Eagle Rock Energy Partners Says Lower Commodity Prices Will Hurt 2007 Sales; Shares Falladmin
Natural gas partnership Eagle Rock Energy Partners LP said Friday it expects to report fourth-quarter revenue of about $125 million, up from $57 million in the prior-year quarter, but well below Wall Street’s $189.1 million forecast.
Shares tumbled $1.54, or 7.5 percent, to $18.90 in aftermarket trading, having closed up 11 cents at $20.44 on the Nasdaq. The company said the drop in commodity prices during the fourth quarter hurt natural gas liquids and condensate revenue.
Eagle Rock Energy Partners sees quarterly adjusted earnings before interest, taxes, depreciation and amortization of $18 million to $19 million. That would be up from $3.3 million in the prior-year quarter.
Looking ahead, the partnership said lower commodity prices will mean 2007 EBITDA of between $85 million and $95 million. The partnership has some hedges in place to protect it from falling prices, and said any further declines shouldn’t directly affect 2007 results.
Source: AP via biz.yahoo.com