NGL Business Update &

2013 Guidance Presentation

December 11, 2012

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Forward-Looking Statements

This presentation contains forward looking statements within the meaning of the federal securities

laws. Forward looking statements are not guarantees of performance. They involve risks,

uncertainties and assumptions. The future results of Crosstex Energy, L.P. and its affiliates

(collectively known as “Crosstex”) may differ materially from those expressed in the forward-

looking statements contained throughout this presentation and in documents filed with the SEC.

Many of the factors that will determine these results are beyond Crosstex’s ability to control or

predict. These statements are necessarily based upon various assumptions involving judgments

with respect to the future, including, among others, the ability to achieve synergies and revenue

growth; national, international, regional and local economic, competitive and regulatory conditions

and developments; technological developments; capital markets conditions; inflation rates; interest

rates; the political and economic stability of oil producing nations; energy markets; weather

conditions; business and regulatory or legal decisions; the pace of deregulation of retail natural gas

and electricity; the timing and success of business development efforts; and other uncertainties. You

are cautioned not to put undue reliance on any forward looking statement. Crosstex has no

obligation to publicly update or revise any forward looking statement, whether as a result of new

information, future events or otherwise.

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Non-GAAP Financial Information

This presentation contains non-generally accepted accounting principle financial measures that Crosstex refers to as adjusted EBITDA, distributable cash flow and gross operating margin. Adjusted EBITDA is defined as net income (loss) plus interest expense, provision for income taxes and depreciation and amortization expense, impairments, stock-based compensation, loss on extinguishment of debt, (gain) loss on noncash derivatives, transaction costs associated with successful transactions, minority interest and certain severance and exit expenses, and accrued expense of a legal judgment under appeal, less (gain) loss on sale of property. Distributable cash flow is defined as earnings before certain noncash charges and the (gain) loss on the sale of assets less maintenance capital expenditures. Gross operating margin is defined as revenue minus the cost of purchased gas and natural gas liquids. The amounts included in the calculation of these measures are computed in accordance with generally accepted accounting principles (GAAP) with the exception of maintenance capital expenditures. Maintenance capital expenditures are capital expenditures made to replace partially or fully depreciated assets in order to maintain the existing operating capacity of the assets and to extend their useful lives. Crosstex believes these measures are useful to investors because they may provide users of this financial information with meaningful comparisons between current results and prior-reported results and a meaningful measure of Crosstex’s cash flow after it has satisfied the capital and related requirements of its operations. Adjusted EBITDA, distributable cash flow and gross operating margin, as defined above, are not measures of financial performance or liquidity under GAAP. They should not be considered in isolation or as an indicator of Crosstex’s performance. Furthermore, they should not be seen as measures of liquidity or a substitute for metrics prepared in accordance with GAAP.

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Our strategy over the past three years has been focused on:

• Maximizing earnings and growth of the existing business

• Growing business to enhance scale and diversification and to create value

To enhance our scale and diversification, we have been focused on:

• Increasing NGL business

• Growing crude and condensate business

• Developing GP&T business in rich gas areas

Long-Term Strategic

Business Plan

Business scale and diversification will lead to : (1) less reliance on any individual geographic area or product line; (2) greater opportunities for growth

from broader asset base; and (3) more sustainable fee-based cash flows.

• By Q4 2013, over 40% of gross

operating margin is expected to come

from crude/condensate and NGL

businesses, all of which is fee-based

• Projected 2013 gross operating margin

from fee-based businesses of ~ 86%, up

from 68% in 2008

• Expect run-rate adjusted EBITDA of

~$260-$290 million by the end of 2013,

driven by the fee-based projects

• Cajun-Sibon II expected annual run-rate

adjusted EBITDA contribution of $75-

$85 MM beginning in second half of

2014

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Focus on Scale & Diversity

to Drive Growth

• Growth projects focused on fee-based

crude and natural gas liquids (NGL)

businesses

• $1 billion+ in planned growth capital

expenditures from 2012-2014

₋ Ohio River Valley (in operation)

₋ Permian joint venture with Apache (in

operation)

₋ Riverside Crude Phase 2 (under

construction)

₋ Cajun-Sibon I (under construction)

₋ Cajun-Sibon II (long-lead equipment

ordered)

ASSET TRANSFORMATION RESULT

NGL Business

Overview

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Crosstex is transforming a business historically focused on processing of off-shore natural gas to an NGL focused business with additional opportunities for organic growth

• Re-started Eunice fractionator at 15 Mbpd capacity in April 2011

• Truck/rail NGL volumes from Marcellus and Eagle Ford currently being handled at Eunice and Riverside

• Permian NGL volumes currently transported via rail from Mesquite terminal to Eunice fractionator at 6.8 Mbpd in Q3 2012

• Storage of purity products at Napoleonville

• Connection of Mont Belvieu to Louisiana market via pipeline through Cajun-Sibon I

• Marketing of purity products in south Louisiana, including expanding end-user relationships

Creating a Strategic NGL Position

in Louisiana

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130-mile NGL pipeline

with 70 Mbpd capacity

Expand Eunice fractionator

from 15 Mbpd to 55 Mbpd

5-year ethane sales agreement

with Williams Companies

Cajun-Sibon I Expands Strategic

NGL Position in Louisiana

• ~ 130-mile, 12-inch NGL pipeline from Mt. Belvieu to Eunice

• Expansion of Eunice NGL fractionator from 15 Mbpd to 55 Mbpd, which will increase NGL

fractionation capacity in LA to ~97 Mbpd

• Pipeline NGL capacity of 70 Mbpd

• Project supported by long-term ethane sales agreement with Williams Companies

• Construction began in Q3 2012 with estimated in-service date mid-2013

• Estimated annual run-rate adjusted EBITDA contribution of $40-$45 million

Cajun-Sibon II Enhances Strategic

NGL Position in Louisiana

Cajun-Sibon II enhances our Louisiana NGL business with additions to

the Cajun-Sibon I NGL pipeline extension and fractionator expansion

• Add pumps with13,400 HP to expand NGL supply capacity from 70 Mbpd to 120 Mbpd

• Construct new 100 Mbpd fractionator at Plaquemine and convert Riverside fractionator to

Butanes-plus facility

• Extend LIG Bayou Jack lateral by 32 miles to Plaquemine gas plant

• Construct 57 miles of NGL pipelines

• 10-year sales agreement with Dow Hydrocarbons and Resources LLC including:

₋ Delivery of up to 40 Mbpd of ethane and 25 Mbpd of propane produced at Crosstex’s

new Plaquemine fractionator

₋ Deliver of 70,000 MMBtu/d of gas to Dow’s Plaquemine facility

• Expected to be in service during the second half of 2014 with an annual run-rate adjusted

EBITDA contribution of $75-$85 million

• Cajun-Sibon I and II combined run-rate adjusted EBITDA contribution of $115-$130 million

• Total capital investment for Cajun-Sibon I and II estimated at $680-$700 million

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Cajun-Sibon II Project Overview

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57 miles of new NGL pipeline

32-mile 16” extension of

LIG Bayou Jack lateral

Construction of 100

Mbpd fractionator

Fractionator converted

to Butanes-plus facility

New pump horsepower increases

pipeline capacity to 120 Mbpd

Pelican

Cajun-Sibon II

Cajun-Sibon I

Cajun-Sibon

Expansion Overview

Southern Louisiana & Texas

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Expansions leverage existing assets and

create significant platform to grow

crude/condensate and NGL businesses

Expand

Market

Optionality &

Connectivity

Upgrade

products

Create NGL

export

solutions

Expand

fractionation

& product

storage

capacity

These

complementary

opportunities

could represent

over $1 billion

in additional

capital

investments.

Cajun-Sibon Phase II

Cajun-Sibon Phase I

Cajun-Sibon Projects Create a

Platform for Significant Growth

Expand rail

imports

2013 Guidance

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2013 Guidance

* Adjusted EBITDA and Distributable cash flow are non-GAAP financial measures, and are explained in greater detail in “Non-GAAP Financial

Information” on page 3.

** EBITDA growth percentages represent 2013 estimates versus 2012 low guidance, adjusted for the acquisition of the Ohio River Valley assets (ORV).

*** Distribution and dividend growth percentages represent annualized fourth-quarter 2013 estimates versus our annualized current quarterly distribution

and dividend for 2012.

(Amounts in millions except for prices, percentages, ratios, per unit and per share amounts)

Low Midpoint High

Crosstex Energy, L.P.

Adjusted EBITDA* $220 $235 $250

Distributable Cash Flow (DCF) * $130 $144 $160

Distribution Per Unit $1.36 $1.41 $1.46

Distribution Coverage 1.0x 1.1x 1.2x

EBITDA Growth** 4% 11% 18%

Distribution Growth*** 6% 15% 21%

Growth Capital $520 $520 $520

Maintenance Capital $13 $13 $13

Crosstex Energy, Inc.

Cash available for dividends $26 $28 $31

Dividend Per Share $0.53 $0.57 $0.63

Dividend Growth*** 17% 42% 75%

Key Assumptions for Forecast

Weighted Average Liquids Price ($/gal) 0.75 0.86 0.93

Brent Crude Price ($/Bbl) 95 108 117

Natural Gas Price ($/MMBtu) 4.50 4.10 3.50

Natural Gas Liquids to Gas Ratio 189% 238% 302%

$128

$520$465

$121$110

$144$214 $213 $235

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Growth Trends: EBITDA, DCF &

Growth Capital Expenditures

Adjusted EBITDA Distributable Cash Flow Growth Capital

Expenditures

2011 2012* 2013** 2011 2012 2013

* 2012 estimates represent the low end of 2012 guidance, adjusted for the acquisition of the Ohio River Valley assets (ORV).

** 2013 estimates represent the midpoint of 2013 guidance.

*** Q4 2013 annualized guidance ranges shown.

Capital expenditures in 2012 and 2013 drive adjusted EBITDA and DCF growth

• Q4 2013 annualized adjusted EBITDA expected to be $260-$290 million

• Cajun-Sibon II expected annual run-rate adjusted EBITDA contribution of $75-$85 million beginning in second half of 2014

Q4 2013***

2011 2012* 2013** Q4 2013***

$260-$290 $175-$205

($ in millions) ($ in millions) ($ in millions)

$0.75

$0.85

$0.95

$1.05

$1.15

$1.25

$1.35

$1.45

$1.55

$1.65

2010 2011 2012 E * 2013 E

Midpoint of

Guidance

Distribution Growth Projections4th Quarter Annualized Distributions ($/unit)

Distributions Per Unit

• Target long-term coverage ratio of 1.0x to 1.2x, dependent upon the following:

– Capital project execution

– Growth expectations

– Commodity prices

– Capital market conditions

• Maintain conservative capital structure and leverage ratios

– Match distributions and dividends with more reliable cash flows

– Reinvest excess coverage from less sustainable cash flows

– Funded approximately $500 million of 2012 growth capital through recent debt and equity issuances

• Defined large scale growth projects in 2013 and 2014 will drive distribution and dividend growth in 2014 and beyond

Distribution & Dividend Growth

Projections

15 * 2012 estimates represent the low end of 2012 guidance, adjusted for the acquisition of the Ohio River Valley assets (ORV).

$0.15

$0.25

$0.35

$0.45

$0.55

$0.65

$0.75

2010 2011 2012 E * 2013 E

Midpoint of

Guidance

Dividend Growth Projections4th Quarter Annualized Dividends ($/share)

Dividends Per Share

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2013 Guidance:

Contract Mix

* Gross Operating Margin is a non-GAAP financial measure, and is explained in greater detail in “Non-GAAP Financial Information” on page 3.

54%64% 62%

19%17% 24%

10%8%

9%17% 11% 5%

0%

20%

40%

60%

80%

100%

Midpoint of Guidance2012

Year-to-Date9/30/12

Midpoint of Guidance2013

Processing Margin Percent of Liquids Processing

Fee Based Processing & Fractionation Gathering & Transmission

Gross Operating Margin *

Contract Mix

~ 86%

Fee-based

business

Focus on Scale & Diversity

to Drive Growth

• By Q4 2013, over 40% of Crosstex’s gross operating margin is expected to come from crude/condensate and NGL businesses, all of which is fee-based. This is expected to increase above 50% in 2014.

• Projected 2013 gross operating margin from fee-based businesses of ~ 86%

• Cajun-Sibon I and II expected run-rate adjusted EBITDA contribution of $115 - $130 million

• Expect run-rate adjusted EBITDA of ~$260-$290 million by the end of 2013, largely driven by fee-based projects

• Louisiana assets with Cajun-Sibon additions provide a platform for significant complementary growth opportunities that could represent over $1 billion in additional capital investments

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