General

12 Months Ended

Dec. 31, 2011

General [Abstract]

General

CROSSTEX ENERGY,INC.

Notes to Consolidated Financial Statements

December 31, 2011 and 2010

(1)Organization and Summary of Significant Agreements

(a)       Description of Business

Crosstex Energy, Inc., a Delaware corporation formed on April 28, 2000, is engaged, through its subsidiaries, in the gathering, transmission, processing and marketing of natural gas and natural gas liquids (NGLs). The Company connects the wells of natural gas producers in the geographic areas of its gathering systems in order to gather for a fee or purchase the gas production, processes natural gas for the removal of NGLs, transports natural gas and NGLs and ultimately provides natural gas and NGLs to a variety of markets. In addition, the Company purchases natural gas and NGLs from producers not connected to its gathering systems for resale and markets natural gas and NGLs on behalf of producers for a fee.The Company recently added crude oil terminal facilities in south Louisiana to provide access for crude oil producers to the premium markets in this area.

(b) Organization

On July 12, 2002, the Company formed Crosstex Energy L.P. (herein referred to as the Partnership or CELP), a Delaware limited partnership. Crosstex Energy GP, LLC, a wholly owned subsidiary of the Company, is the general partner of the Partnership. The Company owns 16,414,830 common units in the Partnership through its wholly owned subsidiaries on December 31, 2011, which represented 25.0% of the limited partner interests in the Partnership.

(c) Basis of Presentation

The accompanying consolidated financial statements include the assets, liabilities, and results of operations of the Company and its majority owned subsidiaries, including the Partnership. The Partnership proportionately consolidates its undivided 50.0% interest in a gas processing plant invested in by the Partnership in July 2011, and its undivided 64.29% interest in a gas plant acquired by the Partnership in November 2005 (23.85%), in May 2006 (35.42%) and June 2011 (5.02%). In accordance with FASB ASC 810-10-05-8, the Company consolidates its joint venture interest in Crosstex DC Gathering, J.V. (CDC). The consolidated operations are hereafter referred to herein collectively as the “Company.” All material intercompany balances and transactions have been eliminated. Certain reclassifications have been made to the consolidated financial statements for the prior years to conform to the current presentation.