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 construction of Phase I of the Cajun-Sibon natural gas liquids (NGL) expansion project. The project connects the Partnership’s Eunice fractionator in South Louisiana to Mt. Belvieu supply pipelines in East Texas. Pipeline operations were completed in the first week of October and commercial deliveries of NGL product to the Eunice, Riverside and Plaquemine fractionators began shortly thereafter. The Eunice fractionator began operations on November 6 at a rate of 15,000 barrels of NGL per day. The pipeline is currently delivering approximately 25,000 to 30,000 barrels per day of product into various Louisiana delivery points and is expected to be moving its full volume of approximately 70,000 barrels per day by the end of 2013.
“The Cajun-Sibon expansion project allows us to capitalize on the robust southeastern Louisiana NGL market,” said Barry E. Davis, Crosstex President and Chief Executive Officer. “Our strategic footprint in the region will allow us to benefit as market demand continues to increase and we are well positioned to capitalize on additional growth opportunities from our expanded NGL platform."
The second phase of the expansion project is scheduled for completion in the second-half of 2014 and includes expanding the Cajun-Sibon pipeline capacity by an additional 50,000 barrels per day to a total of 120,000 barrels per day; the installation of a 100,000 barrel per day fractionator adjacent to the Partnership’s existing Plaquemine natural gas processing complex; the modification of the Riverside fractionator facility; and the construction of several natural gas and NGL pipelines to expand the Partnership's capabilities and market connectivity.
The Partnership expects the combined contribution of both phases of the Cajun-Sibon expansion project to be approximately $115 to $130 million of annual run-rate adjusted EBITDA when completed, which is expected to occur in the second-half of 2014. Adjusted EBITDA is explained in greater detail under “Non-GAAP Financial Information.”
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