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 funding for its previously announced strategic growth initiatives – Phase I of the Cajun-Sibon natural gas liquids pipeline expansion, Phase II of the Riverside crude project and its Ohio River Valley business expansion. Also, Crosstex Energy GP, LLC, the general partner of the Partnership (General Partner), has amended the Partnership’s Agreement of Limited Partnership. The amendment modifies the terms of the Series A Convertible Preferred Units (Preferred Units) held by funds managed by GSO Capital Partners LP (GSO) to, among other things, provide that cash distributions to the Preferred Units will be paid in-kind for the next six quarters. The Partnership believes that this transaction, in conjunction with the $75 million equity placement to Kayne Anderson announced earlier this morning and the $415 million debt and equity financings completed in May 2012, provide the Partnership with the financial flexibility to fund all of its committed strategic growth projects. In addition, the Partnership has additional financial flexibility with more than $500 million in available liquidity and increased leverage flexibility with the recent Amendment to its Credit Agreement. Distributions to the Preferred Units, held by funds managed by GSO, will be paid in-kind for the next six quarters based on a unit price of $13.25, which represents a reduction of approximately $5.0 million in cash distributions per quarter to the Preferred Units based on the Partnership’s current distribution rate. The Preferred Units generally will continue to be governed by their existing terms after the payment in-kind period. “We are pleased to enter into these transactions with GSO and Kayne Anderson. It demonstrates the value of having them as strategic investors and their positive view of our planned growth through our Cajun-Sibon natural gas liquids pipeline expansion project and new Ohio River Valley business,” said Barry E. Davis, Crosstex President and Chief Executive Officer.