Eagle Rock Energy Partners, L.P. (Nasdaq:EROC) ("Eagle Rock" or the "Partnership") today announced the successful startup of its previously announced 60 MMcf/d cryogenic processing facility in Wheeler County, Texas, in the heart of the prolific Granite Wash play (the "Wheeler Plant").
The Wheeler Plant, which includes the associated Mills Ranch Compressor Station, is strategically located on an approximately 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.