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The Crosstex Energy companies, Crosstex Energy, L.P. (NASDAQ: XTEX) (the Partnership) and Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation), today announced that the Partnership has completed its previously announced acquisition of privately held Clearfield Energy, Inc. for approximately $210 million in cash. Clearfield is a 125-year-old crude oil, condensate and water services company with operations in Ohio, Kentucky and West Virginia. It is expected that the acquisition will be immediately accretive to distributable cash flow.
“The Clearfield acquisition positions Crosstex in the rapidly developing Utica and Marcellus shale plays and provides us with a substantial growth platform in a new geographic area,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “Our core capabilities and strong financial position empower us to leverage these well-positioned assets and solid operations to accelerate future value creation. This represents a significant addition to our crude and condensate business, and our initial entry into salt water disposal. We also anticipate we will take advantage of natural gas gathering and processing opportunities that we plan to develop in the area.
“We welcome Clearfield’s talented employees into the Crosstex family. Clearfield’s assets have a rich legacy and we look forward to upholding the company’s strong tradition of outstanding customer service as we pursue the opportunities ahead of us together,” Davis added.
The assets currently handle approximately 300,000 barrels per month of crude and condensate in Ohio, Kentucky and West Virginia. They include a 4,500-barrel-per-hour crude oil barge-loading terminal on the Ohio River; a 28,000-barrel-per-day crude oil rail-loading terminal on the Ohio Central Railroad network that Crosstex expects to expand to a 56,000-barrel-per-day facility by year-end 2012; and 200 miles of crude oil pipelines in Ohio and West Virginia. The assets also include more than 500,000 barrels of above ground storage, six brine water disposal wells with two additional wells under development and an extensive truck fleet with a capacity of 35,000 barrels per day. Crosstex also acquired more than 2,500 miles of unused right of way for future expansions.