DALLAS--(BUSINESS WIRE)--Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) announced today that the Partnership is increasing its capacity to transload crude oil from rail cars to both barges and pipelines at its Riverside fractionation facility in southern Louisiana from approximately 4,500 barrels of crude oil per day to approximately 14,500 barrels of crude per day. Construction of the Phase II expansion project at Riverside, located on the Mississippi River, will be operational in the first quarter of 2013. The Partnership has entered into a long-term supply agreement which fully underwrites the expansion.
The Phase II development at Riverside will include new storage tank facilities, upgraded pipeline connections and improved barge delivery capabilities on the Mississippi River. The Phase I modification of the Riverside facility, which allowed crude as well as natural gas liquids (NGL) to be transloaded from rail to barge, has been in operation since January 2012. The expansion project is expected to cost approximately $16 million. The average annual cash flow from Phases I and II is estimated to be approximately $10 million.
“We continue to execute on our growth strategy by expanding and upgrading our existing assets to take advantage of crude opportunities,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “We are in an ideal physical location to take advantage of premium markets in southern Louisiana and growing domestic crude supply. This represents substantial fee-based margin for us, and we’re continuing to evaluate additional projects that would develop this business further.”
About the Crosstex Energy Companies
Crosstex Energy, L.P., a midstream natural gas company headquartered in Dallas, Texas, operates approximately 3,300 miles of pipeline, ten processing plants and four fractionators. Crosstex Energy, L.P. currently provides services for 3.2 billion cubic feet of natural gas per day, or approximately six percent of marketed U.S. daily production.
Crosstex Energy, Inc. owns the two percent general partner interest, a 25 percent limited partner interest and the incentive distribution rights of Crosstex Energy, L.P.
Additional information about the Crosstex companies can be found at www.crosstexenergy.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are based on certain assumptions made by the Partnership and the Corporation based upon management's experience and perception of historical trends, current conditions, expected future developments and other factors the Partnership and the Corporation believe are appropriate in the circumstances. These statements include, but are not limited to, statements with respect to forecasts regarding capacity, cash flow, incremental investment and timing for becoming operational for the project discussed above, as well as the Partnership’s future growth and results of operations. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership and the Corporation, which may cause the Partnership’s and the Corporation’s actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, risks discussed in the Partnership's and the Corporation's filings with the Securities and Exchange Commission. The Partnership and the Corporation have no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.