Since my previous article on the stock, Eagle Rock Energy Partners (NASDAQ:EROC) has declined about 11%. However, it is my opinion that the stock still has more downside. I base my opinion due to Eagle Rock's most recent quarterly results, which were fairly disappointing. In a quarter where natural gas prices were elevated, Eagle Rock still posted a very weak distribution coverage ratio, saw its total debt increase, and saw its total leverage ratio increase. Eagle Rock's last declared quarterly distribution was for $0.22 which at current prices equates to an annualized yield of 11.80%.
(click to enlarge)
Q2 2013 Overview
Before I get into Eagle Rock's results by segment, let us look at the overall numbers....
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