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Analyst Conference
April 1, 20101
2
Forward Looking StatementsThis 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.
Bill Davis
Executive Vice President and Chief Financial Officer
3
Welcome and Introduction
4
AgendaI. 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
5
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
Management Team
Strategic Vision & Industry Trends
Barry Davis
President and Chief Executive Officer6
7
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
8
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
9
2009: We Navigated the Storm
$0
$2
$4
$6
$8
$10
$12
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
Sale of South Texas and Miss./Ala. assets for $220 MM
Sale of Treating assets for $266 MM
Crosstex Energy LP (XTEX)
Acquisition of Intracoastal and sale of ETX assets
Completion of long term re-financing ($725 MM bonds & $420 MM Credit Facility)
$125 MM of Equity from GSO/Blackstone
Acquisition of Eunice Facility for $42 MM
10
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
We Are Well Positioned Today
11
Strategically Positioned Assets
North Texas
~780 miles of pipeline
3 processing plants
LIG
~2,100 miles of pipeline
2 processing plants
Processing & NGLs ~440 miles of NGL pipeline
4 processing plants
2 fractionation facilities
12
Midstream energy services company focused
on full value chain
Assets strategically located in key producing
areas and market regions
Focus on Barnett and Haynesville shale plays
Focused Midstream Company Diversity of Services
Over 3,300 miles of natural gas gathering
and transmission pipeline
9 natural gas processing plants
2 fractionators
Over 400 miles of NGL pipeline
2.4 MM barrels of NGL storage capacity
Wellhead
Gathering, Dehydration & Compression
Processing , Conditioning & Treating
Transmission Lines
NGL Transportation & Fractionation
Natural Gas Consumers
NGL Markets
We Span the Value Chain
13
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
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
15
Crosstex Energy GP, L.P.
Public/OtherShareholders
100%
Public Unitholders
51%
2% GP Interest
100% IDRs
Crosstex Energy, Inc.(NASDAQ: XTXI)
Directors / Executive Officers
87% 13%
2%
25%
Crosstex Energy
Services, L.P.
All Assets
and Operations
Crosstex Energy, L.P.(NASDAQ: XTEX)
22%
GSO Crosstex
Holdings
15
Crosstex Corporate Structure
16
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
Strategically Positioned for the Macro Environment
Source: Modified from Morgan Stanley Jan. 13, 2010 E&P Research Report
* Goldman Sachs as of 03/12/10
Shales will Provide Significant Opportunities
17
$3.50 $3.50 $3.50$3.70
$3.90 $4.00$4.20
$5.00
$5.40
$7.00
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0 D
eep
Bo
ssie
r (E
. Tex
as)
Gra
nit
e W
ash
(H
ori
zon
tal)
Hay
nes
vil
le
Fay
ette
vil
le (
2.6
Bcf
)
Mar
cell
us
Wo
od
ford
(A
nad
ark
o)
Bar
net
t (C
ore
/Tie
r 1)
Eag
lefo
rd
Po
wd
er R
iver
(C
BM
)
Pic
ean
ce (
Hig
hla
nd
s)
* Current 2010 NYMEX Strip NYMEX Prices Needed
to Achieve 10% IRR
18
0
10
20
30
40
50
60
70
80
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2020 2025
Conventional BCf/d Unconventional BCf/d
Source: EIA
Unconventional Gas Resources Drive Supply
19Source: INGAA
Future Shale Infrastructure Investment Requirements
Projected Infrastructure Needed Over Next 20 Years
Base High Low
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
Oct. 2009 study by the Interstate Natural Gas Association reviewed projected infrastructure
requirements for (2009-2030) based on three cases:
20
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
Strategically Positioned for Long-Term Growth
North Texas
Mike Burdett
VP North Texas 21
22
Well Positioned Assets (current capacity) :
NTPL – 375 MMcfd
NTX Gathering Assets ~ 1 Bcfd
Azle plant – 50 MMcfd
Goforth plant – 30 MMcfd
Silvercreek plant – 200 MMcfd
North Texas Gathering
Systems
North Texas Pipeline
Processing Plant
NTX: Strategically Positioned in the Barnett Shale
Plant Descriptions North Texas Pipeline
Gathering System DescriptionProcessing Contract Mix (as of YE 2009)
• Processing Capacity- 3 plants with 280 MMcf/d Capacity
• Current plant inlet ~ 210,000 MMbtu/d
• NGL raw make is transported by Crosstex NGL to:
• Chevron West Texas Pipeline
•Louis Dreyfus
•Oneok Arbuckle
• Utilizes in-house NGL Marketing company
• ~ 144 miles of 24” pipeline with 375 MMcfd capacity
• Current transmission volume ~ 332,000 MMBtu/d
• Major interconnects:
• NGPL
• Kinder Morgan
• HPL
• Gulf Crossing
• Atmos
• > 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: Asset Overview
NTX: Volumes 2007 - 2010
Note: 2010 represents mid-point of guidance 24
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2007 2008 2009 2010
North Texas - Gathering North Texas - Transmission North Texas- Processing
NTX: Operating Income 2007 - 2010
Note: 2010 represents mid-point of guidance 25
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2007 2008 2009 2010
NTX G&T Op Income NTX Processing Op Income
2626
E&P companies have the liquidity and economics needed to develop the Barnett
- Chesapeake’s JV with Total
- Devon pivots away from offshore/international to onshore shale plays
- Exxon’s acquisition of XTO
- Quicksilver’s JV with Eni
Technological breakthroughs continue to have an impact on the play
- EUR’s and Practical IP rates are at all time highs
- Producers drilling longer laterals with more effective fracs
We have over 400,000 dedicated acres with 85% located in Core and Tier I
Barnett Shale a Leading Unconventional Resource
27
Diverse Customer Base
NTX: Drilling Rigs Running
Total by Operator December 2008 Total by Operator March 2010
Devon 42 Chesapeake 26
Chesapeake 38 Devon 20
XTO 20 XTO 7
EOG 18 Quicksilver 4
Quicksilver 10 EOG 3
Carrizo 6 Range 4
Encana 6 Carrizo 3
Burlington (CP) 5 Aruba 0
Range 5 Burlington (CP) 0
Williams 5 Williams 4
Aruba 3 Talon 1
RimRock 3 Swan 1
Chief 2 EnCana 3
David H. Arrington 2 Titan 2
Denbury 2 Braden 1
Others 18 Others 5
185 Total 8728
Crosstex initiated an expansion into heart of
the Barnett Shale
Project was supported by two major Barnett
Shale producers
~15 miles of pipe and additional
compression
Project came in on time and under budget
Well positioned to leverage existing
infrastructure for additional growth in the
core
Case Study: West Tarrant County Expansion
29
Independent Analysis Reinforces Barnett Shale is Tremendous Resource
Crosstex hired Netherland, Sewell & Associates Inc. (“NSAI”) to study the
Barnett Shale’s future
Engagement – NSAI provided volume forecast for the following three cases
using market based commodity price forecast
Overall Barnett
Crosstex currently dedicated acreage
3-mile acreage (drillable acreage within 3-miles of Crosstex gathering system)
NSAI’s Methodology
Reviewed over 12,000 active wells
Profiled rig count to NYMEX price history
Correlated well starts to rig-count
Formulated type curves based on productivity
Analyzed Crosstex acreage
30
NSAI’s Barnett Shale Volume Projections
-
2,000
4,000
6,000
8,000
10,000
12,000
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
MM
CFD
Barnett Volume Projection(Goldman 7/09 Fcst)
High Base Low
31
NSAI: Crosstex Strategically Positioned for Growth
Range and timing of ultimate peak production from Barnett driven by
pace of drilling and density assumptions
Low Peak ~ 6 Bcfd in 2012
Base Peak ~ 8 Bcfd in 2015
High Peak ~ 10 Bcfd in 2018
Existing infrastructure in Barnett should be able to handle peak
production in base case
>50% of future production will occur within three miles of our existing
infrastructure
32
NTX: Competitive LandscapeGathering Core/Tier I
Gathering Tier II Processing Transmission
Crosstex
Energy Transfer
Devon Gas Services
Chesapeake Midstream
DCP
JW Gathering
Enterprise
Quicksilver Gas Services
Barnett Gathering (XTO)
33
Majors have moved into the Barnett Shale
To date over 12,000 successful wells have been drilled
~85% of Crosstex dedicated acres are in Core/Tier 1
NSAI study projects that over 50% of future production will occur
within 3 miles of our existing infrastructure
Major infrastructure already in place to provide service for base case
volumes
34
We Are Strategically Located in Barnett for Long-Term Growth
LIG
John Knight
VP LIG 35
LIG: Strategically Located Assets
LIG System
NGL System
Processing Plant
36
Well Positioned Assets (current capacity) :
LIG – 1Bcfd+
Gibson Plant – 145 MMcfd
Plaquemine Plant – 225 MMcfd
LIG Summary Haynesville Exposure
Plaquemine Contract Mix (as of YE 2009) Gibson Contract Mix (as of YE 2009)
• 2,100 miles of pipeline
• 910,000 MMBtu/d as of Dec. 2009
• Processing Capacity- 2 plants with 370 MMcf/d Capacity
• Current plant inlet ~ 281,000 MMBtu/d as of Dec. 2009
• Primarily sell NGL’s to Dow and CF Industries
• ~ 450 miles of pipeline with 440 MMcfd FT capacity
• All N.LIG gas under FT agreements
• Major interconnects:
• Columbia
• ANR
• Texas Gas
• Trunkline
Fee, 12%
POL, 42%
Proc
Margin,
46%
POL, 60%
Proc Margin,
40%
37
LIG Asset Overview
LIG: Strategically Positioned
Positioned in heart of Haynesville
Connected to 7 major interstate pipelines
Access to river markets in the south
System optionality creates high-return bolt-on projects
38
LIG: Volumes 2007-2010
Note: 2010 represents mid-point of guidance 39
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2007 2008 2009 2010
LIG- Mktg. & Transport LIG- ProcessingMMBtu/d
LIG: Operating Income 2007 - 2010
Note: 2010 represents mid-point of guidance 40
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
2007 2008 2009 2010
LIG Mktg. & Transport Op Income LIG Processing Op Income
41
Diverse Customer Base
Red River Phase IV, part 1
– Increased capacity by 30 MMcfd
– Project 100% underwritten with FT
volumes from major Haynesville
producer
– $7 MM capital requirement
– Only Compression (no pipe needed)
– Additional bolt-on projects currently
under review to take advantage of N.
LIG’s optionality
Case Study: Red River Expansion Phase IV
Original Red River Project
Black Lake Interconnect
Phase III
North LIG Expansion Phase I/II
Phase IV
42
N. LIG: Drilling Rigs Running
Total by Operator March 2010 Total by Operator March 2010
Exco 13 Encore 1
Chesapeake 31 SWEPI 7
Goodrich 1 Samson 2
EOG 5 BEUSA 1
Camterra 1 El Paso 6
Petrohawk 10 Comstock 7
Encana 21 Forest 2
Questar 1 Other 8
Numbers include De Soto, Caddo, Red River
and Sabine parishes only Total 11743
Independent Analysis Confirms Crosstex’s Franchise Position in Haynesville
Crosstex hired W.D. Von Gonten & Co. to study the Haynesville
Most prolific wells are located in Red River, Bossier, Desoto & Caddo
parish
Near term N. LIG expansions provide immediate impact
Future drilling provides for long-term pipe capacity utilization with
limited capital outlay
Crosstex’s pipelines in core of LA Haynesville acreage
Conclusion – production will grow by 1 Bcf/d/year for next 10 years
44
Haynesville Provides Abundant Near- Term Opportunities
Haynesville Projects
Capacity MMcf/d Contract
In Service Total Contracted Term
N. LIG Contracted Projects
Red River Project Q3 2007 240 240 7 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 Q4 2009 35 35 3 yr
Red River Amine Unit (120 MMcf/d Capacity) Q4 2009 3yr
LIG Phase IV Expansion- Part 1 Q3 2010 30 30 5 yr
Total Contracted 440 440
Current Expansion Project –
Partial System Loop; Phase IV Expansion Part II Q4 2010 est 115 Working
All Projects 555 440
47
NLA: Competitive LandscapeGathering Treating Processing Transmission
Crosstex
Energy Transfer
Hawk Field Services
Chesapeake Midstream
Momentum
JW Gathering
Enterprise
Centerpoint
Regency
48
Haynesville Competition
49
LIG System
Energy Transfer
Acadian (EPD)
Regency
Franchise position
Exceptional connectivity to interstate markets
Access to river market on S. LIG
Substantially all N. LIG volumes are firm transport
Highly attractive inventory of growth projects
LIG: Strategically Located for Long-Term Growth
50
Processing and NGL’s
Suzie Boyd
VP PNGL’s 51
PNGL: Strategically Located Assets
LIG System
NGL System
Processing Plant
Intracoastal 52
53
Focused on gas processing, NGL fractionation, transportation, storage, and marketing
Processing plants straddle ANR, Tennessee Gas
Pipeline and Texas Gas Transmission pipelines
NGL raw-mix gathering pipeline in South Louisiana
NGL Marketing group
Focused Team Strong Asset Base
4 natural gas processing plants
2.5 BCF processing capacity
2 fractionation plants
66,000 bbl/day capacity
Truck, rail and barge terminals
Over 400 miles of NGL pipeline
2.5 MM barrels of NGL storage capacity
Wellhead Gas Processing & NGL Fractionation
NGL Storage; truck, rail and barge terminals
Petrochemical
Plants
NGL Markets
Process gas from Interstate Pipelines
(ANR, Tennessee, Texas Gas)
NGL Pipelines
PNGL: Asset Overview
53
PNGL: 2009 Gross Margin by Type
54
46%
10%
44%
Fee Proc Margin POL
PNGL: Strategically Positioned
Favorable processing environment
Improved GOM drilling and recent lease sales encouraging
Potential consolidation opportunities
Fractionation capacity constraints
Recent Acquisitions:
₋ Eunice
⁻ Intracoastal pipeline
Increased rich gas production creates opportunities
55
PNGL: Volumes 2007 - 2010
Note: 2010 represents mid-point of guidance 56
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2007 2008 2009 2010
1) Hurricanes Ike and Gustav impacted PNGL volumes in 2nd half
2008 and throughout 2009
2) Early 2009 ANR line segregation caused a reduction in lean
volumes being processed at Eunice by up to 300,000 MMcf/d
PNGL: Operating Income 2007 - 2010
Note: 2010 represents mid-point of guidance 57
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
$45,000,000
2007 2008 2009 2010
Purchased Philip Morris’s equity in
Eunice lease
$23.5 MM in cash and assumed $18.1
MM in debt
Secures future of asset ownership
Elimination of lease increases EBITDA
by $12 MM annually
Frac re-start
Additional fuel efficiency projects
Case Study: Eunice Lease Buyout Benefits Bottom Line
58
59
Diverse Customer Base
60
Commodity Environment
60
$(0.30)
$(0.20)
$(0.10)
$-
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
$0.70
99 00 01 02 03 04 05 06 07 08 09 10
Ethane Processing MarginsNapoleonville NGL v. Henry Hub NYMEX Gas
61
Encouraging Trends in Gulf of Mexico
61
NY
ME
X S
ettlemen
t Price
$0
$2
$4
$6
$8
$10
$12
$14
0
10
20
30
40
50
60
70
80
Rig
Co
un
t
Gulf of Mexico Rig Count & NYMEX Settlement Prices
GOM Rigs NYMEX
New Business Model
Historically NGL assets viewed as supporting assets
Now focused on NGL business across the US
Near term opportunities:
Eunice specialty trucks
Truck & rail supply
Eunice frac re-start
Recent acquisitions support growth strategy
62
PNGL: Growth Opportunities
63
PNGL: Growth Opportunities
New supply opportunities
LNG processing
Plant efficiency projects
64
Well positioned for current commodity environment
Consolidation opportunities
Positioned to capitalize on growth in rich gas regions
Asset base provides competitive alternatives
PNGL: Strategically Positioned for Long-Term Growth
65
Financial Overview
Bill Davis- EVP & Chief Financial Officer
Michael Garberding- SVP Finance & Corp Development66
67
Successful Execution of 2009 Plan
Sold non-core assets
De-levered significantly
Transacted on high return capital projects
Reduced operating costs
Accessed the equity market
Re-financed all debt
Clear path to restoring distributions and dividends
Historical Performance
Financial Metrics Twelve Months Ended Twelve Months Ended
($MM) December 31, 2008 December 31, 2009
Adjusted Cash Flow (2) $245 $204
Distributable Cash Flow $141 (3) $68
Debt $1,264 $874
Debt/ Adjusted Cash Flow 5.2 x 4.9x (4)
Twelve Months Ended Twelve Months Ended
Volume and Prices December 31, 2008 December 31, 2009
Gathering & Trans. Volume (MMBtu/d) (1) 2,002,000 2,004,000
Processing Volume (MMBtu/d) (1) 1,608,000 1,235,000
Realized Wt. Avg. NGL Price ($/gallon) $1.36 $0.81
Avg Daily Henry Hub Price ($/MMBtu) $8.89 $3.94
(1) All volumes exclude contribution of STX/Miss. during those periods
(2) Adjusted Cash Flow and Distributable Cash Flow are non-GAAP financial measures; See appendix for reconciliation to non-GAAP measures
(3) 2008 reported DCF of $180 mm adjusted due to proceeds in excess of invested capital from the sale of the partnerships interest in Seminole
(4) Pro Forma for asset sales and preferred equity in Jan. 2010 68
Gross Margin By Contract Type Ex Discontinued Ops 2008-2010
69
58%
10%
17%
15%
2008
G& T Fee POL Proc Margin
66%
12%
13%
9%
2009
G& T Fee POL Proc Margin
71%
16%
11%2%
2010
G& T Fee POL Proc Margin
Non-commodity based margins have increased from ~68% in 2008 to ~87% in 2010
Summary Operating Income
Operating Income ($ MM) 2008 2009 2010 (3)
North Texas $103 $113 $111
LIG $82 $80 $74
PNGL (1) $12 $23 $35
Shared Operating Exp. & Other ($14) ($14) ($13)
Total Continuing Operations $183 $202 $207(4)
Discontinued Operations(2) $91 $50 $0
Total $274 $252 $207
(1) Includes impact of Eunice lease buy-out in 2009 and Intracoastal acquisition-- $2 MM impact in 2009 and $13 MM impact in 2010
(2) Includes contributions from sold assets (STX, Miss, Ala, Treating, Seminole interest, Arkoma, and ETX)
(3) 2010 represents mid-point of guidance
(4) 2010 continuing operations includes ~$8MM in LC Fee’s that are re-classed as interest expense 70
7171
2009 to 2010 G&A Walk2009 G&A Bridge($MM)
(1) One time items includes estimated Harwood lease termination, severance expenses, Sem Group bad debt write -off, and one-time bonuses
(2) Estimated G&A associated with South Texas, Mississippi/Alabama, and Treating assets sold
$54
$40
$9
$6
$40
$20
$25
$30
$35
$40
$45
$50
$55
2009 Actual 2009 One Time Items (1) Asset Sales & Other Reductions (2)
2009 Pro Forma G&A 2010 Mid-point of guidance
72
Growth & Maintenance Capital
Historical and Projected Growth Capital Expenditures($ in millions)
Historical and Projected Maintenance Capital Expenditures($ in millions)
Crosstex has significantly scaled back growth capital spending
⁻ Focused on execution of projects within the operating footprint
⁻ Scalable nature of current asset base generates high-return projects
Low maintenance requirements on existing assets
72
$404
$259
$95
$25
$-
$100
$200
$300
$400
$500
2007 2008 2009 2010
$11
$18
$11
$15
$-
$4
$8
$12
$16
$20
2007 2008 2009 2010
*
*
* Represents low end of 2010 guidance
73
Total Year 2010
Low High
Net income $ (41) $ (10)
Depreciation and amortization 113 113
Stock-based compensation 6 6
LOC Fees & Interest 80 79
Taxes and other 2 2
Adjusted cash flow $ 160 $ 190
Taxes and other $ (3) $ (3)
LOC Fees & Interest $ (80) $ (79)
Maintenance capital expenditures $ (15) $ (12)
Distributable cash flow $ 62 $ 96
Growth Capital $ 25 $ 30
Key Assumptions for Forecast
Weighted Average Liquids Price ($/gallon) $ 0.80 $ 1.09
Crude ($/Bbl) $ 69.37 $ 94.52
Natural Gas ($/MMBtu) $ 6.00 $ 5.00
Natural Gas Liquids to Gas Ratio 149.9% 245.0%
XTEX Distribution per Unit $ 0.30
XTXI Dividends per Share $ 0.10
73
Guidance for 2010
74
Maintain a conservative capital structure and leverage ratios
Maintain adequate liquidity
Fund organic growth and strategic opportunities with internal
cash flows and a balanced mix of debt and equity
Maintain a balanced contract mix and an active commodity
price hedging program
Conservative Financial Guidelines
Hedging Process and Policy
Committee meets on regular basis to assess exposure and
hedge consistent with our policies
⁻ Hedge no more than 80% of hedgeable exposure
⁻ Same product as the underlying commodity being hedged
⁻ Can only be executed to close an open physical position
Certain POL contracts structured by setting a floor fee to
further eliminate risk
75
Commodity Sensitivity Annual Impacts
± $.10 NGL Pricing (POL)- $3.0 MM (Net of Hedges)
± 5% NGL- Gas Ratios(Proc Margin)- $1.7 MM (Net of Hedges)
Note: all volumes are in millions of gallons
Hedged Volume as a % of Hedgeable Volume
2010
Q1 Q2 Q3 Q4
POL
Total VAR Volumes 10.27 10.08 9.40 10.13
Total Hedgeable Volumes 3.89 3.76 3.69 3.99
Total Hedged Volumes 3.64 3.08 2.02 1.79
Hedged Percentage 94% 82% 55% 45%
Proc Margin
Total VAR Volumes 12.89 12.17 12.66 12.50
Total Hedgeable Volumes 6.80 6.90 7.00 7.03
Total Hedged Volumes 5.74 5.20 3.22 3.06
Hedged Percentage 84% 75% 46% 44%
76
77
New Senior Credit FacilityBorrower: Crosstex Energy, L.P.
Facility: $420 MM Senior Secured Revolving Credit Facility
Maturity: 4 Years
Pricing:
Financial Covenants: Maximum Total Leverage Ratio of 5.75x with step-downs to 4.50x
Maximum Senior Secured Leverage Ratio of 2.50x
Minimum Interest Coverage Ratio of 1.50x with step-ups to 2.50x
Current Liquidity:
Applicable Margin
Funded Debt/ Commit
EBITDA Fee
≥ 5.0x 4.25% 3.25% 0.50%
≥ 4.5x 4.00% 3.00% 0.50%
≥ 4.0x 3.75% 2.75% 0.50%
≥ 3.5x 3.50% 2.50% 0.50%
< 3.5x 3.25% 2.25% 0.50%
LIBOR+ ABR+
Borrowing LC Outstanding Available
26-Mar-10 26-Mar-10 Liquidity
$30 MM $179 MM $211 MM77
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Issue: Senior Unsecured Notes
Amount: $725 million
Coupon: 8.875%
Maturity: 8 years
Issuance Ratings: B3 / B+
Optional Redemption: Make whole- first 4 years; Callable at a declining premium thereafter
Equity Clawback: 3 years, up to 35%
Change of Control: 101% plus accrued interest
Covenants: Usual and customary midstream MLP covenants
New Senior Unsecured Notes
Strategically Positioned Financially
Strong balance sheet
Disciplined financial guidelines
Continue to de-leverage, de-risk Business
Use highly predictable cash flows to set distributions
Allocate capital to high-return projects
Clear path to restoring dividends and distribution
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Closing Remarks
Barry Davis
President and Chief Executive Officer80
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Capitalize on strategic positions around core assets
Focus on high-return projects
Continue to reduce risk in the business
Organization is well positioned
Disciplined financial guidelines will guide growth
Macro environment will provide opportunities
What’s Next?
Q & A
82
83
Appendix
8484
Reconciliation to Net IncomeNet Income to DCF Reconciliation: Years Ended
($ in millions) December 31
2009 2008(Unaudited)
Net income (loss) attributable to Crosstex Energy, L.P. $ 104 $ 11
Depreciation, amortization and impairments (1) 132 163
Stock-based compensation 9 11
Interest expense, net (2) 130 105
Loss on extinguishment of debt 5 -
Gain on sale of property (184) (51)
Taxes and other 8 6
Adjusted cash flow 204 245
- -
Interest (2)(3)(4) (121) (83)
Cash taxes and other (5) (3) (3)
Maintenance capital expenditures (11) (18)
Distributable cash flow $ 68 $ 141
(1) Excludes minority interest share of depreciation and amortization of $290 and $286K for the year ended 2009 and the year ended 2008 respectively. Includes depreciation, amortization and impairments related to discontinued operations of $10.7 and $26.4 million for the year ended 2009 and the year ended 2008 respectively.
(2) Includes interest expense allocated to discontinued operations of $34.9 and $30.0 million for the year ended 2009 and the year ended 2008, respectively.
(3) Excludes $4.3 million of debt issuance cost amortization, and $5.2 million of senior secured note make-whole and call premium paid-in-kind interest resulting from repayment of such notes from the proceeds of asset sales, for the year ended 2009.
(4) Excludes noncash interest rate swap mark to market of ($797K) for the year ended 2009, and $22.1 million for the year ended 2008.
(5)Includes Seminole Adjustment of $39 million for the year ended 2008.
