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UPDATE 1-Eagle Rock Energy East Texas production suspended
August 17, 2010 / 9:39 PM / 7 years ago

UPDATE 1-Eagle Rock Energy East Texas production suspended

* Says shut-in due to turnaround at Eustace facility

* Sees shut down to hurt Q3 upstream revenue

Aug 17 (Reuters) - Oil and gas company Eagle Rock Energy Partners LP EROC.O said its East Texas oil and gas production has been temporarily shut and that it expects third-quarter revenue to be hit.

The company said it expects a $1.3-2.0 million negative impact on upstream revenue.

Analysts on average expect the company to report revenue of $204 million for the third quarter, according to Thomson Reuters I/B/E/S.

The company said the shut-in was due to an unscheduled turnaround of the Eustace processing facility.

The facility, owned and operated by Tristream Energy LLC, was shut down on August 11, due to an electrical failure that led to significant damage to the facility’s sulfur recovery unit.

Eagle Rock said the current turnaround will involve replacing all of the tubes in the reaction furnace’s waste heat recovery unit and replacing the catalyst in the sulfur recovery unit.

However, the current turnaround is expected to shorten or eliminate the need for the 2011 turnaround, the company said.

Shares of the company, which have almost doubled over the past one year, closed at $6.17 Tuesday on Nasdaq. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Vyas Mohan)

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