Exhibit 99.1 CROSSTEX REPORTS SECOND QUARTER RESULTS DALLAS, Aug. 4 /PRNewswire-FirstCall/ -- Crosstex Energy, L.P. (Nasdaq: XTEX) (the Partnership) today reported results for the second quarter of 2005 that are in-line with accomplishing goals for the year. Crosstex Energy, Inc. (Nasdaq: XTXI) will report results next week. Crosstex Energy, L.P. Financial Results The Partnership reported net income of $4.5 million for the second quarter of 2005, or $0.17 per limited partner unit, compared to net income in the second quarter of 2004 of $5.9 million, or $0.24 per unit. Partnership net income in the second quarter of 2005 was negatively impacted by a $1.0 million charge for non-cash stock based compensation, due to the exercise of Crosstex Energy, Inc. stock options by employees of the Partnership, and by $800,000 associated with the gas leak reported in the first quarter's results. The Partnership's Distributable Cash Flow for the quarter was $13.4 million, 2.89 times the amount required to cover its Minimum Quarterly Distribution of $0.25 per unit, and 1.22 times the amount required to cover its distribution of $0.47 per unit. As previously disclosed, the Partnership has agreed to sell certain idle equipment for $9.0 million in 2005, and during the second quarter, the Partnership received the second $1.8 million deposit on such sale, which is included in Distributable Cash Flow for the quarter. The sales proceeds will not be reflected in net income until the sale closes, which is expected in the third quarter. Distributable Cash Flow for the quarter increased $3.4 million, or 34 percent, over Distributable Cash Flow of $10.0 million in the 2004 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. In addition to the sale proceeds, the growth in Distributable Cash Flow was driven by growth in the Partnership's gross margin, to $34.7 million in the second quarter of 2005 compared to $29.4 million in the corresponding 2004 period, an increase of 18 percent. Gross margin from the midstream segment increased by $2.4 million, or 11 percent, to $25 million, primarily due to a 25 percent increase in processed volumes and a five percent increase in on- system gathering and transmission volumes. Midstream margin growth was negatively impacted by the $800,000 loss associated with the gas leak previously mentioned. Gross margin from the Treating segment increased $3.2 million, or 53 percent, to $9.3 million. Plants in service increased to 100 at June 30, 2005 from 62 at June 30, 2004, contributing $2.2 million to the increase in gross margin. Plant expansions made up $0.5 million of the increase with increased volumes and fees contributed the remaining $0.5 million. "We are pleased that our organic growth and the cash we received from the sale of idle equipment allows us to continue our smooth distribution and dividend growth while we work to complete our North Texas Pipeline. With the results of the quarter, we feel comfortable with our current guidance for 2005," said Barry E. Davis, President and Chief Executive Officer of Crosstex Energy, L.P. "We think it is especially noteworthy to reach the milestone of having 100 treating plants in service. In the current environment, we expect to see our organic treating growth continue to accelerate." Earnings Call The Partnership will hold its quarterly conference call to discuss second quarter results today, August 4, at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). The dial-in number for the call is 866-831-6234, passcode Crosstex. A live Webcast of the call can be accessed on the investor information page of Crosstex Energy's Website at http://www.crosstexenergy.com. The call will be available for replay for 30 days by dialing 888-286-8010, passcode 38739179. A replay of the broadcast will also be available on the Partnership's Website. 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 approximately 100 natural gas amine treating plants. Crosstex currently provides services for approximately 1.9 BCF/day of natural gas. Crosstex Energy Inc. owns the general partner, a 54 percent limited partner interest in and the incentive distribution rights of Crosstex Energy, L.P. Additional information about the Crosstex companies can be found at http://www.crosstexenergy.com. Non-GAAP Financial Information This press release contains a non-generally accepted accounting principle financial measure which we refer to as Distributable Cash Flow. Distributable Cash Flow includes earnings before non-cash charges, less maintenance capital expenditures plus, in this period, a cash deposit securing the contracted sale of idle equipment. 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" and "estimate". These statements are based on currently available information and assumptions and expectations that the Partnership believes are reasonable. However, the assumptions and expectations are subject to a wide range of business risks, so the Partnership 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 operations 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. CROSSTEX ENERGY, L.P. Selected Financial and Operating Data (All amounts in thousands except per unit numbers)