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Eagle Rock Energy to Purchase Texas Gas Gathering and Processing Assets From ONEOK, Inc.

Posted on: Tuesday, 11 October 2005, 18:00 CDT

Eagle Rock Energy ("Eagle Rock") today announced that it has entered into an agreement to purchase certain natural gas gathering and processing assets in Texas from Tulsa, Oklahoma-based ONEOK, Inc. (NYSE: OKE)

The properties are located in the Texas Panhandle and include six gas processing plants with a capacity of 150 million cubic feet per day and current average throughput of 70 percent; approximately 3,700 miles of gas gathering lines; and estimated natural gas liquid production of 13,500 barrels per day. It is expected that approximately 95 ONEOK employees associated with the assets will join Eagle Rock.

Eagle Rock currently has gas gathering, processing and treating assets across the State of Texas. "This acquisition is a natural fit for our asset base," said Alex Bucher, co-founder and Chief Executive Officer of Eagle Rock. "Eagle Rock is a source of simple and innovative ideas to enhance operating efficiencies and provide solutions to our clients. Our new employees, clients and physical assets will help us become the premier natural gas midstream company in the Texas Panhandle as well as the industry. We are excited about the growth and strategic opportunities this provides our business."

Eagle Rock was formed in June 2002. It currently has natural gas gathering and processing assets throughout the state of Texas. Eagle Rock is a portfolio company of Natural Gas Partners, the leading provider of private equity capital in the energy industry. Natural Gas Partners, founded in 1988, is managed by NGP Energy Capital Management, based in Irving, Texas, a leading investment firm with over $2 billion of cumulative capital under management serving all sectors of the energy industry.

Source: Business Wire

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