QuickLinks -- Click here to rapidly navigate through this document

Exhibit 10.4

AGREEMENT REGARDING 2003 REGISTRATION STATEMENT
AND WAIVER AND TERMINATION OF STOCKHOLDERS' AGREEMENT

        THIS AGREEMENT REGARDING 2003 REGISTRATION STATEMENT AND WAIVER AND
TERMINATION OF STOCKHOLDERS' AGREEMENT, dated October 27, 2003, is by and among
Yorktown Energy Partners IV, L.P., a Delaware limited partnership, Yorktown
Energy Partners V, L.P., a Delaware limited partnership, Lubar Nominees, a
general partnership, Barry E. Davis, A. Chris Aulds, James R. Wales, William W.
Davis, Jack M. Lafield, Michael P. Scott, Lisa M. Brecht, John W. Daugherty,
Mike Hopkins, Mark E. Huff, Marc Lyons, Rodney A. Madden, Stewart McCorkle and
Dale Wilson (collectively, the "Stockholders"), and Crosstex Energy
Holdings Inc., a Delaware corporation (the "Company").

W I T N E S E T H:

        WHEREAS, the Stockholders and the Company are parties to a Stockholders'
Agreement dated May 5, 2000 and amended May 2, 2001 (the "Stockholders'
Agreement);

        WHEREAS, the Company intends to register under the Securities Act of
1933, as amended, Registrable Shares (as defined in the Stockholders' Agreement)
of the Stockholders in the numbers set forth opposite their signatures hereto
(the "Offering");

        WHEREAS, the Stockholders will use the proceeds from the sale of the
Registrable Shares to pay off promissory notes held by the Company;

        WHEREAS, in connection with the Offering, the parties hereto desire to
define the obligations of the Company and the Stockholders with respect to the
Offering and waive and terminate certain provisions of the Stockholders'
Agreement, upon the terms and conditions contained herein;

        NOW, THEREFORE, in consideration such good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

        1.    Registration.    The Company shall include in a registration
statement the number of Registrable Shares of the Stockholders set forth
opposite their signatures hereto and the provisions of Article V of the
Stockholders' Agreement are adopted by all the parties hereto with respect to
the Offering and agreed to in all respects.

        2.    Waiver and Termination.    The parties agree to, and do hereby,
waive the terms of any and all options and rights to purchase, voting
agreements, registration rights, and all other rights and requirements under the
Stockholders' Agreement and terminate the Stockholders' Agreement effective
concurrent with the closing of the Offering, except for the provisions of
Section 5.8, which shall survive such termination. Upon termination, no party
shall have any further liability or obligations to any other party under the
Stockholders' Agreement except as otherwise expressly provided for herein.

        3.    Title.    Each Stockholder represents and warrants that (a) he has
not sold, transferred, assigned, pledged or otherwise conveyed to any other
party any interest in the Stockholders' Agreement and (b) he has the full right,
power and authority to enter into this Termination Agreement and to terminate
the Stockholders' Agreement.

        4.    Joinder of Spouses.    The spouses of each Stockholder hereby join
in the execution and delivery of this Agreement for the purpose of binding their
respective community property interests, if any, in the Stockholders' Agreement
to the terms and conditions hereof in all respects.

        5.    Entire Agreement.    This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof
and supersedes all prior agreements and understandings, both written and oral,
between the parties with respect to the subject matter hereof.

        6.    Binding Effect.    This Agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective successors, assigns,
heirs and legal representatives.

--------------------------------------------------------------------------------

        7.    Amendment and Waiver.    This Agreement may be amended,
superseded, cancelled, renewed or extended, and the terms hereof may be waived,
only by a written instrument signed by the parties or, in the case of a waiver,
by the party waiving compliance.

        8.    Governing Law.    This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware.

        9.    Counterparts.    This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same agreement.

        10.    Gender.    Pronouns in masculine, feminine and neuter genders
shall be construed to include any other gender, and words in the singular form
shall be construed to include the plural and vice versa, unless the context
otherwise requires.

--------------------------------------------------------------------------------

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

1,371,000
Number of Registrable Shares               YORKTOWN ENERGY PARTNERS IV, L.P.
 
 
By:
 
Yorktown IV Company LLC,
its General Partner
 
 
 
 
By:
/s/  PETER A. LEIDEL      

--------------------------------------------------------------------------------

        Name: Peter A. Leidel

--------------------------------------------------------------------------------

        Title: Member

--------------------------------------------------------------------------------

343,000
Number of Registrable Shares
 
 
 
 
      YORKTOWN ENERGY PARTNERS V, L.P.
 
 
By:
 
Yorktown V Company LLC,
its General Partner
 
 
 
 
By:
/s/  PETER A. LEIDEL      

--------------------------------------------------------------------------------

        Name: Peter A. Leidel

--------------------------------------------------------------------------------

        Title: Member

--------------------------------------------------------------------------------

-0-
Number of Registrable Shares
 
 
      LUBAR NOMINEES
 
 
By:
/s/  SHELDON B. LUBAR      

--------------------------------------------------------------------------------

    Name: Sheldon B. Lubar

--------------------------------------------------------------------------------

    Title: General Partner

--------------------------------------------------------------------------------

190,000
Number of Registrable Shares
 
 
      /s/  BARRY E. DAVIS      

--------------------------------------------------------------------------------

Barry E. Davis
 
 
/s/  ANTOINETTE DAVIS      

--------------------------------------------------------------------------------

Spouse of Barry E. Davis
150,000
Number of Registrable Shares
 
 
      /s/  A. CHRIS AULDS      

--------------------------------------------------------------------------------

A. Chris Aulds
 
 
/s/  TERESA P. AULDS      

--------------------------------------------------------------------------------

Spouse of A. Chris Aulds        

--------------------------------------------------------------------------------

85,000
Number of Registrable Shares
 
 
      /s/  JAMES R. WALES      

--------------------------------------------------------------------------------

James R. Wales
 
 
/s/  LORI M. WALES      

--------------------------------------------------------------------------------

Spouse of James R. Wales
26,000
Number of Registrable Shares
 
 
      /s/  WILLIAM W. DAVIS      

--------------------------------------------------------------------------------

William W. Davis
 
 
/s/  CATHY C. DAVIS      

--------------------------------------------------------------------------------

Spouse of William W. Davis
25,000
Number of Registrable Shares
 
 
      /s/  JACK M. LAFIELD      

--------------------------------------------------------------------------------

Jack M. Lafield
 
 
/s/  MICHELE LAFIELD      

--------------------------------------------------------------------------------

Spouse of Jack M. Lafield
18,500
Number of Registrable Shares
 
 
      /s/  MICHAEL P. SCOTT      

--------------------------------------------------------------------------------

Michael P. Scott
 
 
/s/  DONNA SCOTT      

--------------------------------------------------------------------------------

Spouse of Michael P. Scott
20,000
Number of Registrable Shares
 
 
      /s/  LISA M. BRECHT      

--------------------------------------------------------------------------------

Lisa M. Brecht
25,500
Number of Registrable Shares
 
 
      /s/  JOHN W. DAUGHERTY      

--------------------------------------------------------------------------------

John W. Daugherty
 
 
/s/  JO ANN R. DAUGHERTY      

--------------------------------------------------------------------------------

Spouse of John W. Daugherty        

--------------------------------------------------------------------------------

21,000
Number of Registrable Shares
 
 
      /s/  MIKE HOPKINS      

--------------------------------------------------------------------------------

Mike Hopkins
 
 
/s/  MARY H. HOPKINS      

--------------------------------------------------------------------------------

Spouse of Mike Hopkins
22,000
Number of Registrable Shares
 
 
      /s/  MARK E. HUFF      

--------------------------------------------------------------------------------

Mark E. Huff
 
 
/s/  LISA Y. HUFF      

--------------------------------------------------------------------------------

Spouse of Mark E. Huff
9,000
Number of Registrable Shares
 
 
      /s/  RODNEY A. MADDEN      

--------------------------------------------------------------------------------

Rodney A. Madden
 
 
/s/  KIM MADDEN      

--------------------------------------------------------------------------------

Spouse of Rodney A. Madden
-0-
Number of Registrable Shares
 
 
      /s/  MARC LYONS      

--------------------------------------------------------------------------------

Marc Lyons
 
 
/s/  GEORGIA O. LYONS      

--------------------------------------------------------------------------------

Spouse of Marc Lyons
-0-
Number of Registrable Shares
 
 
      /s/  STEWART MCCORKLE      

--------------------------------------------------------------------------------

Stewart McCorkle

--------------------------------------------------------------------------------

-0-
Number of Registrable Shares
 
 
      /s/  DALE WILSON      

--------------------------------------------------------------------------------

Dale Wilson
-0-
Number of Registrable Shares
 
 
      MK Holdings, L.P.
By: MK Holdings GP, L.L.C.
 
 
By:
/s/  BARRY E. DAVIS      

--------------------------------------------------------------------------------

    Name: Barry E. Davis

--------------------------------------------------------------------------------

    Title: Manager

--------------------------------------------------------------------------------

 
 
CROSSTEX ENERGY HOLDINGS INC.
 
 
By:
/s/  BRYAN H. LAWRENCE      

--------------------------------------------------------------------------------

    Name: Bryan H. Lawrence

--------------------------------------------------------------------------------

    Title: Chairman

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

QuickLinks

Exhibit 10.4

AGREEMENT REGARDING 2003 REGISTRATION STATEMENT AND WAIVER AND TERMINATION OF
STOCKHOLDERS' AGREEMENT