Vanguard To Acquire Natural Gas & Oil Properties In Wyoming For $581 Mln

(RTTNews) - Vanguard Natural Resources, LLC (VNR) announced it has entered into a definitive agreement to acquire natural gas and oil properties in the Pinedale and Jonah fields of Southwestern Wyoming for a purchase price of $581 million from an unnamed source. The properties consist of approximately 87,000 gross acres that are currently producing approximately 113.4 Mmcfe per day with approximately 80% being natural gas, 4% oil and 16% natural gas liquids. Vanguard expects the deal to be immediately accretive to distributable cash flow at closing.

The company intends to fund the acquisition with borrowings under its existing reserve-based credit facility.

Scott Smith, President and CEO, said, "Acquiring an interest in one of the country's most prolific natural gas fields, operated by companies with an unparalled history of successful development, is a milestone event for Vanguard. At closing, our reserves and daily production will increase approximately 80% and 55% respectively, and we will add an inventory of approximately 970 proved undeveloped drilling locations."