Eagle Rock Energy Partners L P (EROC) 8-K RBC Capital Markets 2008 MLP Conference

RBC Capital Markets 2008 MLP Conference

November 20, 2008

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Management Representatives

Joseph A. Mills

Chairman & Chief Executive Officer

Elizabeth Wilkinson

VP, Investor Relations and Treasurer

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The statements made by representatives of Eagle Rock during the course of this presentation
that are not historical facts are forward-looking statements. Although Eagle Rock believes that
the assumptions underlying these statements are reasonable, readers are cautioned that such
forward-looking statements are inherently uncertain and necessarily involve risks that may
affect Eagle Rock’s business prospects and performance, causing actual results to differ from
those discussed during this presentation. When considering forward-looking statements, you
should keep in mind the risk factors and other cautionary statements included in documents
filed with the Securities and Exchange Commission.

Any forward-looking statements made are subject to all of the risks and uncertainties, many of
which are beyond management’s control, including risks related to the gathering, processing,
and marketing of natural gas and natural gas liquids, or NGLs. These risks include the risks
described in documents filed with the Securities and Exchange Commission. Should one or
more of these risks or uncertainties occur, or should underlying assumptions prove incorrect,
Eagle Rock’s actual results and plans could differ materially from those expressed in any
forward-looking statements.

The Partnership undertakes no obligation to publicly update any forward-looking statements,
whether as a result of new information or future events.

Looking Forward Statements

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Our Business

§Eagle Rock Energy Partners, L.P. (NASDAQ GS:EROC) is a growth-oriented publicly
traded Master Limited Partnership (MLP) with a market capitalization in excess of $604
million.

§Three businesses:

–Midstream Business - gathering, compressing, treating, processing, transporting and
selling natural gas, fractionating and transporting natural gas liquids, or NGLs;

§Grown through acquisition of midstream assets in high drilling growth areas with low
decline rates

§Expanded with organic growth opportunities in core areas

•Texas Panhandle, East Texas/Louisiana, S. and W. Texas

–Upstream Business - acquiring, exploiting, developing and producing oil and natural gas
properties;

§operate mature oil and gas properties with low decline rates

•low-risk development and recompletion opportunities

§Upstream all onshore, lower 48, preferring to operate the properties we own

§Seeking balance of oil and gas (hydrocarbon mix)

–Minerals - acquiring and managing fee minerals and royalty interests, either through direct
ownership or through investment in other partnerships in properties located in multiple
producing trends across the United States.

§Acquire long life royalties and proved reserves

§Minerals in active drilling areas to enable the regeneration effect

§Proactively manage minerals to attract E&P investment

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Business Strategy

§Objective: Grow unitholder value over time while generating stable, growing cash
distributions for our unitholders

§Maximize value and efficiency of existing assets

–Achieving operational and financial excellence in our businesses

–Optimization of current assets, throughputs and production volumes

§Maintain Low Cost Structure

–Improved O&M and LOE cost structure in Midstream and Upstream businesses

§Midstream = $.30 / Mcfe

§Upstream = $2.00 / Mcfe

§Strive to be Best in Class Safety Record

–RIR = 2.04 YTD

§Pursue Organic Growth Opportunities

–Continuously identifying and ranking projects and opportunities

–2008 Organic Growth CAPEX = $38.3 MM

–2009 Organic Growth CAPEX = $30.0 MM

–Target IRR of 18% in Midstream business and 25% IRR in Upstream business

–Expected payout in 18 - 36 months

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Business Strategy

§Pursue Opportunistic Acquisitions

–Executing accretive low-risk acquisitions

–Target hurdle rate = 12% ROR

–Strategic acquisitions in areas of interest (East Texas)

§Maintain Diversified Business Profile

–By business (midstream, upstream and minerals)

–By geography (TX Panhandle, E.TX / LA, S. TX and W. TX)

–By contracting agreements (POP, POL, Fixed Recovery)

–By service provided (gathering vs. processing)

§Distinguishing Characteristics

–Spectrum of acquisition opportunities broader through diversification
across energy value chain

–Vertical integration synergies

–Relationship to Natural Gas Partners - drop down opportunities

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Eagle Rock Value Chain

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Midstream - - $1078million

Upstream-$514million

Minerals-$157million

Acquisition Track Record (2003-2008)

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Current Statistics

§Total Units Outstanding = 77.3 MM (post Millennium)

§Current Unit Price = $7.82

§Market Capitalization = $604 MM

§Total Debt = $799 MM

§Enterprise Value = $1,404 MM

§TTM EBITDA = $237.7 MM

§Q3 2008 EBITDA = $75.5 MM

§Q3 2008 Distribution = $.41 / unit

–Annualized $1.64 / unit

–DCF = $60.0 MM

–Coverage Ratio = 200%

§Current Yield = 21%

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Third Quarter 2008 Achievements
Consolidated Financial Results

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Business Overview

•Midstream

–Q3 2008 Operating Income = $33.2 MM

–41.7% of total Q3 2008 Operating Income

–YTD Sep 30, 2008 Operating Income = $88.7 MM

–45.0% of total YTD Sep 30, 2008 Operating Income

–Midstream volumes average YTD Sep 30, 2008 = 407,852 Mcfd

•Upstream

–Q3 2008 Operating Income = $31.8 MM

–40.0% of total Q3 2008 Operating Income

–YTD Sep 30, 2008 Operating Income = $81.5 MM

–41.4% of total YTD Sep 30, 2008 Operating Income

–Upstream production volumes YTD Sep 30, 2008 = 8,843,665 Mcfe

•Minerals

–Q3 2008 Operating Income = $14.6 MM

–18.3% of total Operating Income

–YTD 2008 Operating Income = $26.8 MM

–13.6% of total Operating Income

–Minerals volumes YTD Sep 30, 2008 = 1,807,184 Mcfe

–Total Lease Bonus received YTD Sep 30, 2008 = $12.2 MM

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Consolidated 2007 and YTD 2008 Results
Adjusted EBITDA and Distribution Growth

Midstream Business

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•Panhandle

•3,800 miles of pipeline

•125,000 compression HP

•7 processing plants

•154 MMCFD 2008 avg vol

•West Texas

•100 miles of pipeline

•Gathering system with delivery to 3rd
party plant for processing

•14 MMCFD 2008 avg vol

•South Texas

•137 miles of pipeline

•3 processing JT skids

•79.9 MMCFD 2008 avg vol

•East Texas

•1,345 miles of pipeline

•5 processing plants

•272 MMCFD 2008 avg vol

•GOM

•2 processing plants

•470 MMCFD processing capacity

•Acquired Oct 1 as part of MMP

Midstream Operations

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•Q3 gathered volumes flat with Q2

•Midstream operations impacted
by 14 MMCF/d due to Ike &
Gustav

–Total Impact 1.2 Bcf & 15 MBbl
liquids

–Brookeland & TCPL down 9
days. 730 MM and 5 MBbl of
liquids

–Panhandle curtailed NGL
production by 10 MBbl but no
impact on throughput

–South Texas volume curtailed by
470 MMcf

•Q3 Equity NGL’s up 12% vs. Q2

–Increase in equity Bbls due to
higher runtime at Cargray and
Stinnett during Q3 and increased
Anadarko volumes in Brookeland
area

Midstream Production
Year-to-Date Results

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•Arrington plant expansion moving
from design to construction.

•Completing Cargray residue
compressor station.

•A 987 lateral scheduled for 4th
quarter.

•Cargray Plant condensate
stabilization to be constructed in 4th
quarter.

•Gas connect activity increased
during Q3

Midstream Capital

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New Arrington Plant

•Project on schedule for end of Q1 startup

•Cost within 4% of AFE $18.4 MM

•Benefits of new plant

–Ability to retain volumes as contracts renew

–Create a “Super System”

•Improved efficiency of gathering systems by combining Arrington
and Canadian

•Simplify accounting process

–More competitive for new volumes

•Expands Eagle Rock competitive gathering footprint

•Extra processing capacity to handle additional spillover gas from BP

•Convert sections of Goad and System 97 to “rich gas” service

•Ability to expand low pressure gathering service to Ramp and
Shriekey areas

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•Convert parts of Goad and
System 97 to rich gas service

•Increases competitive gathering footprint to
now include the Arrington System

•Simplifies ability to compete for
gas in the Shrieky area

•Simplifies ability to compete for
gas in the Ramp area

•Provides additional capacity to
expand BP volumes in excess of
the 4 mmcfd committment

Benefits of New Arrington Plant

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East Texas Footprint

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•A 987

•Released:Yes

•Target Feb 2009

•CapEx:$5.0 MM

•Anadarko

•A 220

•Released:No

•Target May 2009

•CapEx:study

•Anadarko

•A 17

•Released:No

•Target Apr 2009

•CapEx:study

•Anadarko

•A 627

•IP 25 mmcfd

•Sep 2008

•CapEx:$.95 MM

•Anadarko

•A 266

•Released:Yes

•Target Jan 2009

•CapEx:$.8 MM

•Anadarko

•A 520#2

•Released:Yes

•Target Dec 2008

•CapEx:$.3 MM

•Anadarko

•A 995#2

•Released:No

•Target Apr 2009

•CapEx:$ ..5 MM

•Anadarko

•Younger 1-H

•Released:No

•Target Feb 2009

•CapEx:$2.8 MM

•BBX

•Unnamed

•Released:No

•Target Unknown

•CapEx:study

•Anadarko

Brookeland System Supply
Expansion of Austin Chalk Play

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•Lake Tejas 2-1

•Sept 2008

•8 mmcfd IP

•CapEx:$.? MM

•Geosouthern

•Lake Tejas 3-1

•Released:No

•Target Feb 2009

•CapEx:$.? MM

•Geosouthern

•A 444

•Released:No

•Target Feb 2009

•CapEx:$1.1 MM

•Anadarko

•A 1070

•Released:No

•Target Apr 2009

•CapEx:$.3 MM

•Anadarko

•Ergon System

•Continues to
maintain volumes at
30 mmcfd

•BBX System

•Continue to add
volumes

•New BBX Area

•Major stepout opportunity

•Major competitor Indian
Springs Plant

•New Meridian Area

•Major stepout opportunity

•Major competitor Indian
Springs Plant

Tyler County

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Millennium assets

•Closed the acquisition on October 1

–100% of the fulltime employees joined us

–Senior management team integrated into existing
leadership team

–Integration underway

•Volumes continue to grow in onshore volumes

•GOM volumes impacted by Ike and Gustav

–Mezzanine volumes are flowing

–Yscloskey and North Terrebonne continuing repairs

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•James Lime Play

•Continues to expand

•Saint Mary’s recent well 12 mmcfd
IP

•Southwestern, Samson,
Chesapeake and others major
players

•Marathon (East Douglas)

•Continued drilling for Petite/Lime

•New wells down

•Goodrich East Lake Expansion

•7 mile stepout to area with no
infrastructure

•1 well drilled with no outlet

•Sonerra and Southwestern have acreage
positions in the area

•Encana expansion

•Expanding their raintree system
which delivers back to East Texas
System

•15 to 40 well program

•First wells are drilling

Millennium East Texas System
Central Pipeline Area

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South Texas

•Phase 1 20” System volumes increasing

–Chesapeake committing to deliver 100% of their volumes to
EROC

•Expected volumes 60 MMCF/d

•Additional compressor being installed at Kelsey station to
startup Nov 1

–El Paso entered into interruptible deliveries of 15 MMCF/d

–Working to extend relationship with El Paso to firm commitment

–Reviewing making third connection on the north end of system

•Kennedy Ranch system drilling disappointment

–Zenergy wells considered a dry hole

–They have not condemned the area but no other wells drilling

•Raymondville system drilling success slowed

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Spending Plans:

Maintenance capital

2008: $12 MM

2009: $15 MM

Growth capital

2008: $32 MM

2009: $30 MM

Growth Activity Completed or Under Way:

•Consolidation of Stinnett volumes to Cargray (completed)

•Compressor Station Expansions at Red Deer, Arrington, and Lora (completed)

•New Cargray Plant Residue Compressor (early Q4)

•Relocation of Stinnett cryogenic plant to Arrington (est completion Q1 2009)

Growth Opportunities Under Consideration:

•Brookeland Plant Expansion

•Panhandle NRU Plant

•East Texas 7 mile Stepout

•S TX Phase 1 Interconnect

Midstream Capital
2008 & 2009

Upstream Business

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Alabama Assets

29 Producing wells

73% Avg. W.I.

4.8 MMcfd, 1700 Bopd,
700 Blpd, 160 LT/d

Permian Assets

236 Producing wells

92% Avg. W.I.

2.0 MMcfd, 400 Bopd,
170 Blpd,

STX Assets

12 Producing wells

100% W.I.

3.2 MMcfd, 30 Bopd

ETX Assets

32 Producing wells

80% W.I.

3.8 MMcfd, 300 Bopd,
420 Blpd, 120 LT/d

Total Upstream Assets

309 Operated Producing wells

131 OBO Wells (3% Avg. W.I.)

13.4 MMcfd, 2500 Bopd, 1300
Blpd, 281 LT/d

Upstream Segment
Assets by Geographic Area

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Upstream Segment
YTD Highlights (through Sep 30, 2008)

•Revenues: $140 MM

•OPEX (including TOTI):$29 MM

•DD&A:$30 MM

•Operating Income $81 MM

•Net Production:32.3 MMcfe/d

•Total Proved Reserves at 1/1/08:
117.3 Bcfe (before Stanolind)

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•3Q production averaged 36.3 MMcfe/d

–AL/ETX/STX - 30.9 MMcfe/d

–Permian - 900 Boepd

•Full Run-time in Alabama in 3Q

–Net - 19.9 MMcfe/d

–BEC averaged 42 MMcf/d FWS
inlet

•Permian production rate gained 18%
over 2Q08

–Production added from new drills

–Uplift from remedial program

•ETX and Jourdanton showed production
growth throughout 2008

–ETX treating and enhancements

–Jourdanton recompletion program

Upstream Production
3Q08 YTD Results

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Escambia Asset Company Operations

29 Producing Wells

2H2S Treating Facilities

1 Gas Processing Plant

Net Volumes:4.8 MMcfd, 1,800 BOPD

700 BLPD, 160 LT/D Sulfur

Alabama Upstream Assets
Big Escambia, Flomaton and Fanny Church Fields

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§12 operated wells

§Current net production

–3.6 MMcfd, 33 bopd

–No NGL or sulfur products

§Produces from the Edwards at 7,400’

–5 Productive Edwards zones

–Buda and Georgetown productive
in the area

§Recompletion/commingle program is in
progress

§In-fill drilling locations identified

Jourdanton Field
Atascosa Co., Texas

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Jourdanton Field
2008 Recompletion Program

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Jordanton Field
Edwards Recompletion Performance

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Permian Basin Operations

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•Production growth from 760 to 960+
Boepd since acquisition

•Upside for current completions,
workovers, stimulations compared to
current production forecast

•Strong technical team is hitting stride

–Extensive list of projects
available for additional 2009
capital

–16 Maintenance CAPEX
scheduled for 4Q08.

–Additional 2009 drilling inventory
being prepared

Permian Production
3Q08 YTD Results

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Spending Plans:

Maintenance capital

2008: $16 MM

2009: $5 MM

Growth capital

2008: $6 MM

2009: $5 MM

Growth Activity Completed or Under Way:

•Low Risk Probable and Proved Undeveloped drilling in the Ward Estes

Field, Ward County, Texas

•Ongoing Low Risk Recompletion activity at Jourdanton Field.

Growth Opportunities Under Consideration:

•Permian Basin focused

2009 Upstream Capital
Growth and Maintenance

Minerals

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2008 YTD Highlights
Minerals Segment

§Revenues: $34.6 MM

§TOTI:$1.4 MM

§DD&A:$6.5 MM

§Operating Income $26.8 MM

§Net Production:6.6 MMcfe/d

§Total Proved Reserves at 1/1/08 - 22.3 Bcfe

§Regeneration Effect from operators drilling

§No Maintenance CapEx or LOE

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Eagle Rock Mineral Assets

•Highly diversified fee mineral assets

–5.6 MM Gross acres / 430,000 net mineral acres

–10 states(TX, LA, MS, AL, FL, MI, CA, TX, OK, AR, NY)

•Royalties in approximately 3000 wells

–Wells are located in 17 states

–Large diversification of operators, geological plays and basins

•Active Leasing program in 2007 & 2008

–Generated approx $14 MM in leasing bonuses

–$8.5 MM in one transaction in Q3 2008 (Haynesville - E.Tx)

–Large percentage of executive rights administered by “Minerals
Manager”

–Third Party Partnership holds WI in Haynesville Play

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Permian / Upper Gulf Coast /
Mid Continent

Numerous Fields

Generated $14 leasing bonuses

3rd party partnership owns WI in
Haynesville Play

LA Basin

Brea Olinda Field, et al

San Juan CBM

NE Blanco, et al

Eagle Rock Mineral Assets

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Regeneration Effect - Gas

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Regeneration Effect - Oil

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• Expanded credit facility from $800 MM to $980 MM in commitments,

with approx $175 MM in availability

• Closely scrutinizing operating and G&A costs

• Aggressively monitoring our counterparty risk and collection of AR

• Protecting coverage by reviewing derivatives portfolio and making

Adjustments

•Reducing CAPEX plans for 2009

Managing Through Turbulent Times

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• Record financial results in each successive quarter of 2008 YTD.

• Third-quarter 2008 operating income contribution:

•42% Midstream

•40% Upstream

•18% Minerals

•Delivering on organic and acquisition growth in 2008

•Continuing interest in growing all three lines of business, albeit at a

more conservative pace in 2009.

•Focused on managing through turbulent times to provide for stable

distributions to unitholders

Summary