Vanguard Completes Gas, Liquid Deal

Vanguard Completes Gas, Liquid Deal

Company Acquires Natural Gas and Liquid Assets from Bill Barrett Corp. for $328.8 Million

January 10, 2013
Manufacturing Group

Vanguard Natural Resources LLC officials announce that the company completed the acquisition of natural gas and liquids assets from Bill Barrett Corp. for an adjusted purchase price of $328.8 million on Dec. 31.

Executives expect the following significant benefits from the acquisition:

  • Immediately accretive to distributable cash flow
  • Company estimated proved reserve 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. The company has borrowings under its reserve-based credit facility of $700 million which leaves approximately $500 million of undrawn capacity.