Vanguard Natural Resources (NYSE:VNR) has reported its first quarter 2010 results.
Adjsuted Net Income increased YOY to $0.59 per unit from $0.43 per unit in the first quarter 2009.
Distributable Cash Flow increased 50% YOY to $15.1 million from $10.0 million in the first quarter 2009.
VNR will pay a cash distribution $0.525 per unit on May 14, 2010 to unit holders of record as of May 7, 2010.
VNR also announced that it has entered into a definitive agreement to purchase oil and natural gas assets in Mississippi, Texas and New Mexico. The company will pay $113.1 million to acquire the properties, which are estimated to have about 4.7 million barrels of oil equivalent.
Mr. Richard Robert, EVP and CFO, stated: "With lease operating expenses of less than $5 a barrel equivalent, this acquisition generates a significant amount of cash flow at current oil prices. We expect to implement a hedging strategy and drilling program that will support the continued sustainability of the significant cash flows for many years to come and, upon closing the transaction, feel very comfortable in making a recommendation to our Board of Directors that we increase our next quarterly distribution."
Disclosure: no position