Seeking Alpha

Vanguard Natural adds Wyoming gas and oil properties for $581M

  • Vanguard Natural Resources (VNR) agrees to acquire natural gas and oil properties in Wyoming's Pinedale and Jonah fields from an unnamed source for $581M.
  • The properties consist of ~87K acres currently producing ~113M cfe/day (80% natural gas, 4% oil, 16% natural gas liquids); the deal adds ~80% to VNR's reserves and 55% to its daily production.
  • Shares halted.
Comments (5)
  • 1880gh
    , contributor
    Comments (50) | Send Message
     
    I hope this is good news,won't hurt divi mike
    30 Dec 2013, 08:26 AM Reply Like
  • Mike Maher
    , contributor
    Comments (2610) | Send Message
     
    Increasing daily production by that much is HUGE, but perhaps the most important piece of news seems to have been glossed over:

     

    "This acquisition will mark an important change in the Vanguard strategy. For the first time in its history, Vanguard will be allocating capital to drilling wells on these acquired properties"

     

    Change in strategy, very interesting.

     

    Long VNR

     

    http://bit.ly/1d3ktY0;highlight=
    30 Dec 2013, 10:12 AM Reply Like
  • losbronces
    , contributor
    Comments (701) | Send Message
     
    The press release includes the magic words:

     

    "Immediately accretive to distributable cash flow at closing"
    30 Dec 2013, 10:46 AM Reply Like
  • wbutle
    , contributor
    Comments (6) | Send Message
     
    losbronces, "The press release includes the magic words: 'Immediately accretive to distributable cash flow at closing,'"

     

    You're right. That is a a lovely line in the release.
    30 Dec 2013, 11:29 AM Reply Like
  • Be Here Now
    , contributor
    Comments (4370) | Send Message
     
    >100% non-operated properties with an average working interest of 10%<

     

    Does this mean that VNR's interest is actually 11.3 Mcfe/day ?
    30 Dec 2013, 01:48 PM Reply Like
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