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

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Vanguard Natural Resources (NASDAQ: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...

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