with pipelines owned by Columbia Gas Transmission, Tennessee Gas
Pipeline, Trunkline Gas Company, Texas Gas Transmission and ANR Pipeline
Company.
The extension of the Crosstex LIG system includes 65 miles of 36" pipeline
starting from the existing system near Natchitoches, LA and ending near
Shreveport, at which point it will connect with the proposed Kinder Morgan
Carthage Pipeline. New gathering laterals connected to the extension will
enable North Louisiana producers to access the new line. Within the existing
LIG system, eight miles of pipeline will be looped to add capacity to move the
large volumes anticipated. This additional capacity will benefit natural gas
producers and shippers, which will ultimately translate into more reliable and
reasonably priced natural gas to consumers.
The Partnership's estimated cost for the project is $225 million, with
cash flow estimated to be approximately $40 million per year once the
connection to the proposed Kinder Morgan line is completed. The Partnership
has engaged an engineering firm to complete a project feasibility study by
June 30, 2005. The expansion is expected to be in operation by summer of
2006.
Companies interested in acquiring firm 311 transportation capacity in the
Crosstex LIG's expansion should contact John Durand at 214-953-9500.
Conference Call
The Partnership will hold a conference call to discuss the expansion
project Friday, May 27, at 8:30 am Central Time (9:30 am Eastern Time). The
dial-in number for the call is 888-396-2384, passcode Crosstex. A live
Webcast of the call can be accessed on the investor information page of the
Partnership's website at http://www.crosstexenergy.com . The call will be
available for replay for 30 days by dialing 888-286-8010, passcode 50681352.
A replay of the broadcast will also be available on the website.
About Crosstex
Crosstex Energy, L.P., a mid-stream natural gas company headquartered in
Dallas, owns and operates over 4,500 miles of pipeline, five processing
plants, 140 natural gas amine treating plants and 23 dew point suppression
plants. Crosstex currently provides services for approximately 1.9 BCF/day of
natural gas.
Crosstex Energy, Inc. (Nasdaq: XTXI) owns the general partner, a
54 percent limited partner interest and the incentive distribution rights of
Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at
http://www.crosstexenergy.com .
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, including statements
regarding the company's expansion opportunities and estimated cash flow,
constitute forward-looking statements. Although the company believes that the
expectations reflected in the forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to be correct.
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, L.P.
-0- 05/25/2005
/CONTACT: Barry E. Davis, President and Chief Executive Officer, or
William W. Davis, Executive V.P. and Chief Financial Officer, both of Crosstex
Energy, L.P., +1-214-953-9500/
/Web site: http://www.crosstexenergy.com /