Eagle Rock Energy Partners L.P. (EROC, Financial) filed Quarterly Report for the period ended 2009-03-31.
EAGLE ROCK ENERGY PARTNERS is a dynamic master limited partnership that leverages its upstream minerals and midstream expertise to acquire and operate oil and gas properties natural gas gathering systems and natural gas processing plants. The company's unique expertise combined with the tax advantages of the MLP structure position it to effectively evaluate opportunities execute transactions and integrate operations to provide a strong platform for future growth. Eagle Rock Energy Partners L.P. has a market cap of $199.5 million; its shares were traded at around $3.58 with and P/S ratio of 0.1. The dividend yield of Eagle Rock Energy Partners L.P. stocks is 45.9%.
Depreciation and Amortization. Depreciation and amortization expenses for three months ended March 31, 2009 were $11.1 million compared to $10.7 million for the three months ended March 31, 2008. The $0.4 million increase is due to beginning the depreciation expense associated with capital expenditures placed into service.
Capital Expenditures. Capital expenditures for three months ended March 31, 2009 were $3.1 million compared to $7.0 million for the three months ended March 31, 2008. We classify capital expenditures as either maintenance capital which represents routine well connects and capitalized maintenance activities or as growth capital which represents organic growth projects. In the three months ended March 31, 2009, growth capital represented 74% of our capital expenditures as compared to 79% in the three months ended March 31, 2008. The decrease in capital of $3.9 million was driven by reduced maintenance capital associated with fewer new well connects due to the lower drilling activity and by less growth capital due to expenditures related to our Stinnett – Cargray plant consolidation project spent in the three months ending March 31, 2008.
Operating Expenses. Operating expenses for the three months ended March 31, 2009 were $4.6 million compared to $3.5 million in for the three months ended March 31, 2008. The major items impacting the $1.1 million increase in operating expense was due to the three months of expenses associated with operating the assets acquired as part of the Millennium Acquisition. Excluding operating the assets acquired as part of the Millennium Acquisition, operating expenses were relatively flat for the three months ended March 31, 2009 as compared to the same period in 2008.
Depreciation and Amortization. Depreciation and amortization expenses for the three months ended March 31, 2009 were $4.8 million compared to $2.9 million in for the three months ended March 31, 2008. The major items impacting the $1.9 million increase were (i) three months of depreciation and amortization of the assets acquired as part of Millennium Acquisition and (ii) beginning the depreciation expense associated with the capital expenditures placed into service.
Capital Expenditures. Capital expenditures for the three months ended March 31, 2009 were $9.1 million compared to $2.1 million in for the three months ended March 31, 2008. We classify capital expenditures as either maintenance capital which represents routine well connects and capitalized maintenance activities or as growth capital which represents organic growth projects. Our increase in capital spending of $7.0 million is due primarily to the construction of gathering lines to both the significant producer discussed above and two other producers in the Brookeland and Tyler County gathering systems.
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EAGLE ROCK ENERGY PARTNERS is a dynamic master limited partnership that leverages its upstream minerals and midstream expertise to acquire and operate oil and gas properties natural gas gathering systems and natural gas processing plants. The company's unique expertise combined with the tax advantages of the MLP structure position it to effectively evaluate opportunities execute transactions and integrate operations to provide a strong platform for future growth. Eagle Rock Energy Partners L.P. has a market cap of $199.5 million; its shares were traded at around $3.58 with and P/S ratio of 0.1. The dividend yield of Eagle Rock Energy Partners L.P. stocks is 45.9%.
Highlight of Business Operations:
Operating Expenses. Operating expenses, including taxes other than income, for three months ended March 31, 2009 were $8.1 million compared to $7.7 million for the three months ended March 31, 2008. The major item impacting the $0.4 million increase in operating expense was an increase in environmental compliance costs of about $0.3 million during the three months ended March 31, 2009 as compared to the same period in the prior year.Depreciation and Amortization. Depreciation and amortization expenses for three months ended March 31, 2009 were $11.1 million compared to $10.7 million for the three months ended March 31, 2008. The $0.4 million increase is due to beginning the depreciation expense associated with capital expenditures placed into service.
Capital Expenditures. Capital expenditures for three months ended March 31, 2009 were $3.1 million compared to $7.0 million for the three months ended March 31, 2008. We classify capital expenditures as either maintenance capital which represents routine well connects and capitalized maintenance activities or as growth capital which represents organic growth projects. In the three months ended March 31, 2009, growth capital represented 74% of our capital expenditures as compared to 79% in the three months ended March 31, 2008. The decrease in capital of $3.9 million was driven by reduced maintenance capital associated with fewer new well connects due to the lower drilling activity and by less growth capital due to expenditures related to our Stinnett – Cargray plant consolidation project spent in the three months ending March 31, 2008.
Operating Expenses. Operating expenses for the three months ended March 31, 2009 were $4.6 million compared to $3.5 million in for the three months ended March 31, 2008. The major items impacting the $1.1 million increase in operating expense was due to the three months of expenses associated with operating the assets acquired as part of the Millennium Acquisition. Excluding operating the assets acquired as part of the Millennium Acquisition, operating expenses were relatively flat for the three months ended March 31, 2009 as compared to the same period in 2008.
Depreciation and Amortization. Depreciation and amortization expenses for the three months ended March 31, 2009 were $4.8 million compared to $2.9 million in for the three months ended March 31, 2008. The major items impacting the $1.9 million increase were (i) three months of depreciation and amortization of the assets acquired as part of Millennium Acquisition and (ii) beginning the depreciation expense associated with the capital expenditures placed into service.
Capital Expenditures. Capital expenditures for the three months ended March 31, 2009 were $9.1 million compared to $2.1 million in for the three months ended March 31, 2008. We classify capital expenditures as either maintenance capital which represents routine well connects and capitalized maintenance activities or as growth capital which represents organic growth projects. Our increase in capital spending of $7.0 million is due primarily to the construction of gathering lines to both the significant producer discussed above and two other producers in the Brookeland and Tyler County gathering systems.
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