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Vanguard Natural Resources announce closing of natural gas and liquids properties in Colorado and Wyoming and increased borrowing base

Friday, Jan 04, 2013

Vanguard Natural Resources, LLC (NYSE: VNR) (“Vanguard” or “the Company”) today announced that on December 31, 2012 it consummated the previously announced acquisition of natural gas and liquids assets from Bill Barrett Corporation for an adjusted purchase price of $328.8 million, subject to customary final post-closing adjustments. The effective date of the acquisition is October 1, 2012.

The Company expects the following significant benefits from the acquisition:

Immediately accretive to distributable cash flow;

Company estimated proved reserves of approximately 300 Bcfe (80% proved developed and 86% natural gas);

Reserve to production ratio of approximately 13 years;

Current net production of approximately 65 MMcfe/d (86% natural gas) from 2,822 gross wells

Significantly hedged the expected natural gas and oil production for the next four years

The Company funded this acquisition with borrowings under its existing reserve-based credit facility. As anticipated, Vanguard’s borrowing base was increased from $960 million to $1.2 billion in connection with an interim borrowing base redetermination to include the properties from this acquisition. As of December 31, 2012 and pro forma for the borrowing base increase and financing for this acquisition, the Company has borrowings under its reserve-based credit facility of $700 million which leaves approximately $500 million of undrawn capacity.

Source: Business Wire

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