Vanguard Finalizes Permian Basin Sale
Vanguard Natural Resources, LLC announced Tuesday that on April 1, 2013 it consummated the previously announced acquisition of natural gas, oil and natural gas liquids assets in the Permian Basin located in southeast New Mexico and West Texas from two subsidiaries of Range Resources Corporation for an adjusted purchase price of $268.8 million, subject to customary final post-closing adjustments. The effective date of the acquisition is January 1.
The Company expects the following significant benefits from the acquisition:
- Immediately accretive to distributable cash flow
- Company estimated proved reserves of approximately 137 billion cubic feet equivalent (78 percent proved developed with approximately 43 percent being natural gas, 25 percent oil and 32 percent NGLs)
- Reserve to production ratio of approximately 20 years
- Current net production of approximately 17 million cubic feet equivalent per day (41 percent natural gas) from 230 gross wells
- Significantly hedged the expected natural gas and oil production for the next four years
The Company funded this acquisition with borrowings under its existing reserve-based credit facility.
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