Eagle Rock Energy Partners, L.P. (NASDAQ: EROC) reported its fourth-quarter and full-year results after the closing bell. The company reported Adjusted EBITDA of $57.4 million, which was 10% less than the third-quarter of this year. Severe winter weather affected both of the company's businesses, causing adjusted EBITDA to drop by about $4.6 million. On top of that, the company realized lower crude oil and condensate prices, both of which had a negative impact on the company's results this quarter.

Those impacts caused the company's distributable cash flow to drop as well. For the fourth quarter, Eagle Rock Energy Partners' distributable cash flow was $18.5 million, which is down from the $25.6 million the company reported just last quarter. In addition to those adjusted results, the company reported a net loss of $168.9 million on the quarter, which was primarily related to impairment charges the company took in its upstream business on positions in the Cana Shale.

Because of its pending agreement to contribute its midstream business to Regency Energy Partners, L.P. (NYSE: RGP), the focus of investors going forward needs to be on the company's upstream oil and gas operations. Those operations, however, experienced a rough fourth quarter, as impacts from the weather as well as lower commodity prices pushed operating income lower by 27% over the third quarter. However, the company was able to keep volumes steady despite the weather.

Looking ahead, the deal with Regency Energy Partners will really provide Eagle Rock Energy Partners with some breathing room on its balance sheet. The company expects to reduce its net debt by more than $1 billion. That financial flexibility will allow the company to invest in upstream oil and gas business, which over time should deliver growth in the company's distributable cash flow.