Vanguard Increases Quarterly Cash Distribution

Vanguard has declared a cash distribution attributable to the fourth quarter of 2010 of $0.56 per unit ($2.24 on an annual basis) payable on February 14, 2011 to unitholders of record on February 7, 2011. This distribution represents a $0.01 per unit ($0.04 on an annual basis) or 2% increase to the third quarter 2010 distribution and a 7% increase as compared to the fourth quarter of 2009 distribution. Based on Vanguard’s closing unit price on January 26, 2011 of $29.99 and an annualized distribution of $2.24 per unit, new investors can earn an attractive tax-deferred yield of approximately 7.5%.

Scott W. Smith, President and CEO of Vanguard, commented, "We are very pleased to be able to announce this increase in cash distributions to our unitholders which is a direct result of our acquisition of the general partner and significant limited partnership interests in Encore Energy in December. As we have only had these new assets under our management for a short time, we feel it is prudent to take a measured approach to any additional distribution increases related to Encore. As we continue to get a better understanding of the Encore assets and our ability to realize any additional benefits from our ownership position, we will continue to evaluate future increases to our distribution over the balance of 2011 as conditions warrant."