Analyzing Eagle Rock Energy Partners (EROC) and CNX Midstream Partners (CNXM)

Eagle Rock Energy Partners (NASDAQ: EROC) and CNX Midstream Partners (NYSE:CNXM) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.

Dividends

CNX Midstream Partners pays an annual dividend of $1.25 per share and has a dividend yield of 6.6%. Eagle Rock Energy Partners does not pay a dividend. CNX Midstream Partners pays out 72.7% of its earnings in the form of a dividend.

Profitability

This table compares Eagle Rock Energy Partners and CNX Midstream Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Eagle Rock Energy Partners -107.85% -31.24% -15.37%
CNX Midstream Partners 48.53% 15.38% 12.36%

Analyst Ratings

This is a summary of current ratings and recommmendations for Eagle Rock Energy Partners and CNX Midstream Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Eagle Rock Energy Partners 0 0 0 0 N/A
CNX Midstream Partners 0 4 5 0 2.56

CNX Midstream Partners has a consensus price target of $22.43, indicating a potential upside of 18.67%.

Insider & Institutional Ownership

37.0% of CNX Midstream Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Eagle Rock Energy Partners and CNX Midstream Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Eagle Rock Energy Partners N/A N/A N/A ($2.64) N/A
CNX Midstream Partners $233.85 million 7.50 $114.99 million $1.72 10.99

CNX Midstream Partners has higher revenue and earnings than Eagle Rock Energy Partners. Eagle Rock Energy Partners is trading at a lower price-to-earnings ratio than CNX Midstream Partners, indicating that it is currently the more affordable of the two stocks.

Summary

CNX Midstream Partners beats Eagle Rock Energy Partners on 8 of the 9 factors compared between the two stocks.

About Eagle Rock Energy Partners

Eagle Rock Energy Partners, L.P. is a limited partnership engaged in developing and producing oil and natural gas properties. The Company’s interests include operated and non-operated wells located in four oil and gas producing regions: The Mid-Continent region consists of operated and non-operated properties in the Golden Trend field, Cana (Woodford) shale play, Verden field and other fields located in the Anadarko Basin of western Oklahoma, the Mansfield field and other fields in the Arkoma Basin of Arkansas and Oklahoma, and various fields in the Texas Panhandle; The Alabama region includes the Big Escambia Creek, Flomaton and Fanny Church fields located in Escambia County, Alabama; The Permian region contains various fields, including Ward South and Ward-Estes North located in Ward, Pecos and Crane Counties, Texas, and East Texas/South Texas/Mississippi. These working interest properties included over 561 gross operated productive wells and over 1,217 gross non-operated wells.

About CNX Midstream Partners

CNX Midstream Partners LP, formerly CONE Midstream Partners LP, is a master limited partnership formed by CONSOL Energy Inc. (CONSOL) and Noble Energy, Inc. (Noble Energy). The Company owns, operates, develops and acquires natural gas gathering and other midstream energy assets to service CONSOL’s and Noble Energy’s production in the Marcellus Shale in Pennsylvania and West Virginia. Its assets include natural gas gathering pipelines and compression and dehydration facilities, as well as condensate gathering, collection, separation and stabilization facilities. It operates through three segments: Anchor Systems, Growth Systems and Additional Systems. Its Anchor Systems include developed midstream systems, including its three midstream systems (the McQuay System, the Majorsville System and the Mamont System) and related assets. Its Growth Systems are located in the dry gas regions of its dedicated acreage.

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