Commodity Hedging Overview May 9, 2011 The following information is current as of May 9, 2011. Eagle Rock intends to provide updates to this information quarterly to the extent of changes within the quarter. Eagle Rock may update…
Table of Contents Hedge Update Hedging Objectives Hedging Processes and Controls Risk Management Policy Risk Management Committee Internal Controls Hedging Methods Commodities Hedged Quantities Hedged Types of Derivatives…
Derivative Portfolio Update Upon closing the Crow Creek acquisition on May 3, 2011, the Partnership novated all of Crow Creeks remaining natural gas and crude oil hedges. A list of each individual hedge novated is included in the…
Derivative Portfolio Hedge Levels 2011 For the remainder of 2011, Eagle Rock estimates that it has hedged approximately 79% of its expected net hedgable crude, condensate and natural gas liquids (propane and heavier) position and…
Derivative Portfolio Hedge Levels 2012-13 For 2012, Eagle Rock estimates that it has hedged approximately 70% of its expected net hedgable crude, condensate and natural gas liquids (propane and heavier) position and approximately 60%…
Derivative Portfolio Hedge Levels 2014 For 2014, Eagle Rock estimates that it has hedged approximately 22% of its expected net hedgable crude, condensate and natural gas liquids (propane and heavier) position and none of its expected…
Derivative Portfolio Eagle Rock has prepared a summary of its commodity derivative portfolio as of May 9, 2011. In some cases, Eagle Rock entered into transactions to offset previous transactions. In the cases where the offsetting…
Eagle Rock Energy Partners Commodity Hedge Portfolio As of 5/9/2011 term monthly swap price / year underlying type start end quantity floor price ceiling price months total quantity units Segment 2011 NYMEX Henry Hub collar Jan-11…
Hedging Objectives Eagle Rocks management recognizes that commodity price volatility can cause significant changes in cash flow, and these changes can affect Eagle Rock's ability to achieve its distribution objective and also its…
Hedging Processes and Controls Risk Management Policy Eagle Rock has a Risk Management Policy that has been approved by its Board of Directors and is amended from time to time. The Risk Management Policy addresses the following…
Hedging Processes and Controls Risk Management Committee The Risk Management Committee is currently comprised of the following Chief Executive Officer Senior Vice President, Chief Financial Officer and Treasurer Senior Vice…
Hedging Processes and Controls Internal Controls Eagle Rock maintains extensive internal controls to ensure the proper execution, valuation and reporting of derivative transactions. As part of these controls, Eagle Rock has…
Commodity Hedging Methods Quantities Hedged Eagle Rock bases its volumes available for hedging on its expected future production. For the Upstream, the expected future production is derived from the proved reserves. The proved…
Commodity Hedging Methods Types of Derivatives Used Eagle Rock generally uses put options, costless collars, and fixed price swaps to achieve its hedging objectives. There are other hedging strategies that use more than two options;…
Special Issues Use of Proxy Hedges When applicable, Eagle Rock hedges its future volumes with derivatives that are based on the same commodity. In some cases, however, Eagle Rock believes it is better to hedge future changes in the…
Special Issues Midstream Business Short Natural Gas Position Eagle Rocks Midstream business has a long and a short physical position in its expected future natural gas production streams. The long position is derived from its…
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