HOUSTON, July 23, 2013 (GLOBE NEWSWIRE) -- Eagle Rock Energy Partners, L.P. (Nasdaq:EROC) ("Eagle Rock" or the "Partnership") today declared a cash distribution for the quarter ended June 30, 2013 of $0.22 per common and eligible restricted unit, equivalent to $0.88 per unit on an annualized basis. This distribution is equal to the distribution paid for the first quarter 2013. The distribution will be paid on Wednesday, August 14, 2013, to unitholders of record as of the close of business on Wednesday, August 7, 2013.
Based on preliminary financial results for the quarter ended June 30, 2013, management expects distribution coverage for the second quarter to be in-line with or slightly improved from first quarter 2013 levels (i.e., substantially below 1.0x) due primarily to the current natural gas liquids pricing environment and lower than expected upstream and midstream volumes through much of the quarter. Management recommended maintaining the $0.22 / unit distribution for the second quarter in part due to its expectation of meaningful volume increases in both operating businesses as soon as the second half of 2013. This expectation is supported by recent higher plant inlet rates in the Texas Panhandle Segment and higher production rates in the Upstream Business. Management will provide further commentary on these developments on the second quarter 2013 earnings conference call.
Amendment to Senior Secured Credit FacilityEagle Rock also announced today that the Partnership and its lending group amended Eagle Rock's existing senior secured credit facility to allow for a temporary step-up in the Total Leverage Ratio and the Senior Secured Leverage Ratio, as defined in the credit facility, through the third quarter of 2014. The amendment is effective as of June 30, 2013, and adjusts the Total Leverage Ratio and Senior Secured Leverage Ratio covenants as follows:
|Total Leverage Ratio||Senior Secured Leverage Ratio|
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