Analyst Conference March 27, 2012 Forward Looking Statements This - PowerPoint PPT Presentation

Analyst Conference March 27, 2012

Forward Looking Statements This presentation contains forward looking statements within the meaning of the federal securities laws. Forward looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. The future results of Crosstex Energy, L.P. and its affiliates (collectively known as “Crosstex”) may differ materially from those expressed in the forward-looking statements contained throughout this presentation and in documents filed with the SEC. Many of the factors that will determine these results are beyond Crosstex’s ability to control or predict. These statements are necessarily based upon various assumptions involving judgments with respect to the future, including, among others, the ability to achieve synergies and revenue growth; national, international, regional and local economic, competitive and regulatory conditions and developments; technological developments; capital markets conditions; inflation rates; interest rates; the political and economic stability of oil producing nations; energy markets; weather conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas and electricity; the timing and success of business development efforts; and other uncertainties. You are cautioned not to put undue reliance on any forward looking statement. Crosstex has no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 2

Welcome and Introduction Mike Garberding Senior Vice President & Chief Financial Officer

Agenda I. Welcome and Introduction Pg. 3 II. Strategic Vision Pg. 6 III. Asset Overview – NTX, LIG & PNGL Pg. 21 IV. Growth Projects Overview Pg. 37 V. Financial Overview Pg. 47 VI. Closing Remarks Pg. 55 VII. Appendix Pg. 58 4

Management Team • Barry Davis - President and Chief Executive Officer • Bill Davis - EVP, Chief Operating Officer • Joe Davis - EVP, General Counsel • Michael Garberding - SVP, Chief Financial Officer • Mike Burdett - SVP, Commercial • Stan Golemon - SVP, Engineering and Operations • Jennifer Johnson - SVP, Human Resources • Steve Spaulding - SVP, Processing and NGLs • Royston Lightfoot – SVP, Business Development 5

Strategic Vision Barry Davis President and Chief E xecutive Officer

Crosstex E nergy: Services Provided • Over 2,800 miles of natural gas gathering and transmission pipeline • 9 natural gas processing plants • 3 fractionators • Over 470 miles of NGL pipeline • 2.4 MM barrels of NGL cavern storage • Crude logistics – Riverside/Eunice 7

Corporate Structure Public/Other Directors / Executive Public Unitholders Shareholders Officers 87% 13% 51% Crosstex Energy, Inc. (NASDAQ: XTXI) 25% 100% GSO Crosstex • 2% GP Interest Crosstex GP, LLC Holdings • 100% IDRs 2% 22% Crosstex Energy, L.P. (NASDAQ: XTEX) Dist./Q Split Level Crosstex Energy ≤ $0.2500 2% / 98% Services, L.P. ≤ $0.3125 15% / 85% Current Position ≤ $0.3750 25% / 75% All Assets > $0.3750 50% / 50 % and Operations 8

Strategically Positioned Assets Permian North Texas PNGL • 50 MMcf/d new build gas processing plant • ~840 miles of pipeline • ~440 miles of NGL pipeline • Mesquite fractionation & rail terminal to • 4 processing plants • 3 processing plants transport stranded NGLs from this region • 3 fractionation facilities • 2 treating plants LIG Eagle Ford • ~2,100 miles of pipeline • Strategic partnership with • 2 processing plants Howard , Quanta, and GE • 2 treating plants to pursue opportunities in Eagle Ford Cajun Sibon • ~130-mile NGL pipeline Crude • From Mt. Belvieu to • Crude truck/rail/barge facilities expanded fractionation - Eunice & Riverside assets in LA 9

2011 Accomplis lishmen hments The Plan Accomplishments Maximize earnings, - Achieved 2011 EBITDA results at the upper end of the guidance growth of existing businesses - Barnett Shale – completed Benbrook, Fossil Creek expansions - PNGL – restarted the Eunice fractionator - LIG – have five-year weighted average contract life in North LIG; exposure to liquids-rich plays in central Louisiana Enhance scale, - Cajun-Sibon NGL expansion diversification - Permian Basin Apache JV - Partnership in Eagle Ford with Howard Energy Partners - Crude Oil terminals - implemented Phase I crude project at Riverside, Eunice Safety - Excellent improvement with an injury rate of .41 versus a target of less than 1.4 and a vehicle accident rate of 1.45 versus target of 1.6 Maintaine solid financial - Strong dividend/distribution growth - XTEX distributions declared of performance, balance sheet $1.23/unit with coverage of 1.42x and XTXI dividends declared of $0.40/share - Liquidity – no near-term debt maturities; over $400mm available on revolver - Fourth Quarter Debt-to-EBITDA of 3.9 to 1 - Improved long-term capital structure; increased financial flexibility 10 10

Stron trong E E BITD ITDA & & Distri stribution Grow Growth th Total Fiscal Year EBITDA ($ 000s) $225,000 $230,000 $214,000 $210,000 • Projected EBITDA growth of $187,000 $190,000 ~20% from 2010 to 2012 • 2010 to 2012 projected $170,000 distribution growth of ~38% $150,000 • Distribution and dividend FY 2010 FY 2011 FY 2012** growth guidance for 2012 is 10% and 20%, respectively Q4 Annualized Distribution/Unit • Strong distribution coverage $1.50 $1.44 • Reduced overall leverage - $1.40 debt to EBITDA less than $1.28 $1.30 4.0X $1.20 $1.10 $1.04 $1.00 FY 2010 FY 2011 FY 2012** 11 ** 2012 represents mid-point of guidance 11

Cri riti tica cal Tren Trends s for or 2012 12+ • Robust industry environment for midstream infrastructure build • Hyper-competitive market for midstream services • Producers’ production focus on XTEX: Eunice Facility rich gas and crude • Size and diversity are highly valued in marketplace • Capital markets expected to remain volatile XTEX: Mesquite Rail Facility 12

2012 12 Stra trate tegic P c Plan Our strategy is to: • Maximize earnings and growth of existing businesses. • Grow business to enhance scale and diversification and to create value In 2012 we will focus on new core businesses to enhance diversification and scale: • Increase NGL business • Grow Crude business • Develop GP&T business in rich gas areas 13

20 2012 2 Stra trate tegic P c Plan – In Increa crease se N NGL GL Busin iness 60 Mb/d +60 +456 Pipeline Capacity +701 Fractionation Capacity (Mb/d) Source: Bentek • ~1.7 MMbpd of new NGL pipeline capacity to Mont Belvieu by 2014 • Gulf Coast -- largest market & only major market for NGLs • Louisiana Petrochemical plants short Ethane supply 14

20 2012 2 Stra trate tegic c Plan lan – In Increa crease se N NGL GL Busi siness ss Current NGL projects/opportunities include the following: • Cajun Sibon Phase I: 70,000 Bbls/d with anticipated completion Q2 2013 • Cajun Sibon Phase II: Additional potential 50,000 Bbls/d opportunity with proposed completion 2014 • Mesquite Fractionator NGL & Propane rail export terminal: In Service • Other Target Opportunities  Develop downstream NGL services  Develop new NGL storage caverns at Napoleonville 15

20 2012 2 Stra trate tegic P c Plan – Grow Grow C Cru rude e Busin iness 2011 WTI Basis Source: Bentek • Crude Oil supply is outpacing crude pipeline solutions • Gulf Coast largest market for Crude Oil • Large price differentials between production regions and Gulf Coast market 16

20 2012 2 Stra trate tegic c Plan lan – Grow C w Crude Busine ness Current Crude projects/opportunities include the following: • Crude oil rail trans-loading terminals  Phase I at Riverside & Eunice: In Service; up to 6,000 Bbls/d  Phase II at Riverside: Additional 10,000 Bbls/d opportunity with proposed completion in Q1 2013  Phase III at Riverside: Unit Train Incremental 20,000 - 40,000 Bbls/d opportunity with potential completion in Q1 2014 • Other Target Opportunities  Crude trans-loading at Mesquite Terminal in Permian  Crude Gathering, Transportation, Terminals, Trucking, and Rail in new basin 17

20 2012 2 Stra trate tegic P c Plan – Dev evelop op GP GP&T T Busin iness Bakken 218/+55 5/-3 2/+0 22/+3 7/+5 25/-5 118/+3 47/+10 35/+5 76/+18 17/+7 3/+1 39/+21 23/-10 6/-2 Anadarko 30/-1 51/-5 251/+16 9/+2 18/-5 87/-23 61/-29 66/-43 13/-1 Permian 480/+89 32/+9 68/+4 2147 Eagle Dry Gas Focused Areas 86/+20 +223 Ford Liquids Rich/Oil Focused Areas 250/+85 Rig Declines Source: Bentek, March 2012 Note: Active rig count: Feb. 24, 2012 / Change in rig count from Feb. 25, 2011 Source: Bentek 18

20 2012 2 Stra trate tegic c Plan lan – De Develop G GP&T &T Busine ness Current GP&T projects/opportunities include the following: • Continue to execute the Apache JV, which will provide opportunities to expand Permian footprint • Execute on Howard Energy acquisition of Meritage • Execute on Central Louisiana Opportunities (Tuscaloosa Marine/ Austin Chalk) as producers continue development • Enter new basin with focus on Mississippi Lime, Bakken, Marcellus and Utica 19