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 email@example.com.