Past year: ▼ 49%(1.27 – 3.39 USD)
Each one in plain English, with the numbers worked through for a shareholder.
17 May 2012capital raising announcement▲ GoodMajor
The warrant program ended on May 15, 2012: 2,140,964 warrants were exercised for new common units, bringing in about $12.8 million, and 407,117 expired unexercised. This includes 273,484 warrants exercised by Montierra Minerals & Production, an NGP affiliate, for $1,640,904; the filing notes CEO Joseph Mills is also CEO and a manager of Montierra's general partner. This resolves the open thread on the June 2010 warrants.
19 Mar 2012capital raising announcement▲ GoodMajor
On March 15, 2012, entities affiliated with Eagle Rock Holdings and Natural Gas Partners exercised 200,000 warrants for $1,200,000, and the partnership issued the same number of common units. The attached press release says 3,159,624 warrants in total were exercised that day for about $19.0 million, which the partnership intends to use to repay revolving credit facility borrowings, leaving 2,548,081 warrants outstanding. The final exercise date is May 15, 2012, after which unexercised warrants expire.
18 Nov 2011capital raising announcement● Neutral
On November 15, 2011, entities affiliated with Eagle Rock Holdings and Natural Gas Partners exercised 247,617 warrants from the June 2010 rights offering, and the partnership issued the same number of new common units for an aggregate exercise price of $1,485,702. This continues the warrant exercises seen in August 2011; it adds a small number of units and cash. The press release (Exhibit 99.1) is referenced but its text is not included, so nothing further is stated.
18 Aug 2011capital raising announcement● Neutral
This amendment corrects the August 16 filing: the NGP Parties exercised 3,975,362 warrants (not 5,390,384) on August 15, 2011, for an aggregate exercise price of about $23.9 million (not $32.3 million). The common units issued equal the warrants exercised. It supersedes the earlier numbers; the warrants came from the June 2010 rights offering.
17 Aug 2011capital raising announcement● NeutralMajor
On August 15, 2011 NGP-affiliated parties exercised warrants for 5,390,384 common units at a total exercise price of about $32.3 million; the warrants dated from the June 2010 rights offering. This figure was corrected the next day's amendment (see the 8-K/A), so it should not be relied on. The new units add to the units outstanding and bring cash to the partnership.
13 Apr 2011capital raising announcement● NeutralMajor
On April 12, 2011, Eagle Rock agreed to buy Crow Creek Energy (oil and gas reserves in Oklahoma, Texas and Arkansas) from a portfolio company of NGP VIII, which is NGP's fund and the partnership's largest unitholder, for about $525 million: about $15 million cash, about $303 million in new common units and about $207 million of assumed debt. The units issued would be between 28,857,143 and 40,400,000, depending on the trading price (floor $7.50, ceiling $10.50), which would dilute existing unitholders. The cash and debt repayment would be funded from the revolver, whose borrowing base lenders intend to raise from $160 million to $405 million. Closing was expected around May 3, 2011, and the agreement can be terminated if it has not closed by May 31, 2011. This is a deal with the controlling shareholder, and it follows the May 2010 recapitalization.
27 Apr 2010capital raising announcement● NeutralMajor
The Conflicts Committee confirmed the $29 million transaction fee to ERH will be paid in 4,825,211 new common units, at $6.0101 per unit (90% of the 10-day weighted average price as of April 24, 2010). The units are issued only if unitholders approve and the minerals sale closes. The special meeting is set for May 14, 2010, with the minerals sale expected to close on or before May 25, 2010. This continues the recapitalization thread by fixing the fee form and unit count.
What it means for a shareholder
4.8m new shares at $6.01 to raise about $29.0m. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Create a free account to see this worked out for your own holding.
16 Sept 2008capital raising announcement▲ GoodMajor
On September 11, 2008 Eagle Rock agreed to buy Millennium Midstream Partners for $236 million: $181 million cash from its revolver plus 4,000,000 units (valued at $13.75 each in the press release). Closing is expected in October 2008, subject to antitrust waiting periods and other conditions, with an October 31, 2008 end date. MMP has gas gathering lines in East, Central and West Texas plus minority stakes in two Louisiana processing plants. The company expects about $29.2 million of added annual Adjusted EBITDA in 2009 and calls the deal immediately accretive, which are management's statements. The new units will be privately placed. It adds to the 2007-2008 acquisition run.
