Thursday, June 24, 2010

Crosstex Energy adds new supply to North Texas gathering system

DALLAS, Texas - The Crosstex Energy companies, Crosstex Energy, L.P. (Nasdaq: XTEX) and Crosstex Energy, Inc. (Nasdaq: XTXI) announced on June 21 that the Partnership has entered into a 10-year firm transportation agreement with a major Barnett Shale producer for an additional 50 million cubic feet of natural gas per day on its North Texas gathering system. Crosstex is constructing a compressor station on an existing gathering line to accommodate the customer's transportation requirements.
The project is scheduled to be completed and operational in the first quarter of 2011.
Incremental investment required for the project is estimated to be less than $10 million and the annual cash flow from the agreement is expected to be approximately $8 million.
"This agreement is a prime example of how our strategic position in the Barnett Shale adds value. We are able to make relatively low-cost, incremental investments that generate high returns and enhance the utilization of our core assets," said Barry E. Davis, Crosstex president and CEO. "We will continue to look for opportunities in North Texas where our operations are located in the heart of the Barnett Shale, one of the most significant shale plays in the U.S."

No comments:

Post a Comment