Eagle Rock Energy receives $170 million offer to sell mineral rights

By Lisa Kerner

Charlotte, N.C., Nov. 9 - Natural Gas Partners VII, LP, Natural Gas Partners VIII, LP and Black Stone Minerals Co., LP proposed to Eagle Rock Energy Partners, LP a series of transactions that include Black Stone buying Eagle Rock's mineral business for $170 million, Eagle Rock announced on Monday.

Eagle Rock's conflicts committee of its board of directors received the offer on Friday.

According to Eagle Rock, the proposal contemplates a commitment by Natural Gas Partners to backstop a rights offering and an equity offering.

Natural Gas Partners has a significant equity position in Eagle Rock Holdings, LP, which owns all of the equity interests in Eagle Rock's general partner, Eagle Rock Energy GP, LP.

Eagle Rock is a Houston-based natural gas and natural gas liquids company.

Natural Gas Partners is an Irving, Texas-based private equity firm, and Black Stone is a privately owned, Houston-based private fee mineral and royalty owner.

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