Vanguard Natural Resources, LLC (VNR) (“Vanguard” or “the Company”) today announced that on June 29, 2012 it consummated the previously announced acquisition of natural gas and liquids assets from Antero Resources for an adjusted purchase price of $434.4 million, subject to customary final post-closing adjustments. The effective date of the acquisition is April 1, 2012.
Significant benefits expected from the acquisition:
The Company funded this acquisition with borrowings under its existing reserve-based credit facility. As anticipated, Vanguard’s borrowing base was increased from $670 million to $975 million in connection with an interim borrowing base redetermination to include the properties from this acquisition. As of June 29, 2012 and pro forma for the borrowing base increase and financing for this acquisition, the Company has borrowings under its reserve-based credit facility of $734 million which leaves $241 million of undrawn capacity.
Updated 2012 production and financial results guidance will be included in the second quarter results press release which is expected to be issued on August 2, 2012.
Panhandle has reserves and production primarily in the Arkansas Fayetteville shale, the Southeastern Oklahoma Woodford shale, the Anadarko Basin (Cana) Woodford shale and several Western Oklahoma liquid-rich plays, including the Granite Wash.
The majority of the Barnett volume reduction occurred on Crestwood's Alliance and Lake Arlington dry gas gathering systems due to delayed completions of new wells, modest amounts of economic shut-ins and the temporary shut-in of nearby wells for producer fracking operations.