Crosstex Energy Adds New Supply to North Texas Gathering System
June 21 2010 - 6:15AM
Business Wire
The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ:
XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI)
(the Corporation), announced today that the Partnership has entered
into a 10-year firm transportation agreement with a major Barnett
Shale producer for an additional 50 million cubic feet of natural
gas per day on its North Texas gathering system. Crosstex is
constructing a compressor station on an existing gathering line to
accommodate the customer’s transportation requirements. The project
is scheduled to be completed and operational in the first quarter
of 2011. Incremental investment required for the project is
estimated to be less than $10 million and the annual cash flow from
the agreement is expected to be approximately $8 million.
“This agreement is a prime example of how our strategic position
in the Barnett Shale adds value. We are able to make relatively
low-cost, incremental investments that generate high returns and
enhance the utilization of our core assets,” said Barry E. Davis,
Crosstex President and Chief Executive Officer. “We will continue
to look for opportunities in North Texas where our operations are
located in the heart of the Barnett Shale, one of the most
significant shale plays in the U.S.”
About the Crosstex Energy
Companies
Crosstex Energy, L.P., a midstream natural gas company
headquartered in Dallas, operates approximately 3,300 miles of
pipeline, 10 processing plants and three fractionators. The
Partnership currently provides services for 3.2 billion cubic feet
of natural gas per day, or approximately six percent of marketed
U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner
interest, a 33 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.
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 the 10-year
transportation agreement, the projected cash-flow, and the effect
of such agreement on the Partnership’s future liquidity, leverage,
business 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.
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