Devon Energy and Crosstex Energy Complete Transaction to Create EnLink Midstream

  Devon Energy and Crosstex Energy Complete Transaction to Create EnLink
  Midstream

Business Wire

OKLAHOMA CITY & DALLAS -- March 7, 2014

Devon Energy Corporation (NYSE: DVN) (“Devon”), EnLink Midstream, LLC and
EnLink Midstream Partners, LP today announced the completion of the previously
announced transaction to combine substantially all of Devon’s U.S. midstream
assets with the assets of the former Crosstex Energy, Inc. and Crosstex
Energy, L.P. (collectively, “Crosstex”). Crosstex Energy, Inc. stockholders
overwhelmingly voted in favor of the proposal to adopt the previously
announced merger agreement among Crosstex Energy, Inc., Devon and certain of
Devon’s subsidiaries. Following closing, two publicly traded entities will
exist: a general partner entity and the master limited partnership, which will
operate under the legal names EnLink Midstream, LLC and EnLink Midstream
Partners, LP, respectively (collectively, “EnLink Midstream”). Both EnLink
Midstream securities will begin trading on March 10, 2014 on the New York
Stock Exchange under the symbols ENLC (the general partner) and ENLK (the
master limited partnership).

The combination of Devon’s and Crosstex’s extensive midstream systems provides
EnLink Midstream with diversification and scale, along with an enhanced
liquids-oriented growth profile. These assets are located in many of North
America’s premier oil and gas regions, including the Barnett, Permian Basin,
Cana and Arkoma Woodford, Eagle Ford, Haynesville, Gulf Coast, Utica and
Marcellus Shales. EnLink Midstream has approximately 7,300 miles of gathering
and transportation pipelines, 12 processing plants with 3.3 billion cubic feet
per day of net processing capacity, six fractionators with 180,000 barrels per
day of net fractionation capacity, as well as barge and rail terminals,
product storage facilities, brine disposal wells and an extensive crude oil
trucking fleet.

“We are excited to announce the completion of the transaction and the new
beginning for us as EnLink Midstream,” said Barry E. Davis, President and
Chief Executive Officer of EnLink Midstream. “Our vision is to not only be one
of the largest, but one the best midstream providers in the industry. EnLink
Midstream’s geographically diverse asset base, strong financial foundation,
and strategic upstream sponsorship from Devon Energy position us for growth
over the near and long-term.”

Transaction Information

Consistent with the terms of the transaction, which was announced on October
21, 2013, in exchange for a controlling interest in both the new general
partner entity and the master limited partnership, Devon has contributed its
equity interest in a newly formed Devon subsidiary (“EnLink Midstream
Holdings”) and $100 million in cash. EnLink Midstream Holdings owns Devon’s
former midstream assets in the Barnett Shale in North Texas, the Cana and
Arkoma Woodford Shales in Oklahoma and a contractual right to the benefits and
burdens of Devon’s interest in Gulf Coast Fractionators in Mt. Belvieu, Texas.
The master limited partnership and the general partner each own 50% of EnLink
Midstream Holdings. Stockholders of Crosstex Energy, Inc. will receive one
unit in the general partner entity for each share of Crosstex Energy, Inc.
they owned, as well as a one-time cash payment of approximately $2.05 per
share.

About EnLink Midstream

EnLink Midstream is a leading midstream provider formed through the
combination of Crosstex Energy and substantially all of the U.S. midstream
assets of Devon Energy. EnLink Midstream will be publicly traded through two
entities: EnLink Midstream, LLC (ENLC), the publicly traded general partner
entity, and EnLink Midstream Partners, LP (ENLK), the master limited
partnership.

EnLink Midstream’s assets are located in many of North America’s premier oil
and gas regions, including the Barnett, Permian Basin, Cana and Arkoma
Woodford, Eagle Ford, Haynesville, Gulf Coast, Utica and Marcellus Shales.
Based in Dallas, Texas, EnLink Midstream has approximately 7,300 miles of
gathering and transportation pipelines, 12 processing plants with 3.3 billion
cubic feet per day of net processing capacity, six fractionators with 180,000
barrels per day of net fractionation capacity, as well as barge and rail
terminals, product storage facilities, brine disposal wells and an extensive
crude oil trucking fleet.

More information about EnLink Midstream will be available on March 10, 2014 at
www.enlink.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the federal securities laws. Although these statements reflect the current
views, assumptions and expectations of our management, the matters addressed
herein involve certain risks and uncertainties that could cause actual
activities, performance, outcomes and results to differ materially than those
indicated. Such forward-looking statements include, but are not limited to,
statements about future financial and operating results, objectives,
expectations and intentions and other statements that are not historical
facts. Factors that could result in such differences or otherwise materially
affect our financial condition, results of operations and cash flows include,
without limitation, (a) the dependence on Devon for a substantial portion of
the natural gas that we gather, process and transport, (b) the risk that our
new company will not be integrated successfully or that such integration will
take longer than anticipated, (c) the possibility that expected synergies will
not be realized, or will not be realized within the expected timeframe, (d)
our lack of asset diversification, (e) our vulnerability to having a
significant portion of our operations concentrated in the Barnett Shale, (f)
the amount of hydrocarbons transported in our gathering and transmission lines
and the level of our processing and fractionation operations, (g) fluctuations
in oil, natural gas and NGL prices, (h) construction risks in our major
development projects, (i) our ability to consummate future acquisitions,
successfully integrate any acquired businesses, realize any cost savings and
other synergies from any acquisition, (j) changes in the availability and cost
of capital, (k) competitive conditions in our industry and their impact on our
ability to connect hydrocarbon supplies to our assets, (l) operating hazards,
natural disasters, weather-related delays, casualty losses and other matters
beyond our control, and (m) the effects of existing and future laws and
governmental regulations, including environmental and climate change
requirements and other uncertainties. These and other applicable
uncertainties, factors and risks are described more fully in EnLink Midstream
Partners, LP’s and EnLink Midstream, LLC’s filings with the Securities and
Exchange Commission, including EnLink Midstream Partners, LP’s and EnLink
Midstream, LLC’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K. Neither EnLink Midstream Partners, LP nor
EnLink Midstream, LLC assumes any obligation to update these forward-looking
statements.

Contact:

EnLink Midstream
Jill McMillan, 214-721-9271
Director, Public & Industry Affairs
Jill.McMillan@enlink.com
 
Press spacebar to pause and continue. Press esc to stop.