VNR had surged ~24% on Friday as part of the sector-wide short squeeze but is surrendering those gains as Q4 revenues fell 29% Y/Y and distributable cash flow slumped 11% Y/Y to $65.5M and 43% to $0.50 on a per unit basis.
VNR anticipates a 2016 capex budget of $63M, a 44% drop from $112.6M spent in 2015.
Average Q4 production of 511,119 Mcfe/day was up 27% Y/Y and up 32% Q/Q; for FY 2016, VNR expects net production of 421.6K-467.2K Mcfe/day vs. 415.3K in 2015, and adjusted EBITDA of $360M vs. $396.8M in 2015.
FBR Capital downgrades VNR to Market Perform from Outperform with a $2 price target, and says the distribution suspension is another setback for the upstream MLP sector, as VNR has been an outspoken champion for the structure.
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