Wells Fargo 9 th Annual Pipeline Wells Fargo 9 th Annual Pipeline and MLP Symposium and MLP Symposium and MLP Symposium and MLP Symposium Barry E Barry E . Davis . Davis President and CE President and CE President and CE President and CE O O O O Crosstex E Crosstex E nergy nergy 1
Forward Looking Statements Forward Looking Statements Forward Looking Statements 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 Th i l i k t i ti d ti Th f t lt f C t 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 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 odu i atio e e y a ket eathe o ditio bu i e a d e ulato y o 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 ot to put u due e ia ce o a y o wa d oo i g state e t. C osste as o ob igatio to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 2
Strategically Positioned for Strategically Positioned for Performance and Growth Performance and Growth Performance and Growth Performance and Growth � Well positioned assets � Access to full midstream value chain � Strong organizational capabilities � Financially strong with access to capital � Financially strong with access to capital � Poised to take advantage of the macro environment g � Focused on long ‐ term, high ‐ return growth projects � Resumption of dividends and distributions 3
We We Span We Span We Span the Value Chain Span the Value Chain the Value Chain the Value Chain Focused Midstream Company Focused Midstream Company Diversity of Services Diversity of Services � � � Over 2,800 miles of natural gas gathering Over 2 800 miles of natural gas gathering Midstream energy services company focused id i f d and transmission pipeline on full value chain � � 9 natural gas processing plants Assets strategically located in key producing � areas and market regions 3 fractionators � � Over 450 miles of NGL pipeline Focus on Barnett and Haynesville shale plays � 2 4 MM barrels of NGL storage capacity 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 4
Crosstex Corporate Structure Crosstex Corporate Structure p P bli /Oth Public/Other Directors / Executive Public Unitholders Shareholders Officers 87% 13% 51% Crosstex Energy, Inc. Crosstex Energy, Inc. gy, gy, (NASDAQ: XTXI) (NASDAQ: XTXI) 25% 100% GSO Crosstex � 2% GP Interest Crosstex Energy GP, L.P. Crosstex Energy GP, L.P. gy Holdings Holdings � 100% IDRs 2% 22% Crosstex Energy, L.P. Crosstex Energy, L.P. (NASDAQ: XTEX) (NASDAQ: XTEX) � $725 MM Sr. Unsecured Notes Crosstex Energy Crosstex Energy Services, L.P. Services, L.P. All Assets All Assets and Operations and Operations 5 5
Strategically Positioned Assets Strategically Positioned Assets Strategically Positioned Assets Strategically Positioned Assets North Texas ~780 miles of pipeline 3 processing plants 3 processing plants Processing & NGLs ~440 miles of NGL pipeline 440 miles of NGL pipeline LIG 4 processing plants ~2,100 miles of pipeline 2 fractionation facilities 2 processing plants 2010 Guidance ($MM) $35 $35 (16%) $111 (50%) $74 (34%) NTX LIG PNGL 6
7 North Texas North Texas
NTX: Strategically Positioned in the NTX: Strategically Positioned in the Barnett Shale Barnett Shale Barnett Shale Barnett Shale Fossil Creek Fossil Creek Benbrook Well Positioned Assets (current capacity) : � NTPL – 375 MMcfd � NTX Gathering Assets – 1 Bcfd + � North Texas Gathering Azle plant – 50 MMcfd Systems Systems � North Texas Pipeline Goforth plant – 30 MMcfd � Silvercreek plant – 200 MMcfd Processing Plant 8
NTX: New Long Term Gathering NTX: New Long Term Gathering Agreements Agreements Agreements Agreements � North Texas Expansion Project 1: � � N New 10 yr. transport agreement on N.TX Volume commitment of at least 50 10 t t t N TX V l it t f t l t 50 MMBtu/d � Expected capital of less than $10 million cash Expected capital of less than $10 million cash � Expected annual run ‐ rate cash flow of approximately $8 million � System expected in operations first quarter 2011 y p p q � North Texas Expansion Project 2: � $25 million, 15 ‐ mile expansion project supported by volumetric commitments $ , p p j pp y � Seven ‐ mile low ‐ pressure pipeline, eight ‐ mile high ‐ pressure pipeline and compressor station in southwest Tarrant County � Peak flow rate in 2012 expected to be more than 100 MMBtu/d � 9 System expected in operation first quarter 2011
Barnett Shale Volume / Undeveloped Barnett Shale Volume / Undeveloped Location Projection Location Projection Location Projection Location Projection Barnett Volume Projection * Approximate number of undeveloped locations remaining as of April 1, 2009 pp p g p (PIRA 2/10 Fcst) (PIRA 2/10 Fcst) 12,000 10,000 22K* 8,000 MMCFD 17K* 6,000 M 4,000 11K* 2,000 ‐ J ‐ 90 J ‐ 91 J ‐ 93 J ‐ 94 J ‐ 96 J ‐ 97 J ‐ 99 J ‐ 00 J ‐ 02 J ‐ 03 J ‐ 05 J ‐ 06 J ‐ 08 J ‐ 09 J ‐ 11 J ‐ 12 J ‐ 14 J ‐ 15 J ‐ 17 J ‐ 18 Hi h High B Base L Low Source: Netherland, Sewell & Associates, Inc. 10
11 LIG LIG
LIG: Strategically Located Assets LIG: Strategically Located Assets LIG: Strategically Located Assets LIG: Strategically Located Assets Well Positioned Assets (current capacity) : � LIG ~ 1Bcfd � Gibson Plant – 145 MMcfd Gibson Plant 145 MMcfd � Plaquemine Plant – 225 MMcfd LIG System NGL System NGL System Processing Plant 12
LIG: Strong E LIG: Strong E xecution xecution Haynesville Opportunities Haynesville Opportunities Haynesville Opportunities Haynesville Opportunities Capacity MMcf/d Avg. Contract Haynesville Projects Haynesville Projects I In Service S i Total T t l C Contracted t t d T Term N. LIG Contracted Projects Red River Project Q3 2007 240 240 5 yr North LIG Expansion Phase I Q4 2008 35 35 10 yr North LIG Expansion Phase II Q2 2009 100 100 10 yr Black Lake Interconnect Phase III – Part I Q4 2009 35 35 3 yr Red River Amine Unit (120 MMcf/d Capacity) Q4 2009 3 yr Black Lake Interconnect Phase III Part II Black Lake Interconnect Phase III – Part II Q2 2010 Q2 2010 25 25 25 25 1.5 yr 1.5 yr LIG Phase IV Expansion ‐ Part I Q3 2010 30 30 5 yr Wtd. Avg. Life Total Contracted 465 465 5 years y 13
14 Processing and NGL’s Processing and NGL’s
PNGL: Strategically Located Assets PNGL: Strategically Located Assets PNGL: Strategically Located Assets PNGL: Strategically Located Assets Truck and rail from Marcellus, Bakken, Eagle Ford, Permian Basin Well Positioned Assets (current capacity) : � Eunice – 1.2 Bcf/d; 50,000 Bbls/d ; , � Pelican – 600 MMcf/d � Sabine – 300 MMcf/d � Riverside ‐ 20,000 Bbls/d 15
PNGL: E PNGL: E PNGL: E PNGL: E unice Frac unice unice unice Frac Frac Restart Frac Restart Restart Restart � Restarting 15,000 Bbls/d of existing 36,000 Bbls/d frac � Capex ‐ $9.3MM with op income contribution of $3.3MM annually � Economics supported by volume commitments and expense savings � Project will connect Plaquemine fractionation into our NGL system � Upside – additional capacity to bring liquids from other plays 16
17 Growth Opportunities Growth Opportunities
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