February 17, 2010 (FinancialWire) — Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) (the “Partnership) announced its intention to deploy a currently idle high-efficiency cryogenic plant to the Texas Panhandle in order to increase efficiency and accommodate volume growth from the Granite Wash Play.

Deployment of the cryogenic plant (to be named the “Phoenix Plant), in replacement of an aging facility, is phase two of the Partnership’s Texas Panhandle consolidation and processing capacity expansion project originally announced in February 2008.

The project’s first phase, successfully completed in October 2008, comprised shutting down the Partnership’s Stinnett Plant in Moore County, Texas and consolidating those volumes to its Cargray Plant in Carson County, Texas. As part of this first phase, the Stinnett Plant underwent a complete refurbishment. The project’s second phase, which was delayed as a result of depressed market conditions and reduced drilling activity in the area during 2009, involves the relocation of the refurbished Stinnett Plant (the Phoenix Plant) to the East Panhandle’s Arrington System in Hemphill County, Texas, to replace the existing Arrington Plant. Currently, the Arrington facility is able to handle 40 MMcf/d using lean-oil absorption technology.

The new Phoenix Plant will be capable of handling 80 MMcf/d of inlet gas volumes from the growing Granite Wash play in the Texas Panhandle. The plant will initially be sized with sufficient compression to handle 50 MMcf/d but may easily be expanded to its full 80 MMcf/d with additional inlet, field and residue compression.

In addition, the Partnership plans to further consolidate the gas volumes at its cryogenic Canadian Plant in Hemphill County, Texas into the new Phoenix Plant, further improving the overall gas recoveries to its customers and enhancing the economics of the project. The 25 MMcf/d of capacity at the Canadian Plant will remain available, allowing the Partnership the ability to flow incremental volumes to that cryogenic processing facility if needed.

The relocation of the Stinnett Plant and consolidation of the Canadian Plant volumes is expected to be completed in the third quarter of 2010 at an incremental cost of approximately $18.4 million, and is expected to be accretive to distributable cash flow by $0.01 and $0.02 per common unit in 2011 and 2012, respectively. Eagle Rock does not anticipate downtime or reduced throughput volumes across its East or West Panhandle Systems during the completion of the project.

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