Interview with Michael J. Garberding, EVP and CFO of Crosstex Energy, L.P. (XTEX)

Wall Street Transcript

67 WALL STREET, New York - March 26, 2013 - The Wall Street Transcript has just published its Oil & Gas: Master Limited Partnerships Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

Topics covered: Increasing Demand for Midstream Assets - U.S. Energy Infrastructure Build Out - Emerging Shale Plays - Oil and Gas Transportation Infrastructure Demand - Master Limited Partnerships Distribution Growth - Outlook for Natural Gas Liquids - Low Treasury Yields and MLP Dividends

Companies include: Crosstex Energy LP (XTEX) and many more.

In the following excerpt from the Oil & Gas: Master Limited Partnerships Report, the EVP and CFO of Crosstex Energy, L.P. (XTEX), discusses company strategy and the oulook for this vital industry:

TWST: Would you give us a snapshot of XTEX's assets and the geographic locations that you are focused on?

Mr. Garberding: We have a goal that Crosstex has diversity, both geographically and by product, so we have purposely invested in businesses that are in six of the top shale plays across the United States. Our goal is to span the energy value chain so we provide diverse services and tailored customer solutions that link energy production with consumption in this robust marketplace.

From an asset standpoint, we have about 3,500 miles of natural gas, natural gas liquids and oil pipelines, 10 natural gas processing plants and four fractionators. We also operate barge and rail terminals, storage facilities, brine water disposal wells and an extensive truck fleet. So we really provide all of the services from the wellhead to the actual use of the product.

We've been focusing on expanding the scale and diversity of our business. The latest example would be the acquisition of our assets in Ohio in the Utica shale. That's just one piece of our $1 billion in growth that we've been working on, which started in 2012 and will be completed in 2014. This growth will reposition us so we are more diverse, both geographically and in terms of the type of products we provide. We expect at the end of 2014 to have 50% of our gross operating margin from crude oil, condensate and natural gas liquids, and 50% from natural gas. This will give us good product diversity to take advantage of the cycles we typically see in the energy industry.

TWST: What trends are you seeing most prominent among your customers, and how is that affecting your business?

For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.

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