SOURCE: Charlesbank Capital Partners

Charlesbank Capital Partners

August 07, 2009 09:19 ET

Charlesbank Completes $220 Million Acquisition of Natural Gas Assets

BOSTON, MA--(Marketwire - August 7, 2009) - Charlesbank Capital Partners and Southcross Energy are pleased to announce the acquisition by Southcross of the South Texas, Mississippi and Alabama midstream natural gas assets of Crosstex Energy (NASDAQ: XTEX). The newly formed Southcross Energy is a natural gas transportation and processing company located in Dallas. Wells Fargo Securities arranged the financing for the transaction.

Southcross Energy is led by a seasoned team of industry executives. David Biegler, Chairman and Chief Executive Officer of Southcross, previously served as Chairman of Regency Gas Services, Vice Chairman of TXU and Chairman of ENSERCH. Mike Hunter, President, served as a Regency director and was formerly President of Lone Star Pipeline. Charlesbank first teamed with them to pursue midstream investment opportunities in 2002, a collaboration that culminated in the formation of Regency, a former Charlesbank portfolio company.

"I am delighted to partner with the Charlesbank team again, and to have their backing for what I am confident will be a strong company, with an excellent foundation," said Mr. Biegler. "The initial Southcross portfolio is an attractive mix of midstream assets that provide a wide range of essential services to customers and producers in historically rich natural gas regions."

The South Texas system consists of approximately 1,400 miles of intrastate gathering and transmission pipelines with throughput capacity of about 600,000 MMBtu/d and two processing facilities with a total processing capacity of approximately 195,000 MMBtu/d. The Mississippi and Alabama systems consist of approximately 780 miles of intrastate gathering and transmission pipelines with throughput capacity of about 185,000 MMBtu/d.

"After working for more than a year to identify the appropriate midstream energy opportunity, we are very pleased to complete this transaction," said Jon Biotti, Managing Director for Charlesbank. "With Southcross, we are able to acquire a stable set of assets with attractive underlying contracts alongside a talented and proven management team. We are certain that David Biegler's team will provide the strong operational focus and strategic leadership necessary to generate consistent cash flows and grow the asset base both organically and through acquisition."

About Charlesbank Capital Partners

Charlesbank Capital Partners, LLC is a middle-market private equity investment firm managing more than $1.5 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $100 million per transaction in companies with enterprise values of $50 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information, visit www.charlesbank.com.

About Southcross Energy

For additional information about Southcross Energy, LLC, contact Rick Lemmon at 214-393-7506 or lemmon@southcrossenergy.com.

About the Crosstex Energy Companies

Crosstex Energy, LP (the Partnership), a midstream natural gas company headquartered in Dallas, operates approximately 3,300 miles of pipeline, 10 processing plants, three fractionators, and approximately 180 natural gas amine-treating plants and dew-point control plants. The Partnership currently provides services for 3.2 billion cubic feet per day of natural gas, or approximately 6 percent of marketed US daily production.

Crosstex Energy, Inc. (NASDAQ: XTXI) (the Corporation) owns the 2 percent general partner interest, a 33 percent limited partner interest, and the incentive distribution rights of Crosstex Energy, LP.

Additional information about the Crosstex companies can be found at www.crosstexenergy.com

Contact Information