Crosstex Energy Provides Operational Assessment of Texas and Louisiana Facilities after Hurricane Ike

Crosstex Energy, L.P. announced that the majority of its assets in Texas and Louisiana sustained minimal physical damage as a result of Hurricane Ike. Most of the Partnership’s facilities along the Gulf Coast are resuming or have resumed operations. However, the Sabine plant, because of its proximity to the Louisiana Gulf coast, sustained some damage that is still being assessed. It is expected the plant will not be operational for at least four to six weeks. In addition, several offshore production platforms and pipelines transporting gas production to the Pelican and Bluewater processing plants were damaged by the storm, and it is unclear when offshore production will return in full. Consequently, it is anticipated that Pelican and Bluewater volumes could remain at a lower level until those repairs are completed by the owners of the platforms and pipelines.

The Partnership is negotiating with owners of other plants that sustained significant damage to process displaced gas from those plants in Crosstex’s facilities.

The Partnership estimates that the combined negative impact of Hurricanes Gustav and Ike on third-quarter cash flows will be approximately $12-14 million. The Partnership has not quantified the impact of the reduced operations at the Sabine, Pelican and Bluewater plants on fourth-quarter financial results. In addition, the Partnership is currently unable to estimate potential increases, if any, in its processing business from gas redirected to its facilities from other damaged plants in the region.

“Our employees encountered two back-to-back hurricanes in just a few days, and we are extremely fortunate that they made it through Hurricane Ike safely and the majority of our property that was affected incurred only minor damage,” said Barry E. Davis, Crosstex Chairman, President and Chief Executive Officer. “We are exceptionally proud of our employees who reached out and helped each other recover from the storm.”

Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, operates approximately 5,700 miles of pipeline, 12 processing plants, four fractionators, and approximately 190 natural gas amine-treating plants and dew point control plants. Crosstex currently provides services for over 4.0 Bcf/day of natural gas, or approximately eight percent of marketed U.S. daily production.

Crosstex Energy, Inc. owns the two percent general partner interest, a 34 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, L.P.

Additional information about the Partnership can be found at www.crosstexenergy.com.