Crosstex acquires Eunice NGL processing plant and fractionation facility

Wed. October 21, 2009; Posted: 05:01 AM

Oct 21, 2009 (Datamonitor via COMTEX) -- XTEX | Quote | Chart | News | PowerRating -- The Crosstex Energy companies, Crosstex Energy LP and Crosstex Energy have announced that the partnership has acquired the Eunice natural gas liquids processing plant and fractionation facility from Phillip Morris for approximately $42 million, which includes $18 million of assumed debt.

Previously, Crosstex has managed the plant and facility, which are located in south central Louisiana, under an operating lease with Phillip Morris. It is estimated that the acquisition will improve the partnership's adjusted cash flow by approximately $12 million per year through the elimination of lease operating expense.

The Eunice plant processes natural gas, separating the natural gas liquids (NGLs) found in the gas stream and producing pipeline-quality dry natural gas for numerous customers.

The processing plant has an above-ground NGLs storage capacity of 190,000 barrels and is interconnected with Crosstex's Cajun-Sibon pipeline and Riverside fractionation system, which separates ethane, propane, iso-butane, normal butane and natural gasoline.

In addition, the Eunice site includes an idle fractionator facility. The Eunice and Riverside fractionation facilities are connected to Crosstex's underground storage unit at Napoleonville and to pipeline distribution systems for the sale of NGLs products in the Napoleonville and Mississippi River markets.

The Eunice site contains a truck and rail unloading terminal that gathers NGLs for fractionation from eastern and western US markets. The idle Eunice fractionation facility can be restarted if necessary to alleviate fractionation constraints at Mont Belvieu, Texas, where an industry hub for NGLs fractionation and storage is located.

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For full details on Crosstex Energy Lp (XTEX) click here. Crosstex Energy Lp (XTEX) has Short Term PowerRatings of 5. Details on Crosstex Energy Lp (XTEX) Short Term PowerRatings is available at This Link.

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