Eagle Rock Energy Partners, L.P. (Nasdaq: EROC) announced its unaudited financial results for the full year and three months ended December 31, 2011.

For the full year 2011, Eagle Rock generated $208.2 million of Adjusted EBITDA, an increase of 65% from the $126.0 million reported for the full year 2010.

Eagle Rock estimates its proved reserves at year-end 2011 totaled 371 Bcfe, up 191% from year-end 2010.
Operating income from continuing operations, excluding the impact of impairments, for the Midstream Business in the fourth quarter of 2011 decreased by approximately $2.0 million, or 13%, compared to the third quarter of 2011.

Operating income for Eagle Rock's Upstream Business in the fourth quarter of 2011, excluding the impact of impairments, decreased by $5.0 million, or 18%, compared to the third quarter of 2011.

Total revenue for the fourth quarter of 2011, including the impact of Eagle Rock's realized and unrealized commodity derivative gains and losses, was $220.7 million, down 40% compared with the $370.1 million reported for the third quarter of 2011.

Adjusted EBITDA was $61.8 million and Distributable Cash Flow was $35.2 million for the fourth quarter of 2011.
Total revenue for 2011, including the impact of Eagle Rock's realized and unrealized derivative gains and losses, was $1.1 billion, up 45% compared with $732.3 million reported for 2010.

Adjusted EBITDA was $208.2 million and Distributable Cash Flow was $119.3 million in 2011 as compared to $126.0 million and $64.9 million, respectively, in 2010.

With regard to the Partnership's Midstream Business operations, gas gathering volumes were down 3%, and combined NGL and condensate volumes were down 8% for the year, as compared to those in 2010.

With regard to the Partnership's Upstream Business operations, total production was up 120% as compared to production in 2010.

With the reduced capital requirements for the Wheeler Plant, the Partnership has revised its expected 2012 capital budget to approximately $280 million, from $335 million.