EAGLE ROCK LEADS THE WAY!

Premarket trading this morning has Eagle Rock Energy Partners (EROC) up at 8 bucks which is 1.68 above yesterday's close. And why not. In case you missed it the company after the close yesterday announced it was unwinding some hedges which will substantially increase cash flow.

The company also says it expects a challenging first half and an improving second half. And it also says the distribution is safe and above the minimums to satisfy covenants. Great news for Rock unit holders. It brings the yield down under 20% assuming we trade over 7 bucks today. Does it perhaps bring more confidence into the group? Sure hope so. Do note that mlp average performance continues to outperform the rest of the market. That has been the case since the end of December. Now some of that could still be year end/new year action. But as each day passes that measure of outperformance becomes more and more relevant to our little group longer term.

This morning stock futures are lower again as we are on 5 down days in a row for the overall market (not mlps). Energy futures are higher but off the highs of the morning. Inventory numbers due out this morning with oil at 38 bucks. Could be short covering ahead of numbers. Last week energy sold off sharply after the inventory numbers.

Okay so we have a shakey market open but some distribution news which is good. Would that other mlps could step up to the plate here and get the news out. At least we'll know. But we'll know soon enough as the round of announcements will come by months end anyway. Retail sales numbers just out which are horrible so its a down open on the overall market and we'll see where it takes us.