Vanguard Natural Resources LLC (VNR) said Oct. 8 it has closed the $614 million merger with Eagle Rock Energy Partners LP.
Eagle Rock's assets are attractive bolt-ons to Vanguard's Arkoma, Permian and Gulf Coast basin operations, said Scott W. Smith, Vanguard's president and CEO. It also gives the company "a meaningful position in the Scoop and Stack plays in the Anadarko Basin which will provide attractive drilling opportunities for the next several years."
Eagle Rock has become a wholly owned indirect subsidiary of Vanguard as part of the merger agreement announced in May.
In April Vanguard and LRR Energy LP entered a similar deal worth $539 million, which was announced closed on Oct. 5.
"Considering the previously announced merger closing with LRR Energy LP, we believe that all three companies’ unitholders will benefit from a larger, more diversified entity with lower financial leverage and strong positions in several key U.S. basins," Smith said in a statement. "We believe this transaction should have a positive impact on all aspects of our business."
Vanguard will continue to trade on the NASDAQ Global Select Market under the ticker symbol “VNR.” Effective Oct. 9, trading in Eagle Rock common units will be discontinued.
Vanguard, based in Houston, will issue about 28.75 million of its common units in exchange for all of Eagle Rock’s outstanding common units.
American Stock Transfer & Trust Co. LLC, exchange agent for Vanguard and Eagle Rock, will mail letters of transmittal to all Eagle Rock unitholders of record immediately prior to the merger with instructions on how to surrender their shares in exchange for the merger consideration.
Wells Fargo Securities was exclusive financial adviser and Paul Hastings LLP was legal counsel to Vanguard. Evercore Group LLC was exclusive financial adviser and Vinson & Elkins LLP was legal counsel to Eagle Rock.
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