Attached files
| file | filename |
|---|---|
| 8-K - Vanguard Natural Resources, Inc. | form8-k.htm |
| EX-99.1 - PRESS RELEASE DATED NOVEMBER 30, 2009 - Vanguard Natural Resources, Inc. | exhibit99-1.htm |
| EX-10.2 - EXHIBIT 10.2 - Vanguard Natural Resources, Inc. | exhibit10-2.htm |
| EX-10.1 - EXHIBIT 10.1 - Vanguard Natural Resources, Inc. | exhibit10-1.htm |
| EX-10.3 - EXHIBIT 10.3 - Vanguard Natural Resources, Inc. | exhibit10-3.htm |
Exhibit
99.2
Vanguard
Natural Resources Announces Closing
of Permian Basin Acquisition
Houston, December 4, 2009 –
Vanguard Natural Resources, LLC (NYSE: VNR) (“Vanguard” or “Company”) today
announced that on December 2, 2009 it closed its previously announced
acquisition of certain producing oil and natural gas properties in the Permian
Basin from a private seller. After preliminary purchase price
adjustments based on an effective date of October 1, 2009, Vanguard paid $55
million in cash. The purchase price was funded from borrowings under
our reserve-based credit facility. In conjunction with this
acquisition, the Company requested that lenders under our reserve-based credit
facility perform an interim borrowing base redetermination. Pursuant
to this interim redetermination, our borrowing base was increased from $170
million to $195 million.
The
acquired properties have total estimated proved reserves of 3.2 million barrels
of oil equivalent as of October 1, 2009, of which 83% is oil and 65% is proved
developed. Vanguard will operate all but one of the wells acquired in this
transaction which are located in Ward County, Texas. Based on the current net
daily production of approximately 780 Boepd, the properties have a reserve to
production ratio of approximately 11 years.
Mr. Scott
W. Smith, President and CEO of Vanguard commented, “With the closing of this
acquisition we will have increased our current total production by approximately
20% and increased our oil reserves by 74%. After consideration of the oil hedges
that we have put in place through 2013, these assets will be a meaningful
contributor to our cash flows for years to come.”
In an
effort to support stable cash flows from this transaction, Vanguard entered into
crude oil swaps based on NYMEX pricing for approximately 90% of the estimated
oil production from existing producing wells in the acquired properties for the
period beginning January 2010 through December 2013. A schedule
of the oil hedges entered into is shown below:
Hedging Schedule
|
Swaps
|
|||||
|
Contract
Period
|
Volume
(Bbls)
|
Price(1)
|
|||
|
January
1, 2010 - December 31, 2010
|
146,000
|
$
|
86.24
|
||
|
January
1, 2011 - December 31, 2011
|
109,500
|
$
|
86.99
|
||
|
January
1, 2012 - December 31, 2012
|
91,500
|
$
|
87.18
|
||
|
January
1, 2013 - December 31, 2013
|
73,000
|
$
|
87.43
|
||
(1) Weighted
Average NYMEX Fixed Price.
In
addition to the NYMEX oil price swaps entered into above, the Company recently
entered into the following additional NYMEX oil derivative contracts to support
the cash flow to be received on its oil production in other areas:
|
Swaps
|
|||||
|
Contract
Period
|
Volume
(Bbls)
|
Price
|
|||
|
January
1, 2012 - December 31, 2012
|
45,750
|
$
|
90.02
|
||
|
January
1, 2013 - December 31, 2013
|
45,625
|
$
|
90.02
|
||
|
Collars
|
||||||||||||
|
Contract Period
|
Volume
(Bbls)
|
Floor
|
Ceiling
|
|||||||||
|
January
1, 2012 - December 31, 2012
|
45,750 | $ | 80.00 | $ | 100.25 | |||||||
|
January
1, 2013 - December 31, 2013
|
45,625 | $ | 80.00 | $ | 100.25 | |||||||
About
Vanguard Natural Resources, LLC
Vanguard
Natural Resources, LLC is a publicly traded limited liability company focused on
the acquisition, production and development of natural gas and oil properties.
The Company's assets consist primarily of producing and non-producing natural
gas and oil reserves located in the southern portion of the Appalachian Basin,
the Permian Basin, and South Texas. More information on the Company can be found
at www.vnrllc.com.
Forward-Looking
Statements
This
press release includes "forward-looking statements" within the meaning of the
federal securities laws. All statements, other than statements of historical
facts, included in this press release that address activities, events or
developments that the Company expects, believes or anticipates will or may occur
in the future are forward-looking statements. These statements include but are
not limited to statements about the acquisition announced in this press release.
These statements are based on certain assumptions made by the Company based on
management's experience and perception of historical trends, current conditions,
anticipated future developments and other factors believed to be appropriate.
Such statements are subject to a number of assumptions, risks and uncertainties,
many of which are beyond the control of the Company, which may cause actual
results to differ materially from those implied or expressed by the
forward-looking statements. These include risks relating to financial
performance and results, availability of sufficient cash flow to pay
distributions and execute our business plan, prices and demand for oil, natural
gas and natural gas liquids, our ability to replace reserves and efficiently
develop our current reserves and other important factors that could cause actual
results to differ materially from those projected as described in the Company's
reports filed with the Securities and Exchange Commission. Please see "Risk
Factors" in the Company's public filings.
Any
forward-looking statement speaks only as of the date on which such statement is
made and the Company undertakes no obligation to publicly correct or update any
forward-looking statement, whether as a result of new information, future events
or otherwise.
CONTACT:
Vanguard Natural Resources, LLC
Investor
Relations
Lisa
Godfrey 832-327-2239
investorrelations@vnrllc.com