Exhibit 99.1
FOR IMMEDIATE RELEASE
OCTOBER 1, 2009
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Contact:
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Jill McMillan, Manager, Public & Industry Affairs |
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Phone: (214) 721-9271 |
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Jill.McMillan@CrosstexEnergy.com |
CROSSTEX COMPLETES SALE OF NATURAL GAS TREATING BUSINESS FOR $266 MILLION
Company Satisfies Debt Reduction Target; Reduces Outstanding Debt by More Than $500 Million
DALLAS, October 1, 2009 The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the
Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), announced today the
completion of the sale of the Partnerships natural gas treating business to Houston-based Kinder
Morgan Energy Partners, L.P. (NYSE: KMP), one of the largest pipeline transportation and energy
storage companies in North America. The purchase price was approximately $266 million, including
working capital and closing adjustments. Crosstex will use the net proceeds from the transaction to
pay down approximately $259 million of the Partnerships outstanding debt. This debt repayment, in
addition to repayments made with proceeds from previous asset sales, fully satisfies the targeted
debt reduction established in the Partnerships amendments to its debt facilities entered into in
the spring of this year.
The completion of this sale is another important step forward in the execution of our strategic
plan. Asset sales have enabled us to reduce debt by more than $500 million, improving our leverage
position and liquidity. We are focused on enhancing profitability by increasing margins, reducing
costs and achieving operating efficiencies throughout our core assets in the Barnett and
Haynesville shales and our natural gas liquids business. We have made substantial progress, which
is reflected in our solid results and improved guidance for 2009, said Barry E. Davis, Crosstex
President and Chief Executive Officer.
We will continue to explore additional means to increase financial flexibility and enhance our
bottom line, with a goal of restoring distributions and dividends to our unitholders and
shareholders, Davis added.
Goldman, Sachs & Co. served as the exclusive financial advisor to Crosstex in connection with the
transaction.
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Crosstex Completes Sale of Natural Gas Treating Business for $266 Million
Page 2 of 2
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 per day of natural gas, 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 managements 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 Partnerships future liquidity, leverage, business and results of operations
and to the payment of dividends and distributions. 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 Partnerships and the Corporations 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 Partnerships and the Corporations 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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