Casey Hoerth
Long only, long-term horizon, growth at reasonable price, dividend investing

Vanguard Natural Resources: Shaping Up To Be A Lousy 2014

So far it hasn't been a good year for Vanguard Natural Resources (NYSE:VNR). The company's $581 million acquisition of gas-producing acreage in the mature Pinedale-Jonah field has not yet proven beneficial, despite two quarters of operations, thanks to delays in drilling from Vanguard's operating partners and irregular capital expenditure decisions from operating partners, over which Vanguard has no say. These factors caused Vanguard's first quarter 2014 results to come in significantly lower than expected, and as a result distributable cash flow, or DCF, was lower than the actual cash distribution to unit holders.

Those issues are largely over, but this quarter brought yet more bad news. New wells in the Woodford Shale have performed significantly below expectations. As...

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