Vanguard Natural Resources, LLC Announces Closing of Properties in North Louisiana and East Texas
September 02 2014 - 7:02AM
Business Wire
Vanguard Natural Resources, LLC (NASDAQ: VNR) (“Vanguard” or
“the Company”) today announced that on August 29, 2014 it
consummated the previously announced acquisition of natural gas,
oil and natural gas liquids assets in North Louisiana and East
Texas for an adjusted purchase price of $274.7 million, subject to
customary final post-closing adjustments. The effective date of the
acquisition is June 1, 2014.
Significant benefits expected from the acquisition:
- Immediately accretive to distributable
cash flow at closing;
- Estimated reserve life of over 23 years
based on internally estimated proved reserves of approximately 150
Bcfe;
- Working interest in more than 290
producing wells and 78 proved undeveloped vertical drilling
locations;
- Proved developed production average
decline rate of approximately 10%;
- LOE costs forecasted to average
approximately $1.00 per Mcfe over the next 3 years and production
taxes forecasted at 7.75% of revenue;
- Forecasted natural gas realization of
115% of NYMEX Henry Hub, oil differential of $(2.50) per Bbl off of
WTI and an average NGL realization of 55% of WTI.
The Company funded this acquisition with borrowings under its
existing reserve-based credit facility and proceeds from sales of
common and preferred units under its ATM program. As of August 31,
2014 and pro forma for the financing for this acquisition, the
Company has borrowings under its reserved based credit facility of
$950 million which leaves approximately $575 million of undrawn
capacity before consideration of the expected borrowing base
increase related to this acquisition.
About Vanguard Natural Resources, LLC
Vanguard Natural Resources, LLC is a publicly traded limited
liability company focused on the acquisition, production and
development of oil and natural gas properties. The Company's assets
consist primarily of producing and non-producing oil and natural
gas reserves located in the Green River Basin in Southwestern
Wyoming, the Permian Basin in West Texas and New Mexico, the
Ark-LA-Tex Area in Northern Louisiana and East Texas, the Big Horn
Basin in Wyoming and Montana, the Arkoma Basin in Arkansas and
Oklahoma, the Piceance Basin in Colorado, the Powder River and Wind
River Basin in Wyoming, the Williston Basin in North Dakota and
Montana, Mississippi and South Texas. More information on Vanguard
can be found at www.vnrllc.com.
Forward-Looking Statements
We make statements in this news release that are considered
forward-looking statements within the meaning of the Securities
Exchange Act of 1934. These forward-looking statements are largely
based on our expectations, which reflect estimates and assumptions
made by our management. These estimates and assumptions reflect our
best judgment based on currently known market conditions and other
factors. Although we believe such estimates and assumptions to be
reasonable, they are inherently uncertain and involve a number of
risks and uncertainties that are beyond our control. In addition,
management's assumptions about future events may prove to be
inaccurate. Management cautions all readers that the
forward-looking statements contained in this news release are not
guarantees of future performance, and we cannot assure you that
such statements will be realized or the forward-looking events and
circumstances will occur. Actual results may differ materially from
those anticipated or implied in the forward-looking statements due
to factors listed in the "Risk Factors" section in our SEC filings
and elsewhere in those filings. All forward-looking statements
speak only as of the date of this news release. We do not intend to
publicly update or revise any forward-looking statements as a
result of new information, future events or otherwise.
Vanguard Natural Resources, LLCLisa Godfrey,
832-327-2234Director, Investor
Relationsinvestorrelations@vnrllc.com