|   |        |                                                                                         |        |
|---|--------|-----------------------------------------------------------------------------------------|--------|
| x |   | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |

|   |        |                                                                                          |        |
|---|--------|------------------------------------------------------------------------------------------|--------|
| o |   | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |   |

|        |        |                                                               |        |                                        |        |        |
|--------|--------|---------------------------------------------------------------|--------|----------------------------------------|--------|--------|
|   |   | Delaware                                                      |   | 68-0629883                             |   |   |
|   |   | (State or Other Jurisdiction ofIncorporation or Organization) |   | (I.R.S. EmployerIdentification Number) |   |   |

|                                               |        |                                        |        |
|-----------------------------------------------|--------|----------------------------------------|--------|
| Large accelerated filer  o          |   | Accelerated filer  x         |   |
| Non-accelerated filer  o            |   | Smaller Reporting Company  o |   |
| (Do not check if a smaller reporting company) |   |

----

|                               |                                                                                                                           |                  |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------|------------------|
|                          |                                                                                                                      | Page   |
| PART I. FINANCIAL INFORMATION |                                                                                                                      |
| Item 1.                  | Financial Statements                                                                                                      |             |
|                          | Unaudited Condensed Consolidated Balance Sheets as of September 30, 2010 and December 31, 2009                            | 2                |
|                          | Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2010 and 2009 | 3                |
|                          | Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009           | 5                |
|                          | Unaudited Condensed Consolidated Statements of Members' Equity for the nine months ended September 30, 2010 and 2009      | 6                |
|                          | Notes to the Unaudited Condensed Consolidated Financial Statements                                                        | 7                |
| Item 2.                       | Management's Discussion and Analysis of Financial Condition and Results of Operations                                     | 41               |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                                | 68               |
| Item 4.                       | Controls and Procedures                                                                                                   | 69               |
|                          |                                                                                                                      |             |
| PART II. OTHER INFORMATION    |                                                                                                                      |
| Item 1.                       | Legal Proceedings                                                                                                         | 70               |
| Item 1A.                 | Risk Factors                                                                                                              | 70               |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                               | 71               |
| Item 3.                       | Defaults Upon Senior Securities                                                                                           | 72               |
| Item 4.                       | [Removed and Reserved]                                                                                                    | 72               |
| Item 5.                       | Other Information                                                                                                         | 72               |
| Item 6.                       | Exhibits                                                                                                                  | 72               |

----

Table of Contents

|                                                |                         |           |                        |           |        |           |        |
|------------------------------------------------|-------------------------|-----------|------------------------|-----------|--------|-----------|--------|
|                                           | September 30, 2010 |      | December 31, 2009 |
| ASSETS                                         |                    |      |                   |
| CURRENT ASSETS:                                |                    |      |                   |
| Cash and cash equivalents                      | $                       | 20,048    |                   |      | $      | 2,732     |   |
| Accounts receivable(1)                         | 66,736                  |      |                   | 88,122    |   |
| Risk management assets                         | 9,882                   |      |                   | 2,479     |   |
| Due from affiliates                            | 335                     |      |                   | 490       |   |
| Prepayments and other current assets           | 1,789                   |      |                   | 2,790     |   |
| Assets held for sale                           | —                 |      |                   | 135,224   |   |
| Total current assets                           | 98,790                  |      |                   | 231,837   |   |
| PROPERTY, PLANT AND EQUIPMENT — Net | 1,138,806               |      |                   | 1,155,733 |   |
| INTANGIBLE ASSETS — Net             | 116,426                 |      |                   | 132,343   |   |
| DEFERRED TAX ASSET                             | 2,122                   |      |                   | 1,562     |   |
| RISK MANAGEMENT ASSETS                         | 8,639                   |      |                   | 3,410     |   |
| OTHER ASSETS                                   | 4,976                   |      |                   | 9,933     |   |
| TOTAL                                          | $                       | 1,369,759 |                   |      | $      | 1,534,818 |   |
|                                           |                    |      |                   |      |   |
| LIABILITIES AND MEMBERS' EQUITY                |                    |      |                   |      |   |
| CURRENT LIABILITIES:                           |                    |      |                   |      |   |
| Accounts payable                               | $                       | 83,982    |                   |      | $      | 91,286    |   |
| Due to affiliate                               | 67                      |      |                   | 60        |   |
| Accrued liabilities                            | 12,427                  |      |                   | 11,110    |   |
| Taxes payable                                  | 1,088                   |      |                   | 2,416     |   |
| Risk management liabilities                    | 35,202                  |      |                   | 51,650    |   |
| Liabilities held for sale                      | —                 |      |                   | 150       |   |
| Total current liabilities                      | 132,766                 |      |                   | 156,672   |   |
| LONG-TERM DEBT                                 | 515,383                 |      |                   | 754,383   |   |
| ASSET RETIREMENT OBLIGATIONS                   | 20,971                  |      |                   | 19,829    |   |
| DEFERRED TAX LIABILITY                         | 40,039                  |      |                   | 40,246    |   |
| RISK MANAGEMENT LIABILITIES                    | 30,312                  |      |                   | 32,715    |   |
| OTHER LONG TERM LIABILITIES                    | 791                     |      |                   | 575       |   |
| COMMITMENTS AND CONTINGENCIES (Note 12)        |                    |      |                   |
| MEMBERS' EQUITY:                               |                    |      |                   |
| Common Unitholders(2)                          | 629,497                 |      |                   | 484,282   |   |
| Subordinated Unitholders(3)                    | —                 |      |                   | 52,058    |   |
| General Partner(3)                             | —                 |      |                   | (5,942    | )      |
| Total members' equity                          | 629,497                 |      |                   | 530,398   |   |
| TOTAL                                          | $                       | 1,369,759 |                   |      | $      | 1,534,818 |   |

|                             |                                                                                                                |
|-----------------------------|----------------------------------------------------------------------------------------------------------------|
| (1)     | Net of allowable for bad debt of $4,479 as of September 30, 2010 and $4,818 as of December 31, 2009. |

|                             |                                                                                                                                                                                                                                                                                                                                                                    |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)     | 82,640,625 and 54,203,471 units were issued and outstanding as of September 30, 2010  and December 31, 2009, respectively.  These amounts do not include unvested restricted common units granted under the Partnership's long-term incentive plan of 1,065,174  and 1,371,019  as of September 30, 2010  and December 31, 2009, respectively. |

|                             |                                                                                                                                                                                                                                                                                                |
|-----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)     | 20,691,495 subordinated units and 844,551 general partner units were issued and outstanding as of December 31, 2009.  On May 24, 2010 and July 30, 2010, all of the subordinated and general partner units, respectively, were contributed to the Partnership and subsequently cancelled. |

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Table of Contents

|                                                                    |                                  |         |                                 |         |        |         |         |        |        |          |        |        |   |          |        |
|--------------------------------------------------------------------|----------------------------------|---------|---------------------------------|---------|--------|---------|---------|--------|--------|----------|--------|--------|---|----------|--------|
|                                                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                               | 2010                             |    | 2009                            |    | 2010   |    | 2009    |
| REVENUE:                                                           |                             |    |                            |    |   |    |    |
| Natural gas, natural gas liquids, oil, condensate and sulfur sales | $                                | 165,131 |                            |    | $      | 156,779 |    |   | $      | 535,425  |   |   | $ | 468,589  |   |
| Gathering, compression, processing and treating fees               | 12,358                           |    |                            | 11,814  |   |    | 41,732  |   |   | 35,043   |   |
| Commodity risk management (losses) gains                           | (18,579                          | )       |                            | (8,832  | )      |    | 27,808  |   |   | (57,137  | )      |
| Other revenue                                                      | 100                              |    |                            | 50      |   |    | (115    | )      |   | 1,770    |   |
| Total revenue                                                      | 159,010                          |    |                            | 159,811 |   |    | 604,850 |   |   | 448,265  |   |
|                                                               |                             |    |                            |    |   |    |    |   |   |     |   |
| COSTS AND EXPENSES:                                                |                             |    |                            |    |   |    |    |   |   |     |   |
| Cost of natural gas and natural gas liquids                        | 111,916                          |    |                            | 109,945 |   |    | 370,120 |   |   | 358,802  |   |
| Operations and maintenance                                         | 19,037                           |    |                            | 16,934  |   |    | 58,636  |   |   | 54,624   |   |
| Taxes other than income                                            | 2,613                            |    |                            | 2,731   |   |    | 8,961   |   |   | 7,818    |   |
| General and administrative                                         | 10,674                           |    |                            | 10,420  |   |    | 36,491  |   |   | 34,799   |   |
| Other operating income                                             | —                          |    |                            | — |   |    | — |   |   | (3,552   | )      |
| Impairment                                                         | 3,432                            |    |                            | — |   |    | 6,562   |   |   | 242      |   |
| Depreciation, depletion and amortization                           | 26,474                           |    |                            | 26,932  |   |    | 82,550  |   |   | 81,456   |   |
| Total costs and expenses                                           | 174,146                          |    |                            | 166,962 |   |    | 563,320 |   |   | 534,189  |   |
| OPERATING  INCOME (LOSS)                                 | (15,136                          | )       |                            | (7,151  | )      |    | 41,530  |   |   | (85,924  | )      |
| OTHER INCOME (EXPENSE):                                            |                             |    |                            |    |   |    |    |   |   |     |   |
| Interest income                                                    | 9                                |    |                            | 10      |   |    | 184     |   |   | 182      |   |
| Other income                                                       | 21                               |    |                            | 540     |   |    | 99      |   |   | 823      |   |
| Interest expense, net                                              | (3,016                           | )       |                            | (4,315  | )      |    | (10,994 | )      |   | (17,282  | )      |
| Interest rate risk management losses                               | (8,282                           | )       |                            | (10,348 | )      |    | (27,300 | )      |   | (3,924   | )      |
| Other expense                                                      | (293                             | )       |                            | (267    | )      |    | (1,113  | )      |   | (801     | )      |
| Total other income (expense)                                       | (11,561                          | )       |                            | (14,380 | )      |    | (39,124 | )      |   | (21,002  | )      |
| (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES       | (26,697                          | )       |                            | (21,531 | )      |    | 2,406   |   |   | (106,926 | )      |
| INCOME TAX (BENEFIT) PROVISION                                     | (1,236                           | )       |                            | 5,802   |   |    | (940    | )      |   | 1,526    |   |
| (LOSS) INCOME FROM CONTINUING OPERATIONS                           | (25,461                          | )       |                            | (27,333 | )      |    | 3,346   |   |   | (108,452 | )      |
| DISCONTINUED OPERATIONS, NET OF TAX                                | 224                              |    |                            | 2,062   |   |    | 43,541  |   |   | 5,849    |   |
| NET (LOSS) INCOME                                                  | $                                | (25,237 | )                               |    | $      | (25,271 | )       |   | $      | 46,887   |   |   | $ | (102,603 | )      |

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Table of Contents

|                                                                       |                                  |         |                                 |        |        |        |        |        |        |        |        |        |   |       |        |
|-----------------------------------------------------------------------|----------------------------------|---------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---|-------|--------|
| EAGLE ROCK ENERGY PARTNERS, L.P.                                      |
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (continued) |
| (In thousands, except per unit amounts)                               |
|                                                                  |                             |    |                            |   |   |   |   |
|                                                                  | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                                  | 2010                             |    | 2009                            |   | 2010   |   | 2009   |
| NET INCOME (LOSS) PER COMMON UNIT — BASIC:                 |                             |    |                            |   |   |   |   |
| Basic and diluted:                                                    |                             |    |                            |   |   |   |   |
| Income (loss) from continuing operations per unit                     |                             |    |                            |   |   |   |   |
| Common units                                                          | $                                | (0.31   | )                               |   | $      | (0.36  | )      |   | $      | 0.05   |   |   | $ | (1.43 | )      |
| Subordinated units                                                    | $                                | — |                            |   | $      | (0.38  | )      |   | $      | (0.01  | )      |   | $ | (1.50 | )      |
| General partner units                                                 | $                                | (0.34   | )                               |   | $      | (0.36  | )      |   | $      | 0.05   |   |   | $ | (1.43 | )      |
| Discontinued operations per unit                                      |                             |    |                            |   |   |   |   |
| Common units                                                          | $                                | — |                            |   | $      | 0.03   |   |   | $      | 0.57   |   |   | $ | 0.08  |   |
| Subordinated units                                                    | $                                | — |                            |   | $      | 0.03   |   |   | $      | 0.57   |   |   | $ | 0.08  |   |
| General partner units                                                 | $                                | — |                            |   | $      | 0.03   |   |   | $      | 0.57   |   |   | $ | 0.08  |   |
| Net income (loss) per unit                                            |                             |    |                            |   |   |   |   |
| Common units                                                          | $                                | (0.31   | )                               |   | $      | (0.33  | )      |   | $      | 0.62   |   |   | $ | (1.35 | )      |
| Subordinated units                                                    | $                                | — |                            |   | $      | (0.35  | )      |   | $      | 0.55   |   |   | $ | (1.43 | )      |
| General partner units                                                 | $                                | (0.33   | )                               |   | $      | (0.33  | )      |   | $      | 0.62   |   |   | $ | (1.35 | )      |
| Weighted average number of basic outstanding (units in thousands)     |                             |    |                            |   |   |   |   |
| Common units                                                          | 80,224                           |    |                            | 53,632 |   |   | 63,770 |   |   | 53,276 |   |
| Subordinated units                                                    | —                          |    |                            | 20,691 |   |   | 10,914 |   |   | 20,691 |   |
| General partner units                                                 | 275                              |    |                            | 845    |   |   | 653    |   |   | 845    |   |
| Weighted average number diluted outstanding (units in thousands)      |                             |    |                            |   |   |   |   |
| Common units                                                          | 80,224                           |    |                            | 53,632 |   |   | 63,950 |   |   | 53,276 |   |
| Subordinated units                                                    | —                          |    |                            | 20,691 |   |   | 10,914 |   |   | 20,691 |   |
| General partner units                                                 | 275                              |    |                            | 845    |   |   | 653    |   |   | 845    |   |

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Table of Contents

|                                                                                          |                                 |        |        |          |        |          |        |
|------------------------------------------------------------------------------------------|---------------------------------|--------|--------|----------|--------|----------|--------|
|                                                                                     | Nine Months Ended September 30, |
|                                                                                     | 2010                            |   | 2009   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                    |                            |   |   |
| Net income (loss)                                                                        | $                               | 46,887 |   |     | $      | (102,603 | )      |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |                            |   |   |     |   |
| Discontinued operations                                                                  | (43,541                         | )      |   | (5,849   | )      |
| Depreciation, depletion and amortization                                                 | 82,550                          |   |   | 81,456   |   |
| Impairment                                                                               | 6,562                           |   |   | 242      |   |
| Amortization of debt issuance costs                                                      | 1,062                           |   |   | 801      |   |
| Equity in earnings of unconsolidated affiliates                                          | —                         |   |   | 219      |   |
| Distribution from unconsolidated affiliates—return on investment                   | 67                              |   |   | —  |   |
| Reclassing financing derivative settlements                                              | (1,001                          | )      |   | (8,330   | )      |
| Equity-based compensation                                                                | 4,652                           |   |   | 5,024    |   |
| Gain on sale of assets                                                                   | 32                              |   |   | (476     | )      |
| Other operating income                                                                   | —                         |   |   | (3,552   | )      |
| Other                                                                                    | 954                             |   |   | 1,547    |   |
| Changes in assets and liabilities—net of acquisitions:                             |                            |   |   |     |   |
| Accounts receivable                                                                      | 21,358                          |   |   | 40,571   |   |
| Prepayments and other current assets                                                     | 1,001                           |   |   | 478      |   |
| Risk management activities                                                               | (31,482                         | )      |   | 103,927  |   |
| Accounts payable                                                                         | (11,147                         | )      |   | (44,242  | )      |
| Due to/from affiliates                                                                   | 4                               |   |   | —  |   |
| Accrued liabilities                                                                      | 1,542                           |   |   | (6,164   | )      |
| Other assets                                                                             | 1,043                           |   |   | (1,221   | )      |
| Other current liabilities                                                                | (1,598                          | )      |   | —  |   |
| Net cash provided by operating activities                                                | 78,945                          |   |   | 61,828   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                    |                            |   |   |     |   |
| Additions to property, plant and equipment                                               | (42,799                         | )      |   | (29,427  | )      |
| Acquisitions, net of cash acquired                                                       | (4,139                          | )      |   | —  |   |
| Proceeds from sale of asset                                                              | 171,686                         |   |   | 476      |   |
| Purchase of intangible assets                                                            | (1,930                          | )      |   | (1,219   | )      |
| Net cash provided by (used in) investing activities                                      | 122,818                         |   |   | (30,170  | )      |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                    |                            |   |   |     |   |
| Proceeds from long-term debt                                                             | 37,000                          |   |   | 131,000  |   |
| Repayment of long-term debt                                                              | (276,000                        | )      |   | (156,000 | )      |
| Proceeds from derivative contracts                                                       | 1,001                           |   |   | 8,330    |   |
| Proceeds from Rights Offering                                                            | 53,893                          |   |   | —  |   |
| Transaction fees                                                                         | (3,015                          | )      |   | —  |   |
| Repurchase of common units                                                               | (724                            | )      |   | (30      | )      |
| Exercise of warrants                                                                     | 1,708                           |   |   | —  |   |
| Distributions to members and affiliates                                                  | (5,102                          | )      |   | (34,244  | )      |
| Net cash used in financing activities                                                    | (191,239                        | )      |   | (50,944  | )      |
| CASH FLOWS FROM DISCONTINUED OPERATIONS:                                                 |                            |   |   |
| Operating activities                                                                     | 6,896                           |   |   | 11,344   |   |
| Investing activities                                                                     | (104                            | )      |   | (806     | )      |
| Net cash provided by discontinued operations                                             | 6,792                           |   |   | 10,538   |   |
| NET DECREASE IN CASH AND CASH EQUIVALENTS                                                | 17,316                          |   |   | (8,748   | )      |
| CASH AND CASH EQUIVALENTS—Beginning of period                                      | 2,732                           |   |   | 17,916   |   |
| CASH AND CASH EQUIVALENTS—End of period                                            | $                               | 20,048 |   |     | $      | 9,168    |   |
|                                                                                |                            |   |   |     |   |
| Interest paid-net of amounts capitalized                                                 | $                               | 11,339 |   |     | $      | 21,755   |   |
| Units issued in acquisition from escrow                                                  | $                               | 2,089  |   |     | $      | 3,000    |   |
| Cash paid for taxes                                                                      | $                               | 1,820  |   |     | $      | 1,377    |   |
| Issuance of common units for transaction fee                                             | $                               | 29,000 |   |     | $      | —  |   |
| Investments in property, plant and equipment, not yet paid                               | $                               | 8,714  |   |     | $      | 1,720    |   |
| Deferred transaction fees, not yet paid                                                  | $                               | 51     |   |     | $      | —  |   |

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Table of Contents

|                                    |                 |        |                        |         |              |        |                            |        |                   |         |        |            |         |        |        |          |        |        |   |         |        |
|------------------------------------|-----------------|--------|------------------------|---------|--------------|--------|----------------------------|--------|-------------------|---------|--------|------------|---------|--------|--------|----------|--------|--------|---|---------|--------|
|                               | General Partner |   | Number of Common Units |    | Common Units |   | Number ofSubordinatedUnits |   | SubordinatedUnits |    | Total  |
| BALANCE — January 1, 2009    | $               | (3,714 | )                      |    | 53,043,767   |   |                       | $      | 625,590           |    |   | 20,691,495 |    |   | $      | 105,839  |   |   | $ | 727,715 |   |
| Net loss                           | (1,155          | )      |                   | — |         |   | (73,137                    | )      |              | — |   |       | (28,311 | )      |   | (102,603 | )      |
| Distributions                      | (358            | )      |                   | — |         |   | (25,348                    | )      |              | — |   |       | (8,538  | )      |   | (34,244  | )      |
| Vesting of restricted units        | —         |   |                   | 217,503 |         |   | —                    |   |              | — |   |       | — |   |   | —  |   |
| Units returned from escrow         | —         |   |                   | (7,065  | )            |   | (25                        | )      |              | — |   |       | — |   |   | (25      | )      |
| Units issued from escrow           | —         |   |                   | 849,858 |         |   | 3,000                      |   |              | — |   |       | — |   |   | 3,000    |   |
| Repurchase of common units         | —         |   |                   | (9,844  | )            |   | (30                        | )      |              | — |   |       | — |   |   | (30      | )      |
| Equity based compensation          | 53              |   |                   | — |         |   | 3,601                      |   |              | — |   |       | 1,370   |   |   | 5,024    |   |
| BALANCE — September 30, 2009 | $               | (5,174 | )                      |    | 54,094,219   |   |                       | $      | 533,651           |    |   | 20,691,495 |    |   | $      | 70,360   |   |   | $ | 598,837 |   |

|                                                         |                 |         |                        |            |              |        |                              |        |                    |             |        |            |         |        |        |         |        |        |   |         |        |
|---------------------------------------------------------|-----------------|---------|------------------------|------------|--------------|--------|------------------------------|--------|--------------------|-------------|--------|------------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                                                    | General Partner |    | Number of Common Units |       | Common Units |   | Number of Subordinated Units |   | Subordinated Units |        | Total  |
| BALANCE — January 1, 2010                         | $               | (5,942  | )                      |       | 54,203,471   |   |                         | $      | 484,282            |        |   | 20,691,495 |    |   | $      | 52,058  |   |   | $ | 530,398 |   |
| Net income                                              | 734             |    |                   | —    |         |   | 28,011                       |   |               | —     |   |       | 18,142  |   |   | 46,887  |   |
| Distributions                                           | (483            | )       |                   | —    |         |   | (33,777                      | )      |               | —     |   |       | — |   |   | (34,260 | )      |
| Vesting of restricted units                             | —         |    |                   | 559,381    |         |   | —                      |   |               | —     |   |       | — |   |   | — |   |
| Rights offering                                         | —         |    |                   | 21,557,164 |         |   | 53,893                       |   |               | —     |   |       | — |   |   | 53,893  |   |
| Transaction costs for rights offering                   | —         |    |                   | —    |         |   | (4,146                       | )      |               | —     |   |       | — |   |   | (4,146  | )      |
| Exercise of warrants                                    | —         |    |                   | 284,722    |         |   | 1,708                        |   |               | —     |   |       | — |   |   | 1,708   |   |
| Units released from escrow                              | —         |    |                   | 330,604    |         |   | 2,089                        |   |               | —     |   |       | — |   |   | 2,089   |   |
| Repurchase of common units                              | —         |    |                   | (119,928   | )            |   | (724                         | )      |               | —     |   |       | — |   |   | (724    | )      |
| Equity based compensation                               | 43              |    |                   | —    |         |   | 3,815                        |   |               | —     |   |       | 794     |   |   | 4,652   |   |
| Payment of transaction fee to Eagle Rock Holdings, L.P. | —         |    |                   | 4,825,211  |         |   | 29,000                       |   |               | —     |   |       | — |   |   | 29,000  |   |
| Cancellation of subordinated units                      | —         |    |                   | —    |         |   | 70,994                       |   |               | (20,691,495 | )      |       | (70,994 | )      |   | — |   |
| Acquisition of General Partner                          | 5,648           |    |                   | 1,000,000  |         |   | (5,648                       | )      |               | —     |   |       | — |   |   | — |   |
| BALANCE — September 30, 2010                      | $               | — |                   |       | 82,640,625   |   |                         | $      | 629,497            |        |   | —    |    |   | $      | — |   |   | $ | 629,497 |   |

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|                                |                                                                         |
|--------------------------------|-------------------------------------------------------------------------|
| •     | significant adverse change in legal factors or in the business climate; |

|                                |                                                                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | a current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast which demonstrates continuing losses associated with the use of a long-lived asset; |

|                                |                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| •     | an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset; |

|                                |                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|
| •     | significant adverse changes in the extent or manner in which an asset is used or in its physical condition; |

|                                |                                                          |
|--------------------------------|----------------------------------------------------------|
| •     | a significant change in the market value of an asset; or |

|                                |                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| •     | a current expectation that, more likely than not, an asset will be sold or otherwise disposed of before the end of its estimated useful life. |

|                                |                                                       |
|--------------------------------|-------------------------------------------------------|
| •     | sales of natural gas, NGLs, crude oil and condensate; |

|                                |                                                                                                                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | natural gas gathering, processing and transportation, from which Eagle Rock Energy generates revenues primarily through the compression, gathering, treating, processing and transportation of natural gas; |

|                                |                                                                                  |
|--------------------------------|----------------------------------------------------------------------------------|
| •     | NGL transportation from which we generate revenues from transportation fees; and |

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|                                |                                                    |
|--------------------------------|----------------------------------------------------|
| •     | royalties, overriding royalties and lease bonuses. |

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|                                                            |                         |           |                        |           |        |           |        |
|------------------------------------------------------------|-------------------------|-----------|------------------------|-----------|--------|-----------|--------|
|                                                       | September 30, 2010 |      | December 31, 2009 |
|                                                       | ($ in thousands)        |
| Land                                                       | $                       | 2,566     |                   |      | $      | 1,559     |   |
| Plant                                                      | 244,162                 |      |                   | 242,223   |   |
| Gathering and pipeline                                     | 679,630                 |      |                   | 675,474   |   |
| Equipment and machinery                                    | 24,865                  |      |                   | 22,527    |   |
| Vehicles and transportation equipment                      | 4,158                   |      |                   | 4,232     |   |
| Office equipment, furniture, and fixtures                  | 1,296                   |      |                   | 1,248     |   |
| Computer equipment                                         | 8,170                   |      |                   | 6,912     |   |
| Corporate                                                  | 126                     |      |                   | 126       |   |
| Linefill                                                   | 4,269                   |      |                   | 4,269     |   |
| Proved properties                                          | 459,716                 |      |                   | 435,789   |   |
| Unproved properties                                        | 1,673                   |      |                   | 7,264     |   |
| Construction in progress                                   | 34,139                  |      |                   | 15,513    |   |
|                                                       | 1,464,770               |      |                   | 1,417,136 |   |
| Less: accumulated depreciation, depletion and amortization | (325,964                | )         |                   | (261,403  | )      |
| Net property, plant and equipment                          | $                       | 1,138,806 |                   |      | $      | 1,155,733 |   |

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|                                              |                  |        |        |        |        |        |        |
|----------------------------------------------|------------------|--------|--------|--------|--------|--------|--------|
|                                         | 2010             |   | 2009   |
|                                         | ($ in thousands) |
| Asset retirement obligations -- January 1    | $                | 19,829 |   |   | $      | 19,872 |   |
| Liabilities settled                          | (287             | )      |   | (1,058 | )      |
| Accretion expense                            | 1,429            |   |   | 914    |   |
| Asset retirement obligations -- September 30 | $                | 20,971 |   |   | $      | 19,728 |   |

|                                           |                         |         |                        |         |        |         |        |
|-------------------------------------------|-------------------------|---------|------------------------|---------|--------|---------|--------|
|                                      | September 30, 2010 |    | December 31, 2009 |
|                                      | ($ in thousands)        |
| Rights-of-way and easements—at cost | $                       | 87,690  |                   |    | $      | 86,243  |   |
| Less: accumulated amortization            | (19,290                 | )       |                   | (15,600 | )      |
| Contracts                                 | 124,196                 |    |                   | 123,959 |   |
| Less: accumulated amortization            | (76,170                 | )       |                   | (62,259 | )      |
| Net intangible assets                     | $                       | 116,426 |                   |    | $      | 132,343 |   |

|                                |                                                                                                                                                                                                                                                                                         |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Reduced the maximum permitted Senior Secured Leverage Ratio (as such term is defined in the revolving credit facility) from 4.25 under the current revolving credit facility to 3.75 as amended (and from 4.75 to 4.25 for specified periods following certain permitted acquisitions); |

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|                                |                                                                                                                                                                                                          |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Obligated the Partnership to use $100 million of the proceeds from the Minerals Business sale to make a mandatory prepayment towards its outstanding borrowings under the revolving credit facility; and |

|                                |                                                                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Reduced, upon such mandatory prepayment, the Partnership's borrowing capacity under the revolving credit facility by the $100 million amount of such mandatory prepayment. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | An option in favor of the Partnership, to issue 1,000,000 common units to capture the value of its controlling interest through (i) acquiring the Partnership's general partner, and such general partner's general partner, and thereafter canceling the 844,551 general partner units outstanding, and (ii) reconstituting its board of directors to allow its common unitholders to elect the majority of its directors (the “GP Acquisition Option”); |

|                                |                                                                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The sale of the Partnership's Minerals Business to Black Stone for total consideration of $174.5 million in cash, subject to customary adjustments; |

|                                |                                                                                                                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The simplification of the Partnership's capital structure through the contribution, and resulting cancellation, of the incentive distribution rights and the approximate 20.7 million subordinated units held by Holdings; |

|                                |                                                                                                                                                                                                                                                                         |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | A rights offering for which Holdings and NGP agreed to fully participate with respect to 9.5 million common and general partner units owned or controlled by NGP as well as with respect to common units it received (see below) as payment of the transaction fee; and |

|                                |                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | For a period of up to four months following unitholder approval of the amended Global Transaction Agreement, NGP's commitment to back-stop (primarily through Holdings) up to $41.6 million, at a price of $3.10 per unit, an Eagle Rock Energy equity offering to be undertaken at the sole option of the Partnership's Conflicts Committee. |

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|                         |                          |         |         |         |         |         |         |        |        |         |        |        |   |         |        |
|-------------------------|--------------------------|---------|---------|---------|---------|---------|---------|--------|--------|---------|--------|--------|---|---------|--------|
|                    | As of September 30, 2010 |
|                    | Level 1                  |    | Level 2 |    | Level 3 |    | Total   |
|                    | ($ in thousands)         |
| Assets:                 |                     |    |    |    |    |    |    |
| Crude oil derivatives   | $                        | — |    |    | $       | (862    | )       |   | $      | — |   |   | $ | (862    | )      |
| Natural gas derivatives | —                  |    |    | 20,443  |    |    | — |   |   | 20,443  |   |
| NGL derivatives         | —                  |    |    | — |    |    | (1,060  | )      |   | (1,060  | )      |
|  Total             | $                        | — |    |    | $       | 19,581  |    |   | $      | (1,060  | )      |   | $ | 18,521  |   |
|                    |                     |    |    |    |    |    |    |   |   |    |   |
| Liabilities:            |                     |    |    |    |    |    |    |   |   |    |   |
| Crude oil derivatives   | $                        | — |    |    | $       | (23,654 | )       |   | $      | — |   |   | $ | (23,654 | )      |
| NGL derivatives         | —                  |    |    | — |    |    | (2,157  | )      |   | (2,157  | )      |
| Interest rate swaps     | —                  |    |    | (39,703 | )       |    | — |   |   | (39,703 | )      |
|  Total             | $                        | — |    |    | $       | (63,357 | )       |   | $      | (2,157  | )      |   | $ | (65,514 | )      |
|                    |                     |    |    |    |    |    |    |   |   |    |   |
|                    | As of December 31, 2009  |
|                    | Level 1                  |    | Level 2 |    | Level 3 |    | Total   |
|                    | ($ in thousands)         |
| Assets:                 |                     |    |    |    |    |    |    |   |   |    |   |
| Crude oil derivatives   | $                        | — |    |    | $       | 3       |    |   | $      | — |   |   | $ | 3       |   |
| Natural gas derivatives | —                  |    |    | 5,286   |    |    | — |   |   | 5,286   |   |
| Interest rate swaps     | —                  |    |    | 600     |    |    | — |   |   | 600     |   |
|  Total             | $                        | — |    |    | $       | 5,889   |    |   | $      | — |   |   | $ | 5,889   |   |
|                    |                     |    |    |    |    |    |    |   |   |    |   |
| Liabilities:            |                     |    |    |    |    |    |    |   |   |    |   |
| Crude oil derivatives   | $                        | — |    |    | $       | (45,039 | )       |   | $      | — |   |   | $ | (45,039 | )      |
| Natural gas derivatives | —                  |    |    | 3,475   |    |    | — |   |   | 3,475   |   |
| NGL derivatives         | —                  |    |    | — |    |    | (14,784 | )      |   | (14,784 | )      |
| Interest rate swaps     | —                  |    |    | (28,017 | )       |    | — |   |   | (28,017 | )      |
|  Total             | $                        | — |    |    | $       | (69,581 | )       |   | $      | (14,784 | )      |   | $ | (84,365 | )      |

|                                                       |                                  |        |                                 |        |      |        |       |        |        |         |   |        |   |        |        |
|-------------------------------------------------------|----------------------------------|--------|---------------------------------|--------|------|--------|-------|--------|--------|---------|---|--------|---|--------|--------|
|                                                  | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                  | 2010                             |   | 2009                            |   | 2010 |   | 2009  |
| Net (liability) asset balances at beginning of period | $                                | (1,860 | )                               |   | $    | (520   | )     |   | $      | (14,784 | ) |   | $ | 14,016 |   |
| Settlements                                           | 1,466                            |   |                            | (1,029 | )    |   | 7,860 |   |   | (1,939  | ) |
| Total (losses) gains realized and unrealized          | (2,823                           | )      |                            | (2,303 | )    |   | 3,707 |   |   | (15,929 | ) |
| Net liability balances at end of period               | $                                | (3,217 | )                               |   | $    | (3,852 | )     |   | $      | (3,217  | ) |   | $ | (3,852 | )      |

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|                     |                         |         |              |        |              |         |              |        |              |         |        |        |   |         |        |        |   |       |        |
|---------------------|-------------------------|---------|--------------|--------|--------------|---------|--------------|--------|--------------|---------|--------|--------|---|---------|--------|--------|---|-------|--------|
|                | September 30, 2010 |    | Level 1 |   | Level 2 |    | Level 3 |   | Total Losses |
| Plant assets        | $                       | 91      |         |   | $            | — |         |   | $            | — |   |   | $ | 91      |   |   | $ | 576   |   |
| Pipeline assets     | $                       | 318     |         |   | $            | — |         |   | $            | — |   |   | $ | 318     |   |   | $ | 2,006 |   |
| Rights-of-way       | $                       | 85      |         |   | $            | — |         |   | $            | — |   |   | $ | 85      |   |   | $ | 548   |   |
| Unproved properties | $                       | — |         |   | $            | — |         |   | $            | — |   |   | $ | — |   |   | $ | 3,432 |   |

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|                |        |                 |        |                   |             |                     |                  |                  |
|----------------|--------|-----------------|--------|-------------------|-------------|---------------------|------------------|------------------|
| Effective Date |   | Expiration Date |   | Notational Amount |        | Fixed Rate (a) |
| 12/31/2008     |   | 12/31/2012      |   | $                 | 150,000,000 |                |             | 2.360 % / 2.560% |
| 9/30/2008      |   | 12/31/2012      |   | 150,000,000       |        |                | 4.105 % / 4.295% |
| 10/3/2008      |   | 12/31/2012      |   | 300,000,000       |        |                | 3.895 % / 4.095% |

|     |                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | First amount is the rate the Partnership pays through January 9, 2011 and the second amount is the interest rate the Partnership pays from January 10, 2011 through December 31, 2012.  |

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|                                       |        |              |        |                              |        |                 |        |                             |        |                           |             |        |      |        |
|---------------------------------------|--------|--------------|--------|------------------------------|--------|-----------------|--------|-----------------------------|--------|---------------------------|-------------|--------|------|--------|
| Underlying                            |   | Period       |   | Notional Volumes (units)     |   | Type            |   | Floor Strike Price ($/unit) |   | Cap Strike Price ($/unit) |
| Natural Gas:                          |   |         |   |                         |   |            |   |                        |   |                      |
| NYMEX Henry Hub                       |   | Oct-Dec 2010 |   | 330,000  mmbtu     |   | Costless Collar |   | $                           | 7.70   |                      |        | $      | 9.10 |   |
| NYMEX Henry Hub                       |   | Oct-Dec 2010 |   | 375,000  mmbtu     |   | Swap            |   |  6.65                  |   |                      |        |
| NYMEX Henry Hub                       |   | Oct-Dec 2010 |   | 510,000  mmbtu     |   | Swap            |   |  6.57                  |   |                      |        |
| Crude Oil:                            |   |         |   |                         |   |            |   |                        |   |                      |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 15,000  bbls       |   | Costless Collar |   |  50.00                 |   |                      |  67.50 |   |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 27,000  bbls       |   | Costless Collar |   |  90.00                 |   |                      |  99.80 |   |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 15,000  bbls       |   | Put             |   |  100.00                |   |                      |        |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 18,000  bbls       |   | Put             |   |  90.00                 |   |                      |        |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 9,000  bbls        |   | Swap            |   |  78.35                 |   |                      |        |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 75,000  bbls       |   | Swap            |   |  70.00                 |   |                      |        |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 120,000  bbls      |   | Swap            |   |  51.40                 |   |                      |        |
| NYMEX WTI                             |   | Oct-Dec 2010 |   | 135,000  bbls      |   | Swap            |   | 79.80                       |   |                      |        |
| Natural Gas Liquids:                  |   |         |   |                         |   |            |   |                        |   |                      |
| OPIS Ethane Mt Belv non TET           |   | Oct-Dec 2010 |   | 1,134,000  gallons |   | Costless Collar |   |  0.43                  |   |                      |  0.53  |   |
| OPIS Ethane Mt Belv non TET           |   | Oct-Dec 2010 |   | 1,134,000  gallons |   | Swap            |   |  0.58                  |   |                      |        |
| OPIS IsoButane Mt Belv non TET        |   | Oct-Dec 2010 |   | 630,000  gallons   |   | Costless Collar |   |  0.82                  |   |                      |  1.02  |   |
| OPIS IsoButane Mt Belv non TET        |   | Oct-Dec 2010 |   | 1,045,800  gallons |   | Swap            |   |  1.4045                |   |                      |        |
| OPIS NButane Mt Belv non TET          |   | Oct-Dec 2010 |   | 1,386,000  gallons |   | Costless Collar |   |  0.82                  |   |                      |  1.02  |   |
| OPIS NButane Mt Belv non TET          |   | Oct-Dec 2010 |   | 2,116,800  gallons |   | Swap            |   |  1.3745                |   |                      |        |
| OPIS Propane Mt Belv non TET          |   | Oct-Dec 2010 |   | 1,260,000  gallons |   | Costless Collar |   |  0.705                 |   |                      |  0.81  |   |
| OPIS Propane Mt Belv non TET          |   | Oct-Dec 2010 |   | 1,260,000  gallons |   | Swap            |   |  0.755                 |   |                      |        |
| OPIS Propane Mt Belv non TET          |   | Oct-Dec 2010 |   | 4,435,200  gallons |   | Swap            |   |  1.0915                |   |                      |        |
| OPIS Natural Gasoline Mt Belv non TET |   | Oct-Dec 2010 |   | 554,400  gallons   |   | Swap            |   |  1.6562                |   |                      |        |

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|                 |        |              |        |                            |        |                 |        |                             |        |                           |             |        |      |        |
|-----------------|--------|--------------|--------|----------------------------|--------|-----------------|--------|-----------------------------|--------|---------------------------|-------------|--------|------|--------|
| Underlying      |   | Period       |   | Notional Volumes (units)   |   | Type            |   | Floor Strike Price ($/unit) |   | Cap Strike Price ($/unit) |
| Natural Gas:    |   |         |   |                       |   |            |   |                        |   |                      |
| NYMEX Henry Hub |   | Jan-Dec 2011 |   | 1,200,000  mmbtu |   | Costless Collar |   | $                           | 7.50   |                      |        | $      | 8.85 |   |
| NYMEX Henry Hub |   | Jan-Dec 2011 |   | 720,000  mmbtu   |   | Swap            |   |  7.09                  |   |                      |        |   |
| NYMEX Henry Hub |   | Jan-Dec 2011 |   | 2,280,000  mmbtu |   | Swap            |   |  6.14                  |   |                      |        |   |
| Crude Oil:      |   |         |   |                       |   |            |   |                        |   |                      |        |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 139,152  bbls    |   | Costless Collar |   |  75.00                 |   |                      |  85.70 |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 360,000  bbls    |   | Costless Collar |   |  80.00                 |   |                      |  92.40 |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 144,000  bbls    |   | Costless Collar |   |  75.00                 |   |                      |  89.85 |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 125,256  bbls    |   | Swap            |   |  80.00                 |   |                      |        |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 120,000  bbls    |   | Swap            |   |  65.10                 |   |                      |        |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 240,000  bbls    |   | Swap            |   |  75.00                 |   |                      |        |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 240,000  bbls    |   | Swap            |   |  80.05                 |   |                      |        |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 360,000  bbls    |   | Swap            |   |  65.60                 |   |                      |        |   |
| NYMEX WTI       |   | Jan-Dec 2011 |   | 204,000  bbls    |   | Swap            |   | 83.30                       |   |                      |        |   |
| NYMEX WTI       |   | Jan-Jun 2011 |   | 174,000  bbls    |   | Swap            |   | 86.20                       |   |                      |        |
| NYMEX WTI       |   | Jul-Dec 2011 |   | 138,000  bbls    |   | Swap            |   | 86.20                       |   |                      |        |

|                 |        |              |        |                            |        |                 |        |                             |        |                           |             |        |      |        |
|-----------------|--------|--------------|--------|----------------------------|--------|-----------------|--------|-----------------------------|--------|---------------------------|-------------|--------|------|--------|
| Underlying      |   | Period       |   | Notional Volumes (units)   |   | Type            |   | Floor Strike Price ($/unit) |   | Cap Strike Price ($/unit) |
| Natural Gas:    |   |         |   |                       |   |            |   |                        |   |                      |
| NYMEX Henry Hub |   | Jan-Dec 2012 |   | 1,080,000  mmbtu |   | Costless Collar |   | $                           | 7.35   |                      |        | $      | 8.65 |   |
| NYMEX Henry Hub |   | Jan-Dec 2012 |   | 3,120,000  mmbtu |   | Swap            |   |  6.77                  |   |                      |        |
| Crude Oil:      |   |         |   |                       |   |            |   |                        |   |                      |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 135,576  bbls    |   | Costless Collar |   |  75.30                 |   |                      |  86.30 |   |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 360,000  bbls    |   | Costless Collar |   |  80.00                 |   |                      |  98.50 |   |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 192,000  bbls    |   | Costless Collar |   |  75.00                 |   |                      |  94.75 |   |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 108,468  bbls    |   | Swap            |   |  80.30                 |   |                      |        |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 240,000  bbls    |   | Swap            |   |  68.30                 |   |                      |        |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 240,000  bbls    |   | Swap            |   |  76.50                 |   |                      |        |
| NYMEX WTI       |   | Jan-Dec 2012 |   | 240,000  bbls    |   | Swap            |   |  82.02                 |   |                      |        |

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|                 |        |              |        |                          |        |        |        |                             |        |                           |        |        |
|-----------------|--------|--------------|--------|--------------------------|--------|--------|--------|-----------------------------|--------|---------------------------|--------|--------|
| Underlying      |   | Period       |   | Notional Volumes (units) |   | Type   |   | Floor Strike Price ($/unit) |   | Cap Strike Price ($/unit) |
| Natural Gas     |   |         |   |                     |   |   |   |                        |   |                      |
| NYMEX Henry Hub |   | Jan-Dec 2013 |   | 600,000  mmbtu           |   | Swap   |   | $                           | 5.64   |                      |   |   |
| Crude Oil:      |   |         |   |                     |   |   |   |                        |   |                      |
| NYMEX WTI       |   | Jan-Dec 2013 |   | 240,000  bbls  |   | Swap   |   | 90.20                       |   |                      |   |
| NYMEX WTI       |   | Jan-Dec 2013 |   | 720,000  bbls  |   | Swap   |   | 89.85                       |   |                      |   |

|                                         |                              |        |                        |         |                              |                       |                     |         |        |         |        |
|-----------------------------------------|------------------------------|--------|------------------------|---------|------------------------------|-----------------------|---------------------|---------|--------|---------|--------|
|                                    | As of September 30, 2010     |
|                                    | Derivative Assets            |   | Derivative Liabilities |
|                                    | Balance Sheet Classification |   | Fair Value             |    | Balance Sheet Classification |                  | Fair Value          |
|                                    | ($ in thousands)             |
| Interest rate derivatives - liabilities |                         |   | $                      | — |                         |                  | Current liabilities |    | $      | (19,646 | )      |
| Interest rate derivatives - liabilities |                         |   | —                |    |                         | Long-term liabilities |                | (20,057 | )      |
| Commodity derivatives - assets          | Current assets               |   | 12,091                 |    |                         | Current liabilities   |                | 250     |   |
| Commodity derivatives - assets          | Long-term assets             |   | 10,535                 |    |                         | Long-term liabilites  |                | 915     |   |
| Commodity derivatives - liabilities     | Current assets               |   | (2,209                 | )       |                         | Current liabilities   |                | (15,806 | )      |
| Commodity derivatives - liabilities     | Long-term assets             |   | (1,896                 | )       |                         | Long-term liabilities |                | (11,170 | )      |
| Total derivatives                       |                         |   | $                      | 18,521  |                         |                  |                |    | $      | (65,514 | )      |
|                                    |                         |   |                   |    |                         |                  |                |    |   |
|                                    | As of December 31, 2009      |
|                                    | Derivative Assets            |   | Derivative Liabilities |
|                                    | Balance Sheet Classification |   | Fair Value             |    | Balance Sheet Classification |                  | Fair Value          |
|                                    | ($ in thousands)             |
| Interest rate derivatives - assets      | Long-term assets             |   | $                      | 600     |                         |                  |                |    | $      | — |   |
| Interest rate derivatives - liabilities |                         |   | —                |    |                         | Current liabilities   |                | (16,988 | )      |
| Interest rate derivatives - liabilities |                         |   | —                |    |                         | Long-term liabilities |                | (11,029 | )      |
| Commodity derivatives - assets          | Current assets               |   | 3,494                  |    |                         | Current liabilities   |                | 9,842   |   |
| Commodity derivatives - assets          | Long-term assets             |   | 2,830                  |    |                         | Long-term liabilities |                | 1,684   |   |
| Commodity derivatives - liabilities     | Current assets               |   | (1,015                 | )       |                         | Current liabilities   |                | (44,504 | )      |
| Commodity derivatives - liabilities     | Long-term assets             |   | (20                    | )       |                         | Long-term liabilities |                | (23,370 | )      |
| Total derivatives                       |                         |   | $                      | 5,889   |                         |                  |                |    | $      | (84,365 | )      |

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|                                                                |        |                                                              |         |                                 |        |      |         |        |        |        |         |        |        |   |         |   |
|----------------------------------------------------------------|--------|--------------------------------------------------------------|---------|---------------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|---|---------|---|
| Location of Gain or (Loss) Recognized in Income on Derivatives |   | Amount of Gain or (Loss) Recognized in Income on Derivatives |
|                                                           |   | Three Months Ended September 30,                             |    | Nine Months Ended September 30, |
|                                                           |   | 2010                                                         |    | 2009                            |   | 2010 |    | 2009   |
|                                                           |   | ($ in thousands)                                             |
| Interest rate risk management losses                           |   | $                                                            | (8,282  | )                               |   | $    | (10,348 | )      |   | $      | (27,300 | )      |   | $ | (3,924  | ) |
| Commodity risk management (losses) gains                       |   | (18,579                                                      | )       |                            | (8,832 | )    |    | 27,808 |   |   | (57,137 | )      |
| Total                                                          |   | $                                                            | (26,861 | )                               |   | $    | (19,180 | )      |   | $      | 508     |   |   | $ | (61,061 | ) |

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|                                                      |        |                          |           |                     |         |                               |         |                        |        |                          |         |        |        |         |           |        |        |        |           |        |
|------------------------------------------------------|--------|--------------------------|-----------|---------------------|---------|-------------------------------|---------|------------------------|--------|--------------------------|---------|--------|--------|---------|-----------|--------|--------|--------|-----------|--------|
| Midstream Business                                   |   | Texas Panhandle Segment  |      | South Texas Segment |    | East Texas/ Louisiana Segment |    | Gulf of Mexico Segment |   | Total Midstream Business |
| Three Months Ended September 30, 2010                |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |
| Sales to external customers                          |   | $                        | 81,726    |                |    | $                             | 19,085  |                   |   | $                        | 46,206  |   |   | $       | 7,834     |   |   | $      | 154,851   |   |
| Cost of natural gas and natural gas liquids          |   | 54,783                   |      |                | 16,555  |                          |    | 33,940                 |   |                     | 6,638   |   |   | 111,916 |      |
| Operating costs and other expenses                   |   | 9,155                    |      |                | 717     |                          |    | 4,502                  |   |                     | 354     |   |   | 14,728  |      |
| Depreciation, depletion, and amortization            |   | 11,702                   |      |                | 1,281   |                          |    | 4,631                  |   |                     | 1,651   |   |   | 19,265  |      |
| Operating income (loss) from continuing operations   |   | $                        | 6,086     |                |    | $                             | 532     |                   |   | $                        | 3,133   |   |   | $       | (809      | )      |   | $      | 8,942     |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Capital Expenditures                                 |   | $                        | 12,636    |                |    | $                             | 5       |                   |   | $                        | 1,678   |   |   | $       | 21        |   |   | $      | 14,340    |   |
| Segment Assets                                       |   | $                        | 523,933   |                |    | $                             | 50,946  |                   |   | $                        | 306,839 |   |   | $       | 83,561    |   |   | $      | 965,279   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Total Segments                                       |   | Total Midstream Business |      | Upstream Segment    |    | Corporate Segment             |    | Total Segments         |   |                     |
| Three Months Ended September 30, 2010                |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Sales to external customers                          |   | $                        | 154,851   |                |    | $                             | 22,738  |                   |   | $                        | (18,579 | )      | (a)    | $       | 159,010   |   |   |   |
| Cost of natural gas and natural gas liquids          |   | 111,916                  |      |                | — |                          |    | —                |   |                     | 111,916 |   |   |    |
| Operating costs and other expenses                   |   | 14,728                   |      |                | 6,922   |                          | (b)     | 10,674                 |   |                     | 32,324  |   |   |    |
| Depreciation, depletion, amortization and impairment |   | 19,265                   |      |                | 10,242  |                          |    | 399                    |   |                     | 29,906  |   |   |    |
| Operating income (loss) from continuing operations   |   | $                        | 8,942     |                |    | $                             | 5,574   |                   |   | $                        | (29,652 | )      |   | $       | (15,136   | )      |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Capital Expenditures                                 |   | $                        | 14,340    |                |    | $                             | 5,235   |                   |   | $                        | 366     |   |   | $       | 19,941    |   |   |   |
| Segment Assets                                       |   | $                        | 965,279   |                |    | $                             | 353,262 |                   |   | $                        | 51,218  |   |   | $       | 1,369,759 |   |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Midstream Business                                   |   | Texas Panhandle Segment  |      | South Texas Segment |    | East Texas/ Louisiana Segment |    | Gulf of Mexico Segment |   | Total Midstream Business |
| Three Months Ended September 30, 2009                |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Sales to external customers                          |   | $                        | 70,263    |                |    | $                             | 18,672  |                   |   | $                        | 53,620  |   |   | $       | 8,618     |   |   | $      | 151,173   |   |
| Cost of natural gas and natural gas liquids          |   | 46,540                   |      |                | 16,842  |                          |    | 39,665                 |   |                     | 6,898   |   |   | 109,945 |      |
| Operating costs and other expenses                   |   | 8,206                    |      |                | 896     |                          |    | 4,727                  |   |                     | 310     |   |   | 14,139  |      |
| Depreciation, depletion, and amortization            |   | 11,602                   |      |                | 1,287   |                          |    | 4,458                  |   |                     | 1,480   |   |   | 18,827  |      |
| Operating income (loss) from continuing operations   |   | $                        | 3,915     |                |    | $                             | (353    | )                      |   | $                        | 4,770   |   |   | $       | (70       | )      |   | $      | 8,262     |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Capital Expenditures                                 |   | $                        | 1,332     |                |    | $                             | 27      |                   |   | $                        | 2,094   |   |   | $       | 165       |   |   | $      | 3,618     |   |
| Segment Assets                                       |   | $                        | 556,963   |                |    | $                             | 66,758  |                   |   | $                        | 324,893 |   |   | $       | 86,789    |   |   | $      | 1,035,403 |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Total Segments                                       |   | Total Midstream Business |      | Upstream Segment    |    | Corporate  Segment            |    | Total Segments         |   |                     |
| Three Months Ended September 30, 2009                |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Sales to external customers                          |   | $                        | 151,173   |                |    | $                             | 17,470  |                   |   | $                        | (8,832  | )      | (a)    | $       | 159,811   |   |   |   |
| Cost of natural gas and natural gas liquids          |   | 109,945                  |      |                | — |                          |    | —                |   |                     | 109,945 |   |   |    |
| Operating costs and other expenses                   |   | 14,139                   |      |                | 5,526   |                          | (b)     | 10,420                 |   |                     | 30,085  |   |   |    |
| Depreciation, depletion, amortization and impairment |   | 18,827                   |      |                | 7,768   |                          |    | 337                    |   |                     | 26,932  |   |   |    |
| Operating income (loss) from continuing operations   |   | $                        | 8,262     |                |    | $                             | 4,176   |                   |   | $                        | (19,589 | )      |   | $       | (7,151    | )      |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Capital Expenditures                                 |   | $                        | 3,618     |                |    | $                             | 2,780   |                   |   | $                        | 308     |   |   | $       | 6,706     |   |   |   |
| Segment Assets                                       |   | $                        | 1,035,403 |                |    | $                             | 373,172 |                   |   | $                        | 182,267 |   |   | $       | 1,590,842 |   |   |   |

|                             |                                                                |
|-----------------------------|----------------------------------------------------------------|
| (a)     | Represents results of the Partnership's derivative activities. |

|                             |                                                                                                                                                                                |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Includes sulfur disposal costs of  $0.3 million for the three months ended September 30. 2009.  Revenue exceeded disposal costs for the three months ended September 30, 2010. |

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|                                                      |        |                          |           |                     |         |                               |         |                        |        |                          |         |        |        |         |           |        |        |        |           |        |
|------------------------------------------------------|--------|--------------------------|-----------|---------------------|---------|-------------------------------|---------|------------------------|--------|--------------------------|---------|--------|--------|---------|-----------|--------|--------|--------|-----------|--------|
| Midstream Business                                   |   | Texas Panhandle Segment  |      | South Texas Segment |    | East Texas/ Louisiana Segment |    | Gulf of Mexico Segment |   | Total Midstream Business |
| Nine Months Ended September 30, 2010                 |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |
| Sales to external customers                          |   | $                        | 259,404   |                |    | $                             | 66,485  |                   |   | $                        | 157,348 |   |   | $       | 24,121    |   |   | $      | 507,358   |   |
| Cost of natural gas and natural gas liquids          |   | 176,485                  |      |                | 58,517  |                          |    | 114,622                |   |                     | 20,496  |   |   | 370,120 |      |
| Operating costs and other expenses                   |   | 25,666                   |      |                | 2,667   |                          |    | 12,921                 |   |                     | 1,390   |   |   | 42,644  |      |
| Depreciation, depletion, amortization and impairment |   | 34,931                   |      |                | 7,090   |                          |    | 13,171                 |   |                     | 4,821   |   |   | 60,013  |      |
| Operating income (loss) from continuing operations   |   | $                        | 22,322    |                |    | $                             | (1,789  | )                      |   | $                        | 16,634  |   |   | $       | (2,586    | )      |   | $      | 34,581    |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Capital Expenditures                                 |   | $                        | 23,405    |                |    | $                             | 36      |                   |   | $                        | 7,658   |   |   | $       | 39        |   |   | $      | 31,138    |   |
| Segment Assets                                       |   | $                        | 523,933   |                |    | $                             | 50,946  |                   |   | $                        | 306,839 |   |   | $       | 83,561    |   |   | $      | 965,279   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Total Segments                                       |   | Total Midstream Business |      | Upstream Segment    |    | Corporate Segment             |    | Total Segments         |   |                     |
| Nine Months Ended September 30, 2010                 |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Sales to external customers                          |   | $                        | 507,358   |                |    | $                             | 69,684  |                   |   | $                        | 27,808  |   | (a)    | $       | 604,850   |   |   |   |
| Cost of natural gas and natural gas liquids          |   | 370,120                  |      |                | — |                          |    | —                |   |                     | 370,120 |   |   |    |
| Operating costs and other expenses                   |   | 42,644                   |      |                | 24,953  |                          | (b)     | 36,491                 |   |                     | 104,088 |   |   |    |
| Depreciation, depletion, amortization and impairment |   | 60,013                   |      |                | 27,865  |                          |    | 1,234                  |   |                     | 89,112  |   |   |    |
| Operating income (loss) from continuing operations   |   | $                        | 34,581    |                |    | $                             | 16,866  |                   |   | $                        | (9,917  | )      |   | $       | 41,530    |   |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Capital Expenditures                                 |   | $                        | 31,138    |                |    | $                             | 17,628  |                   |   | $                        | 1,259   |   |   | $       | 50,025    |   |   |   |
| Segment Assets                                       |   | $                        | 965,279   |                |    | $                             | 353,262 |                   |   | $                        | 51,218  |   |   | $       | 1,369,759 |   |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Midstream Business                                   |   | Texas Panhandle Segment  |      | South Texas Segment |    | East Texas/ Louisiana Segment |    | Gulf of Mexico Segment |   | Total Midstream Business |
| Nine Months Ended September 30, 2009                 |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Sales to external customers                          |   | $                        | 205,000   |                |    | $                             | 78,077  |                   |   | $                        | 156,900 |   |   | $       | 22,668    |   |   | $      | 462,645   |   |
| Cost of natural gas and natural gas liquids          |   | 147,894                  |      |                | 71,730  |                          |    | 121,907                |   |                     | 17,271  |   |   | 358,802 |      |
| Operating costs and other expenses                   |   | 24,407                   |      |                | 2,946   |                          |    | 13,887                 |   |                     | 1,386   |   |   | 42,626  |      |
| Depreciation, depletion, and amortization            |   | 33,660                   |      |                | 3,995   |                          |    | 13,469                 |   |                     | 4,445   |   |   | 55,569  |      |
| Operating income (loss) from continuing operations   |   | $                        | (961      | )                   |    | $                             | (594    | )                      |   | $                        | 7,637   |   |   | $       | (434      | )      |   | $      | 5,648     |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Capital Expenditures                                 |   | $                        | 5,042     |                |    | $                             | 41      |                   |   | $                        | 16,172  |   |   | $       | 306       |   |   | $      | 21,561    |   |
| Segment Assets                                       |   | $                        | 556,963   |                |    | $                             | 66,758  |                   |   | $                        | 324,893 |   |   | $       | 86,789    |   |   | $      | 1,035,403 |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |      |
| Total Segments                                       |   | Total Midstream Business |      | Upstream Segment    |    | Corporate Segment             |    | Total Segments         |   |                     |
| Nine Months Ended September 30, 2009                 |   |                     |      |                |    |
| ($ in thousands)                                     |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Sales to external customers                          |   | $                        | 462,645   |                |    | $                             | 42,757  |                   |   | $                        | (57,137 | )      | (a)    | $       | 448,265   |   |   |   |
| Cost of natural gas and natural gas liquids          |   | 358,802                  |      |                | — |                          |    | —                |   |                     | 358,802 |   |   |    |
| Operating costs and other expenses                   |   | 42,626                   |      |                | 16,264  |                          | (b)     | 34,799                 |   |                     | 93,689  |   |   |    |
| Depreciation, depletion, amortization and impairment |   | 55,569                   |      |                | 25,361  |                          |    | 768                    |   |                     | 81,698  |   |   |    |
| Operating income (loss) from continuing operations   |   | $                        | 5,648     |                |    | $                             | 1,132   |                   |   | $                        | (92,704 | )      |   | $       | (85,924   | )      |   |   |
|                                                 |   |                     |      |                |    |                          |    |                   |   |                     |    |   |   |    |
| Capital Expenditures                                 |   | $                        | 21,561    |                |    | $                             | 6,360   |                   |   | $                        | 1,732   |   |   | $       | 29,653    |   |   |   |
| Segment Assets                                       |   | $                        | 1,035,403 |                |    | $                             | 373,172 |                   |   | $                        | 182,267 |   |   | $       | 1,590,842 |   |   |   |

|                             |                                                                |
|-----------------------------|----------------------------------------------------------------|
| (a)     | Represents results of the Partnership's derivative activities. |

|                             |                                                                                                                                           |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Includes sulfur disposal costs of $0.7 million and $1.5 million for the nine months ended September 30, 2010 and 2009, respectively. |

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|                                                 |         |        |   |
|-------------------------------------------------|---------|--------|---|
| Balance as of December 31, 2009            | $       | (267   | ) |
| Increases related to prior year tax positions   | — |   |
| Increases related to current year tax positions | (226    | )      |
| Balance as of September 30, 2010                | $       | (493   | ) |

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|                                 |                            |        |                                  |       |        |        |
|---------------------------------|----------------------------|--------|----------------------------------|-------|--------|--------|
|                            | Number of Restricted Units |   | Weighted Average Fair Value |
| Nonvested at December 31, 2009  | 1,371,019                  |   |                             | $     | 9.35   |   |
| Granted                         | 277,345                    |   |                             | 6.01  |   |
| Vested                          | (559,381                   | )      |                             | 17.54 |   |
| Forfeitures                     | (23,809                    | )      |                             | 15.87 |   |
| Nonvested at September 30, 2010 | 1,065,174                  |   |                             | 5.71  |   |

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|                                             |                                  |        |                                 |        |        |        |        |        |        |        |        |
|---------------------------------------------|----------------------------------|--------|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                        | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                        | 2010                             |   | 2009                            |   | 2010   |   | 2009   |
| Basic weighted average units outstanding:   |                             |   |                            |   |   |   |   |
| Common units                                | 80,224                           |   |                            | 53,632 |   |   | 63,770 |   |   | 53,276 |   |
| Subordinated units                          | —                          |   |                            | 20,691 |   |   | 10,914 |   |   | 20,691 |   |
| General partner units                       | 275                              |   |                            | 845    |   |   | 653    |   |   | 845    |   |
|                                        |                             |   |                            |   |   |   |   |   |   |
| Diluted weighted average units outstanding: |                             |   |                            |   |   |   |   |   |   |
| Common units                                | 80,224                           |   |                            | 53,632 |   |   | 63,950 |   |   | 53,276 |   |
| Subordinated units                          | —                          |   |                            | 20,691 |   |   | 10,914 |   |   | 20,691 |   |
| General partner units                       | 275                              |   |                            | 845    |   |   | 653    |   |   | 845    |   |

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|                                                                            |                                           |         |              |         |                         |         |                    |        |                       |         |         |         |         |         |        |         |         |        |   |
|----------------------------------------------------------------------------|-------------------------------------------|---------|--------------|---------|-------------------------|---------|--------------------|--------|-----------------------|---------|---------|---------|---------|---------|--------|---------|---------|--------|---|
|                                                                       | Total                                     |    | Common Units |    | Restricted common Units |    | Subordinated Units |   | General Partner Units |
|                                                                       | ($ in thousands, except per unit amounts) |
| Loss from continuing operations                                            | $                                         | (25,461 | )            |    |                    |    |               |   |                  |    |    |
| Distributions declared                                                     | 2,028                                     |    |         | $       | 2,006                   |    |               | $      | 22                    |    |    | $       | — |    |   | $       | — |   |
| Assumed loss from continuing operations after distribution to be allocated | (27,489                                   | )       |         | (27,043 | )                       |    | (353               | )      |                  | — |    |    | (93     | )       |
| Assumed allocation of loss from continuing operations                      | (25,461                                   | )       |         | (25,037 | )                       |    | (331               | )      |                  | — |    |    | (93     | )       |
| Discontinued operations                                                    | 224                                       |    |         | 220     |                    |    | 3                  |   |                  | — |    |    | 1       |    |
| Assumed net loss to be allocated                                           | $                                         | (25,237 | )            |    | $                       | (24,817 | )                  |   | $                     | (328    | )       |    | $       | — |   |    | $       | (92    | ) |
|                                                                       |                                      |    |         |    |                    |    |               |   |                  |    |    |    |    |    |
| Basic and diluted loss from continuing operations per unit                 |                                      |    | $            | (0.31   | )                       |    |               |   |                  | $       | — |    |    | $       | (0.34  | )       |
| Basic and diluted discontinued operations per unit                         |                                      |    |         | $       | —                 |    |               |   |                  |    | $       | — |    |    | $      | — |    |
| Basic and diluted loss per unit                                            |                                      |    |         | $       | (0.31                   | )       |               |   |                  |    | $       | — |    |    | $      | (0.33   | )       |

|                                                                            |                                           |         |              |         |                         |         |                    |        |                       |        |        |        |         |        |        |        |        |        |   |
|----------------------------------------------------------------------------|-------------------------------------------|---------|--------------|---------|-------------------------|---------|--------------------|--------|-----------------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|---|
|                                                                       | Total                                     |    | Common Units |    | Restricted common Units |    | Subordinated Units |   | General Partner Units |
|                                                                       | ($ in thousands, except per unit amounts) |
| Loss from continuing operations                                            | $                                         | (27,333 | )            |    |                    |    |               |   |                  |   |   |
| Distributions declared                                                     | 1,377                                     |    |         | $       | 1,341                   |    |               | $      | 15                    |   |   | $      | — |   |   | $      | 21     |   |
| Assumed loss from continuing operations after distribution to be allocated | (28,710                                   | )       |         | (20,485 | )                       |    | —            |   |                  | (7,903 | )      |   | (322    | )      |
| Assumed allocation of loss from continuing operations                      | (27,333                                   | )       |         | (19,144 | )                       |    | 15                 |   |                  | (7,903 | )      |   | (301    | )      |
| Discontinued operations                                                    | 2,062                                     |    |         | 1,471   |                    |    | —            |   |                  | 568    |   |   | 23      |   |
| Assumed net loss to be allocated                                           | $                                         | (25,271 | )            |    | $                       | (17,673 | )                  |   | $                     | 15     |   |   | $       | (7,335 | )      |   | $      | (278   | ) |
|                                                                       |                                      |    |         |    |                    |    |               |   |                  |   |   |   |    |   |
| Basic and diluted loss from continuing operations per unit                 |                                      |    |         | $       | (0.36                   | )       |               |   |                  |   | $      | (0.38  | )       |   | $      | (0.36  | )      |
| Basic and diluted discontinued operations per unit                         |                                      |    |         | $       | 0.03                    |    |               |   |                  |   | $      | 0.03   |    |   | $      | 0.03   |   |
| Basic and diluted loss per unit                                            |                                      |    |         | $       | (0.33                   | )       |               |   |                  |   | $      | (0.35  | )       |   | $      | (0.33  | )      |

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Table of Contents

|                                                                              |                                           |        |              |        |                         |        |                    |        |                       |        |        |        |         |        |        |        |        |        |        |
|------------------------------------------------------------------------------|-------------------------------------------|--------|--------------|--------|-------------------------|--------|--------------------|--------|-----------------------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                                                         | Total                                     |   | Common Units |   | Restricted common Units |   | Subordinated Units |   | General Partner Units |
|                                                                         | ($ in thousands, except per unit amounts) |
| Income from continuing operations                                            | $                                         | 3,346  |         |   |                    |   |               |   |                  |   |   |
| Distributions declared                                                       | 4,486                                     |   |         | $      | 4,364                   |   |               | $      | 80                    |   |   | $      | — |   |   | $      | 42     |   |
| Assumed income from continuing operations after distribution to be allocated | (1,140                                    | )      |         | (950   | )                       |   | (18                | )      |                  | (163   | )      |   | (9      | )      |
| Assumed allocation of income from continuing operations                      | 3,346                                     |   |         | 3,414  |                    |   | 62                 |   |                  | (163   | )      |   | 33      |   |
| Discontinued operations                                                      | 43,541                                    |   |         | 36,261 |                    |   | 703                |   |                  | 6,206  |   |   | 371     |   |
| Assumed net income to be allocated                                           | $                                         | 46,887 |         |   | $                       | 39,675 |               |   | $                     | 765    |   |   | $       | 6,043  |   |   | $      | 404    |   |
|                                                                         |                                      |   |         |   |                    |   |               |   |                  |   |   |   |    |   |
| Basic and diluted income from continuing operations per unit                 |                                      |   | $            | 0.05   |                    |   |               |   |                  | $      | (0.01  | )      |    | $      | 0.05   |   |
| Basic and diluted discontinued operations per unit                           |                                      |   |         | $      | 0.57                    |   |               |   |                  |   | $      | 0.57   |    |   | $      | 0.57   |   |
| Basic and diluted income per unit                                            |                                      |   |         | $      | 0.62                    |   |               |   |                  |   | $      | 0.55   |    |   | $      | 0.62   |   |

|                                                                            |                                           |          |              |         |                         |         |                    |        |                       |         |        |        |         |         |        |        |        |        |   |
|----------------------------------------------------------------------------|-------------------------------------------|----------|--------------|---------|-------------------------|---------|--------------------|--------|-----------------------|---------|--------|--------|---------|---------|--------|--------|--------|--------|---|
|                                                                       | Total                                     |     | Common Units |    | Restricted common Units |    | Subordinated Units |   | General Partner Units |
|                                                                       | ($ in thousands, except per unit amounts) |
| Loss from continuing operations                                            | $                                         | (108,452 | )            |    |                    |    |               |   |                  |    |   |
| Distributions declared                                                     | 4,110                                     |     |         | $       | 3,996                   |    |               | $      | 51                    |    |   | $      | — |    |   | $      | 63     |   |
| Assumed loss from continuing operations after distribution to be allocated | (112,562                                  | )        |         | (80,159 | )                       |    | —            |   |                  | (31,132 | )      |   | (1,271  | )       |
| Assumed allocation of loss from continuing operations                      | (108,452                                  | )        |         | (76,163 | )                       |    | 51                 |   |                  | (31,132 | )      |   | (1,208  | )       |
| Discontinued operations                                                    | 5,849                                     |     |         | 4,165   |                    |    | —            |   |                  | 1,618   |   |   | 66      |    |
| Assumed net loss to be allocated                                           | $                                         | (102,603 | )            |    | $                       | (71,998 | )                  |   | $                     | 51      |   |   | $       | (29,514 | )      |   | $      | (1,142 | ) |
|                                                                       |                                      |     |         |    |                    |    |               |   |                  |    |   |   |    |    |
| Basic and diluted loss from continuing operations per unit                 |                                      |     |         | $       | (1.43                   | )       |               |   |                  |    | $      | (1.50  | )       |    | $      | (1.43  | )      |
| Basic and diluted discontinued operations per unit                         |                                      |     |         | $       | 0.08                    |    |               |   |                  |    | $      | 0.08   |    |    | $      | 0.08   |   |
| Basic and diluted loss per unit                                            |                                      |     |         | $       | (1.35                   | )       |               |   |                  |    | $      | (1.43  | )       |    | $      | (1.35  | )      |

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Table of Contents

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Table of Contents

|                                                |               |           |                       |           |                           |           |                       |        |        |            |        |        |           |            |   |        |   |           |        |
|------------------------------------------------|---------------|-----------|-----------------------|-----------|---------------------------|-----------|-----------------------|--------|--------|------------|--------|--------|-----------|------------|---|--------|---|-----------|--------|
| Unaudited Condensed Consolidated Balance Sheet |
| September 30, 2010                        |
| ($ in thousands)                               | Parent Issuer |      | Subsidiary Guarantors |      | Non-guarantor investments |      | Consolidating Entries |   | Total  |
| ASSETS:                                        |          |      |                  |      |                      |      |                  |   |   |
| Accounts receivable - related parties          | $             | —   |                  |      | $                         | 124,192   |                  |   | $      | —    |   |   | $         | (124,192   | ) |   | $ | —   |   |
| Other current assets                           | 32,586        |      |                  | 66,204    |                      |      | —               |   |   | —    |   |   | 98,790    |       |
| Total property, plant and equipment, net       | 923           |      |                  | 1,137,883 |                      |      | —               |   |   | —    |   |   | 1,138,806 |       |
| Investment in subsidiaries                     | 1,277,803     |      |                  | —   |                      |      | 1,149                 |   |   | (1,278,952 | )      |   | —   |       |
| Total other long-term assets                   | 11,253        |      |                  | 120,910   |                      |      | —               |   |   | —    |   |   | 132,163   |       |
| Total assets                                   | $             | 1,322,565 |                  |      | $                         | 1,449,189 |                  |   | $      | 1,149      |   |   | $         | (1,403,144 | ) |   | $ | 1,369,759 |   |
| LIABILITIES AND EQUITY:                        |          |      |                  |      |                      |      |                  |   |   |       |   |   |      |       |
| Accounts payable - related parties             | $             | 124,192   |                  |      | $                         | —   |                  |   | $      | —    |   |   | $         | (124,192   | ) |   | $ | —   |   |
| Other current liabilities                      | 30,707        |      |                  | 102,059   |                      |      | —               |   |   | —    |   |   | 132,766   |       |
| Other long-term liabilities                    | 22,786        |      |                  | 69,327    |                      |      | —               |   |   | —    |   |   | 92,113    |       |
| Long-term debt                                 | 515,383       |      |                  | —   |                      |      | —               |   |   | —    |   |   | 515,383   |       |
| Equity                                         | 629,497       |      |                  | 1,277,803 |                      |      | 1,149                 |   |   | (1,278,952 | )      |   | 629,497   |       |
| Total liabilities and equity                   | $             | 1,322,565 |                  |      | $                         | 1,449,189 |                  |   | $      | 1,149      |   |   | $         | (1,403,144 | ) |   | $ | 1,369,759 |   |

|                                                |               |           |                       |           |                           |           |                       |        |        |            |        |        |           |            |   |        |   |           |        |
|------------------------------------------------|---------------|-----------|-----------------------|-----------|---------------------------|-----------|-----------------------|--------|--------|------------|--------|--------|-----------|------------|---|--------|---|-----------|--------|
| Unaudited Condensed Consolidated Balance Sheet |
| December 31, 2009                         |
| ($ in thousands)                               | Parent Issuer |      | Subsidiary Guarantors |      | Non-guarantor investments |      | Consolidating Entries |   | Total  |
|                                           |          |      |                  |      |                      |      |                  |   |   |
| ASSETS:                                        |          |      |                  |      |                      |      |                  |   |   |
| Accounts receivable - related parties          | $             | 87,433    |                  |      | $                         | —   |                  |   | $      | —    |   |   | $         | (87,433    | ) |   | $ | —   |   |
| Assets held for sale                           | —       |      |                  | 135,224   |                      |      | —               |   |   | —    |   |   | 135,224   |       |
| Other current assets                           | 5,171         |      |                  | 90,952    |                      |      | —               |   |   | —    |   |   | 96,123    |       |
| Total property, plant and equipment, net       | 212           |      |                  | 1,155,521 |                      |      | —               |   |   | —    |   |   | 1,155,733 |       |
| Investment in subsidiaries                     | 1,244,384     |      |                  | —   |                      |      | 1,205                 |   |   | (1,245,589 | )      |   | —   |       |
| Total other long-term assets                   | 5,620         |      |                  | 141,628   |                      |      | —               |   |   | —    |   |   | 147,248   |       |
| Total assets                                   | $             | 1,342,820 |                  |      | $                         | 1,523,325 |                  |   | $      | 1,205      |   |   | $         | (1,333,022 | ) |   | $ | 1,534,328 |   |
| LIABILITIES AND EQUITY:                        |          |      |                  |      |                      |      |                  |   |   |       |   |   |      |       |
| Accounts payable - related parties             | $             | —   |                  |      | $                         | 87,433    |                  |   | $      | —    |   |   | $         | (87,433    | ) |   | $ | —   |   |
| Liabilities held for sale                      | —       |      |                  | 150       |                      |      | —               |   |   | —    |   |   | 150       |       |
| Other current liabilities                      | 42,099        |      |                  | 113,933   |                      |      | —               |   |   | —    |   |   | 156,032   |       |
| Other long-term liabilities                    | 15,940        |      |                  | 77,425    |                      |      | —               |   |   | —    |   |   | 93,365    |       |
| Long-term debt                                 | 754,383       |      |                  | —   |                      |      | —               |   |   | —    |   |   | 754,383   |       |
| Equity                                         | 530,398       |      |                  | 1,244,384 |                      |      | 1,205                 |   |   | (1,245,589 | )      |   | 530,398   |       |
| Total liabilities and equity                   | $             | 1,342,820 |                  |      | $                         | 1,523,325 |                  |   | $      | 1,205      |   |   | $         | (1,333,022 | ) |   | $ | 1,534,328 |   |

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Table of Contents

|                                                          |               |         |                       |         |                           |         |                       |        |        |         |        |        |         |         |        |        |   |         |        |
|----------------------------------------------------------|---------------|---------|-----------------------|---------|---------------------------|---------|-----------------------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
| Unaudited Condensed Consolidated Statement of Operations |
| For the three months ended September 30, 2010            |
| ($ in thousands)                                         | Parent Issuer |    | Subsidiary Guarantors |    | Non-guarantor investments |    | Consolidating Entries |   | Total  |
| Total revenues                                           | $             | (9,443  | )                     |    | $                         | 168,453 |                  |   | $      | — |   |   | $       | — |   |   | $ | 159,010 |   |
| Cost of natural gas and natural gas liquids              | —       |    |                  | 111,916 |                      |    | —               |   |   | — |   |   | 111,916 |    |
| Operations and maintenance                               | —       |    |                  | 19,037  |                      |    | —               |   |   | — |   |   | 19,037  |    |
| Taxes other than income                                  | —       |    |                  | 2,613   |                      |    | —               |   |   | — |   |   | 2,613   |    |
| General and administrative                               | 2,050         |    |                  | 8,624   |                      |    | —               |   |   | — |   |   | 10,674  |    |
| Depreciation, depletion, and impairment                  | 44            |    |                  | 29,862  |                      |    | —               |   |   | — |   |   | 29,906  |    |
| Loss from operations                                     | (11,537       | )       |                  | (3,599  | )                         |    | —               |   |   | — |   |   | (15,136 | )       |
| Interest expense, net                                    | (3,016        | )       |                  | — |                      |    | —               |   |   | — |   |   | (3,016  | )       |
| Other non-operating income                               | 2,110         |    |                  | 740     |                      |    | 21                    |   |   | (2,841  | )      |   | 30      |    |
| Other non-operating expense                              | (3,535        | )       |                  | (7,881  | )                         |    | —               |   |   | 2,841   |   |   | (8,575  | )       |
| Income (loss) before income taxes                        | (15,978       | )       |                  | (10,740 | )                         |    | 21                    |   |   | — |   |   | (26,697 | )       |
| Income tax provision                                     | (310          | )       |                  | (926    | )                         |    | —               |   |   | — |   |   | (1,236  | )       |
| Equity in earnings of subsidiaries                       | (9,569        | )       |                  | — |                      |    | —               |   |   | 9,569   |   |   | — |    |
| Income (loss) from continuing operations                 | (25,237       | )       |                  | (9,814  | )                         |    | 21                    |   |   | 9,569   |   |   | (25,461 | )       |
| Discontinued operations                                  | —       |    |                  | 224     |                      |    | —               |   |   | — |   |   | 224     |    |
| Net income (loss)                                        | $             | (25,237 | )                     |    | $                         | (9,590  | )                     |   | $      | 21      |   |   | $       | 9,569   |   |   | $ | (25,237 | )      |

|                                                          |               |         |                       |         |                           |         |                       |        |        |         |        |        |         |         |        |        |   |         |        |
|----------------------------------------------------------|---------------|---------|-----------------------|---------|---------------------------|---------|-----------------------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
| Unaudited Condensed Consolidated Statement of Operations |
| For the three months ended September 30, 2009            |
| ($ in thousands)                                         | Parent Issuer |    | Subsidiary Guarantors |    | Non-guarantor investments |    | Consolidating Entries |   | Total  |
| Total revenues                                           | $             | 1,348   |                  |    | $                         | 158,463 |                  |   | $      | — |   |   | $       | — |   |   | $ | 159,811 |   |
| Cost of natural gas and natural gas liquids              | —       |    |                  | 109,945 |                      |    | —               |   |   | — |   |   | 109,945 |    |
| Operations and maintenance                               | —       |    |                  | 16,934  |                      |    | —               |   |   | — |   |   | 16,934  |    |
| Taxes other than income                                  | —       |    |                  | 2,731   |                      |    | —               |   |   | — |   |   | 2,731   |    |
| General and administrative                               | 163           |    |                  | 10,257  |                      |    | —               |   |   | — |   |   | 10,420  |    |
| Depreciation, depletion, and impairment                  | —       |    |                  | 26,932  |                      |    | —               |   |   | — |   |   | 26,932  |    |
| Income from operations                                   | 1,185         |    |                  | (8,336  | )                         |    | —               |   |   | — |   |   | (7,151  | )       |
| Interest expense, net                                    | (4,315        | )       |                  | — |                      |    | —               |   |   | — |   |   | (4,315  | )       |
| Other non-operating income                               | 1,728         |    |                  | 1,012   |                      |    | 4                     |   |   | (2,194  | )      |   | 550     |    |
| Other non-operating expense                              | (4,245        | )       |                  | (8,564  | )                         |    | —               |   |   | 2,194   |   |   | (10,615 | )       |
| Income (loss) before income taxes                        | (5,647        | )       |                  | (15,888 | )                         |    | 4                     |   |   | — |   |   | (21,531 | )       |
| Income tax provision                                     | 697           |    |                  | 5,105   |                      |    | —               |   |   | — |   |   | 5,802   |    |
| Equity in earnings of subsidiaries                       | (18,927       | )       |                  | — |                      |    | —               |   |   | 18,927  |   |   | — |    |
| Income (loss) from continuing operations                 | (25,271       | )       |                  | (20,993 | )                         |    | 4                     |   |   | 18,927  |   |   | (27,333 | )       |
| Discontinued operations                                  | —       |    |                  | 2,062   |                      |    | —               |   |   | — |   |   | 2,062   |    |
| Net loss                                                 | $             | (25,271 | )                     |    | $                         | (18,931 | )                     |   | $      | 4       |   |   | $       | 18,927  |   |   | $ | (25,271 | )      |

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Table of Contents

|                                                          |               |        |                       |         |                           |         |                       |        |        |         |        |        |         |         |        |        |   |         |        |
|----------------------------------------------------------|---------------|--------|-----------------------|---------|---------------------------|---------|-----------------------|--------|--------|---------|--------|--------|---------|---------|--------|--------|---|---------|--------|
| Unaudited Condensed Consolidated Statement of Operations |
| For the nine months ended September 30, 2010             |
| ($ in thousands)                                         | Parent Issuer |   | Subsidiary Guarantors |    | Non-guarantor investments |    | Consolidating Entries |   | Total  |
| Total revenues                                           | $             | 20,594 |                  |    | $                         | 584,256 |                  |   | $      | — |   |   | $       | — |   |   | $ | 604,850 |   |
| Cost of natural gas and natural gas liquids              | —       |   |                  | 370,120 |                      |    | —               |   |   | — |   |   | 370,120 |    |
| Operations and maintenance                               | —       |   |                  | 58,636  |                      |    | —               |   |   | — |   |   | 58,636  |    |
| Taxes other than income                                  | 2             |   |                  | 8,959   |                      |    | —               |   |   | — |   |   | 8,961   |    |
| General and administrative                               | 7,035         |   |                  | 29,456  |                      |    | —               |   |   | — |   |   | 36,491  |    |
| Depreciation, depletion, and impairment                  | 126           |   |                  | 88,986  |                      |    | —               |   |   | — |   |   | 89,112  |    |
| Income (loss) from operations                            | 13,431        |   |                  | 28,099  |                      |    | —               |   |   | — |   |   | 41,530  |    |
| Interest expense, net                                    | (10,994       | )      |                  | — |                      |    | —               |   |   | — |   |   | (10,994 | )       |
| Other non-operating income                               | 6,163         |   |                  | 1,961   |                      |    | 6                     |   |   | (7,847  | )      |   | 283     |    |
| Other non-operating expense                              | (11,748       | )      |                  | (24,512 | )                         |    | —               |   |   | 7,847   |   |   | (28,413 | )       |
| Loss before income taxes                                 | (3,148        | )      |                  | 5,548   |                      |    | 6                     |   |   | — |   |   | 2,406   |    |
| Income tax provision (benefit)                           | 517           |   |                  | (1,457  | )                         |    | —               |   |   | — |   |   | (940    | )       |
| Equity in earnings of subsidiaries                       | 50,552        |   |                  | — |                      |    | —               |   |   | (50,552 | )      |   | — |    |
| Income from continuing operations                        | 46,887        |   |                  | 7,005   |                      |    | 6                     |   |   | (50,552 | )      |   | 3,346   |    |
| Discontinued operations                                  | —       |   |                  | 43,541  |                      |    | —               |   |   | — |   |   | 43,541  |    |
| Net income                                               | $             | 46,887 |                  |    | $                         | 50,546  |                  |   | $      | 6       |   |   | $       | (50,552 | )      |   | $ | 46,887  |   |

|                                                          |               |          |                       |         |                           |         |                       |        |        |         |        |        |          |         |        |        |   |          |        |
|----------------------------------------------------------|---------------|----------|-----------------------|---------|---------------------------|---------|-----------------------|--------|--------|---------|--------|--------|----------|---------|--------|--------|---|----------|--------|
| Unaudited Condensed Consolidated Statement of Operations |
| For the nine months ended September 30, 2009             |
| ($ in thousands)                                         | Parent Issuer |     | Subsidiary Guarantors |    | Non-guarantor investments |    | Consolidating Entries |   | Total  |
| Total revenues                                           | $             | (24,423  | )                     |    | $                         | 472,688 |                  |   | $      | — |   |   | $        | — |   |   | $ | 448,265  |   |
| Cost of natural gas and natural gas liquids              | —       |     |                  | 358,802 |                      |    | —               |   |   | — |   |   | 358,802  |    |
| Operations and maintenance                               | —       |     |                  | 54,624  |                      |    | —               |   |   | — |   |   | 54,624   |    |
| Taxes other than income                                  | —       |     |                  | 7,818   |                      |    | —               |   |   | — |   |   | 7,818    |    |
| General and administrative                               | 559           |     |                  | 34,240  |                      |    | —               |   |   | — |   |   | 34,799   |    |
| Other                                                    | —       |     |                  | (3,552  | )                         |    | —               |   |   | — |   |   | (3,552   | )       |
| Depreciation, depletion, and impairment                  | —       |     |                  | 81,698  |                      |    | —               |   |   | — |   |   | 81,698   |    |
| Income (loss) from operations                            | (24,982       | )        |                  | (60,942 | )                         |    | —               |   |   | — |   |   | (85,924  | )       |
| Interest expense, net                                    | (17,282       | )        |                  | — |                      |    | —               |   |   | — |   |   | (17,282  | )       |
| Other non-operating income                               | 8,230         |     |                  | 8,928   |                      |    | 85                    |   |   | (6,493  | )      |   | 10,750   |    |
| Other non-operating expense                              | (7,024        | )        |                  | (13,939 | )                         |    | —               |   |   | 6,493   |   |   | (14,470  | )       |
| Loss before income taxes                                 | (41,058       | )        |                  | (65,953 | )                         |    | 85                    |   |   | — |   |   | (106,926 | )       |
| Income tax provision (benefit)                           | 716           |     |                  | 810     |                      |    | —               |   |   | — |   |   | 1,526    |    |
| Equity in earnings of subsidiaries                       | (60,829       | )        |                  | — |                      |    | —               |   |   | 60,829  |   |   | —  |    |
| Loss from continuing operations                          | (102,603      | )        |                  | (66,763 | )                         |    | 85                    |   |   | 60,829  |   |   | (108,452 | )       |
| Discontinued operations                                  | —       |     |                  | 5,849   |                      |    | —               |   |   | — |   |   | 5,849    |    |
| Net loss                                                 | $             | (102,603 | )                     |    | $                         | (60,914 | )                     |   | $      | 85      |   |   | $        | 60,829  |   |   | $ | (102,603 | )      |

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Table of Contents

|                                                           |               |        |                       |         |                           |        |                       |        |        |         |        |        |          |         |        |        |   |        |        |
|-----------------------------------------------------------|---------------|--------|-----------------------|---------|---------------------------|--------|-----------------------|--------|--------|---------|--------|--------|----------|---------|--------|--------|---|--------|--------|
| Condensed Consolidated Statement of Cash Flows            |
| For the nine months ended September 30, 2010              |
| ($ in thousands)                                          | Parent Issuer |   | Subsidiary Guarantors |    | Non-guarantor investments |   | Consolidating Entries |   | Total  |
| Net cash flows provided by (used in) operating activities | $             | 36,746 |                  |    | $                         | 42,145 |                  |   | $      | 54      |   |   | $        | — |   |   | $ | 78,945 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                     |          |   |                  |    |                      |   |                  |   |   |    |   |   |     |    |
| Additions to property, plant and equipment                | (837          | )      |                  | (41,962 | )                         |   | —               |   |   | — |   |   | (42,799  | )       |
| Acquisitions, net of cash acquired                        | —       |   |                  | (4,139  | )                         |   | —               |   |   | — |   |   | (4,139   | )       |
| Purchase of intangible assets                             | —       |   |                  | (1,930  | )                         |   | —               |   |   | — |   |   | (1,930   | )       |
| Investment in partnerships                                | —       |   |                  | — |                      |   | —               |   |   | — |   |   | —  |    |
| Proceeds from sale of asset                               | 171,686       |   |                  | — |                      |   | —               |   |   | — |   |   | 171,686  |    |
| Net cash flows (used in) provided by investing activities | 170,849       |   |                  | (48,031 | )                         |   | —               |   |   | — |   |   | 122,818  |    |
| CASH FLOWS FROM FINANCING ACTIVITIES:                     |          |   |                  |    |                      |   |                  |   |   |    |   |   |     |    |
| Proceeds from long-term debt                              | 37,000        |   |                  | — |                      |   | —               |   |   | — |   |   | 37,000   |    |
| Repayment of long-term debt                               | (276,000      | )      |                  | — |                      |   | —               |   |   | — |   |   | (276,000 | )       |
| Proceeds from derivative contracts                        | —       |   |                  | 1,001   |                      |   | —               |   |   | — |   |   | 1,001    |    |
| Proceeds from Rights Offering                             | 53,893        |   |                  | — |                      |   | —               |   |   | — |   |   | 53,893   |    |
| Deferred transaction fees                                 | (3,015        | )      |                  | — |                      |   | —               |   |   | — |   |   | (3,015   | )       |
| Repurchase of common units                                | (724          | )      |                  | — |                      |   | —               |   |   | — |   |   | (724     | )       |
| Exercise of Warrants                                      | 1,708         |   |                  | — |                      |   | —               |   |   | — |   |   | 1,708    |    |
| Distributions to members and affiliates                   | (5,102        | )      |                  | — |                      |   | —               |   |   | — |   |   | (5,102   | )       |
| Net cash flows (used in) provided by financing activities | (192,240      | )      |                  | 1,001   |                      |   | —               |   |   | — |   |   | (191,239 | )       |
| Net cash flows provided by discontinued operations        | —       |   |                  | 6,792   |                      |   | —               |   |   | — |   |   | 6,792    |    |
| Net increase in cash and cash equivalents                 | 15,355        |   |                  | 1,907   |                      |   | 54                    |   |   | — |   |   | 17,316   |    |
| Cash and cash equivalents at beginning of year            | 4,922         |   |                  | (2,179  | )                         |   | (11                   | )      |   | — |   |   | 2,732    |    |
| Cash and cash equivalents at end of year                  | $             | 20,277 |                  |    | $                         | (272   | )                     |   | $      | 43      |   |   | $        | — |   |   | $ | 20,048 |   |

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|                                                           |               |        |                       |         |                           |        |                       |        |        |         |        |        |          |         |        |        |   |        |        |
|-----------------------------------------------------------|---------------|--------|-----------------------|---------|---------------------------|--------|-----------------------|--------|--------|---------|--------|--------|----------|---------|--------|--------|---|--------|--------|
| Condensed Consolidated Statement of Cash Flows            |
| For the nine months ended September 30, 2009              |
| ($ in thousands)                                          | Parent Issuer |   | Subsidiary Guarantors |    | Non-guarantor investments |   | Consolidating Entries |   | Total  |
| Net cash flows (used in) provided by operating activities | $             | 40,548 |                  |    | $                         | 21,280 |                  |   | $      | — |   |   | $        | — |   |   | $ | 61,828 |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                     |          |   |                  |    |                      |   |                  |   |   |    |   |   |     |    |
| Additions to property, plant and equipment                | (9            | )      |                  | (29,418 | )                         |   | —               |   |   | — |   |   | (29,427  | )       |
| Purchase of intangible assets                             | —       |   |                  | (1,219  | )                         |   | —               |   |   | — |   |   | (1,219   | )       |
| Investment in partnerships                                | —       |   |                  | — |                      |   | —               |   |   | — |   |   | —  |    |
| Proceeds from sale of asset                               | —       |   |                  | 476     |                      |   | —               |   |   | — |   |   | 476      |    |
| Net cash flows used in investing activities               | (9            | )      |                  | (30,161 | )                         |   | —               |   |   | — |   |   | (30,170  | )       |
| CASH FLOWS FROM FINANCING ACTIVITIES:                     |          |   |                  |    |                      |   |                  |   |   |    |   |   |     |    |
| Proceeds from long-term debt                              | 131,000       |   |                  | — |                      |   | —               |   |   | — |   |   | 131,000  |    |
| Repayment of long-term debt                               | (156,000      | )      |                  | — |                      |   | —               |   |   | — |   |   | (156,000 | )       |
| Proceeds from derivative contracts                        | —       |   |                  | 8,330   |                      |   | —               |   |   | — |   |   | 8,330    |    |
| Repurchase of common units                                | (30           | )      |                  | — |                      |   | —               |   |   | — |   |   | (30      | )       |
| Distributions to members and affiliates                   | (34,244       | )      |                  | — |                      |   | —               |   |   | — |   |   | (34,244  | )       |
| Net cash flows provided by (used in) financing activities | (59,274       | )      |                  | 8,330   |                      |   | —               |   |   | — |   |   | (50,944  | )       |
| Net cash flows provided by discontinued operations        | —       |   |                  | 10,538  |                      |   | —               |   |   | — |   |   | 10,538   |    |
| Net (decrease) increase in cash and cash equivalents      | (18,735       | )      |                  | 9,987   |                      |   | —               |   |   | — |   |   | (8,748   | )       |
| Cash and cash equivalents at beginning of year            | 29,272        |   |                  | (11,356 | )                         |   | —               |   |   | — |   |   | 17,916   |    |
| Cash and cash equivalents at end of year                  | $             | 10,537 |                  |    | $                         | (1,369 | )                     |   | $      | — |   |   | $        | — |   |   | $ | 9,168  |   |

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|                                |                                                                                                                                                                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | Midstream Business—gathering, compressing, treating, processing and transporting of natural gas; fractionating and transporting of natural gas liquids (“NGLs”); and the marketing of natural gas, condensate and NGLs; |

|                                |                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|
| •     | Upstream Business—acquiring, developing and producing hydrocarbons in oil and natural gas properties. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | reduced the maximum permitted Senior Secured Leverage Ratio (as such term is defined in our credit agreement) from 4.25 to 1.0 under the current credit agreement to 3.75 to 1.0 (and from 4.75 to 1.0 to 4.25 to 1.0 for specified periods following certain permitted acquisitions). The Senior Secured Leverage Ratio covenant is only relevant if we have unsecured senior or subordinated notes outstanding; |

|                                |                                                                                                                                                                                                                                                                           |
|--------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | obligated us to use $100 million of the proceeds from the sale of our Minerals Business (described above) to make a mandatory prepayment towards our outstanding borrowings under the revolving credit facility, which mandatory prepayment was made on May 25, 2010; and |

|                                |                                                                                                                                                                                                                                                                                                              |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | reduced, upon such mandatory prepayment, our borrowing capacity under the revolving credit facility by the $100 million amount of such mandatory prepayment; however, this did not impact our availability under our revolving credit facility because it is limited by compliance with financial covenants. |

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|                                |                                                                                               |
|--------------------------------|-----------------------------------------------------------------------------------------------|
| •     | Approximately 18.2 MMBtu/d of existing gathered volumes generating mostly fixed fee revenues; |

|                                |                                                                                                                                                                                                                                        |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The ability to provide processing services to existing and future producers on the acquired system through interconnects into Eagle Rock's East Panhandle system, including the newly-installed, Phoenix Plant in Hemphill County; and |

|                                |                                                                                                                                                     |
|--------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | The expansion of Eagle Rock's footprint in the Granite Wash play, particularly into the active, liquids-rich portion of the play in Wheeler County. |

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|                                                                    |                                  |         |                                 |         |        |         |         |        |        |          |        |          |   |         |        |
|--------------------------------------------------------------------|----------------------------------|---------|---------------------------------|---------|--------|---------|---------|--------|--------|----------|--------|----------|---|---------|--------|
|                                                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                                               | 2010                             |    | 2009                            |    | 2010   |    | 2009    |
| REVENUE:                                                           |                             |    |                            |    |   |    |    |
| Natural gas, natural gas liquids, oil, condensate and sulfur sales | $                                | 165,131 |                            |    | $      | 156,779 |    |   | $      | 535,425  |   |     | $ | 468,589 |   |
| Gathering, compression, processing and treating fees               | 12,358                           |    |                            | 11,814  |   |    | 41,732  |   |   | 35,043   |   |
| Unrealized commodity derivative gains (losses)                     | (17,044                          | )       |                            | (26,002 | )      |    | 37,839  |   |   | (127,568 | )      |
| Realized commodity derivative (losses) gains                       | (1,535                           | )       |                            | 17,170  |   |    | (10,031 | )      |   | 70,431   |   |
| Other revenue                                                      | 100                              |    |                            | 50      |   |    | (115    | )      |   | 1,770    |   |
| Total revenue                                                      | 159,010                          |    |                            | 159,811 |   |    | 604,850 |   |   | 448,265  |   |
|                                                               |                             |    |                            |    |   |    |    |   |   |
| COSTS AND EXPENSES:                                                |                             |    |                            |    |   |    |    |   |   |
| Cost of natural gas and natural gas liquids                        | 111,916                          |    |                            | 109,945 |   |    | 370,120 |   |   | 358,802  |   |
| Operations and maintenance                                         | 19,037                           |    |                            | 16,934  |   |    | 58,636  |   |   | 54,624   |   |
| Taxes other than income                                            | 2,613                            |    |                            | 2,731   |   |    | 8,961   |   |   | 7,818    |   |
| General and administrative                                         | 10,674                           |    |                            | 10,420  |   |    | 36,491  |   |   | 34,799   |   |
| Other operating (income) expenses                                  | —                          |    |                            | — |   |    | — |   |   | (3,552   | )      |
| Impairment                                                         | 3,432                            |    |                            | — |   |    | 6,562   |   |   | 242      |   |
| Depreciation, depletion and amortization                           | 26,474                           |    |                            | 26,932  |   |    | 82,550  |   |   | 81,456   |   |
| Total costs and expenses                                           | 174,146                          |    |                            | 166,962 |   |    | 563,320 |   |   | 534,189  |   |
| OPERATING  (LOSS) INCOME                                 | (15,136                          | )       |                            | (7,151  | )      |    | 41,530  |   |   | (85,924  | )      |
| OTHER INCOME (EXPENSE):                                            |                             |    |                            |    |   |    |    |   |   |
| Interest income                                                    | 9                                |    |                            | 10      |   |    | 184     |   |   | 182      |   |
| Other income                                                       | 21                               |    |                            | 540     |   |    | 99      |   |   | 823      |   |
| Interest expense                                                   | (3,016                           | )       |                            | (4,315  | )      |    | (10,994 | )      |   | (17,282  | )      |
| Realized interest rate derivative losses                           | (5,170                           | )       |                            | (5,040  | )      |    | (15,012 | )      |   | (13,669  | )      |
| Unrealized interest rate derivative (losses) gains                 | (3,112                           | )       |                            | (5,308  | )      |    | (12,288 | )      |   | 9,745    |   |
| Other expense                                                      | (293                             | )       |                            | (267    | )      |    | (1,113  | )      |   | (801     | )      |
| Total other income (expense)                                       | (11,561                          | )       |                            | (14,380 | )      |    | (39,124 | )      |   | (21,002  | )      |
| INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES       | (26,697                          | )       |                            | (21,531 | )      |    | 2,406   |   |   | (106,926 | )      |
| INCOME TAX (BENEFIT) PROVISION                                     | (1,236                           | )       |                            | 5,802   |   |    | (940    | )      |   | 1,526    |   |
| INCOME (LOSS) FROM CONTINUING OPERATIONS                           | (25,461                          | )       |                            | (27,333 | )      |    | 3,346   |   |   | (108,452 | )      |
| DISCONTINUED OPERATIONS                                            | 224                              |    |                            | 2,062   |   |    | 43,541  |   |   | 5,849    |   |
| NET INCOME (LOSS)                                                  | $                                | (25,237 | )                               |    | $      | (25,271 | )       |   | 46,887 |     |   | (102,603 | ) |
|                                                               |                             |    |                            |    |   |    |    |   |   |
| ADJUSTED EBITDA (a)                                                | $                                | 33,210  |                            |    | $      | 47,467  |    |   | $      | 96,990   |   |     | $ | 127,423 |   |

|                 |                                                                                                                                                                                                                                                                                                               |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | See “Non-GAAP Financial Measures” and Reconciliation of 'Adjusted EBITDA' to net cash flows provided by operating activities and net loss within Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations for a definition and reconciliation to GAAP.  |

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|                                                            |                                  |        |                                 |            |        |        |            |        |        |            |        |        |   |         |        |
|------------------------------------------------------------|----------------------------------|--------|---------------------------------|------------|--------|--------|------------|--------|--------|------------|--------|--------|---|---------|--------|
|                                                       | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                       | 2010                             |   | 2009                            |       | 2010   |   | 2009       |
| REVENUE:                                                   |                             |   |                            |       |   |   |       |
| Natural gas, natural gas liquids, oil and condensate sales | $                                | 78,905 |                            |       | $      | 67,468 |       |   | $      | 250,593    |   |   | $ | 196,791 |   |
| Gathering and treating services                            | 2,821                            |   |                            | 2,795      |   |   | 8,811      |   |   | 8,209      |   |
| Total revenue                                              | 81,726                           |   |                            | 70,263     |   |   | 259,404    |   |   | 205,000    |   |
|                                                       |                             |   |                            |       |   |   |       |
| Cost of natural gas and natural gas liquids                | 54,783                           |   |                            | 46,540     |   |   | 176,485    |   |   | 147,894    |   |
| Operating costs and expenses:                              |                             |   |                            |       |   |   |       |
| Operations and maintenance                                 | 9,155                            |   |                            | 8,206      |   |   | 25,666     |   |   | 24,407     |   |
| Depreciation, depletion and amortization                   | 11,702                           |   |                            | 11,602     |   |   | 34,931     |   |   | 33,660     |   |
| Total operating costs and expenses                         | 20,857                           |   |                            | 19,808     |   |   | 60,597     |   |   | 58,067     |   |
| Operating income (loss)                                    | $                                | 6,086  |                            |       | $      | 3,915  |       |   | $      | 22,322     |   |   | $ | (961    | )      |
|                                                       |                             |   |                            |       |   |   |       |   |   |
| Capital expenditures                                       | $                                | 12,636 |                            |       | $      | 1,332  |       |   | $      | 23,405     |   |   | $ | 5,042   |   |
| Realized average prices:                                   |                             |   |                            |       |   |   |       |
| Oil and condensate (per Bbl)                               | $                                | 60.82  |                            |       | $      | 65.13  |       |   | $      | 64.81      |   |   | $ | 57.79   |   |
| Natural gas (per MMbtu)                                    | $                                | 3.45   |                            |       | $      | 2.78   |       |   | $      | 3.98       |   |   | $ | 2.98    |   |
| NGLs (per Bbl)                                             | $                                | 40.38  |                            |       | $      | 33.55  |       |   | $      | 44.99      |   |   | $ | 29.33   |   |
| Production volumes:                                        |                             |   |                            |       |   |   |       |
| Gathering volumes (Mcf/d) (a)                              | 123,541                          |   |                            | 134,690    |   |   | 128,201    |   |   | 140,725    |   |
| NGLs (net equity gallons) (b)                              | 8,342,850                        |   |                            | 12,170,309 |   |   | 27,755,253 |   |   | 34,620,772 |   |
| Condensate (net equity gallons) (b)                        | 12,734,275                       |   |                            | 9,938,819  |   |   | 32,766,204 |   |   | 25,944,824 |   |
| Natural gas short position (MMbtu/d) (a)                   | (4,776                           | )      |                            | (4,685     | )      |   | (5,405     | )      |   | (5,524     | )      |

|                 |                                                                                                                                                                                                                                           |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)   | Gathering volumes (Mcf/d) and natural gas short position (MMbtu/d) are calculated by taking the total volume and then dividing by the number of days in the respective period.                                                       |
| (b)   | Installation of additional measurement facilities in January 2010 has improved the measurement of NGLs and condensate volumes, resulting in increased equity condensate volumes and a corresponding decrease in equity NGL volumes.  |

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|                                                            |                                  |        |                                 |           |        |        |            |        |        |            |        |        |   |         |        |
|------------------------------------------------------------|----------------------------------|--------|---------------------------------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|---|---------|--------|
|                                                       | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                       | 2010                             |   | 2009                            |      | 2010   |   | 2009       |
| REVENUE:                                                   |                             |   |                            |      |   |   |       |
| Natural gas, natural gas liquids, oil and condensate sales | $                                | 37,352 |                            |      | $      | 46,253 |       |   | $      | 127,816    |   |   | $ | 134,949 |   |
| Gathering and treating services                            | 8,854                            |   |                            | 7,367     |   |   | 29,532     |   |   | 21,951     |   |
| Total revenue                                              | 46,206                           |   |                            | 53,620    |   |   | 157,348    |   |   | 156,900    |   |
|                                                       |                             |   |                            |      |   |   |       |   |   |
| Cost of natural gas and natural gas liquids                | 33,940                           |   |                            | 39,665    |   |   | 114,622    |   |   | 121,907    |   |
| Operating costs and expenses:                              |                             |   |                            |      |   |   |       |   |   |
| Operations and maintenance                                 | 4,502                            |   |                            | 4,727     |   |   | 12,921     |   |   | 13,887     |   |
| Depreciation, depletion and amortization                   | 4,631                            |   |                            | 4,458     |   |   | 13,171     |   |   | 13,469     |   |
| Total operating costs and expenses                         | 9,133                            |   |                            | 9,185     |   |   | 26,092     |   |   | 27,356     |   |
| Operating income                                           | $                                | 3,133  |                            |      | $      | 4,770  |       |   | $      | 16,634     |   |   | $ | 7,637   |   |
|                                                       |                             |   |                            |      |   |   |       |   |   |
| Capital expenditures                                       | $                                | 1,678  |                            |      | $      | 2,094  |       |   | $      | 7,658      |   |   | $ | 16,172  |   |
| Realized average prices:                                   |                             |   |                            |      |   |   |       |
| Oil and condensate (per Bbl)                               | $                                | 79.15  |                            |      | $      | 65.49  |       |   | $      | 75.91      |   |   | $ | 59.35   |   |
| Natural gas (per MMbtu)                                    | $                                | 4.56   |                            |      | $      | 3.42   |       |   | $      | 5.15       |   |   | $ | 3.74    |   |
| NGLs (per Bbl)                                             | $                                | 31.32  |                            |      | $      | 41.37  |       |   | $      | 34.48      |   |   | $ | 30.63   |   |
| Production volumes:                                        |                             |   |                            |      |   |   |       |
| Gathering volumes (Mcf/d) (a)                              | 205,194                          |   |                            | 236,561   |   |   | 209,724    |   |   | 257,957    |   |
| NGLs (net equity gallons)                                  | 4,856,237                        |   |                            | 5,830,042 |   |   | 13,782,167 |   |   | 14,672,928 |   |
| Condensate (net equity gallons)                            | 397,199                          |   |                            | 218,552   |   |   | 1,220,938  |   |   | 1,603,175  |   |
| Natural gas long position (MMbtu/d) (a)                    | 317                              |   |                            | 2,295     |   |   | 949        |   |   | 2,790      |   |

|     |                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Gathering volumes (Mcf/d) and natural gas long position (MMbtu/d) are calculated by taking the total volume and then dividing by the number of days in the respective period.  |

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|                                                            |                                  |        |                                 |         |        |        |           |        |        |           |        |        |   |        |        |
|------------------------------------------------------------|----------------------------------|--------|---------------------------------|---------|--------|--------|-----------|--------|--------|-----------|--------|--------|---|--------|--------|
|                                                       | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                       | 2010                             |   | 2009                            |    | 2010   |   | 2009      |
| REVENUE:                                                   |                             |   |                            |    |   |   |      |
| Natural gas, natural gas liquids, oil and condensate sales | $                                | 18,613 |                            |    | $      | 17,324 |      |   | $      | 63,915    |   |   | $ | 73,863 |   |
| Gathering and treating services                            | 472                              |   |                            | 1,348   |   |   | 2,570     |   |   | 4,211     |   |
| Other revenue                                              | —                          |   |                            | — |   |   | —   |   |   | 3         |   |
| Total revenue                                              | 19,085                           |   |                            | 18,672  |   |   | 66,485    |   |   | 78,077    |   |
|                                                       |                             |   |                            |    |   |   |      |   |   |      |   |
| Cost of natural gas and natural gas liquids                | 16,555                           |   |                            | 16,842  |   |   | 58,517    |   |   | 71,730    |   |
| Operating costs and expenses:                              |                             |   |                            |    |   |   |      |   |   |      |   |
| Operations and maintenance                                 | 717                              |   |                            | 896     |   |   | 2,667     |   |   | 2,946     |   |
| Impairment                                                 | —                          |   |                            | — |   |   | 3,130     |   |   | —   |   |
| Depreciation, depletion and amortization                   | 1,281                            |   |                            | 1,287   |   |   | 3,960     |   |   | 3,995     |   |
| Total operating costs and expenses                         | 1,998                            |   |                            | 2,183   |   |   | 9,757     |   |   | 6,941     |   |
| Operating income (loss) from continuing operations         | 532                              |   |                            | (353    | )      |   | (1,789    | )      |   | (594      | )      |
| Discontinued Operations                                    | 35                               |   |                            | 26      |   |   | 63        |   |   | 266       |   |
| Operating income (loss)                                    | $                                | 567    |                            |    | $      | (327   | )         |   | $      | (1,726    | )      |   | $ | (328   | )      |
|                                                       |                             |   |                            |    |   |   |      |   |   |
| Capital expenditures                                       | $                                | 5      |                            |    | $      | 27     |      |   | $      | 36        |   |   | $ | 41     |   |
| Realized average prices:                                   |                             |   |                            |    |   |   |      |
| Oil and condensate (per Bbl)                               | $                                | 67.24  |                            |    | $      | 58.06  |      |   | $      | 74.56     |   |   | $ | 45.02  |   |
| Natural gas (per MMbtu)                                    | $                                | 4.45   |                            |    | $      | 3.06   |      |   | $      | 4.60      |   |   | $ | 3.66   |   |
| NGLs (per Bbl)                                             | $                                | 40.81  |                            |    | $      | 30.71  |      |   | $      | 45.09     |   |   | $ | 28.74  |   |
| Production volumes:                                        |                             |   |                            |    |   |   |      |
| Gathering volumes (Mcf/d) (a)                              | 49,842                           |   |                            | 66,680  |   |   | 64,495    |   |   | 85,496    |   |
| NGLs (net equity gallons)                                  | 285,505                          |   |                            | 252,005 |   |   | 904,474   |   |   | 929,452   |   |
| Condensate (net equity gallons)                            | 13,942                           |   |                            | 210,984 |   |   | 1,026,128 |   |   | 1,167,630 |   |
| Natural gas long position (MMbtu/d) (a)                    | 773                              |   |                            | 1,784   |   |   | 995       |   |   | 928       |   |

|     |                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Gathering volumes (Mcf/d) and natural gas long position (MMbtu/d) are calculated by taking the total volume and then dividing by the number of days in the respective period.  |

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|                                                            |                                  |        |                                 |           |        |        |           |        |        |           |        |        |   |        |        |
|------------------------------------------------------------|----------------------------------|--------|---------------------------------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|---|--------|--------|
|                                                       | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                       | 2010                             |   | 2009                            |      | 2010   |   | 2009      |
| REVENUE:                                                   |                             |   |                            |      |   |   |      |
| Natural gas, natural gas liquids, oil and condensate sales | $                                | 7,623  |                            |      | $      | 8,314  |      |   | $      | 23,302    |   |   | $ | 20,380 |   |
| Gathering and treating services                            | 211                              |   |                            | 304       |   |   | 819       |   |   | 672       |   |
| Other revenue                                              | —                          |   |                            | —   |   |   | —   |   |   | 1,616     |   |
| Total revenue                                              | 7,834                            |   |                            | 8,618     |   |   | 24,121    |   |   | 22,668    |   |
|                                                       |                             |   |                            |      |   |   |      |
| Cost of natural gas and natural gas liquids                | 6,638                            |   |                            | 6,898     |   |   | 20,496    |   |   | 17,271    |   |
| Operating costs and expenses:                              |                             |   |                            |      |   |   |      |   |   |
| Operations and maintenance                                 | 354                              |   |                            | 310       |   |   | 1,390     |   |   | 1,386     |   |
| Depreciation, depletion and amortization                   | 1,651                            |   |                            | 1,480     |   |   | 4,821     |   |   | 4,445     |   |
| Total operating costs and expenses                         | 2,005                            |   |                            | 1,790     |   |   | 6,211     |   |   | 5,831     |   |
| Operating loss                                             | $                                | (809   | )                               |      | $      | (70    | )         |   | $      | (2,586    | )      |   | $ | (434   | )      |
|                                                       |                             |   |                            |      |   |   |      |   |   |
| Capital expenditures                                       | $                                | 21     |                            |      | $      | 165    |      |   | $      | 39        |   |   | $ | 306    |   |
| Realized average prices:                                   |                             |   |                            |      |   |   |      |
| NGLs (per Bbl)                                             | $                                | 43.52  |                            |      | $      | 37.70  |      |   | $      | 45.31     |   |   | $ | 31.79  |   |
| Production volumes:                                        |                             |   |                            |      |   |   |      |
| Gathering volumes (Mcf/d) (a)                              | 101,473                          |   |                            | 131,527   |   |   | 100,560   |   |   | 115,591   |   |
| NGLs (net equity gallons)                                  | 1,175,792                        |   |                            | 1,376,512 |   |   | 3,274,364 |   |   | 4,280,670 |   |

|     |                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Gathering volumes (Mcf/d) are calculated by taking the total volume and then dividing by the number of days in the respective period. |

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|                                          |                                             |        |                                 |           |        |         |           |        |        |           |        |        |   |         |        |
|------------------------------------------|---------------------------------------------|--------|---------------------------------|-----------|--------|---------|-----------|--------|--------|-----------|--------|--------|---|---------|--------|
|                                     | Three Months Ended September 30,            |   | Nine Months Ended September 30, |
|                                     | 2010                                        |   | 2009                            |      | 2010   |    | 2009      |
| REVENUE:                                 | ($ in thousands, except prices and volumes) |
| Oil and condensate sales (a)             | $                                           | 14,292 |                            |      | $      | 10,817  |      |   | $      | 37,654    |   |   | $ | 25,373  |   |
| Natural gas sales (b)                    | 2,617                                       |   |                            | 2,221     |   |    | 11,982    |   |   | 7,081     |   |
| Natural gas liquids sales (c)            | 4,231                                       |   |                            | 4,382     |   |    | 15,485    |   |   | 10,152    |   |
| Sulfur sales (d)                         | 1,498                                       |   |                            | —   |   |    | 4,678     |   |   | —   |   |
| Other                                    | 100                                         |   |                            | 50        |   |    | (115      | )      |   | 151       |   |
| Total revenue                            | 22,738                                      |   |                            | 17,470    |   |    | 69,684    |   |   | 42,757    |   |
|                                     |                                        |   |                            |      |   |    |      |   |   |
| Operating costs and expenses:            |                                        |   |                            |      |   |    |      |   |   |
| Operations and maintenance               | 6,922                                       |   |                            | 5,178     |   |    | 24,224    |   |   | 18,311    |   |
| Sulfur disposal costs (e)                | —                                     |   |                            | 348       |   |    | 729       |   |   | 1,505     |   |
| Impairment                               | 3,432                                       |   |                            | —   |   |    | 3,432     |   |   | 242       |   |
| Other operating income                   | —                                     |   |                            | —   |   |    | —   |   |   | (3,552    | )      |
| Depreciation, depletion and amortization | 6,810                                       |   |                            | 7,768     |   |    | 24,433    |   |   | 25,119    |   |
| Total operating costs and expenses       | 17,164                                      |   |                            | 13,294    |   |    | 52,818    |   |   | 41,625    |   |
| Operating income (loss)                  | $                                           | 5,574  |                            |      | $      | 4,176   |      |   | $      | 16,866    |   |   | $ | 1,132   |   |
|                                     |                                        |   |                            |      |   |    |      |   |   |
| Capital expenditures                     | $                                           | 5,235  |                            |      | $      | 2,780   |      |   | $      | 17,628    |   |   | $ | 6,360   |   |
| Realized average prices: (f)             |                                        |   |                            |      |   |    |      |   |   |      |   |
| Oil and condensate (per Bbl)             | $                                           | 60.21  |                            |      | $      | 50.78   |      |   | $      | 60.98     |   |   | $ | 40.79   |   |
| Natural gas (per Mcf)                    | $                                           | 4.30   |                            |      | $      | 3.25    |      |   | $      | 4.54      |   |   | $ | 3.47    |   |
| NGLs (per Bbl)                           | $                                           | 41.92  |                            |      | $      | 34.67   |      |   | $      | 45.70     |   |   | $ | 27.07   |   |
| Sulfur (per Long ton) (e)                | $                                           | 80.54  |                            |      | $      | — |      |   | $      | 75.38     |   |   | $ | — |   |
| Production volumes:                      |                                        |   |                            |      |   |    |      |
| Oil and condensate (Bbl)                 | 212,083                                     |   |                            | 213,351   |   |    | 613,315   |   |   | 628,527   |   |
| Natural gas (Mcf)                        | 778,793                                     |   |                            | 991,827   |   |    | 2,743,883 |   |   | 2,792,316 |   |
| NGLs (Bbl)                               | 102,967                                     |   |                            | 128,379   |   |    | 355,470   |   |   | 375,215   |   |
| Total (Mcfe)                             | 2,669,093                                   |   |                            | 3,042,207 |   |    | 8,556,593 |   |   | 8,814,768 |   |
| Sulfur (per Long ton) (e)                | 17,622                                      |   |                            | 27,634    |   |    | 69,929    |   |   | 96,063    |   |

|                             |                                                                                                                           |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------|
| (a)     | Revenues include a change in the value of product imbalances by $(260) for the nine months ended September 30, 2009. |

|                             |                                                                                                                                                                                        |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b)     | Revenues include a change in the value of product imbalances by $(48), $519, $(780), and $(2,377) for the three and nine months ended September 30, 2010  and 2009, respectively. |

|                             |                                                                                                                                                                                                             |
|-----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c)     | Revenues include a change in the value of product imbalances by $(81), $(81), and $28 for the three and nine ended September 30, 2010 and the nine months ended September 30, 2009, respectively. |

|                             |                                                                                                                                       |
|-----------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
| (d)     | Revenues include a change in the value of product imbalances by $27 for both the three and nine months ended September 30, 2010. |

|                             |                                                                                                                                                                                                                                  |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e)     | During the nine months ended September 30, 2010, an adjustment was made to decrease sulfur volumes by 5,230 long tons related to a prior period.  This adjustment is excluded from the calculation of realized prices. |

|     |                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (f) | Calculation does not include impact of product imbalances.  In addition, volumes and realized price for the three and nine months ended September 30, 2009 and the three months ended March 31, 2010 have been revised from prior period reported amounts due to a reallocation of historical production results based on more accurate well tests of our Alabama properties. |

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|                                                    |                                  |         |                                 |         |        |         |         |        |        |          |        |        |   |          |   |
|----------------------------------------------------|----------------------------------|---------|---------------------------------|---------|--------|---------|---------|--------|--------|----------|--------|--------|---|----------|---|
|                                               | Three Months Ended September 30, |    | Nine Months Ended September 30, |
|                                               | 2010                             |    | 2009                            |    | 2010   |    | 2009    |
| REVENUE:                                           |                             |    |                            |    |   |    |    |
| Unrealized commodity derivative (losses) gains     | $                                | (17,044 | )                               |    | $      | (26,002 | )       |   | $      | 37,839   |   |   | $ | (127,568 | ) |
| Realized commodity derivative (losses) gains       | (1,535                           | )       |                            | 17,170  |   |    | (10,031 | )      |   | 70,431   |   |
| Total revenue                                      | (18,579                          | )       |                            | (8,832  | )      |    | 27,808  |   |   | (57,137  | )      |
| Operating costs and expenses:                      |                             |    |                            |    |   |    |    |
| General and administrative                         | 10,674                           |    |                            | 10,420  |   |    | 36,491  |   |   | 34,799   |   |
| Depreciation, depletion and amortization           | 399                              |    |                            | 337     |   |    | 1,234   |   |   | 768      |   |
| Total operating costs and expenses                 | 11,073                           |    |                            | 10,757  |   |    | 37,725  |   |   | 35,567   |   |
| Operating loss                                     | (29,652                          | )       |                            | (19,589 | )      |    | (9,917  | )      |   | (92,704  | )      |
| Other income (expense):                            |                             |    |                            |    |   |    |    |
| Interest income                                    | 9                                |    |                            | 10      |   |    | 184     |   |   | 182      |   |
| Other income                                       | 21                               |    |                            | 540     |   |    | 99      |   |   | 823      |   |
| Interest expense                                   | (3,016                           | )       |                            | (4,315  | )      |    | (10,994 | )      |   | (17,282  | )      |
| Realized interest rate derivative losses           | (5,170                           | )       |                            | (5,040  | )      |    | (15,012 | )      |   | (13,669  | )      |
| Unrealized interest rate derivative (losses) gains | (3,112                           | )       |                            | (5,308  | )      |    | (12,288 | )      |   | 9,745    |   |
| Other expense                                      | (293                             | )       |                            | (267    | )      |    | (1,113  | )      |   | (801     | )      |
| Total other income (expense)                       | (11,561                          | )       |                            | (14,380 | )      |    | (39,124 | )      |   | (21,002  | )      |
| Loss from continuing operations before taxes       | (41,213                          | )       |                            | (33,969 | )      |    | (49,041 | )      |   | (113,706 | )      |
| Income tax provision (benefit)                     | (1,236                           | )       |                            | 5,802   |   |    | (940    | )      |   | 1,526    |   |
| Loss from continuing operations                    | (39,977                          | )       |                            | (39,771 | )      |    | (48,101 | )      |   | (115,232 | )      |
| Discontinued Operations, net of tax                | 189                              |    |                            | 2,036   |   |    | 43,478  |   |   | 5,583    |   |
| Operating loss                                     | $                                | (39,788 | )                               |    | $      | (37,735 | )       |   | $      | (4,623   | )      |   | $ | (109,649 | ) |

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|                                |                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------|
| •     | provide for the proper conduct of our business, including for future capital expenditures and credit needs; |

|                                |                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------|
| •     | comply with applicable law or any partnership debt instrument or other agreement; or |

|                                |                                                                                                                  |
|--------------------------------|------------------------------------------------------------------------------------------------------------------|
| •     | provide funds for distributions to unitholders and the general partner in respect of any one or more of the next |

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|                                |                                                                                                                                                                                                 |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | cash balances and marketable securities increased overall by $17.3 million primarily due to cash retained in anticipation of funding the Midstream acquisition that closed on October 19, 2010; |

|                                |                                                                                                                                                                                                      |
|--------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | trade accounts receivable decreased by $21.4 million primarily from the impact of slightly lower revenues, increased collection efforts and realized settlement losses on our commodity derivatives; |

|                                |                                                                                                                                                                                                                                                                                                                            |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | risk management net working capital balance increased by a net $23.9 million as a result of changes in current portion of mark-to-market unrealized positions, the adjustment of the strike price of certain derivative instrument (see Hedging Strategy) and the amortization of put premiums and other derivative costs; |

|                                |                                                                                                                                            |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| •     | accounts payable decreased by $7.3 million primarily as a result of activities and timing of payments, including capital expenditures; and |

|                                |                                                                                                                                                                                                                                |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | accrued liabilities increased by $1.3 million primarily reflecting payment of employee benefit accruals, lower interest payments and the timing of payment of unbilled expenditures related primarily to capital expenditures. |

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|                                |                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | growth capital expenditures, which are made to acquire additional assets to increase our business, to expand and upgrade existing systems and facilities or to construct or acquire similar systems or facilities in our Midstream Business (and our Upstream Business with respect to the Big Escambia Plant and other Alabama plants and facilities), or grow our production in our Upstream Business; or |

|                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| •     | maintenance capital expenditures, which are made to replace partially or fully depreciated assets, to meet regulatory requirements, to maintain the existing operating capacity of our assets and extend their useful lives, or to connect wells to maintain existing system volumes and related cash flows in our Midstream Business (and in our Upstream Business with respect to the Big Escambia Plant and other Alabama plants and facilities); in our Upstream Business, maintenance capital also includes capital which is expended to maintain our production in the near future. |

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|                                                                  |                                  |        |                                 |         |        |        |         |        |        |          |        |        |   |         |        |
|------------------------------------------------------------------|----------------------------------|--------|---------------------------------|---------|--------|--------|---------|--------|--------|----------|--------|--------|---|---------|--------|
|                                                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                             | 2010                             |   | 2009                            |    | 2010   |   | 2009    |
| Net cash flows provided by operating activities                  | $                                | 34,727 |                            |    | $      | 40,117 |    |   | $      | 78,945   |   |   | $ | 61,828  |   |
| Add (deduct):                                                    |                             |   |                            |    |   |   |    |   |   |     |   |
| Discontinued operations                                          | 224                              |   |                            | 2,062   |   |   | 43,541  |   |   | 5,849    |   |
| Depreciation, depletion, amortization and impairment             | (29,906                          | )      |                            | (26,932 | )      |   | (89,112 | )      |   | (81,698  | )      |
| Amortization of debt issuance costs                              | (242                             | )      |                            | (267    | )      |   | (1,062  | )      |   | (801     | )      |
| Risk management portfolio value changes                          | (14,225                          | )      |                            | (31,314 | )      |   | 31,482  |   |   | (103,927 | )      |
| Reclassing financing derivative settlements                      | 373                              |   |                            | 1,556   |   |   | 1,001   |   |   | 8,330    |   |
| Other                                                            | (1,498                           | )      |                            | (6,257  | )      |   | (5,705  | )      |   | (2,762   | )      |
| Accounts receivables and other current assets                    | (13,298                          | )      |                            | (10,514 | )      |   | (22,359 | )      |   | (41,049  | )      |
| Accounts payable, due to/from affiliates and accrued liabilities | (1,166                           | )      |                            | 6,711   |   |   | 9,601   |   |   | 50,406   |   |
| Other assets and liabilities                                     | (226                             | )      |                            | (433    | )      |   | 555     |   |   | 1,221    |   |
| Net (loss) income                                                | (25,237                          | )      |                            | (25,271 | )      |   | 46,887  |   |   | (102,603 | )      |
| Add (deduct):                                                    |                             |   |                            |    |   |   |    |   |   |     |   |
| Interest expense, net                                            | 8,470                            |   |                            | 9,612   |   |   | 26,935  |   |   | 31,570   |   |
| Depreciation, depletion, amortization and impairment             | 29,906                           |   |                            | 26,932  |   |   | 89,112  |   |   | 81,698   |   |
| Income tax (benefit) provision                                   | (1,236                           | )      |                            | 5,802   |   |   | (940    | )      |   | 1,526    |   |
| EBITDA                                                           | 11,903                           |   |                            | 17,075  |   |   | 161,994 |   |   | 12,191   |   |
| Add (deduct):                                                    |                             |   |                            |    |   |   |    |   |   |     |   |
| Risk management portfolio value changes                          | 20,156                           |   |                            | 31,310  |   |   | (25,551 | )      |   | 117,823  |   |
| Restricted unit compensation expense                             | 1,294                            |   |                            | 904     |   |   | 4,652   |   |   | 5,024    |   |
| Non-cash mark-to-market Upstream imbalances                      | 102                              |   |                            | 780     |   |   | (465    | )      |   | 2,609    |   |
| Discontinued operations                                          | (224                             | )      |                            | (2,062  | )      |   | (43,541 | )      |   | (5,849   | )      |
| Other income                                                     | (21                              | )      |                            | (540    | )      |   | (99     | )      |   | (823     | )      |
| Other operating income                                           | —                          |   |                            | — |   |   | — |   |   | (3,552   | )      |
| ADJUSTED EBITDA                                                  | $                                | 33,210 |                            |    | $      | 47,467 |    |   | $      | 96,990   |   |   | $ | 127,423 |   |
|                                                             |                             |   |                            |    |   |   |    |   |   |
|                                                             | Three Months Ended September 30, |   | Nine Months Ended September 30, |
|                                                             | 2010                             |   | 2009                            |    | 2010   |   | 2009    |
| Amortization of commodity derivative costs                       | $                                | 437    |                            |    | $      | 10,590 |    |   | $      | 3,515    |   |   | $ | 33,886  |   |

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|                                         |        |                                 |        |                             |         |                                                                                      |        |                                                                                                             |         |        |         |         |        |
|-----------------------------------------|--------|---------------------------------|--------|-----------------------------|---------|--------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------|---------|--------|---------|---------|--------|
| Period                                  |   | Total Number of Units Purchased |   | Average Price Paid Per Unit |    | Total Number of Units Purchased as Part of Publicly Announced Plans or Programs |   | Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs |
| July 1, 2010 to July 31, 2010           |   | 84,086                          |   |                        | $       | 6.10                                                                                 |   |                                                                                                        | — |   |    | — |   |
| August 1, 2010 to August 31, 2010       |   | —                         |   |                        | — |                                                                                 |   | —                                                                                                     |    |   | — |    |
| September 1, 2010 to September 30, 2010 |   | —                         |   |                        | — |                                                                                 |   | —                                                                                                     |    |   | — |    |
| Total                                   |   | 84,086                          |   |                        | $       | 6.10                                                                                 |   |                                                                                                        | — |   |    | — |   |

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|        |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| 4.1    |   | Amendment No. 1 to the Second Amended and Restated Agreement of Limited Partnership of Eagle Rock Energy Partners, L.P. dated as of July 27, 2010 (incorporated by reference to Exhibit 4.1 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2    |   | Third Amended and Restated Limited Liability Company Agreement of Eagle Rock Energy G&P, LLC, dated as of July 30, 2010 (incorporated by reference to Exhibit 4.2 of the registrant's current report on Form 8-K filed with the commission on July 30, 2010).                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Executive Change of Control Agreement Policy (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on July 28, 2010).                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2   |   | Form of Executive Change of Control Agreement (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed with the Commission on July 28, 2010).                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.3   |   | Administrative Services Agreement, dated as of July 30, 2010, between Eagle Rock Energy Partners, L.P. and Eagle Rock Energy G&P, LLC (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.4   |   | Form of Supplemental Indemnification Agreement between Eagle Rock Energy G&P, LLC, Eagle Rock Energy GP, L.P., Eagle Rock Energy Partners, L.P. and the officers and directors of Eagle Rock Energy G&P, LLC (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010, which was incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on December 30, 2009). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.5   |   | Form of Restricted Unit Agreement for Non-Employee Directors under the Eagle Rock Energy Partners Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.6   |   | Amended and Restated Eagle Rock Energy Partners Long-Term Incentive Plan effective September 17, 2010 (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on September 17, 2010).                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.7   |   | Form of Restricted Unit Agreement for Officers under the Eagle Rock Energy Partners Long-Term Incentive Plan(incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on September 30, 2010).                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.1   |   | Certification by Joseph A. Mills pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2   |   | Certification by Jeffrey P. Wood pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1   |   | Certification by Joseph A. Mills pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.2   |   | Certification by Jeffrey P. Wood pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                         |

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|                        |                                  |                                                     |
|------------------------|----------------------------------|-----------------------------------------------------|
|                   |                             |                                                |
| Date: November 5, 2010 | EAGLE ROCK ENERGY PARTNERS, L.P. |
|                   |                             |                                                |
|                   | By:                              | EAGLE ROCK ENERGY GP, L.P., its general partner     |
|                   |                             |                                                |
|                   | By:                              | EAGLE ROCK ENERGY G&P, LLC, its general partner |
|                   |                             |                                                |
|                   | By:                              | /s/ Jeffrey P. Wood                                 |
|                   |                             | Jeffrey P. Wood                                     |
|                   |                             | Senior Vice President,                              |
|                   |                             | Chief Financial Officer and Treasurer of Eagle Rock |
|                   |                             | Energy G&P, LLC, General Partner of Eagle Rock  |
|                   |                             | Energy GP, L.P., General Partner of Eagle Rock      |
|                   |                             | Energy Partners, L.P.                               |

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Table of Contents

|        |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--|
| 4.1    |   | Amendment No. 1 to the Second Amended and Restated Agreement of Limited Partnership of Eagle Rock Energy Partners, L.P. dated as of July 27, 2010 (incorporated by reference to Exhibit 4.1 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 4.2    |   | Third Amended and Restated Limited Liability Company Agreement of Eagle Rock Energy G&P, LLC, dated as of July 30, 2010 (incorporated by reference to Exhibit 4.2 of the registrant's current report on Form 8-K filed with the commission on July 30, 2010).                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1   |   | Executive Change of Control Agreement Policy (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on July 28, 2010).                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2   |   | Form of Executive Change of Control Agreement (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed with the Commission on July 28, 2010).                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.3   |   | Administrative Services Agreement, dated as of July 30, 2010, between Eagle Rock Energy Partners, L.P. and Eagle Rock Energy G&P, LLC (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.4   |   | Form of Supplemental Indemnification Agreement between Eagle Rock Energy G&P, LLC, Eagle Rock Energy GP, L.P., Eagle Rock Energy Partners, L.P. and the officers and directors of Eagle Rock Energy G&P, LLC (incorporated by reference to Exhibit 10.2 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010, which was incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on December 30, 2009). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.5   |   | Form of Restricted Unit Agreement for Non-Employee Directors under the Eagle Rock Energy Partners Long-Term Incentive Plan (incorporated by reference to Exhibit 10.3 of the registrant's current report on Form 8-K filed with the Commission on July 30, 2010).                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.6   |   | Amended and Restated Eagle Rock Energy Partners Long-Term Incentive Plan effective September 17, 2010 (incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on September 17, 2010).                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.7   |   | Form of Restricted Unit Agreement for Officers under the Eagle Rock Energy Partners Long-Term Incentive Plan(incorporated by reference to Exhibit 10.1 of the registrant's current report on Form 8-K filed with the Commission on September 30, 2010).                                                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.1   |   | Certification by Joseph A. Mills pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 31.2   |   | Certification by Jeffrey P. Wood pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.1   |   | Certification by Joseph A. Mills pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 32.2   |   | Certification by Jeffrey P. Wood pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and 18 U.S.C. Section 1350.                                                                                                                                                                                                                                                                                                                                                                                         |