Management expects to report Adjusted EBITDA of approximately $40 million for the first quarter of 2009 (subject to the completion of the Partnership's quarter-end review). Based on normal operating conditions, current expectations of customer drilling activity and assuming no curtailments or shut-in production by the Partnership's producer customer base, management believes the Partnership will generate between $40 million and $45 million of quarterly Adjusted EBITDA for the remainder of 2009. This would enable the Partnership to redirect $75 million to $100 million of cash flow to enhance liquidity and to remain within the financial covenants in its credit facility.
Because Eagle Rock's outstanding subordinated units have not yet converted into common units, each common unit will carry a cumulative arrearage equal to the sum of the amount by which each actual quarterly distribution (starting with the distribution for the first quarter of 2009) is below the Minimum Quarterly Distribution of $0.3625, per the provisions of Eagle Rock's Partnership Agreement. In general, all arrearages must first be paid to common unitholders, and the distribution rate to the common unitholders must equal the Minimum Quarterly Distribution, before the Partnership can make any distributions to the subordinated units.
A conference call to discuss this release and to respond to questions will be available to all interested parties beginning at 8 a.m. CT (9 a.m. ET) on Thursday, April 30, 2009. Interested parties may listen live over the Internet or via telephone. To listen live over the Internet, log on to the Partnership's Web site at www.eaglerockenergy.com
. Those wishing to participate in the conference call should call 888-679-8033, confirmation code 53467120. Investors are advised to dial into the call at least 15 minutes prior to the call to register. Participants may pre-register for this call by using the following link to pre-register and view important information about this conference call. Pre-registering is not mandatory but is recommended as it will provide you immediate entry to the call and will facilitate the timely start of the call. Pre-registration only takes a few moments and you may pre-register at any time, including up to and after the call start. To pre-register, please click https://www.theconferencingservice.c...?key=PYCPFJWTW
. (Due to its length, this URL may need to be copied/pasted into your internet browser's address field. Remove the extra space if one exists.) A replay of the call will be available through Sunday, May 10, by dialing 888-286-8010 and entering replay PIN 50047948.
The Partnership also announced today it will report first quarter 2009 financial and operating results after the market closes for trading on Thursday, May 7, 2009. A first quarter 2009 earnings conference call will be held at 9 a.m. CT (10 a.m. ET) on Friday, May 8, 2009. To listen live over the Internet, log on to the Partnership's Web site at www.eaglerockenergy.com
. To participate by telephone, the call in number is 888-679-8035, confirmation code 52772490. Investors are advised to dial into the call at least 15 minutes prior to the call to register. Participants may pre-register for the earnings call by using the following link to pre-register and view important information about this conference call. To pre-register, please click https://www.theconferencingservice.c...?key=PTBVN7ECC
. (Due to its length, this URL may need to be copied/pasted into your internet browser's address field. Remove the extra space if one exists.) An audio replay of this conference call will be available for thirty days by dialing 888-286-8010, confirmation code 43296471. In addition, a replay of the audio webcast will be available by accessing the Partnership's Web site after the call is concluded.
The Partnership is a growth-oriented master limited partnership engaged in three businesses: a) midstream, which includes (i) gathering, compressing, treating, processing, transporting and selling natural gas, and (ii) fractionating and transporting natural gas liquids; b) upstream, which includes acquiring, exploiting, developing, and producing oil and natural gas properties; and c) minerals, which includes acquiring and managing fee mineral and royalty interests, either through direct ownership or through investment in other partnerships in properties located in multiple producing trends across the United States. Its corporate office is located in Houston, Texas.
"Board of Directors" in this press release refers to the Board of Directors of the general partner of the general partner of the Partnership.
Qualified Notice to Nominees
This release serves as qualified notice to nominees as provided for under Treasury Regulation Section 1.1446-4(b)(4) and (d). Please note that 100 percent of the Partnership's distributions to foreign investors are attributable to income that is effectively connected with a United States trade or business. Accordingly, all of the Partnership's distributions to foreign investors are subject to federal income tax withholding at the highest effective tax rate for individuals or corporations, as applicable. Nominees, and not the Partnership, are treated as withholding agents responsible for withholding distributions received by them on behalf of foreign investors.