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.