Eagle Rock Energy Partners, L.P. (NASDAQ:EROC)

undervalued. nice stats and ratios. natural gas.

Low P/S, P/B, P/CF. Natural gas prices will recover at some point.

Natural gas is going up.

This stock has been hammered because they slashed their dividend in order to pay down debt. This caused a rotation from income investors to deep value investors. I think EROC is significantly undervalued at this level. Their earnings dropped some 35% due to lower volumes from rigs being laid down due to lower NG prices and while this is concerning I believe that ultimately NG prices and thus drilling and volumes will rebound within a year. This is a highly-levered Nat Gas play.

RL @ 3.16

price to sales. Nat gas and oil goin up

Energy is destined to rebound to half of 2008 levels; OPEC will be cutting production to lower excess oil inventories, straining all energy sources and raising prices to more profitable levels for the whole energy industry. I got it on a day's high of $3.19. It indeed will creep up for the short term and explode by the end of the summer 2009 as winter demand increases.

oversold and an improving economy with increased energy demand will allow this company to outperform.

wow....oversold...$7 stock in 2 months....$10 in 4 months....

oversold, good stock

Natural gas on the rise, suffering due to market and overall economy, but was on the rebound until it was clobbered by the dividend cut. People who dumped it because of that already got rid of it, a lot of other people probably dumped it at the same time to cut losses. Downward momentum is used up and the upwards trend is ready to start again. I am a total amateur though, so lets see how this plays out.

Stock killed due to reduction of div from 41 cents to 2.5 cents. But - if you read the fine print you will see they guarentee a 36.25 cent div. So - for 3.60 you can buy a stock that is accumulating a .34 cent value every quarter. This is way underpriced and will return to $5 to $10 in the next few months.

I love Natural Gas plays. Clean energy that is way over sold.

Apparently they just cut the dividend significantly and that was the reason for the 41% single day drop. Obviously debt, which has been increasing, is a concern for this company. Investors are seeing this as a sign of doom to come. While I can't say for certain which way this stock will go (whichever way it is will be dramatic), I am willing to risk my caps rating and guess it will pull throught this. I might even put a few hundred into it in real life just to see what happens.

Natural gas is too cheap to stay this low long term. Book value, dividend yield, overall sound business; makes this stock A+ buy.

Looks like we've stabalized here, time to take a shot. Nice dividend and S & P rates them a buy. $19 target.

Overpriced asset acquisitions.

Corporate shell games with mergers to put up smoke and mirrors for real ops.

Eagle Rock Energy Partners, L.P. is primarily a master limited partnership involved in gathering, processing, transporting and selling of natural gas and natural gas liquids, with operations located in Texas and Louisiana. The company operates over 4500 miles of natural gas gathering systems and over seven active processing plants. Its revenues are largely generated by sale of natural gas and natural gas liquids that together contribute about 75% of the over all inflows. While the company also generates a sizable fee based income for providing gathering, compression, and processing services.

Eagle Rock Energy current performance though has been strong, amidst of Jasper NGL line and Masters Creek gathering system acquisition in 2006. Still the lower commodity prices have made it difficult for the company to deliver the performance as per its S-1 guidance levels.

Looking ahead in 2007, the company has further lowered its guidance as a result of continued lower natural gas liquids prices and slow well completion leading to delays in gathering volumes. Though maintenance and operating costs are expected to decline in the second half of 2007, due to completion of Tyler County Pipeline extension project that allows the company to deliver gas directly to its Brookeland processing plant. It will be only be until 2008, when the benefits will be completely realized. Moreover, with the cash distribution for the rest of the quarters of 2007 in doubt, as company might curtail distribution to plough back some cash for future growth, which could come as a negative news for a short term investor. Furthermore, it will be very difficult for the company to beat the benchmark in 2007, especially if the commodity prices continue to trade at current levels.