The Crosstex Energy companies and Apache Corp. (APA) are teaming
up to build a natural-gas processing plant in the Permian Basin in
West Texas and will jointly spend $85 million on the project.
The Crosstex companies--Crosstex Inc. (XTXI) and Crosstex Energy
LP (XTEX)--will have a 50% working interest, and Apache will have
the other 50%. The initial phase of the project will provide
processing and other services for Apache.
Crosstex, a natural-gas producer and operator of pipelines and
processing plants, will manage construction and operate the
facilities. The initial project includes a refrigeration plant,
expected to be in operation in the fourth quarter, and a cryogenic
gas-processing plant that is expected to come on line in the second
quarter of next year.
Separately, Crosstex also will spend $12 million to purchase and
upgrade an abandoned fractionator, which will be refurbished to
serve as a rail terminal for natural-gas-liquids shipments.
Crosstex President and Chief Executive Barry E. Davis said the
deal with Apache provides the company with a footprint in the
Permian Basin.
Apache in April reported that its first-quarter earnings surged
61%, handily topping analysts' estimates, as oil prices rose
sharply, helping revenue jump by nearly half.
All three stocks were inactive premarket.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com