Analyst Conference April 1, 2010 1 Forward Looking Statements - PowerPoint PPT Presentation

Analyst Conference April 1, 2010 1

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 Bill Davis Executive Vice President and Chief Financial Officer 3

Agenda I. Welcome and Introduction II. Strategic Vision and Industry Trends III. North Texas IV. 10 Minute Break V. LIG VI. Processing and NGLs VII. 10 Minute Break VIII. Finance IX. Closing Remarks X. Q&A 4

Management Team  Barry Davis- President and Chief Executive Officer  Bill Davis- EVP, Chief Financial Officer  Joe Davis- EVP, General Counsel  Michael Garberding- SVP, Finance and Corporate Development  Stan Golemon- SVP, Engineering and Operations  Scott Williams- SVP, Commercial  Jennifer Johnson- SVP, Human Resources  Mike Burdett- VP, North Texas  John Knight- VP, LIG  Terry Brown- VP, Commercial Services  Suzie Boyd- VP, Processing and NGL’s 5

Strategic Vision & Industry Trends Barry Davis President and Chief Executive Officer 6

Strategically Positioned for Performance and Growth  Strategically positioned assets  Strategically positioned organizationally  Strategically positioned financially  Strategically positioned for the macro environment  Strategically positioned for long-term growth 7

We Delivered on Our Promises  Sold non-core assets  De-levered significantly  Completed high return capital projects  Reduced operating costs  Accessed the equity market  Re-financed all debt  Clear path to restoring distributions and dividends 8

2009: We Navigated the Storm Crosstex Energy LP (XTEX) $12 Completion of long term re-financing ($725 MM bonds & $420 MM Credit Facility) $125 MM of Equity from GSO/Blackstone Sale of Treating assets $10 for $266 MM $8 Sale of South Texas and Miss./Ala. assets for $220 MM $6 $4 Acquisition of Intracoastal and sale of ETX assets Acquisition of Eunice Facility $2 for $42 MM $0 Mar-09 Mar-09 Apr-09 May-09 Jun-09 Jun-09 Jul-09 Aug-09 Aug-09 Sep-09 Oct-09 Oct-09 Nov-09 Dec-09 Dec-09 Jan-10 Feb-10 Mar-10 9

We Are Well Positioned Today  Refinancing has eliminated financial pressures  Total Leverage reduced, continued reduction in 2010  Relationship with Blackstone/GSO strengthens capabilities  Disciplined financial guidelines  Clear path to restoring distributions and dividends 10

Strategically Positioned Assets North Texas ~780 miles of pipeline 3 processing plants Processing & NGLs ~440 miles of NGL pipeline LIG 4 processing plants ~2,100 miles of pipeline 2 fractionation facilities 2 processing plants 11

We Span the Value Chain Focused Midstream Company Diversity of Services   Over 3,300 miles of natural gas gathering Midstream energy services company focused and transmission pipeline on full value chain  9 natural gas processing plants  Assets strategically located in key producing  areas and market regions 2 fractionators   Over 400 miles of NGL pipeline Focus on Barnett and Haynesville shale plays  2.4 MM barrels of NGL storage capacity Natural Gas Consumers Transmission Lines Gathering, Dehydration & NGL Transportation & Compression Fractionation NGL Markets Wellhead Processing , Conditioning & Treating 12

Strategically Positioned Organizationally  Successful execution has created momentum  Lean, focused organization  Board of directors provides strong support  Front line management focused on continued execution  Significant acquisition and organic growth experience 13

Strategically Positioned Financially  Strong balance sheet  Disciplined financial guidelines  Continue to de-leverage, de-risk Business  Use highly predictable cash flows to set distributions  Allocate capital to high-return projects 14

Crosstex 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 Energy GP, L.P. Holdings  100% IDRs 2% 22% Crosstex Energy, L.P. (NASDAQ: XTEX) Crosstex Energy Services, L.P. All Assets and Operations 15 15

Strategically Positioned for the Macro Environment  Wide gas to crude relationship is expected to continue  EIA predicts demand will grow from 53 Bcf/d in 2010 to 70 Bcf/d in 2025  Unconventional gas basins will fill this gap  Shift in supply will drive need for new infrastructure  XTEX is well positioned to take advantage of this trend 16

Shales will Provide Significant Opportunities $8.0 $7.00 $7.0 NYMEX Prices Needed * Current 2010 NYMEX Strip to Achieve 10% IRR $6.0 $5.40 $5.00 $5.0 $4.20 $4.00 $3.90 $4.0 $3.70 $3.50 $3.50 $3.50 $3.0 $2.0 Deep Bossier (E. Texas) Granite Wash (Horizontal) Haynesville Fayetteville (2.6 Bcf) Marcellus Woodford (Anadarko) Barnett (Core/Tier 1) Eagleford Powder River (CBM) Piceance (Highlands) Source: Modified from Morgan Stanley Jan. 13, 2010 E&P Research Report 17 * Goldman Sachs as of 03/12/10

Unconventional Gas Resources Drive Supply Conventional BCf/d Unconventional BCf/d 80 70 60 50 40 30 20 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2025 Source: EIA 18

Future Shale Infrastructure Investment Requirements  Oct. 2009 study by the Interstate Natural Gas Association reviewed projected infrastructure requirements for (2009-2030) based on three cases: Base High Low Projected Infrastructure Needed Over Next 20 Years Case Case Case Transmission Pipe (miles) 33,300 54,400 25,800 Gathering Pipeline (miles) 15,600 23,400 13,500 Processing Plant (capacity in Bcf/d) 23.6 35.7 20 Total Infrastructure Expenditures (in billions) $125.8 $172.1 $102.2 Source: INGAA 19

Strategically Positioned for Long-Term Growth  Capitalize on strategic positions around core assets  Focus on high-return projects  Continue to reduce risk in the business  Organization is well positioned  Disciplined financial guidelines will guide growth  Macro environment will provide opportunities 20

North Texas Mike Burdett VP North Texas 21

NTX: Strategically Positioned in the Barnett Shale Well Positioned Assets (current capacity) :  NTPL – 375 MMcfd  NTX Gathering Assets ~ 1 Bcfd  Azle plant – 50 MMcfd  Goforth plant – 30 MMcfd North Texas Gathering Systems  Silvercreek plant – 200 MMcfd North Texas Pipeline Processing Plant 22

NTX: Asset Overview Plant Descriptions North Texas Pipeline • Processing Capacity- 3 plants with 280 MMcf/d Capacity • ~ 144 miles of 24” pipeline with 375 MMcfd capacity • Current transmission volume ~ 332,000 MMBtu/d • Current plant inlet ~ 210,000 MMbtu/d • Major interconnects: • NGL raw make is transported by Crosstex NGL to: • NGPL • Chevron West Texas Pipeline • Kinder Morgan • Louis Dreyfus • HPL • Gulf Crossing • Oneok Arbuckle • Atmos • Utilizes in-house NGL Marketing company Processing Contract Mix (as of YE 2009) Gathering System Description • > 700 miles of pipeline with ~ 1 Bcfd gathering capacity • Current gathered volume ~ 770,000 MMbtu/d • Systems / County location: • Goforth – Parker & Tarrant counties • Jarvis – Tarrant & Denton counties • DC/Ponder/Tour 18 – Denton county • North Johnson County – Johnson county • South Johnson County – Johnson & Hill counties 23

NTX: Volumes 2007 - 2010 North Texas - Gathering North Texas - Transmission North Texas- Processing 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - 2007 2008 2009 2010 Note: 2010 represents mid-point of guidance 24

NTX: Operating Income 2007 - 2010 NTX G&T Op Income NTX Processing Op Income $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $- 2007 2008 2009 2010 Note: 2010 represents mid-point of guidance 25