eagle rock energy partners (EROC) Snapshot

Eagle Rock Energy Partners, L.P. announced that it has entered into a new fee-based Gas Gathering, Processing and Purchase Agreement with Monarch Natural Gas, LLC. As part of the agreement, Monarch has dedicated to the Partnership, for further gathering and processing, all of its gathered natural gas volume from wells within an area encompassing more than 150,000 gross acres, located in Hemphill, Lipscomb and Ochiltree counties, Texas, under market-based terms. The underlying acreage covers the Granite Wash, Tonkawa, Marmaton and Cleveland plays in the Anadarko Basin of the Texas Panhandle. In the dedicated area in the Texas Panhandle, Monarch has a dedication of, and will construct all gathering lines to, existing and future wells from a major third party operator, gather the natural gas from all of these wells, and deliver the associated volumes to Eagle Rock at central delivery points for further gathering and processing by Eagle Rock. The agreement provides for fee-based compensation to the partnership and fixed recoveries on natural gas liquids for Monarch, and applies to all volume delivered by Monarch to Eagle Rock for further gathering and processing. The associated Monarch deliveries will be gathered and processed at one or more of the partnership's cryogenic processing plants in the Texas Panhandle.

Eagle Rock Energy Partners, L.P. announced the promotions of Adam K. Altsuler, vice president of corporate finance and investor relations, and Thomas W. Henderson Jr., vice president of midstream commercial gas supply. Both will continue to serve in Eagle Rock's corporate office in Houston.

Eagle Rock Energy Partners, L.P. reported unaudited consolidated earnings and operating results for the first quarter ended March 31, 2013. For the quarter, the company reported total revenue of $257,731,000 against $225,755,000 a year ago. Operating loss was $17,426,000 against $38,555,000 a year ago. Loss before income taxes was $34,674,000 against $50,424,000 a year ago. Net loss was $33,514,000 against $50,333,000 a year ago. Adjusted EBITDA was $53,617,000 against $62,824,000 a year ago. Total revenue for the first quarter of 2013 was down 17.5% compared with fourth quarter of 2012 primarily due to higher unrealized losses on commodity derivatives and lower revenue from sales of natural gas, NGLs, crude oil, condensate and sulfur compared to the fourth quarter of 2012. The reduction in net loss was driven primarily by impairment charges in the fourth quarter of 2012, offset by higher unrealized commodity derivative losses taken during the first quarter of 2013 and lower revenues associated with the sale of crude oil, natural gas, NGLs, condensate and sulfur during the first quarter of 2013. Net loss for the quarter excluding the impact of unrealized gains and losses was approximately $7.1 million. Capital expenditures were approximately $56.0 million for the three months ended March 31, 2013, of which $12.7 million were related to maintenance capital expenditures and $43.2 million were related to growth capital expenditures. For the quarter, the company reported oil and condensate of 279,069 Bbl against 323,944 Bbl a year ago. Gas was 3,129,052 Mcf against 4,095,805 Mcf a year ago. NGLs was 289,866 Bbl against 278,731 Bbl a year ago. Total Mcfe was 6,542,662 against 7,711,855 a year ago. Sulfur was 26,598 long ton against 28,992 long ton a year ago. The current capital budget for 2013 is approximately $208 million in total, which includes $70 million allocated to maintenance capital expenditures and $138 million allocated to growth capital expenditures. The current capital budget for 2013 includes approximately $88 million allocated to the Midstream Business and approximately $118 million allocated to the Upstream Business (with the remainder allocated to general corporate purposes).