Exhibit 99.1 Crosstex Energy, L.P. Reports Second Quarter Results DALLAS, Aug. 10 /PRNewswire-FirstCall/ -- Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) today reported net income of $5.9 million, or $0.24 per limited partner unit, in the quarter ended June 30, 2004, compared to net income in the second quarter of 2003 of $5.0 million, or $0.32 per unit. The Partnership's Distributable Cash Flow for the quarter was $10.0 million, or 2.18 times the amount required to cover its Minimum Quarterly Distribution of $0.25 per unit, and 1.11 times the amount required to cover its recently increased distribution of $0.42 per unit. This is an increase of $3.3 million, or 48 percent, over Distributable Cash Flow of $6.8 million in the 2003 second quarter. Distributable Cash Flow is a non- GAAP financial measure and is explained in greater detail under "Non-GAAP Financial Information." Also, in the tables at the end of this release is a reconciliation of this measure to net income. The growth in Distributable Cash Flow was driven by growth in the Partnership's gross margin, to $28.6 million compared to $13.1 million in the corresponding 2003 period, an increase of 118 percent. Gross margin from the Midstream business segment increased by $12.6 million, or 126 percent, to $22.5 million, due to growth in on-system gathering and transmission volumes of 147 percent, and to growth in processed volumes of 319 percent. The acquisition of LIG Pipeline Company and its subsidiaries on April 1, 2004, and the acquisition of the Mississippi system on June 30, 2003, were major drivers of growth in gross margins. LIG contributed $8.1 million to gross margin in the quarter while the Mississippi system and the other midstream assets acquired with it contributed $3.4 million in the quarter. Additional organic growth came through increases in pipeline throughput at CCNG, Vanderbilt, and Arkoma. "The LIG assets performed just as we expected during the first quarter of our ownership," said Barry E. Davis, President and Chief Executive Officer. "In the coming months, we will begin to implement our plans to further improve results at LIG. Of course, our constant focus is improving performance for all of our assets." Gross margin from the Treating segment increased by $2.9 million, or 91 percent, to $6.1 million. The Seminole plant, acquired on June 30, 2003, contributed $2.0 million to Treating gross margin in the quarter. Growth in the number of treating plants in service from 43 at the end of the second quarter of 2003 to 62 at the end of the second quarter of 2004 created the remaining increase in Treating margins. "We continue to be in a good environment to grow all our businesses," added Davis, "and we feel that our Treating business is uniquely positioned to capture an ever-increasing market share, particularly as a larger and larger percentage of our Treating business is with major integrated oil companies and large independents." Earnings Call The Partnership will hold its quarterly conference call to discuss second quarter results today at 10:00 am Central Time (11:00 am Eastern Time). The dial-in number for the call is 800-299-7635, passcode Crosstex. A live Webcast of the call can be accessed on the investor information page of Crosstex Energy's Web site at http://www.crosstexenergy.com . The call will be available for replay for 30 days by dialing 888-286-8010, passcode 16080860. A replay of the broadcast will also be available on the Partnership's Web site. About Crosstex Crosstex Energy, L.P., a mid-stream natural gas company headquartered in Dallas, operates over 4,500 miles of pipeline, five processing plants, and over 60 natural gas amine treating plants. The Partnership currently provides services for over 1.5 BCF/day of natural gas. Additional information about the Partnership can be found at http://www.crosstexenergy.com . Non-GAAP Financial Information This press release contains non-generally accepted accounting principle financial measures of earnings before non-cash charges and less maintenance capital expenditures, which we refer to as Distributable Cash Flow. 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. 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. 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 in the following tables. This press release contains forward-looking statements identified by the use of words such as "forecast", "anticipate", "plan" and "estimate". These statements are based on currently available information and assumptions and expectations that the Partnership believes are reasonable. However, the Partnership's assumptions and expectations are subject to a wide range of business risks, so it 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 results of operation 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; and (6) the Partnership may not adequately address construction and operating risks. The Partnership has no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. (tables to follow) CROSSTEX ENERGY, L.P. Selected Financial and Operating Data (All amounts in thousands except per unit numbers) Quarter Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Revenues Midstream $507,744 $224,030 $825,957 $469,345 Treating 7,568 5,222 14,712 10,477 515,312 229,252 840,669 479,822 Cost of Gas Midstream 485,212 214,071 788,088 451,479 Treating 1,487 2,035 2,863 4,451 486,699 216,106 790,951 455,930 Gross Margin 28,613 13,146 49,718 23,892 Operating Expenses 10,316 3,335 16,529 6,545 General & Administrative 4,741 1,891 8,332 3,391 Impairments --- --- --- --- Profit on Energy Trading Activities (826) (738) (1,246) (845) Stock Based Compensation 269 568 478 3,072 Depreciation and Amortization 5,921 2,611 10,339 5,046 Total 20,421 7,667 34,432 17,209 Operating Income 8,192 5,479 15,286 6,683 Interest Expense (2,186) (465) (3,341) (875) Other Income (65) (39) (298) (1) Total Other Income (Expense) (2,251) (504) (3,639) (876) Net Income $5,941 $4,975 $11,647 $5,807 General Partner Share of Net Income $1,393 $155 $2,442 $172 Limited Partners Share of Net Income $4,548 $4,820 $9,205 $5,635 Net Income per Limited Partners' Unit $0.24 $0.32 $0.48 $0.38 Weighted Average Limited Partners' Units Outstanding (Diluted) 19,156 14,842 19,122 14,732 CROSSTEX ENERGY. L.P. Reconciliation of Net Income to Distributable Cash Flow (All amounts in thousands except ratios) Quarter Ended Six Months Ended June 30, June 30, 2004 2003 2004 2003 Net Income $5,941 $4,975 $11,647 $5,807 Depreciation and Amortization (A) 5,882 2,611 10,262 5,046 Impairments --- --- --- --- Stock Based Compensation 269 568 478 3,072 Loss (Gain) on Sale of Property (22) --- 274 --- Cash Flow 12,070 8,154 22,661 13,925 Maintenance Capital Expenditures 2,028 1,375 2,972 1,719 Distributable Cash Flow $10,042 $6,779 $19,689 $12,206 Minimum Quarterly Distribution (MQD) $4,613 $3,725 $9,225 $7,449 Distributable Cash Flow/MQD 2.18 1.82 2.13 1.64 Actual Distribution $9,076 $4,154 $17,429 $7,878 Distribution Coverage 1.11 1.63 1.13 1.55 (A) Excludes minority interest share of depreciation and amortization of $38,000 and $76,000 for the three and six months ended June 30, 2004, respectively. CROSSTEX ENERGY, L.P. Operating Data (All volumes, except Seminole Plant, in MMBtu/d) Quarter Ended Six Months Ended June 30, June 30, Pipeline Throughput 2004 2003 2004 2003 Gulf Coast Transmission 81,000 75,000 86,000 85,000 Vanderbilt 58,000 44,000 62,000 40,000 CCNG Transmission 285,000 210,000 272,000 211,000 Gregory Gathering 128,000 154,000 142,000 144,000 Mississippi 79,000 N/A 78,000 N/A Arkoma 20,000 11,000 19,000 11,000 LIG Pipeline & Marketing 561,000 N/A 561,000 (A) N/A Other Midstream 36,000 12,000 35,000 12,000 Total Gathering and Transmission Volume 1,248,000 506,000 1,255,000 503,000 Natural Gas Processed Gregory Processing 99,000 93,000 116,000 94,000 Conroe Processing 28,000 N/A 26,000 N/A LIG Processing 263,000 N/A 263,000 (A) N/A Total Processed Volume 390,000 93,000 405,000 94,000 Total On-System Volumes 1,638,000 599,000 1,660,000 597,000 Producer Services Volumes 166,000 262,000 181,000 258,000 Treating Volumes (B) 79,000 89,000 81,000 89,000 Treating Plants in Service (C) 62 43 62 43 Seminole Plant (Mcf/d of CO2) 21,000 N/A 21,000 N/A (A) Represents activity since April 1, 2004 acquisition. (B) Represent volumes for treating plants operated by us whereby we receive a fee based on the volumes treated. (C) Plants in service represent plants in service on the last day of the quarter. 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- 08/10/2004 /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 / (XTEX) CO: Crosstex Energy, L.P. ST: Texas IN: OIL UTI SU: ERN CCA MAV