Analyst Conference March 27, 2012 Forward Looking Statements This - - PowerPoint PPT Presentation

Analyst Conference March 27, 2012

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

Mike Garberding Senior Vice President & Chief Financial Officer

Welcome and Introduction

Agenda I.

Welcome and Introduction

• Pg. 3

II.

Strategic Vision

• Pg. 6
• III. Asset Overview – NTX, LIG & PNGL
• Pg. 21
• IV. Growth Projects Overview
• Pg. 37

V.

Financial Overview

• Pg. 47
• VI. Closing Remarks
• Pg. 55
• VII. Appendix
• Pg. 58

4

• Barry Davis - President and Chief Executive Officer
• Bill Davis - EVP, Chief Operating Officer
• Joe Davis - EVP, General Counsel
• Michael Garberding - SVP, Chief Financial Officer
• Mike Burdett - SVP, Commercial
• Stan Golemon - SVP, Engineering and Operations
• Jennifer Johnson - SVP, Human Resources
• Steve Spaulding - SVP, Processing and NGLs
• Royston Lightfoot – SVP, Business Development

Management Team

5

Strategic Vision Barry Davis President and Chief E xecutive Officer

7

Crosstex E nergy: Services Provided

• Over 2,800 miles of natural gas

gathering and transmission pipeline

• 9 natural gas processing plants
• 3 fractionators
• Over 470 miles of NGL pipeline
• 2.4 MM barrels of NGL cavern storage
• Crude logistics – Riverside/Eunice

Crosstex GP, LLC Public/Other Shareholders 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

Corporate Structure

Current Position

Dist./Q Split Level ≤ $0.2500 2% / 98% ≤ $0.3125 15% / 85% ≤ $0.3750 25% / 75% > $0.3750 50% / 50 %

8

Strategically Positioned Assets

LIG

• ~2,100 miles of pipeline
• 2 processing plants
• 2 treating plants

PNGL

• ~440 miles of NGL pipeline
• 4 processing plants
• 3 fractionation facilities

North Texas

• ~840 miles of pipeline
• 3 processing plants
• 2 treating plants

Eagle Ford

• Strategic partnership with

Howard , Quanta, and GE to pursue opportunities in Eagle Ford

Permian

• 50 MMcf/d new build gas processing plant
• Mesquite fractionation & rail terminal to

transport stranded NGLs from this region

Crude

• Crude truck/rail/barge facilities
• Eunice & Riverside

Cajun Sibon

• ~130-mile NGL pipeline
• From Mt. Belvieu to

expanded fractionation assets in LA

9

10

2011 Accomplis lishmen hments

10

The Plan Accomplishments Maximize earnings,

• Achieved 2011 EBITDA results at the upper end of the guidance

growth of existing businesses

• Barnett Shale – completed Benbrook, Fossil Creek expansions
• PNGL – restarted the Eunice fractionator
• LIG – have five-year weighted average contract life in North LIG; exposure

to liquids-rich plays in central Louisiana Enhance scale,

• Cajun-Sibon NGL expansion

diversification

• Permian Basin Apache JV
• Partnership in Eagle Ford with Howard Energy Partners
• Crude Oil terminals - implemented Phase I crude project at Riverside,

Eunice Safety

• Excellent improvement with an injury rate of .41 versus a target of less than

1.4 and a vehicle accident rate of 1.45 versus target of 1.6

• Strong dividend/distribution growth - XTEX distributions declared of

$1.23/unit with coverage of 1.42x and XTXI dividends declared of $0.40/share

• Liquidity – no near-term debt maturities; over $400mm available on

revolver

• Fourth Quarter Debt-to-EBITDA of 3.9 to 1
• Improved long-term capital structure; increased financial flexibility

Maintaine solid financial performance, balance sheet

11

Stron trong E E BITD ITDA & & Distri stribution Grow Growth th

$187,000 $214,000 $225,000 $150,000 $170,000 $190,000 $210,000 $230,000 FY 2010 FY 2011 FY 2012**

Total Fiscal Year EBITDA ($ 000s)

** 2012 represents mid-point of guidance

• Projected EBITDA growth of

~20% from 2010 to 2012

• 2010 to 2012 projected

distribution growth of ~38%

• Distribution and dividend

growth guidance for 2012 is 10% and 20%, respectively

• Strong distribution coverage
• Reduced overall leverage -

debt to EBITDA less than 4.0X

11 $1.04 $1.28 $1.44 $1.00 $1.10 $1.20 $1.30 $1.40 $1.50 FY 2010 FY 2011 FY 2012**

Q4 Annualized Distribution/Unit

• Robust industry environment

for midstream infrastructure build

• Hyper-competitive market for

midstream services

• Producers’ production focus on

rich gas and crude

• Size and diversity are highly

valued in marketplace

• Capital markets expected to

remain volatile

Cri riti tica cal Tren Trends s for

• r 2012

12+

XTEX: Eunice Facility XTEX: Mesquite Rail Facility

12

Our strategy is to:

• Maximize earnings and growth of existing businesses.
• Grow business to enhance scale and diversification and

to create value In 2012 we will focus on new core businesses to enhance diversification and scale:

• Increase NGL business
• Grow Crude business
• Develop GP&T business in rich gas areas

2012 12 Stra trate tegic P c Plan

13

20 2012 2 Stra trate tegic P c Plan – In Increa crease se N NGL GL Busin iness

• ~1.7 MMbpd of new NGL pipeline capacity to Mont Belvieu by 2014
• Gulf Coast -- largest market & only major market for NGLs
• Louisiana Petrochemical plants short Ethane supply

60 Mb/d

+701 +456 +60

Pipeline Capacity Fractionation Capacity (Mb/d)

Source: Bentek

14

20 2012 2 Stra trate tegic c Plan lan – In Increa crease se N NGL GL Busi siness ss

Current NGL projects/opportunities include the following:

• Cajun Sibon Phase I: 70,000 Bbls/d with anticipated

completion Q2 2013

• Cajun Sibon Phase II: Additional potential 50,000

Bbls/d opportunity with proposed completion 2014

• Mesquite Fractionator NGL & Propane rail export

terminal: In Service

• Other Target Opportunities
• Develop downstream NGL services
• Develop new NGL storage caverns at Napoleonville

15

20 2012 2 Stra trate tegic P c Plan – Grow Grow C Cru rude e Busin iness

• Crude Oil supply is outpacing crude pipeline solutions
• Gulf Coast largest market for Crude Oil
• Large price differentials between production regions and Gulf Coast market

16

2011 WTI Basis

Source: Bentek

20 2012 2 Stra trate tegic c Plan lan – Grow C w Crude Busine ness

Current Crude projects/opportunities include the following:

• Crude oil rail trans-loading terminals
• Phase I at Riverside & Eunice: In Service; up to 6,000

Bbls/d

• Phase II at Riverside: Additional 10,000 Bbls/d
• pportunity with proposed completion in Q1 2013
• Phase III at Riverside: Unit Train Incremental 20,000 -

40,000 Bbls/d opportunity with potential completion in Q1 2014

• Other Target Opportunities
• Crude trans-loading at Mesquite Terminal in Permian
• Crude Gathering, Transportation, Terminals,

Trucking, and Rail in new basin

17

20 2012 2 Stra trate tegic P c Plan – Dev evelop

• p GP

GP&T T Busin iness

2147 +223

86/+20 3/+1 Bakken 218/+55 Anadarko 251/+16 Permian 480/+89 51/-5

118/+3

13/-1 7/+5 66/-43 35/+5 25/-5 22/+3 76/+18 30/-1 18/-5

87/-23

61/-29

2/+0

23/-10 Eagle Ford 250/+85 17/+7 68/+4 9/+2 47/+10 32/+9 5/-3

Note: Active rig count: Feb. 24, 2012 / Change in rig count from Feb. 25, 2011

Dry Gas Focused Areas Liquids Rich/Oil Focused Areas Rig Declines Source: Bentek, March 2012

6/-2 39/+21

Source: Bentek

18

20 2012 2 Stra trate tegic c Plan lan – De Develop G GP&T &T Busine ness

Current GP&T projects/opportunities include the following:

• Continue to execute the Apache JV, which will

provide opportunities to expand Permian footprint

• Execute on Howard Energy acquisition of Meritage
• Execute on Central Louisiana Opportunities

(Tuscaloosa Marine/ Austin Chalk) as producers continue development

• Enter new basin with focus on Mississippi Lime,

Bakken, Marcellus and Utica

19

Key Takeaways

• Strong distribution and dividend growth – targeting an

increase of more than 10% distribution growth and 20% dividend growth

• Strong fundamentals and asset position
• Attractive/Robust organic growth opportunities in

liquids rich areas

• Continued focus on high-return growth projects

20

Business Overview by Asset Bill Davis E xecutive Vice President and Chief Operating Officer

North Texas

NTX: Strategically Positioned in the Barnett Shale

Well Positioned Assets (current capacity) :

• NTPL – 375 MMcf/d
• NTX Gathering Assets – 1 Bcf/d +
• Azle plant – 50 MMcf/d
• Goforth plant – 30 MMcf/d
• Silvercreek plant – 200 MMcf/d
• Compression HP – 191,652

2011Segment Cash Flow

LTM 12/31/2011 Throughput :

• NTX – Gathering – 773,000 MMBtu/d
• NTX – Transmission – 352,000 MMBtu/d
• NTX – Processing – 249,000 MMBtu/d

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss) 23

Barnett Shale: A Leading Unconventional Resource

• Fossil Creek Expansion: On Time: March 2011;

Capital: < $10MM; Cash flow: >$9MM /year

• Benbrook Expansion: On Time; March 2011 (Phase I),

& February 2012 (Phase II); Capital: ~$28MM; Cash flow: >$11MM/year

NTX Growth Projects “We have 20 years of identified drilling locations throughout the Barnett. In 2012, we plan to invest approximately $950 million of capital in the Barnett and drill approximately 300 wells.”- Devon Energy, 2011 Earnings "We've drilled more than 1,500 wells in the Barnett and we have more than 4,000 wells planned for the future. We're not half way through our development plan for the Barnett.” – XTO Energy, 2011 Earnings Call

Source: Powell Shale Digest

1,000 2,000 3,000 4,000 5,000 6,000 7,000 50 100 150 200 250 Rig Count (Monthly Average) Production (MMcf/d) Avg. Rig Count Production

MMcf/d

XTEX: Benbrook Facility

24

NTX: Segment Cash Flows & Volumes

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss) * 2012 represents mid-point of guidance

Segment Cash Flows

($000)

Volumes

(MMBtu/d)

25

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000

2008 2009 2010 2011 2012 * Gathering Transmission Processing

$- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000

2008 2009 2010 2011 2012 * Gathering & Transmission Fee Based Processing Commodity Based Processing

NTX TX: S Stra trateg tegica cally P y Posi

• siti

tioned ed f for

• r

Lon

• ng-Ter

Term P m Perform

• rman

ance

Short term Strategy:

• Optimization/consolidation of existing assets
• Contract reviews and renew / extend key contracts
• Aggressive pursuit of new gas supply for gathering and

processing Long term Strategy:

• Capitalize on our franchise position - gathering,

processing, transmission

• Develop opportunities for further bolt on system

expansions

• Explore acquisitions, joint ventures, strategic

interconnects and 3rd party exchanges

• Pursue gathering and compression consolidation
• pportunities with 3rd parties

26

LIG

LIG: Strategically Positioned Assets

2011Segment Cash Flow

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss)

Well Positioned Assets (current capacity):

• LIG Pipeline – 1Bcf/d+
• LIG Red River 24” Expansion –

465 MMcf/d

• Plaquemine Plant – 225 MMcf/d;

10,000 Bbls/d Fractionator

• Gibson Plant – 110 MMcf/d

LTM 12/31/2011 Throughput:

• LIG – Gathering / Transmission – 912,000 MMBtu/d
• LIG – Processing – 247,000 MMBtu/d

28

• Multi-dimensional system with

exposure to multiple resource plays: – Haynesville – Cotton Valley – Smackover – Tuscaloosa Marine – Austin Chalk – Wilcox/Miocene

• Market flexibility via interstate pipeline

interconnects and on-system markets

• North LIG – 440 MMcf/d contracted with

a weighted average remaining contract life of approximately 5 years

• Exposure to Tuscaloosa Marine and

Austin Chalk with producer activity targeting liquids

LIG: Strong E xposure to Multiple Resource Plays

LIG is strategically positioned to capitalize on multiple resource plays

North LIG Contracts – Firm Capacity (440 MMBtu/Day) South LIG On-System and On/Off – System Delivery (624 MMBtu/Day) North/South Crosstex Delivery Option (145 MMBtu/Day) Total Volume Q4 2011 (919 MMBtu/Day)

29

LIG: Segment Cash Flows & Volumes

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss) * 2012 represents mid-point of guidance

30

Segment Cash Flows

($000)

Volumes

(MMBtu/d)

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000

2008 2009 2010 2011 2012 *

Gathering & Transmission Processing

$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000

2008 2009 2010 2011 2012 * Gathering & Transmission Fee Based Processing Commodity Based Processing

LIG: Growth Strategies

Short term Strategy:

• Identify and develop processing opportunities across the LIG

System

• Aggressively pursue wellhead supply and strategic interconnects

throughout LIG

• Miocene/Wilcox opportunities in South Louisiana
• Austin Chalk/Tuscaloosa Marine Shale plays

Long term Strategy:

• Franchise position – wellhead to plant to end user value chain
• Exceptional connectivity to interstate markets – Connected to 7

major interstate pipelines

• Explore acquisitions
• Capitalize on access to river markets on South LIG
• Well positioned to take advantage of new and existing shale

developments

31

Processing & Natural Gas Liquids (PNGL)

PNGL: Strategically Positioned Assets

Well Positioned Assets (current capacity):

• Eunice – 750 MMcf/d; 15,000 Bbls/d
• Pelican – 600 MMcf/d
• Sabine – 300 MMcf/d
• Blue Water – 525 MMcf/d
• Riverside – 27,000 Bbls/d
• Napoleonville Storage – 2.4 MMBBL

2011Segment Cash Flow

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss)

LTM 12/31/2011 Throughput :

• Processing – 829,000 MMBtu/d
• NGL Fractionation – 1,109,000 gal/d

33

PNGL – E unice Case Study

Fractionation /Crude: $0.0MM Processing: $4.4MM

• Condensate

stabilization

• Opportunity

processing

• ptimization
• Raw make

Truck & Rail volumes

• Amine gas

treating 2012

Processing: $12.1MM Fractionation /Crude: $10.9MM

XTEX: Eunice Facility

34

PNGL: Segment Cash Flows & Volumes

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss) * 2012 represents mid-point of guidance

35

Segment Cash Flows

($000)

Volumes

(MMBtu/d)

• 200,000

400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000

2008 2009 2010 2011 2012 *

Processing (MMbtu/d) NGL's Fractionated (Gallons/d)

$- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000

2008 2009 2010 2011 2012 * Fee Based Processing & Fractionation Commodity Based Processing

PNGL: Growth Strategies

Short Term Strategies:

• Maximize new crude and condensate terminals
• Target additional NGL rail & truck supply from rich gas plays
• Aggressively pursue gas supply for processing
• Maximize LIG synergies for gas supply to processing plants
• Execute the NGL Cajun Sibon project

Long Term Strategies:

• Expand Fractionation to projected 120,000 Bbls/d capacity of

Cajun Sibon NGL pipeline

• Expand NGL storage cavern business at Napoleonville
• New gas supply from Miocene, Wilcox, Tuscaloosa Marine , and

Austin Chalk

• Continue to expand Riverside crude terminal and provide unit

train capabilities targeting Canadian production with diluent backhaul

• Acquire or construct new crude assets in targeted basins

36

Defined Growth Projects Stan Golemon, SVP E ngineering & Operations Royston Lightfoot, SVP Business Development

Cajun Sibon Phase I

• Project includes building ~130-mile NGL pipeline from Mt. Belvieu and

expanding fractionation assets in LA

• Estimated in service date in first half of 2013
• Estimated Capex of $230MM excluding raw make storage

38

• Executed approximately 40,000 Bbls/d, or 60% of the

capacity under long-term agreements and expect to begin

• perations at or near initial capacity of 70,000 barrels of

NGLs per day

• Currently negotiating definitive agreements for remaining

capacity

• Ordered pipe in early March and now acquiring right of

way

• Pipeline construction scheduled to begin Sept 2012
• In process of evaluating phase II expansion of an

additional 50,000 bbls/d given market expansion

Cajun Sibon Phase I NGL

39

Permian Basin E xpansion

• Provided 20 MMcf/d refrigeration plant as interim solution. 50 MMcf/d cryogenic facility as

permanent processing solution will be in service June 2012

• Jointly investing $85MM with Apache
• Mesquite rail terminal: 100% owned; currently operating

40

Permian Basin E xpansion Project - Apache Joint Development

• Apache and Crosstex to jointly develop Deadwood processing facility
• First Phase Refrigeration Plant operational February 2012
• Second Phase Cryo Plant in operation by June 2012
• Acquired Mesquite rail terminal & fractionation to transport stranded Permian

Basin NGLs

• Facility upgraded to provide service for 7,500 Bbls/d of NGLs
• Currently evaluating expansion options including propane sales
• Facilities provide additional opportunities in region
• Provide processing and NGL services to additional producers
• Receive NGLs by truck and ship to Louisiana via rail/pipeline access
• Receive crude/condensate by truck and ship to premium markets via rail

access

• Move purity products to regional demand centers via pipeline access
• Apache to drill ~600 wells in 2012; increase pace of activity in the Permian

according to 2011 earnings report

41

E agle Ford E xpansion

• Strategic partnership to pursue
• pportunities in Eagle Ford Shale;

Crosstex, Quanta Services and GE each own 30.6% in Howard Energy Partners

• Completed a 30-mile, 12-inch

diameter pipeline expansion for rich gas header since acquisition

• Agreements to acquire Meritage

assets in South Texas

42

• Strategic partnership between industry leaders to pursue
• pportunities in Eagle Ford shale
• Howard Energy offers a total solutions approach to Eagle

Ford producers with midstream and construction services

• Assets are well positioned in the Eagle Ford shale for

growth

• After Meritage acquisition, 450 total miles of pipe with

600 MMBtu/d capacity in lean and rich gas service

• Strategically located to access multiple pay zones of the

Eagle Ford

E agle Ford E xpansion Project - Howard E nergy

43

E agle Ford E xpansion - Meritage Acquisition

Meritage Acquisition Overview:

• New lean natural gas gathering system (103

miles of pipeline, system start-up in September 2010)

• New rich natural gas gathering system ( ~70

miles of pipeline, system start-up in February 2012)

• Amine treating and dehydration installed

with ~145 MMcfd of capacity

• Over 162,500 acres of northern Webb

County dedicated with volume commitments serving Eagle Ford, Wilcox, Escondido, Lobos, Austin Chalk, Olmos and San Miguel formations

• Long term fee based contracts with no

direct commodity risk

44

• Eunice and Riverside have rail, truck,

pipeline, and barge facilities that are adding crude capabilities – Fee based contracts with commodity upside – Average expected crude/condensate volume for 2012 is ~ 4,000-6,000 Bbls/day – Ability to expand Riverside by an additional 10,000 barrels per day by end of 2012 – Unit Train opportunity could add an additional 20,000 – 40,000 Bbls/d

Site Location: Riverside Plant

South Louisiana Crude Terminals

45

NGL & Crude Rail Logistics

Mesquite Terminal Eunice Facility Trucks (R, CM, C3, iC4, nC4, C5+) Railcars (R, CM, C3, iC4, nC4) Barge (iC4, nC4, C5+) Pipeline (R, C2, C3, iC4, nC4) Riverside Facility Barge (C, C3, iC4, nC4, C5+) Trucks (R, C3, iC4, nC4, C5+) Pipeline (R, C2, C3, iC4, nC4)

Legend: R - Raw Make C - Crude CM – Condensate Mix C2 – Ethane C3 – Propane iC4 – Iso-butane nC4 – Normal Butane C5+ - Natural Gasoline

Railcars (R, C, C3, iC4, nC4) Pipeline (R) Napoleonville Storage Dome Pipeline (R) Pipeline ( C3, iC4, nC4)

Frac Capacity (bbl/d) Current: 15,000 Post Cajun-Sibon Expansion: 55,000 Frac Capacity (bbl/d) Current: 28,000 Storage Capacity 2.4 million bbls 46

Combining Mesquite, Eunice, and Riverside facilities, XTEX has 68 Rail loading/unloading spots and 11 Truck loading/unloading spots.

Railcars (R)

Financial Overview Mike Garberding Senior Vice President & Chief Financial Officer

Current Financial Focus

• Maintaining strong liquidity position for

flexibility – No near term debt maturities – ~ $450 million available on revolver

• Maintaining conservative capital structure

and leverage ratios – Match distributions with more reliable cash flows – Reinvest excess coverage from less sustainable cash flows – Fourth Quarter 2011 Debt-to-EBITDA

• f 3.9 to 1
• Improving cash flows by:

– Investing in high-return projects – Improving efficiencies of existing assets We remain committed to distribution growth while maintaining disciplined balance sheet management

4.23x 4.08x 3.96x 3.90x 3.96x 3.92x 1.34x 1.60x 1.57x 1.53x 1.19x 1.41x $0.00 $0.05 $0.10 $0.15 $0.20 $0.25 $0.30 $0.35 1.00x 1.50x 2.00x 2.50x 3.00x 3.50x 4.00x 4.50x 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011

Quarterly Leverage and Distribution

Dist/unit Leverage

• Dist. Coverage

48

Fee Based Focus

* 2008 excludes discontinued operations ** 2012 represents mid-point of guidance

Non-commodity based margins represented 70% of contract mix in 2011 and projected to represent 73% of contract mix in 2012 58% 66% 62% 57% 54% 10% 12% 14% 13% 19% 17% 13% 11% 11% 10% 15% 9% 13% 19% 17%

0% 20% 40% 60% 80% 100% 2008 2009 2010 2011 2012 * Gathering & Transmission Fee Based Processing & Fractionation Percent of Liquids Processing Processing Margin

~ 73% Fee-based business projected for 2012

49

Solid Performance in All Core Areas

Note: Segment Cash Flow is a non-GAAP financial measure. See Appendix for reconciliation to Operating Income (loss) * 2012 represents mid-point of guidance ** Cash flows from Permian assets are included in the North Texas and PNGL segment amounts

• CAGR (2008 – 2011) for total segment cash flows of 11.3%
• PNGL crude terminals and NGL opportunities in PNGL and Permian will

drive growth in 2012

Years Ended December 31, Segment Cash Flow 2008 2009 2010 2011 2012 * (Amounts in Millions) North Texas ** 103 $ 113 $ 114 $ 126 $ 126 $ LIG 82 80 82 95 89 PNGL ** 12 21 38 51 72 Total Asset Segments 197 $ 214 $ 235 $ 272 $ 287 $

50

51

Growth Capital Expenditures

($ in millions)

Maintenance Capital Expenditures for Base Business

($ in millions)

Growth & Maintenance Capital

* 2011 Growth Capital expenditures do not include $35MM investment in Howard Energy Partners ** 2012 Represents the mid-point of guidance

$257 $91 $37 $85 Other $47 Cajun-Sibon $175 Permian $45 Crude $27 $0 $50 $100 $150 $200 $250 $300 $350 2008 2009 2010 2011* 2012** $18 $11 $11 $13 $17 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 2008 2009 2010 2011 2012** 51

$294

52

Guidance 2012

52

(Amounts in millions except for prices, ratios, per unit and per share information) Low Midpoint High Crosstex Energy, L.P. Adjusted EBITDA* $205 $225 $245 Distributable Cash Flow* $114 $134 $154 Distribution per Unit $1.28 $1.34 $1.41 Distribution Coverage 1.1x 1.3x 1.4x EBITDA Growth n/a 5% 14% Distribution Growth** n/a 13% 25% Growth Capex $294 $294 $294 Maintenance Capex $18 $17 $16 Crosstex Energy, Inc. Cash Available for Dividends $21 $23 $27 Dividend Per Share $0.44 $0.48 $0.55 Dividend Growth** n/a 27% 74% Price Assumptions Weighted Average NGL Price ($/gal) $1.04 $1.21 $1.38 Brent Crude ($/Bbl) $93.00 $107.50 $122.60 Henry Hub Gas Price ($/MMBtu) $4.00 $3.48 $3.00 NGL/Gas Ratio 307% 410% 543% * Adjusted EBITDA and Distributable Cash Flow are non-GAAP financial measures. ** Distribution and dividend growth calculated using annualized fourth quarter declared amounts.

Impact of Growth Projects

2012 2013 Q4 ‘13 Annualized

$0 $10 $20 $30 $40 $50 $60 $70

Crude Terminals Crude Terminals Potential Apache Range Howard Energy Range Cajun-Sibon Range

Operating Income Opportunity Potential by Growth Project

($MM) Represents potential range of opportunity

53

Hedged Volume as a % of Hedgeable Volume Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 POL Total VAR Volumes 7.01 7.37 6.82 7.45 7.26 7.45 7.52 7.39 Total Hedgeable Volumes 3.99 4.20 3.92 3.63 3.60 3.56 3.44 3.27 Total Hedged Volumes 3.29 2.31 1.03 1.24 0.99 0.85 1.19 1.37 Hedged Percentage 83% 55% 26% 34% 27% 24% 35% 42% Proc Margin Total VAR Volumes 19.71 23.69 23.99 24.15 23.67 23.72 23.90 23.82 Total Hedgeable Volumes 5.87 5.86 5.91 5.91 5.78 5.83 5.89 5.88 Total Hedged Volumes 5.05 4.51 2.77 2.02 1.31 1.21 0.77 0.99 Hedged Percentage 86% 77% 47% 34% 23% 21% 13% 17% 2012 2013

2012/ 2013 Hedge Positions

54

Processing Sensitivities Matrix Total Year 2012

2.00 $ 2.50 $ 3.00 $ 3.50 $ 4.00 $ 2.00 $ 2.50 $ 3.00 $ 3.50 $ 4.00 $ 300.00% 0.510 $ 0.637 $ 0.765 $ 0.892 $ 1.020 $ 300.00% 51,715 $ 58,871 $ 66,026 $ 73,182 $ 80,337 $ 335.00% 0.569 $ 0.712 $ 0.854 $ 0.996 $ 1.138 $ 335.00% 57,262 $ 65,805 $ 74,347 $ 82,889 $ 91,431 $ 410.00% 0.697 $ 0.871 $ 1.045 $ 1.219 $ 1.393 $ 410.00% 69,149 $ 80,662 $ 92,176 $ 103,690 $ 115,204 $ 485.00% 0.824 $ 1.030 $ 1.236 $ 1.442 $ 1.648 $ 485.00% 81,035 $ 95,520 $ 110,006 $ 124,491 $ 138,956 $ 550.00% 0.935 $ 1.168 $ 1.402 $ 1.636 $ 1.869 $ 550.00% 91,337 $ 108,397 $ 125,458 $ 142,519 $ 159,579 $ 2.00 $ 2.50 $ 3.00 $ 3.50 $ 4.00 $ 2.00 $ 2.50 $ 3.00 $ 3.50 $ 4.00 $ 300.00% 21,180 $ 23,780 $ 26,379 $ 28,979 $ 31,578 $ 300.00% 30,535 $ 35,091 $ 39,647 $ 44,203 $ 48,759 $ 335.00% 22,409 $ 25,315 $ 28,222 $ 31,128 $ 34,034 $ 335.00% 34,854 $ 40,490 $ 46,125 $ 51,761 $ 57,396 $ 410.00% 25,040 $ 28,605 $ 32,169 $ 35,734 $ 39,298 $ 410.00% 44,108 $ 52,058 $ 60,007 $ 67,956 $ 75,905 $ 485.00% 27,672 $ 31,895 $ 36,117 $ 40,339 $ 44,557 $ 485.00% 53,363 $ 63,626 $ 73,889 $ 84,152 $ 94,398 $ 550.00% 29,953 $ 34,746 $ 39,538 $ 44,331 $ 49,124 $ 550.00% 61,383 $ 73,652 $ 85,920 $ 98,188 $ 110,456 $ Approximates Year 2012 Low Guidance Approximates to Year 2012 Midpoint of Guidance Approximates to Year 2012 High Guidance

NGL Basket Price Per Gallon

NGL to Gas Ratio Natural Gas Price

Gross Margin From Total POL & PM Contracts

NGL to Gas Ratio Natural Gas Price

Gross Margin From Total POL Contracts Gross Margin From Total PM Contracts

NGL to Gas Ratio NGL to Gas Ratio

Note: Amounts include hedge impacts.

55

Closing Remarks Barry Davis President and Chief E xecutive Officer

• Maximize the earnings and growth of our existing assets
• Enhance scale and diversification
• Run our assets efficiently and manage our balance sheet

conservatively

• Execute the growth projects that are underway, and pursue

new opportunities

• Expand our NGL business
• Expand our crude business
• Develop gas processing and transportation projects in new

rich-gas areas

Our Commitment to you…

57

Appendix

59

Reconciliation: Segment Cash Flow to Operating Income (Loss)

* 2012 represents mid-point of guidance ** Other includes LOC fees, Stock Based Compensation and gains or losses on derivatives (Amounts in Millions)

2007 2008 2009 2010 2011 2012 *

Total Asset Team Segment Cash Flow 176 $ 197 $ 214 $ 235 $ 272 $ 287 $ Shared Services (11) (15) (14) (13) (16) (18) Other ** (3) (7) (3) 11 8 1 Asset Team Segment Profits 161 $ 176 $ 197 $ 233 $ 263 $ 270 $ Corporate Segment Profits 8 6 3

• Segment Profits

169 $ 182 $ 201 $ 233 $ 263 $ 270 $ General and administrative expenses (60) (69) (60) (48) (53) (59) Gain (loss) on derivatives 4 9 3 (9) (8)

• Gain on sale of property

1 1 1 14 (0)

• Depreciation, amortization and impairment

(83) (137) (122) (113) (125) (126) Operating income (loss) 31 $ (14) $ 23 $ 77 $ 77 $ 86 $ Years Ended December 31, 59