S&P MAINTAINS HOLD OPINION ON LP UNITS OF EAGLE ROCK ENERGY PARTNERS
Adjusted Q4 earnings per unit of $0.09, vs. a loss of $0.02, is lower than the Capital IQ consensus estimate of $0.10. EROC raised its quarterly distribution 5% to $0.12 per unit. We expect distributions to reach $1.00 per unit in '12, versus $0.748 in '11. Before special items, the Capital IQ consensus earnings per unit estimates are now $0.60 for '12 and $0.65 for '13, down from previous consensus forecasts of $0.62 for '12 and $0.77 for '13. We keep our target price of $12, on 20X the Capital IQ consensus '12 earnings per unit estimate, in line with its historical multiples.