Eagle Rock starts up Wheeler plant in Texas Panhandle

Eagle Rock Energy Partners LP

Eagle Rock Energy Partners LP (Nasdaq: EROC) has started up its previously announced 60-MMcf/d cryogenic processing facility in Wheeler County, Texas, in the heart of the Granite Wash play.

The Wheeler plant, which includes the associated Mills Ranch Compressor Station, is strategically located on a 50-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 Wheeler plant. The supporting infrastructure and plant site were designed to accommodate one or more additional expansions.

With the completion of the Wheeler plant, Eagle Rock will have in excess of 500 MMcf/d of high-efficiency cryogenic processing capacity serving the Granite Wash play.

The construction of the facilities, associated gathering and pipelines cost approximately $65 million. In addition, the partnership will receive pro forma credit for the projected cash flows associated with the Wheeler plant under the terms of its senior secured credit facility, when calculating its total leverage ratio, for the quarter ended June 30, 2013, and the three subsequent quarters.

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