Investment Conclusion EROC posted another quarter of better than expected results driven by favorable commodity prices. On the other hand, leverage ratio and liquidity position were worse than expected. Leverage ratio reached 4.75x vs 5.0x covenant limit. EROC had $45 mm of liquidity at the end of Q3 including $35 mm available from its revolver capacity. While we are concerned with leverage and liquidity going forward, we believe a timely completion of asset sales/recapitalization transaction will allow EROC to immediately fix its balance sheet and grow distribution from its current levels of $0.10/year. We are maintaining our distribution estimates based on our assumption that recapitalization and asset sales transaction completes by early 2010. Summary EROC reported EBITDA of $51.3 mm and DCF of $36.6 mm above guidance. Midstream EBITDA rose 27% QoQ despite 4.8% of volume decline, due to strong commodity price improvement. Made progress on debt paydown reaching $30 mm in Q3 and $63 mm since Q1. We maintain PT of $6 based on distribution assumption of $0.57/$0.85 (assuming 1.3x coverage) in 2010/2011 and target yield of 12%.