Vanguard Natural Resources, LLC Announces Closing of Natural Gas & Liquids Properties in the Piceance Basin in Colorado & Inc...
October 01 2014 - 7:15AM
Business Wire
Vanguard Natural Resources, LLC (NASDAQ:VNR) (“Vanguard” or “the
Company”) today announced that on September 30, 2014 it consummated
the previously announced acquisition of natural gas and liquids
assets in the Piceance Basin in Colorado from Bill Barrett
Corporation for an adjusted purchase price of $508.7 million,
subject to customary final post-closing adjustments. The effective
date of the acquisition is July 1, 2014. The debt financing for the
acquisition will be included in the Company’s September 30, 2014
balance sheet; however, the beneficial impact of the acquisition
will not be reflected in the Company’s results of operations until
the fourth quarter of 2014.
Highlights of the acquisition include:
- Immediately accretive to distributable
cash flow at closing;
- Estimated reserve life of approximately
16 years based on internally estimated proved reserves of
approximately 389 Bcfe (79% proved developed and 77% natural
gas);
- Current net production of approximately
67 MMcfe/d (after consideration of ethane rejection);
- An average working interest of 78% in
approximately 950 producing wells, 119 recompletion projects and 94
proved undeveloped vertical drilling locations;
- Projected proved developed production
three-year average annual decline rate of approximately 11%;
- LOE costs forecasted to average
approximately $0.80 per Mcfe over the next three years and
production and ad valorem taxes forecasted at 5% of revenue;
- Forecasted natural gas realization of
80% of NYMEX Henry Hub, oil differential of $(12.00) per Bbl off of
WTI and an average NGL realization of 47% of WTI (after
consideration of ethane rejection); and
- Vanguard has hedged a portion of the
natural gas, oil and NGL production through 2017 and intends to
continue to opportunistically hedge the remaining expected
production for 2015 through 2017.
The Company funded this acquisition with borrowings under its
existing reserve-based credit facility. As anticipated, Vanguard’s
borrowing base was increased from $1.525 billion to $2.0 billion in
connection with a borrowing base redetermination to include the
properties from this acquisition and the recently acquired assets
in North Louisiana and East Texas. As of September 30, 2014,
Vanguard has more than $620 million in liquidity to continue its
growth through acquisitions strategy.
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. Vanguard's assets
consist primarily of producing and non-producing oil and natural
gas reserves located in the Green River Basin in Wyoming, the
Arkoma Basin in Arkansas and Oklahoma, the Permian Basin in West
Texas and New Mexico, the Big Horn Basin in Wyoming and Montana,
the Piceance Basin in Colorado, the Gulf Coast Basin in Texas,
Louisiana and Mississippi, the Williston Basin in North Dakota and
Montana, the Wind River Basin in Wyoming and the Powder River Basin
in Wyoming. 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 of Investor
Relationsinvestorrelations@vnrllc.com