Eagle Rock Energy Partners (EROC) is a hybrid MLP, with its assets about evenly split between midstream services and E&P upstream operations. Even with its midstream exposure, Eagle Rock's cash flow is still highly sensitive to commodity prices. During Q1 2013, Eagle Rock's distributable cash flow, or DCF, fell well short of its distributions paid. At current prices, Eagle Rock's distribution yield is amongst the highest in the MLP sector at over 10%.
Collapse in DCF
During Q1 2013, Eagle Rock saw its adjusted EBITDA drop 19% from Q4 2012 levels. This was due to a series of factors, including a severe winter in the Texas Panhandle, unplanned downtime in Alabama, lower NGL prices,...
Only subscribers can access this article, which is part of the PRO research library covering 3,570 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: