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Crosstex Energy, L.P. (XTEX)

NGL Business Update and 2013 Guidance Conference Call

December 11, 2012, 11:00 AM ET

Executives

Jill McMillan – Director-Public and Industry Affairs

Barry Davis – President and CEO

Mike Garberding – SVP and CFO

Bill Davis – EVP and COO

Analysts

Paul Jacob – Raymond James

Gabe Moreen – Bank of America/Merrill Lynch

Sharon Lui – Wells Fargo

Helen Ryoo – Barclays

John Edwards – Credit Suisse

Presentation

Operator

Good day, ladies and gentlemen, and welcome to the Crosstex Energy NGL Business Update and 2013 Guidance Conference Call. My name is Derrick and I'll be your operator for today. At this time, all participants are in a listen-only mode. We shall facilitate a question-and-answer session at the end of the conference. (Operator Instructions). As a reminder, this conference is being recorded for replay purposes.

I would now turn the conference over to Ms. Jill McMillan, Director of Public & Industry Affairs. Please proceed.

Jill McMillan

Thank you, Derrick, and good morning, everyone. Thank you for joining us today for an update on Crosstex's NGL business and Cajun-Sibon projects and to discuss 2013 guidance. On the call today are Barry Davis, President and Chief Executive Officer and Mike Garberding, Senior Vice President and Chief Financial Officer. Bill Davis, Executive Vice President and Chief Operating Officer also is on the call and will be available for questions.

We issued a news release about our significant NGL project Phase II of our Cajun-Sibon expansion yesterday evening. We issued a news release about 2013 guidance early this morning. For those of you who didn't receive copies, they are available on our website at crosstexenergy.com. If you want to listen to a recording of today's call, you have 90 days to access the replay by phone or webcast on our website.

During this call, we will be reviewing slides that are available on our website. I will remind you that any statements that might include our expectations or predictions should be considered forward-looking statements within the meaning of the Federal Securities Laws. Forward-looking statements are subject to a number of assumptions and uncertainties that may cause our actual results to differ materially from those expressed in these statements. And we undertake no obligation to update or revise any forward-looking statements. We encourage you to review the cautionary statements and other disclosures made in our SEC filings, specifically those under the heading Risk Factors.

In addition, some of the financial measures that we will be discussing today are not GAAP compliant. Please review the statements on slide 3 for an explanation of these terms and the proper use of them.

Before I turn the call to Barry Davis, I want to remind you about our 2013 Bank Group meeting on January 22nd and Analyst Conference on January 23rd. Please put these dates on your calendars. Both events will be held in Fort Worth at the Museum of Science and Histories Energy Blast Gallery. We will be communicating more details on the invitations which we plan to distribute soon. But if you need more information now, please contact me.

Today's discussion will only cover our growing NGL business, our Cajun-Sibon projects and 2013 guidance. We will provide an in-depth discussion of our 2013 financial expectations and company-wide operations at our upcoming meetings in January.

I will now turn the call over to Barry.

Barry Davis

Thank you, Jill. Good morning, everyone, and thank you for joining us on the call. As Jill previously mentioned, I want to quickly remind you about our 2013 Bank Group meeting on January 22nd and our Analyst Conference on January 23rd in Fort Worth. We look forward to sharing more details about our 2013 strategic plan then.

This morning we will discuss our strategic position in the natural gas liquids business, update you on our Cajun-Sibon projects, discuss how these projects position us for additional growth in the NGL business and provide our financial guidance for 2013.

Before I specifically address today's main topics, I'd like to remind you of our long-term strategy which is outlined on slide 4. During the past three years, we have focused on two primary objectives; to maximize the earnings and growth of our existing business and to enhance our scale and diversification thereby creating value.

One of the keys to our success has been and will continue to be a disciplined, financial approach as we execute our plan. As part of enhancing our scale and diversification, we've concentrated on increasing our NGL business, growing a crude business and condensate business and developing our gas processing and transportation business in rich gas areas.

We're confident that increasing our scale and diversification will strengthen us as a company because we believe it will lead to less reliance on any geographic area or product line, offers greater growth opportunities from a broader asset base and provide us with more sustainable fee-based cash flows.

Turning to slide 5, we've provided a summary of our accomplishments to enhance scale and diversification and drive growth. We have been working to transform our asset base through projects that are focused on fee-based crude and NGL business. We plan to invest more than $1 billion of growth capital in crude and NGL projects between 2012 and 2014.

Many of these projects have already been implemented and others, such as the Cajun-Sibon projects are well underway. These projects alone will provide significant growth for both the partnership and the corporation, and we believe they put us in a great position to continue to expand our NGL and crude businesses.

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