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Vanguard Natural Resources, LLC (NASDAQ:VNR)

Q2 2014 Earnings Conference Call

August 5, 2014 11:00 AM ET

Executives

Lisa Godfrey - Director, IR

Scott Smith - President and CEO

Richard Robert - EVP and CFO

Analysts

Kevin Smith - Raymond James

John Ragozzino - RBC Capital Markets

Ethan Bellamy - Baird

Robert Balsamo - UBS

Operator

Good day. And welcome to the Vanguard Natural Resources’ Second Quarter Earnings Conference Call. Today’s call is been recorded. At this time, I'd like to turn the conference over to Lisa Godfrey, Director of Investor Relations. Please go ahead.

Lisa Godfrey

Thank you. Good morning, everyone and welcome to the Vanguard Natural Resources second quarter 2014 earnings conference call. We appreciate you joining us today. On the call this morning are Scott Smith, our President and Chief Executive Officer; Richard Robert, our Executive Vice President and Chief Financial Officer, and Britt Pence, our Executive Vice President of Operations.

If you would like to listen to a replay of today’s call, it will be available through September 4, 2014 and may be accessed by dialing 888-203-1112 and using the pass code 6783598#. A webcast archive will also be available on the Investor Relations page of the Company’s website at www.vnrllc.com and will be accessible online for approximately 30 days.

For more information, or if you would like to be on our e-mail distribution list to receive future news releases, please contact me at 832-327-2234 or via e-mail at lgodfrey@vnrllc.com. This information was also provided in yesterday’s earnings release. Please note the information reported on this call speaks only as of today, August 5, 2014 and therefore, you are advised that time-sensitive information may no longer be accurate as of the time of any replay.

Before we get started, please note that some of the comments today could be considered forward-looking statements and are based on certain assumptions and expectations of management. For a detailed list of all the risk factors associated with our business, please refer to our 10-Q, which will be filed later today and available on our website under the investor relations tab and on EDGAR. Also on the Investor Relations tab of our website, under presentations, you can find the Q2 2014 earnings results supplemental presentation.

Now, I would like to turn the call over to Scott Smith, President and CEO of Vanguard Natural Resources.

Scott Smith

Thanks, Lisa and welcome everyone and thanks for joining us this morning on our second quarter 2014 conference call. Before I turn my comments to our operations and capital spending during the quarter, I want to spend a few minutes reviewing the highlights of the acquisition we announced yesterday morning.

As we described in the press release, we’ve entered into a definitive agreement to acquire natural gas, oil and NGL assets in North Louisiana and East Texas for a purchase price of $278 million from Hunt Oil Company. This set of properties are truly legacy assets that Hunt has owned since the 1940s and this transaction constitutes an exit for them from the area. With this transaction, we will have established an operating position in another mature basin that we think will provide many opportunities for future growth going forward.

The properties we acquired consist of approximately 23,000 net acres that are currently producing approximately 17.5 million cubic feet equivalent per day with approximately 67% being natural gas and 33% being oil and NGLs. I’m not going to get into all the specific forecast details. This was outlined in the press release. So please reference that for more information regarding estimate differentials and LOE costs.

These assets include a PDP reserve base of 85 Bcfe with an average decline rate of approximately 10%, along with significant upsides through low risk, behind-pipe recompletions and both vertical and horizontal drilling opportunities. We are currently in the process of evaluating several options to best maximize the drilling potential of these assets.

This could be drilling the lower cost vertical well locations ourselves, while joining with another company or financial partner to develop the higher cost horizontal target that are present on significant portion of the operated assets. We’re extremely excited about the opportunities we have identified on the asset so far and we'll provide additional capital opportunities to get into 2015.

These opportunities should drive significant growth in production and cash flow as we head into the New Year. As we continue to assess this potential, we will evaluate the different options to best maximize the value to Vanguard and ultimately our unit holders.

Now let’s review our production results and capital spending. Average daily production for the second quarter was 315 million cubic feet equivalent per day, up 18% over the 268 million cubic feet equivalent per day produced in the first quarter of 2014, and a 44% increase over the 219 million cubic feet equivalent per day produced in the second quarter of 2013.

Production for the quarter was approximately 69% natural gas; 17% oil; and 14% NGLs. However, on a revenue basis, our revenues are well diversified between liquids and natural gas, 46% coming from oil; 11% from NGLs and 43% from natural gas. Our production is projected to continuing increasing over the year as we spend more capital and we close the Hunt acquisition.

Now we’ll turn to our capital spending. During the second quarter, we spent approximately $36 million. Our capital program was focused primarily on our activities in the Pinedale and the Permian basin. With respect to the Pinedale, we spent over $17 million during the quarter, which encompasses about 50% of the total capital spend. We were still impacted by the non-consent wells in the first part of the quarter. We are happy to say this is completely behind us and our capital spending plans for the balance of the year reflect that. During the quarter we participated in the drilling of 38 gross wells with an average working interest of 11.6%. Additionally we participated in the completion of 36 gross wells and had 31 gross wells waiting on completion at the end of June.

As you would expect for the second half of the year, the largest component of our capital program will be Pinedale, where we anticipate participating in the drilling of 114 gross wells and completing 97 wells. Total CapEx is anticipated to be over $40 million in this area, which is approximately 60% of our anticipated spend for the balance of the year. Overall we continue to see Ultra and QEP delivering great results and both companies are continuing to drill at the current pace, four rigs each.

Ultra stated that their cost performance remains on track at $3.8 million per well and are generating returns averaging well over 50%. With the targeted growth rate of 10% for the balance of the year, we are pleased to be a partner with them in this development.

In summary, not only has the drilling in the area proven to be very successful but with the PUD inventory we acquired, we believe we and our partners will be developing this field for over 10 years, making this growth sustainable over the long-term. We firmly believe that the Pinedale will be a source of growth for the Company for years to come.

Now on to the Permian. Our recompletion and frac program on the assets we acquired in the Range transaction continues to perform well. During the second quarter we completed 10 workovers, which included 7 fracs and recompletions and three asset jobs. These projects added a net uplift of 43 barrels of oil per day and 221 Mcf per day for an investment of $1.3 million. The Range recompletion program has historically achieved high rates return and are great projects to increase production and cash flow. At least three fracs are planned for this quarter.

Also in the Permian I want to highlight what we have done to take advantage of our acreage position and the high rate of return drilling that is going on in the basin. In the second quarter Vanguard participated in the completion of two horizontal Woodford wells. For a format agreement with Atlantic Exploration, we were carried to the tanks for 25% working interest in the Jim Ed #2 well in Ward County, Texas. This well was very successful as it had a high seven-day average IP of 830 barrels of oil per day and 965 Mcf per day, a 248 barrel net BOE per day to Vanguard.

In Dawson County, Vanguard participated with a 35% working interest in the Diamondback operated CSL well, an 8,500 foot horizontal well located in the Northern Portion of the Midland Basin. The well was stimulated with 36 frac stages at the end of March and had a high seven day average IP of 450 barrels of oil per day and 235 Mcf per day or approximately 135 net BOE per day to the Company.

The Permian is expected to be our second most active area for the balance of the year. This encompasses both our successful range Permian recompletion projects as well as participating as a non-operated partner in the drilling of vertical and horizontal Wolfcamp wells as this activity continues to increase.

Specifically in Ward County we participated with Atlantic in the drilling of the Caprock #1 well in the second quarter which began producing at the end of July. Results have been very promising as it has reached a high seven day average IP of approximately 750 barrels of oil per day and over 1.1 million cubic feet of gas per day. Since flow back began on July 24th, this well assumes just under 7,000 barrels of oil and approximately 10 million cubic feet of gas. We have a 24% working interest in this well. We recently received another AFE from Atlantic for a proposed offset to the drilling of the Jim Ed well I referenced earlier where we had 25% working interest.

During the quarter we also participated with 16% working interest in the second horizontal well operated by Diamondback on our jointly owned acreage at Dawson County. This well has been drilled and completion operations are scheduled to begin this month.

Lastly in April we signed an agreement with Athlon where they will carry us to the tanks for a 30 working interest in five wells, two in Andrews County and three in Glasscock County. Two of the wells have already been drilled and are waiting on completion and the third is expected to start in September. At their current pace, we anticipate that all five wells under the agreement will be completed by the end of the year.

Now I'm going to visit briefly about what we have going on Woodford. As many of you know over the past year we have had an active drilling program to develop Woodford Shale Reserves with Jones Energy as well as having other non-operated drilling activities. Unfortunately over the past few quarters for a number of reasons this program hasn’t met our expectations from a return standpoint. We have therefore made the decision to suspend our spending on further drilling in the area till we have confidence that our results will improve to the level where additional investment is wanted. Capital spending dollars that would have been spent in Woodford have therefore being allocated to other high rate of return projects in our portfolio, like the Permian activity referred to earlier.

Looking to the balance of the year, we are anticipating capital spend of between $65 million and $70 million, which includes both maintenance and growth capital. The maintenance capital is anticipated to be 80% to 85% of the total capital spend.

With respect to our acquisition activity, we’re still seeing a lot of quality deal flow and our team is evaluating numerous transactions of various sizes. At our size and track record of successful transactions, I'm confident we are seeing all of the sizeable opportunities that are coming to market and look forward to getting a few more deals across the finish line before the end of the year.

We continue to believe in the overall strength of the Vanguard business model of conservative growth through acquisitions and building a platform of diversified assets that will provide long term benefits to the unit holders. We’re optimistic about our many growth opportunities, both operationally and via additional acquisitions that combined together will deliver increased value on behalf of the unit holders.

With that, I’ll turn the call over to Richard for the financial review.

Richard Robert

Thanks, Scott. Good morning everyone. I’d like to start this morning by first discussing our quarterly financial results and then turn to my regular update on our hedging portfolio and liquidity, and then finally we’ll review our outlook for the remainder of the year.

As to our financial results, we reported adjusted EBITDA of approximately $98 million for the second quarter, an increase of 9% when compared to the $90 million reported in the first quarter of 2014, and an increase of 22% from the $80 million reported in the second quarter of 2013.

In terms of our distributable cash flow, the second quarter of 2014 totaled approximately $46 million or $0.57 per common unit, which represents a 10% and 9% increase over the first quarter respectively. While we are pleased with the sequential increase in adjusted EBITDA and distributable cash flow from the first quarter to the second, results were adversely impacted by lower realized pricing in natural gas liquids, continued lowered production in the Pinedale for reasons we discussed last quarter and subpar drilling results in the Woodford area.

The primary headwind during the quarter was lower realized NGL pricing. Average realized NGL pricing in the second quarter was approximately $25.49 per barrel, which was 30% less than we saw in the first quarter. While the price of each component of the NGL stream declined, this large decrease was primarily attributable to propane and ethane components decreasing the most; and our NGL productions rigs becoming more propane and ethane-weighted with the Pinedale acquisition, where ethane rejection is not occurring.

Since our NGLs are largely un-hedged, the price fluctuations where it be increases or decreases will have direct impact to our revenues. All in all, lower NGL pricing negatively impacted revenues by over $7.5 million from the first quarter.

Natural gas and oil price realizations, including our hedges, were relatively flat from first to second quarter. Having hedge much of our basis risk in both natural gas and oil has served us well as basis differentials have been very volatile.

For the second half of the year, we are expecting the Company wide oil differential to range from a negative $10.50 in the third quarter to roughly a negative $11 in the fourth quarter and the Big Horn basis typically begins to widen out later in the later year. As we discussed on the last conference call, we were experiencing lower production in the Woodford and Pinedale due in part to weather related issues that continued into the beginning of the second quarter.

Additionally in the Pinedale we experienced pipeline maintenance shutdowns which resulted in approximately one day of production being shut in. We expect about two more days of downtime in August due to additional pipeline maintenance in Pinedale. We will also be experiencing our own plant maintenance in the Big Horn in August and this will negatively impact production by approximately 7600 barrels during the third quarter.

What I find encouraging is that we are seeing improvement quarter-over-quarter and we are forecasting this trend to continue as we get more Pinedale wells completed. As Scott stated, we believe that the Pinedale acquisition is a great acquisition and with our partners drilling wells and at rates of returns that exceeds 50% we will ultimately reap the benefits from higher cash flows.

Regarding the Woodford, the new wells we had in our budget for this year did not meet our expectations as Scott suggested we have suspended our capital allocation to this area for now. These dollars will be spend on other projects that were not originally in our capital budget, which we believe are a better use for our capital until we and our drilling partners in the Woodford determine the root cause of the problem and come up with a solution.

Next, let me discuss our hedging activities during the quarter. During the second quarter we opportunistically took advantage of positive price movements in the oil curve, and our 2015 oil production is now well hedged at 78%, which our attention now focusing on 2016 and beyond. On a total basis our natural gas is hedged 91% in the second half of 2014, 91% in 2015, 83% in 2016 and 46% in 2017 all at weighted average prices of about $4.41. I will note that this does not assume any CapEx plans in 2015 and beyond, but does include the PDP production related to the recently announced North Louisiana, East Texas acquisition.

On the oil side using the same methodology with no additional CapEx in 2015, but including the recent acquisitions' PDP production, the second half of 2014 expected oil production is 93% hedged, 2015 is 78% hedged and 2016 is 37% hedged, all at a weighted average price of $91.90 per barrel. More details regarding our current hedge portfolio and percent hedge can be found in the supplemental Q2 2014 information package posted to our website.

Let me turn to our credit facility and liquidity for a quick update. We have some good progress this quarter with respect to reducing our leverage and improving our liquidity. In November of last year, we instituted our ATM program, which allows us to sell both common and preferred units at market prices during the normal trading day. Year-to-date we have raised approximately $133 million via our common units and $1 million via our preferred units. We’re been very pleased with the performance of this program and absent any large acquisition, this will be our preferred method of raising capital via the equity market as it minimizes the disruptive impact of a secondary and it's certainly more cost effective than secondary offering.

You will note that our unit count has gone up quarter-over-quarter and this is a direct function of the ATM program at work. While increasing unit count does make it more difficult to achieve certain metrics such as distribution coverage, we feel strongly that it is in our unitholders long-term best interest that Vanguard operate with a manageable amount of leverage.

Through this program we have continued to lower our outstanding debt and we were on target to exit the year with a debt EBITDA ratio of approximately three times. I say were because the recent acquisition obviously adds incremental debt to our balance sheet. However it continues to be our attempt to raise equity through our ATM program and we’ll use this method to equity finance this recent acquisition.

As of today Vanguard has $715 million in outstanding borrowings under the revolver, which provides us with approximately $820 million in current liquidity, after taking into consideration the 1.25 billion [ph] borrowing base and $10 million in cash. Also please note that this considers the $28 million deposit paid on the recently announced Hunt acquisition. Pro forma for the acquisition and excluding borrowing based increase for the acquisition, we expect our liquidity to be about $575 million after closing the Hunt acquisition.

Finally let me turn to our outlook for the balance of the year. With the results of the first half of the year not meeting our expectations due to the reasons I've gone over, we felt it was important to relook at our previously issued guidance as well as include expectations for our recent acquisition.

Based on current strip pricing and including the Hunt Oil acquisition for the second half of the year, we are expecting average daily production of approximately 320 million and 330 million cubic feet per day and an adjusted EBITDA of approximately $200 million and $210 million. This is just for the second half of the year. Based on our current expectation of capital spending, we are anticipating that our distribution coverage for the third quarter will continue to be below one-times but the fourth quarter will be above one-time.

If our forecast outline above proves to be accurate, our anticipated distribution coverage for 2014 will be between 0.9 and one-times coverage. As such our principle focus is on getting our distribution coverage sustainably over one times and our unitholders should not expect the distribution increase until this occurs.

Our expectation is that in early 2015 with the accretion expected from the Hunt acquisition and associated drilling program along with the Pinedale non-consent drilling issue behind us, we will resume our slow and steady approach to increasing distributions. We are looking forward to the second half of 2014 and excited about our growth opportunities, whether it be in the legacy asset and Permian, our non-operating position in the Pinedale or on our newly acquired assets in North Louisiana and East Texas. As Scott mentioned, these assets have the potential for horizontal drilling locations, and gives VNR many options to consider on how best to maximize value. So stay tuned.

This concludes my comments and I’ll be happy to answer any questions at this time.

Question-And-Answer Session

Operator

Thank you. (Operator Instructions). And we’ll first go to Kevin Smith from Raymond James.

Kevin Smith - Raymond James

It seems like you placed a lot of value in the Hunt Oil transaction as far as the PUD weighting of those. Scott, I know you talked a little bit about this in your prepared remarks, and maybe you're not ready to discuss it, but I assume that you have a fairly active CapEx plan for them next year?

Scott Smith

Yes we’re modeling, again I think I mentioned there is quite a few opportunities, recompletions behind-pipe work, let’s call that the low hanging fruit that we’re already working with our engineering group. Again remember we haven’t closed this transaction yet. So we don’t put the cart before the horse. But definitely there are things that we’re looking and want to make sure that we’re in a position to start working on these projects as quickly as possible and probably will hopefully begin by the beginning of 2015.

So there is quite a bit of work to be done. There are vertical wells to drill at various steps. The nice thing about these assets, its multiple horizon targets. Again this is a legacy field. Hunt’s a very large Company obviously and this hasn’t been a focus for them in long, long time. So we think there is quite a few vertical wells, again are less expensive that we can begin prosecuting relatively quickly and again there is this horizontal aspect that we have some consulting engineers working on it. It looks -- its initial work is very encouraging. But if everything holds up the way we think it can, it would definitely be very active year from a capital spending perspective in that area.

Kevin Smith - Raymond James

Okay. Thank you. And then another question. Richard, I feel like I should probably know this, but is your ethane pricing in the Rockies, is that above nat gas or is that pricing below? There's just not enough potential or capacity to reject it?

Richard Robert

Well, it’s quite a bit below natural gas. They just don't have the capacity to reject it.

Kevin Smith - Raymond James

Okay. And then, lastly, and I'll jump back in the queue. Scott, on the Woodford wells that are no longer in your drilling budget, are you electing to go non-consent on those wells, or is Jones Energy stopping drilling as well?

Scott Smith

We’re not drilling any joint drilling with them. I think they have a -- they did another joint venture with the major in there that I do think that they will probably finish that out, that obligation. But I think -- we’ve had conversation with them. I think they share the same concerns. So I think collectively we’re going to sit back for the balance of this year and kind of reassess together what we can do to, if we are going to move forward what we can do to ensure that our results to meet our expectations.

Operator

We’ll now go to John Ragozzino from RBC Capital Markets.

John Ragozzino - RBC Capital Markets

With respect to the Marathon deal, can you give us the net production and reserves associated with both the Wamsutter and the Gooseberry properties, please?

Scott Smith

Production basis, we gave up about 350 barrels of oil production and on every gain about 13.5 million cubic feet in the natural gas in Wamsutter. I don’t have reserves.

John Ragozzino - RBC Capital Markets

I can get back to you on that. That’s fine. The production is more important to me. And then also, is there a specific reason as to why you guys didn't just include a larger slice of the Gooseberry assets, instead of it kicking in an additional $10 million?

Richard Robert

It was the balance asset value.

Scott Smith

We wanted to keep some of that Gooseberry ourselves because it seemed clear to us that Marathon had some plans for that area and maybe knew some things we didn’t. So wanted to retain at least 25% of that upside.

John Ragozzino - RBC Capital Markets

Okay. Fair enough. In the release, you provided an updated outlook for CapEx in the back half of the year. Is this -- it's safe to assume that there's no inclusion of spending on the acquired East Texas assets. So do you expect to update us after the close in 4Q? And is there going to be any meaningful uptick in CapEx for that period?

Scott Smith

No. We don’t anticipate spending any CapEx on this new acquisition until 2015.

John Ragozzino - RBC Capital Markets

Okay. Just a couple of…

Scott Smith

It takes a while to get permits and to get everything lined out. So the way we modeled this was to get everything in place to start drilling, January 1 sort of timeframe.

John Ragozzino - RBC Capital Markets

Okay. Great. And then just a couple on the non-op program in the Permian. How would you characterize the performance of the Caprock well drilled by Atlantic relative to pre-drill expectations? And are you modeling similar results for the five-well program with Athlon?

Richard Robert

No, they are different type of drilling. The Caprock well I think we’re very pleased with. The numbers look quite good. So we’re very happy with that result there. That was the second well we drilled. The first was at Jim Ed and then the second one -- again we’re getting this offset to the Jim Ed #2 which we have high notes for this well. The Athlon wells are vertical wells. So they are not horizontal Wolfcamp wells. That's on really -- I think their program is a combination of both vertical and horizontals, but the wells that we’re going to be participating with them are vertical wells. So I don’t think we’re anticipating IPs in the 1000 BOE type of that day and range. That would be a nice surprise, I will put it.

Scott Smith

No as the cost is going to be, I think the Athlon wells probably more between $2 million and $3 million.

John Ragozzino - RBC Capital Markets

Okay. And then just one more. Do you expect contribution from that five well program to be largely a 2015 event, based on timing of completions?

Richard Robert

Well, two of the wells are scheduled for completion right away. I think the third one of the -- I don’t think -- Athlon, you’re following I am sure John very closely. They don’t spend the money and not get the wells online. So I think we will see at least three of the wells online by the fourth quarter.

Operator

(Operator Instructions) We’ll now go to Ethan Bellamy from Baird.

Ethan Bellamy - Baird

What did you guys think of the Legacy-WPX transaction?

Richard Robert

Interesting idea. It’s -- the escalating working interest is obviously some we had done previously. I think those assets can be a reasonable fit. Instituting the IDR program, we'll say that's a wrinkle that we hadn't thought of around here because we’ve always been of the view that IDRs are dilutive over time and increase your cost of capital. But I guess for the right circumstance you can justify if you feel comfortable that the drop downs to the part you're giving them to are going to continue in a fairly meaningful way. So I think in that respect it looks like it could be a good transaction. You also have to spend a lot of time looking at it other than just reading the summaries. But I think for the right transaction and the right counterparties, it's something that could make sense.

Scott Smith

It was creative. If nothing else, it was certainly creative.

Ethan Bellamy - Baird

On NGLs, Richard, you talked about no hedging there. Would you hedge going forward? And can we use the quarter's results going forward in our model, or should we be more generous in future quarters?

Richard Robert

Well we have about 10% of our NGLs hedged today, which obviously is a very small part. We wait for an opportunity that we think is a reasonably good uptick from an historical basis and we’ll put additional hedges on. The problem today as you probably know, it's still not a very liquid market. So hedging beyond 18 months, it gets problematic to do any kind of volume and it’s also a backward dated market, they are already looking at pretty low pricing as it is today and then hedging into an even lower price. It’s just tough to do.

So we’re certainly hopeful that they’re not going to get -- the second quarter I would anticipate to be low. But is there any significant potential for improvement this year? I don’t think so of that either, I think it’s probably going to be somewhere between first quarter and second quarter. The summer months is usually kind of lower NGL pricing in general and you usually can expect somewhat of an increase going into the winter months. So I would expect third quarter to not improve much and hopefully fourth quarter will improve somewhat.

Operator

And we’ll now go to Robert Balsamo from UBS.

Robert Balsamo - UBS

Most of my questions have been answered; just real quick on the Permian non-operated. You mentioned well costs for the Athlon. Did you give any details to the Atlantic and Diamondback wells, rough estimates of well costs?

Richard Robert

On the Atlantic side that was about $9 million AFE on the Caprock. And on the Diamondback well, the original AFE was about $9.5 million but they had to do a sidetrack. So I think that raised the cost to about $11 million.

Operator

(Operator Instructions). And we’ll take a follow up question John Ragozzino from RBC Capital Markets.

John Ragozzino - RBC Capital Markets

Just one more for you guys. Richard, can you give us a three -- just a couple of items related to the acquisition. I was looking for the three-stream product split, and maybe the estimated maintenance CapEx and annual decline?

Richard Robert

Three-stream as I recall is pretty close to our existing. It’s about 67% gas 16% oil and about 17% NGLs.

John Ragozzino - RBC Capital Markets

And then what about per-unit margins, any color there?

Richard Robert

We forecasted LOE about $1 and three year average and then production taxes at about 73.25%, realizations on the gas side about 115% NYMEX because of some uplift there and BTU uplift. All the threshold about negative 250 and NGL realization that is quite high at 55% of WTI. And that realization is higher than you would expect at least most people would expect. And part of that is due to our owing overall infrastructure. We own part of the plant that XTO operates. So we don’t have any processing fees on fair amount of those NGLs.

Operator

And it appears there are no further questions. So I’ll turn the conference back over to Mr. Smith for any additional and closing remarks.

Scott Smith

Thanks everybody, again I really appreciate you joining us today. Please send get well cards to Richard since he's had a bad accident mountain biking. So he’s a little injured reserve here for the next month, with his arms in a sling and hobbling around the office.

Richard Robert

And taking some good painkillers.

Scott Smith

But fortunately wasn’t any worse and no surgery is in order. But with that again thank you guys for joining us. If anybody has any questions or follows, you know who to call Ryan and Richard or myself. So again, we’re excited about this Hunt transaction. We really think this is going to be a really neat opportunity for us as a company. Looking forward as we spend the next two, three months refining our plans and hopefully by the time when we come out with our budget stuff for 2015 is going to look like a pretty nice robust program that’s going to have substantial benefits to our unit holders. So with that thanks again and we’ll visit with you all in November.

Operator

This concludes today’s presentation. Thank you for your participation.

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Source: Vanguard Natural Resources' (VNR) CEO Scott Smith on Q2 2014 Results - Earnings Call Transcript
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