HOUSTON, June 4, 2012 (GLOBE NEWSWIRE) -- Eagle Rock Energy Partners, L.P. (Nasdaq:EROC) ("Eagle Rock" or the "Partnership") today announced the successful startup of its previously announced state-of-the-art 60 MMcf/d cryogenic processing facility in Hemphill County, Texas, in the heart of the prolific Granite Wash play (the "Woodall Plant").
The Woodall Plant is strategically located on a 40-acre site owned by Eagle Rock in the center of the Partnership's existing high-pressure gathering system near multiple residue gas pipeline outlets. Eagle Rock also constructed other intra-system pipeline enhancements in the immediate area to further facilitate product gathering, transportation and marketing to and from the Woodall Plant. The supporting infrastructure and plant site were designed to accommodate one or more additional expansions.
The Woodall Plant is currently flowing approximately 40 MMcf/d and is anticipated to be capable of meeting its full capacity of 60 MMcf/d over the next several weeks. As a result of the incident reported on April 30th, natural gas has been temporarily diverted from the Partnership's Phoenix-Arrington Ranch plant to the Woodall Plant to accommodate Eagle Rock's producer customers' natural gas volumes.
With the completion of the Woodall Plant and the near-term resumption of processing capabilities at the Phoenix-Arrington Ranch plant, Eagle Rock will have approximately 190 MMcf/d of high efficiency cryogenic processing capacity serving the Granite Wash play.
The construction of the Woodall Plant and associated gathering and compression cost approximately $72 million and is expected to be immediately accretive to the Partnership's distributable cash flow.
About the Partnership
The Partnership is a growth-oriented master limited partnership engaged in two businesses: a) midstream, which includes (i) gathering, compressing, treating, processing and transporting natural gas; (ii) fractionating and transporting natural gas liquids (NGLs); (iii) crude oil logistics and marketing; and (iv) natural gas marketing and trading; and b) upstream, which includes exploiting, developing, and producing hydrocarbons in oil and natural gas properties.
This news release may include "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Partnership expects, believes or anticipates will or may occur in the future are forward-looking statements and speak only as of the date on which such statement is made. These statements are based on certain assumptions made by the Partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Partnership. These include risks related to volatility of commodity prices; market demand for natural gas and natural gas liquids; the effectiveness of the Partnership's hedging activities; the Partnership's ability to retain key customers; the Partnership's ability to continue to obtain new sources of natural gas supply; the availability of local, intrastate and interstate transportation systems and other facilities to transport natural gas and natural gas liquids; competition in the oil and gas industry; the Partnership's ability to obtain credit and access the capital markets; general economic conditions; and the effects of government regulations and policies. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Partnership's actual results and plans could differ materially from those implied or expressed by any forward-looking statements. The Partnership assumes no obligation to update any forward-looking statement as of any future date. For a detailed list of the Partnership's risk factors, please consult the Partnership's Form 10-K, filed with the Securities and Exchange Commission ("SEC") for the year ended December 31, 2011 and the Partnership's Forms 10-Q filed with the SEC for subsequent quarters, as well as any other public filings and press releases.
CONTACT: Jeff Wood, 281-408-1203
Senior Vice President and Chief Financial Officer
Adam Altsuler, 281-408-1350
Director, Corporate Finance and Investor Relations