SAN DIEGO and HOUSTON,
May 22, 2015 /PRNewswire/
-- Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Eagle Rock Energy
Partners, L.P. (NASDAQ: EROC) by Vanguard Natural Resources, LLC
(NASDAQ: VNR). On May 21, 2015, the
two companies announced the signing of a definitive merger
agreement pursuant to which Vanguard will acquire Eagle Rock.
Under the terms of the agreement, Eagle Rock unitholders will
receive 0.185 units of Vanguard for each unit of Eagle Rock they
own, the value of which is equivalent to $3.05 per unit of Eagle Rock.
View this information on the law firm's Shareholder Rights Blog:
www.robbinsarroyo.com/shareholders-rights-blog/eagle-rock-energy-partners-lp
Is the Proposed Acquisition Best for Eagle Rock and Its
Unitholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Eagle Rock is undertaking a fair process to obtain
maximum value and adequately compensate its unitholders.
As an initial matter, the $3.05
merger consideration represents a premium of only 21% based on
Eagle Rock's closing price on April 23,
2015. This premium is below the average one-month premium of
nearly 22.3% for comparable transactions within the past three
years. In the last three years, Eagle Rock traded as high as
$10.58 on October 17, 2012, and most recently traded above
the target price - at $3.10 - on
November 28, 2014.
On April 29, 2015, Eagle Rock
reported strong quarterly earnings results for its first quarter
2015. Total revenue was $52.1
million, an increase of 15.3% from the first quarter of
2014. In commenting on these results, Eagle Rock's Partnership's
Chairman and Chief Executive Officer remarked, "Eagle Rock had a
strong first quarter, especially given the tumultuous commodity
price environment. We increased our daily production by 6% over
fourth quarter 2014 volumes, and we are realizing meaningful
reductions to our operating and capital costs while at the same
time reducing our leverage to 1.8x LTM EBITDA. We have maintained
significant liquidity and protected the distribution with our
strong hedge portfolio."
In light of these facts, Robbins Arroyo LLP is examining Eagle
Rock's board of directors' decision to sell the company now rather
than allow unitholders to continue to participate in the company's
continued success and future growth prospects.
Eagle Rock unitholders have the option to file a class action
lawsuit to ensure the board of directors obtains the best possible
price for unitholders and the disclosure of material information.
Eagle Rock unitholders interested in information about their rights
and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003,
ddonahue@robbinsarroyo.com, or via the shareholder information form
on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
600 B Street, Suite 1900
San Diego, CA 92101
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
Logo
- http://photos.prnewswire.com/prnh/20130103/MM36754LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/robbins-arroyo-llp-acquisition-of-eagle-rock-energy-partners-lp-eroc-by-vanguard-natural-resources-llc-vnr-may-not-be-in-unitholders-best-interests-300088003.html
SOURCE Robbins Arroyo LLP