EXHIBIT 99.1
CROSSTEX
PRESS RELEASE
Crosstex Energy Announces Private Placement for $360 Million
DALLAS, May 17 /PRNewswire-FirstCall/ — Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership)
today announced that it had executed agreements to issue approximately 12.8 million senior
subordinated units for aggregate proceeds of $360 million. The units will convert to common units
on February 16, 2008, and until that time, will not participate in the cash distributions of the
Partnership. The financing is being done in order to fund a portion of the Partnership’s agreement
to acquire the natural gas gathering pipeline systems and related facilities of Chief Holdings LLC,
which was announced in early May 2006, as well as the Partnership’s previously announced capital
projects. The financing is expected to close concurrently with the closing of the acquisition from
Chief.
Crosstex Energy, Inc. (Nasdaq: XTXI) (the Corporation) has agreed to purchase $180 million of the
senior subordinated units. To finance its purchase of the units, the Corporation has agreed to sell
approximately 2.5 million shares of common stock in a private placement for approximately $180
million.
“The issuance of these senior subordinated units is a very positive indication of confidence in
Crosstex’s long-term plan for growth. Additionally, it puts the Partnership in an excellent
position to fund its previously announced growth programs,” said Barry E. Davis, President and
Chief Executive Officer. “We are excited by the strong financial support we have received from the
investment community.”
The securities to be offered have not been registered under the Securities Act of 1933, as amended,
(the “Securities Act”), or any state securities laws, and unless so registered, the securities may
not be offered or sold in the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act and applicable
state securities laws. This announcement shall not constitute an offer to sell or a solicitation of
an offer to buy any of these securities.
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates over 5,000
miles of pipeline, ten processing plants, four fractionators, and approximately 150 natural gas
amine treating plants and 22 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 2005 Department of Energy data.
Crosstex Energy, Inc. owns the two percent general partner interest, a 38 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 constitute
forward-looking statements. Although the companies believe that the expectations reflected in the
forward-looking statements are reasonable, they can give no assurance that such expectations will
prove to be correct.
SOURCE Crosstex Energy, L.P.; Crosstex Energy, Inc.
-0- 05/17/2006
/CONTACT: Jill McMillan for Crosstex Energy, Inc., +1-214-721-9271,
jill.mcmillan@crosstexenergy.com /
/Web site: http://www.crosstexenergy.com /
(XTEX XTXI)
CO: Crosstex Energy, L.P.; Crosstex Energy, Inc.
ST: Texas
IN: OIL
SU: FNC
KZ
— NYW063 —
0615 05/17/2006 07:00 EDT http://www.prnewswire.com