Eagle Rock Energy Partners L P (EROC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

Nov. 13, 2007	CONTACTS:
	Rick FitzGerald
	Phone: 281-408-1203

EAGLE ROCK ENERGY PARTNERS, L.P. REPORTS STRONG THIRD QUARTER
RESULTS; ADJUSTED EBITDA OF $45.1 MILLION AS COMPARED TO
$22.2 MILLION IN SECOND QUARTER

HOUSTON — Eagle Rock Energy Partners, L.P. (Nasdaq: EROC) (“Eagle Rock” or the “Partnership”) today reported its financial results for the third quarter ended September 30, 2007.

For the third quarter of 2007, the Partnership reported $276.9 million of revenues as compared to revenues of $151.6 million for the third quarter of 2006 and $174.4 million for the second quarter of 2007. The Partnership reported Net Income of $9.4 million for the third quarter of 2007, compared to Net Income of $12.9 million for the same period in 2006 and a loss of $23.8 million in the second quarter of 2007. Included in Net Income for the third quarter of 2007 is a non-cash, unrealized risk management gain of $0.4 million as compared to a gain of $7.9 million in the third quarter of 2006 and a loss of $22.3 million in the second quarter of 2007.

Adjusted EBITDA for the third quarter of 2007 is $45.1 million as compared to $24.2 million for the same quarter of 2006 and $22.2 million in the second quarter of 2007. Contributing to the higher Adjusted EBITDA number in the third quarter of 2007 was two

months of operations of the assets acquired in the Escambia Asset Co. LLC and Escambia Operating Co. LLC (“EAC”) and Redman Energy entities (“Redman”) acquisitions as well as improved performance from the Partnership’s midstream assets. An additional factor contributing to higher Adjusted EBITDA is the Partnership’s record throughput volumes during the third quarter of 2007, averaging 427 MMcf/d of wellhead volumes and improved margins at its midstream segment. Operation and maintenance costs increased by $7.8 million from third quarter 2006 to third quarter 2007 and by $5.7 million from second quarter 2007 to third quarter 2007, reflecting the added operations expenses from the Upstream acquisitions and increased operating costs associated with the initial operation of the recently-installed Red Deer Processing Facility in Roberts County, Texas.

“We had a very positive third quarter in all three lines of our business — midstream, upstream and minerals,” said Joseph A. Mills, chairman and chief executive officer. “As a result of the EAC and Redman acquisitions, the Partnership has transformed into an integrated master limited partnership with Segment Gross Profit contributions of 65% from our Midstream Business, 27% from our Upstream Segment and 8% from our Minerals Segment.”

Mills continued, “Our Midstream Segment enjoyed a very strong quarter with record throughput across our systems and improved run times and recoveries, especially in our Texas Panhandle Segment. With the contribution of our newly commissioned Red Deer Processing Facility and the increased efficiencies from the turnaround of our

Arrington Facility back in May 2007, located in Roberts and Hemphill Counties, Texas (respectively), the Texas Panhandle Segment has significantly contributed to our improved performance in the third quarter. The Red Deer Processing Facility and Arrington Facility are currently operating at capacity, validating our expected volume growth in the Granite Wash play in this area. In addition, we continue to see volume growth in both our East Texas and Louisiana Segment and our South Texas Segment.”

Mills continued, “Our Minerals Segment continues to generate strong cash flows given higher commodity prices and ongoing leasing and drilling activity by the E&P industry across those assets. With the closing of the EAC and Redman acquisitions on July 31, 2007, we now are an operator of upstream assets and these properties have positively impacted our financial results in the third quarter. These acquisitions were immediately accretive to our financial results starting in August, and as a result, we are solidly established in our Upstream Segment.”

Mills concluded, “With the announced increase in the distribution payable on November 14, 2007 to all of our unitholders of record as of November 8, 2007 (including our general partner and the holder of our subordinated units), we are still planning to recommend to our Board an increase in the distribution per unit for the fourth quarter of 2007, as previously disclosed. At this time, we expect to be able to support our planned distribution recommendation for the fourth quarter 2007, subject to a review of future operating results including production, commodity prices, operating costs, capital requirements and other factors affecting Eagle Rock’s business. With $331.5 million

raised through private equity placements since May 2007, our balance sheet is stronger than it has ever been with a debt to total capital of approximately 39%. A strong balance sheet provides us with a high degree of financial flexibility and enables us to pursue our growth strategies in the face of tightening credit markets.”

Eagle Rock will host a conference call to discuss third quarter financial results on Wednesday, November 14, 2007, at 9 a.m. CT (10 a.m. ET). Interested parties may listen live over the Internet or via telephone. To participate live over the Internet, log on to the company’s Web site at www.eaglerockenergy.com. To participate by telephone, the call in number is 800-510-0146, confirmation code 78415216.

An audio replay of the conference call will also be available for seven days by dialing 888-286-8010, confirmation code 44596979. A replay will also be available by accessing the company’s Web site for a period of 60 days from the original broadcast date.

Eagle Rock Energy Partners, L.P. is a growth-oriented midstream and upstream energy partnership engaged in the businesses of: (i) gathering, compressing, treating, processing, transporting and selling natural gas, (ii) fractionating and transporting natural gas liquids, and (iii) acquiring, developing, and producing oil and gas interests. Its corporate office is located in Houston, Texas.

Adjusted EBITDA is defined as net income (loss) plus income tax provision, interest-net (including both realized and unrealized interest rates risk management activities),

depletion, depreciation and amortization expense, other operating expense, other non-cash operating and general and administrative expenses (including non-cash compensation related to our equity-based compensation program) less non-realized revenues risk management instrument gain (loss) activities and other income/(expense).

Segment Gross Profit is defined as operating revenues less the purchase of natural gas and NGLs expense. Operating revenues include both realized and unrealized revenue risk management activities.

This press release may include “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by the partnership based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the partnership, which may cause the partnership’s actual results to differ materially from those implied or expressed by the forward-looking statements.

Eagle Rock Energy Partners, L.P.
Consolidated Statements of Operations
(unaudited)

	Three Months						Nine Months
	Ended September 30,						Ended September 30,
($ in thousands)	2007			2006			2007			2006
REVENUE:
Natural gas, natural gas liquids, condensate and oil sales	$	253,056		$	132,907		$	554,797		$	373,001
Gathering, compression and processing fees		7,723			4,549			19,271			10,495
Minerals and royalty income		6,009			—			9,201			—
Gain/(loss) on risk management instruments		8,688			14,031			(26,209	)		(21,209	)
Other income		1,388			109			1,007			436
Total Revenue		276,864			151,596			558,067			362,723
COSTS AND EXPENSES:
Cost of natural gas and natural gas liquids		196,839			100,723			451,838			288,881
Operations and maintenance		16,883			9,094			36,017			23,892
Taxes other than income		2,746			651			4,364			1,045
General and administrative		7,196			2,446			16,587			8,063
Other operating		220			—			1,931			—
Depletion, depreciation and amortization		25,105			11,244			50,883			31,459
Total Costs and Expenses		248,989			124,158			561,620			353,340
OPERATING INCOME (LOSS):		27,875			27,438			(3,553	)		9,383
Other Income (Expense):
Interest income		231			217			2,601			740
Other income		767			—			879			—
Interest expense, net		(19,152	)		(14,547	)		(32,980	)		(20,993	)
Other expense		2			—			(255	)		—
Total other (expense) income		(18,152	)		(14,330	)		(29,755	)		(20,253	)
INCOME (LOSS) BEFORE INCOME TAXES		9,723			13,108			(33,308	)		(10,870	)
State income tax provision		352			236			772			774
NET INCOME (LOSS)	$	9,371		$	12,872		$	(34,080	)	$	(11,644	)

Eagle Rock Energy Partners, L.P.
Consolidated Balance Sheets
(unaudited)

($ in thousands)	September 30,			December 31,
	2007			2006
Assets
Current assets:
Cash and cash equivalents	$	84,557		$	10,581
Accounts receivable		122,020			43,567
Risk management assets		30,213			13,837
Prepayments and other current assets		2,139			2,679
		238,929			70,664
Property plant and equipment — net		1,249,110			554,063
Intangible assets — net		151,664			130,001
Risk management assets		9,252			17,373
Other assets		13,804			7,800
Total assets	$	1,662,759		$	779,901
Liabilities and Members’ Equity
Current liabilities:
Accounts payable	$	130,591		$	49,558
Due to affiliate		17,437			—
Accrued liabilities		20,754			7,996
Risk management liabilities		16,974			1,005
		185,756			58,559
Long-term debt		561,131			405,731
Asset retirement obligations		9,045			1,819
Deferred tax liability		3,045			1,229
Risk management liabilities		36,320			20,576
Other		315			—
Members’ equity
Common unit holders		716,942			116,283
Subordinated unit holders		151,749			176,248
General partner		(1,544	)		(544	)
		867,147			291,987
Total Liabilities and Members’ Equity	$	1,662,759		$	779,901

Eagle Rock Energy Partners, L.P.
Operating Income
($ in thousands)

					Nine Months Ending				Three Months
	Three Months Ended				September 30				Ended
	Sept 2007		Sept 2006		2007		2006		June 2007
Midstream
Revenues:
Sales of natural gas, NGLs, oil and condensate	$	233,987		132,907		535,728		373,001	$	191,621
Gathering and treating services		7,723		4,549		19,271		10,495		6,883
Other		1,388		109		1,007		436		—
Total revenues		243,098		137,565		556,006		383,932		198,504
Cost of goods sold		196,839		100,723		451,838		288,881		164,364
Segment gross profit		46,259		36,842		104,168		95,051		34,140
Operating costs and expenses:
Operations and maintenance		12,858		9,094		31,992		23,892		11,212
Taxes other than income		786		651		2,217		1,045		728
Depletion, depreciation and amortization		14,850		11,244		39,098		31,459		12,617
Total operating costs and expenses		28,494		20,989		73,307		56,396		24,557
Operating income	$	17,765	$	15,853	$	30,861	$	38,655	$	9,583
Upstream
Revenues:
Oil and condensate	$	9,588	$	—	$	9,588	$	—	$	—
Natural gas		4,375		—		4,375		—		—
NGLs		5,106		—		5,106		—		—
Total revenues		19,069		—		19,069		—		—
Segment gross profit		19,069		—		19,069		—		—
Operating costs and expenses:
Operations and maintenance		4,025		—		4,025		—		—
Taxes other than income		1,797		—		1,797		—		—
Depletion, depreciation and amortization		6,896		—		6,896		—		—
Total operating costs and expenses		12,718		—		12,718		—		—
Operating income	$	6,351	$	—	$	6,351	$	—	$	—
Minerals
Revenues:
Oil and condensate	$	3,080	$	—	$	4,613	$	—	$	1,533
Natural gas		1,850		—		3,340		—		1,490
NGLs		527		—		625		—		98
Lease bonus, rentals and other		552		—		623		—		71
Total revenues		6,009		—		9,201		—		3,192
Segment gross profit		6,009		—		9,201		—		3,192
Operating costs and expenses:
Operations and maintenance		—		—		—		—		—
Taxes other than income		163		—		348		—		185
Depletion, depreciation and amortization		3,359		—		4,891		—		1,532
Total operating costs and expenses		3,522		—		5,239		—		1,717
Operating income	$	2,487	$	—	$	3,962	$	—	$	1,475

Eagle Rock Energy Partners, L.P.
Operating Income
($ in thousands)

							Nine Months Ending						Three Months
	Three Months Ended						September 30						Ended
	Sept 2007			Sept 2006			2007			2006			June 2007
Corporate
Revenues:
Realized commodity derivatives	$	(177	)	$	(449	)	$	4,324		$	122		$	1,502
Unrealized commodity derivatives		8,865			14,480			(30,533	)		(21,331	)		(28,757	)
Total revenues		8,688			14,031			(26,209	)		(21,209	)		(27,255	)
Segment gross profit		8,688			14,031			(26,209	)		(21,209	)		(27,255	)
General and administrative		7,196			2,446			16,587			8,063			5,170
Other expense		220			—			1,931			—			—
Operating income	$	1,272		$	11,585		$	(44,727	)	$	(29,272	)	$	(32,425	)
Total
Revenues:
Sales of natural gas, NGLs, oil and condensate	$	253,056		$	132,907		$	554,797		$	373,001		$	191,621
Gathering and treating services		7,723			4,549			19,271			10,495			6,883
Minerals and royalty income		6,009			—			9,201			—			3,192
Commodity derivatives		8,688			14,031			(26,209	)		(21,209	)		(27,255	)
Other		1,388			109			1,007			436			—
Total revenues		276,864			151,596			558,067			362,723			174,441
Cost of goods sold		196,839			100,723			451,838			288,881			164,364
Total segment gross profit		80,025			50,873			106,229			73,842			10,077
Costs and expenses:
Operating		16,883			9,094			36,017			23,892			11,212
Taxes other than income		2,746			651			4,362			1,045			913
General and administrative		7,196			2,446			16,587			8,063			5,170
Other expense		220			—			1,931			—			—
Depletion, depreciation and amortization		25,105			11,244			50,885			31,459			14,149
Total Costs and Expenses		52,150			23,435			109,782			64,459			31,444
Total operating income (loss)		27,875			27,438			(3,553	)		9,383			(21,367	)
Other income (expense):
Interest income		231			217			2,601			740			176
Other income		767			—			879			—			91
Interest expense		(10,723	)		(7,947	)		(29,425	)		(23,632	)		(8,657	)
Unrealized interest rate derivatives		(8,429	)		(6,600	)		(3,555	)		2,639			6,485
Other income (expense)		2			—			(255	)		—			(255	)
Total other income (expense)		(18,152	)		(14,330	)		(29,755	)		(20,253	)		(2,160	)
Income (loss) before taxes		9,723			13,108			(33,308	)		(10,870	)		(23,527	)
Income tax provision		352			236			772			744			256
Net income (loss)	$	9,371		$	12,872		$	(34,080	)	$	(11,614	)	$	(23,783	)
Adjusted EBITDA	$	45,155		$	24,202		$	81,407		$	62,173		$	22,159

Eagle Rock Energy Partners, L.P.
GAAP to Non-GAAP Reconciliations
($ in thousands)

Adjusted EBITDA to net income (loss)

							Nine Months Ending						Three Months
	Three Months Ended						September 30						Ended
	Sept 2007			Sept 2006			2007			2006			June 2007
Adjusted EBITDA	$	45,155		$	24,202		$	81,407		$	62,173		$	22,159
Less:
Interest — net including realized risk management instruments		10,490			7,730			27,079			22,892			8,736
Restricted units non-cash amortization expense		820			—			1,611			—			620
Other (income)/expense		(767	)		—			(879	)		—			(91	)
Income tax provision		352			236			772			744			256
Plus:
Depletion, depreciation and amortization expense		(25,105	)		(11,244	)		(50,885	)		(31,459	)		(14,149	)
Risk management interest related instruments-unrealized		(8,429	)		(6,600	)		(3,555	)		2,639			6,485
Risk management instruments-unrealized		8,865			14,480			(30,533	)		(21,331	)		(28,757	)
Other operating expense		(220	)		—			(1,931	)		—			—
Net income (loss) as reported	$	9,371		$	12,872		$	(34,080	)	$	(11,614	)	$	(23,783	)
Total Segment gross profit reconciliation to net income/(loss)
Segment gross profit	$	80,025		$	50,873		$	106,229		$	73,842		$	10,077
Less:
General and administrative expense		7,196			2,446			16,587			8,063			5,170
Operations and maintenance expense		16,883			9,094			36,017			23,892			11,212
Depletion, depreciation and amortization expense		25,105			11,244			50,885			31,459			14,149
Taxes other than income		2,746			651			4,362			1,045			913
Risk management interest related instruments-unrealized		8,429			6,600			3,555			(2,639	)		(6,485	)
Interest — net including realized risk management instruments		10,490			7,730			27,079			22,892			8,736
Other operating expense		220			—			1,931			—			—
Income tax provision		352			236			772			744			256
Plus:
Other income		767			—			879			—			91
Net income (loss) as reported	$	9,371		$	12,872		$	(34,080	)	$	(11,614	)	$	(23,783	)

Eagle Rock Energy Partners, L.P.
Midstream Operations Information

							Nine Months Ending						Three Months
	Three Months Ended						September 30						Ended
	Sep-07			Sep-06			2007			2006			June 2007
Gas gathering volumes (Average Mcf/d)
Texas Panhandle		164,544			147,507			147,523			145,630			138,032
East Texas/Louisiana		155,540			87,770			125,590			71,818			131,535
South Texas		107,388			N/A			58,451			N/A			67,574
Total		427,472			235,277			331,564			217,448			337,141
NGLs and condensate (Equity gallons)
Texas Panhandle		23,644,648			25,066,298			65,278,803			73,041,188			21,641,964
East Texas/Louisiana		4,742,723			3,336,341			12,573,603			9,992,939			4,823,502
South Texas		162,876			N/A			162,876			N/A			N/A
Total		28,550,247			28,402,639			78,015,282			83,034,127			26,465,466
Natural gas short position (Average MMBtu/d)
Texas Panhandle		(6,330	)		(8,096	)		(7,389	)		(7,977	)		(9,320	)
East Texas/Louisiana		1,116			1,931			1,485			834			668
South Texas		500			N/A			167			N/A			N/A
Total		(4,714	)		(6,165	)		(5,737	)		(7,143	)		(8,652	)
Average realized price — NGL
Texas Panhandle	$	1.27		$	1.11		$	1.16		$	1.05
East Texas/Louisiana	$	1.06		$	0.97		$	0.99		$	0.89
South Texas	$	1.51			N/A		$	1.51			N/A
Weighted average	$	1.21		$	1.07		$	1.12		$	1.02
Average realized price — condensate
Texas Panhandle	$	63.41		$	63.31		$	54.62		$	60.30
East Texas/Louisiana	$	75.48		$	69.71		$	66.46		$	57.31
South Texas	$	71.76			N/A		$	69.88			N/A
Weighted average	$	64.34		$	63.57		$	55.51		$	60.23
Average realized price — natural gas
Texas Panhandle	$	5.45		$	5.75		$	6.02		$	6.11
East Texas/Louisiana	$	5.86		$	6.10		$	6.39		$	6.06
South Texas	$	5.99			N/A		$	6.62			N/A
Weighted average	$	5.71		$	5.76		$	6.25		$	6.11

Eagle Rock Energy Partners, L.P.
Upstream Operations Information

					Nine Months Ending				Three Months
	Three Months Ended				September 30				Ended
	Sep-07		Sep-06		2007		2006		June 2007
Upstream
Production:
Oil and condensate (Bbl)		140,799		N/A		140,799		N/A		N/A
Gas (Mcf)		666,298		N/A		666,298		N/A		N/A
NGLs (Bbl)		88,228		N/A		88,228		N/A		N/A
Total Mcfe		1,523,696		N/A		1,523,696		N/A		N/A
Realized prices, excluding derivatives:
Oil and condensate (Bbl)	$	68.10		N/A	$	68.10		N/A		N/A
Gas (Mcf)	$	6.57		N/A	$	6.57		N/A		N/A
Operating statistics:
OPEX per Mcfe (incl prod taxes)	$	3.82		N/A	$	3.82		N/A		N/A
OPEX per Mcfe (excl prod taxes)	$	2.64		N/A	$	2.64		N/A		N/A
Operating Income per Mcfe	$	4.17		N/A	$	4.17		N/A		N/A
Drilling program (gross wells):
Development wells		—		N/A		—		N/A		N/A
Completions		3		N/A		3		N/A		N/A
Workovers		2		N/A		2		N/A		N/A
Recompletions		—		N/A		—		N/A		N/A
Minerals
Production:
Oil and condensate (Bbl)		47,498		N/A		71,908		N/A		24,410
Gas (Mcf)		376,389		N/A		548,600		N/A		172,211
NGLs (Gal)		534,622		N/A		656,216		N/A		121,594
Total Mcfe		737,752		N/A		1,073,793		N/A		336,041
Realized prices, excluding derivatives:
Oil and condensate (Bbl)	$	64.84		N/A	$	64.14		N/A	$	62.80
Gas (Mcf)	$	4.92		N/A	$	6.09		N/A	$	8.65

###