Albert Alfonso
Dividend investing, dividend growth investing, master limited partnerships, oil & gas

Vanguard Natural Resources: An 8.3% Yield With Significant Upside Potential

Executive summary:

  • VNR will see major accretion to DCF as a result of the added Wyoming production
  • The company was able to greatly expand into natural gas at a time when prices were depressed
  • Natural gas prices have soared 30% since then
  • VNR is very likely to be in a position to increase its distribution short to medium term


Vanguard Natural Resources (NYSE:VNR) really got lucky with the timing of its recent acquisition. On December 30, the company announced a $581M acquisition of mostly natural gas properties in Southwestern Wyoming. At the time, natural gas prices were slightly above $4.00 per MCF. However, over the past few months, natural gas prices have soared, increasing 30% to $5.50...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details