Vanguard Natural Resources Inc. said May 9 it continued its divestiture plans with multiple agreements to sell noncore assets for gross proceeds of more than $60 million.
Since the end of the first quarter, undisclosed buyers agreed to acquire certain Vanguard properties located in the Permian Basin, Green River Basin and Mississippi regions in four separate purchase and sale agreements.
The divested properties, which Vanguard President and CEO R. Scott Sloan said are not core to the company’s growth strategy, currently produce about 17 million cubic feet equivalent per day.
Proceeds from the divestitures will be used to pay down the company’s debt. As of March 31, Vanguard had $715 million of outstanding borrowings on its revolving credit facility.
Vanguard also said it will continue to actively market and evaluate additional assets for accretive divestment options, including certain assets in the Midcontinent and the Gulf Coast areas.
“We’re taking the right steps to holistically look at our portfolio and determine the right mix of assets while protecting the balance sheet. Our guiding principle during this ongoing process is to improve our operational focus and the strength of our balance sheet while enhancing the long-term value of the company. By doing so, I believe we will position the company to be a successful exploration and production company with competitive organic growth opportunities,” Sloan said in a statement.
Following its exit from Chapter 11 bankruptcy in August 2017, Vanguard announced plans to sell nearly 10% of its sprawling 774,000 net acres. The company’s assets span nearly every major basin in the Lower 48.
In December 2017, Vanguard closed the sale of its Williston Basin assets for $38.5 million. At the time, the company said it also would begin to market 1,700 net acres of Delaware Basin acreage in Ward County, Texas, that included about 300 barrels of oil equivalent per day of production.
Currently, the company has assets on the market through different firms, including Arkoma Basin properties with Eagle River Holdings LLC.
Vanguard reported on May 9 a net loss for first-quarter 2018 of $32.7 million. The company said it expects its latest divestitures to close in mid-2018.
Emily Patsy can be reached at epatsy@hartenergy.com.
Recommended Reading
FERC Says 32 Bcf/d in US LNG Capacity Approved, Not Yet Built
2024-01-29 - The FERC—which has jurisdiction over the siting, construction and operation of LNG export facilities in the U.S.—reported that 18 projects worth 32 Bcf/d of export capacity have obtained approval but are yet to be built.
US Decision on Venezuelan License to Dictate Production Flow
2024-04-05 - The outlook for Venezuela’s oil industry appears uncertain, Rystad Energy said April 4 in a research report, as a license issued by the U.S. Office of Assets Control (OFAC) is set to expire on April 18.
US Orders Most Companies to Wind Down Operations in Venezuela by May
2024-04-17 - The U.S. Office of Foreign Assets Control issued a new license related to Venezuela that gives companies until the end of May to wind down operations following a lack of progress on national elections.
New BOEM Regulations Raise Industry Decommissioning Obligations by $6.9B
2024-04-15 - Under new regulations, the Bureau of Ocean Energy Management estimates the oil and gas industry will be required to provide an additional $6.9 billion in new financial assurances to cover industry decommissioning costs.
Everywhere All at Once: Woodside CEO Touts Current Global Portfolio
2024-03-05 - Meg O’Neill, the CEO of Australian energy giant Woodside Energy, is overseeing the “next wave” of growth projects around the globe, including developments in the Gulf of Mexico, offshore Senegal and further LNG expansion.