Vanguard Buys Permian Assets

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Estimated Price
275MM
Description

Purchase of 7,000 net Permian Basin assets producing 17 MMcfe per day.

Vanguard Natural Resources LLC (NYSE: VNR) has entered into a definitive agreement to acquire natural gas, oil and NGL assets in the Permian Basin located in southeast New Mexico and West Texas for US $275 million from Range Resources Corp. (NYSE: RRC).

The properties being sold consist of 7,000 net acres that are currently producing 17 million cubic feet equivalent per day with 41% being natural gas and 59% oil and NGLs. Based on internal reserve estimates, proved developed reserves account for 78% of the total 137 billion cubic feet equivalent.

The effective date of the acquisition is Jan. 1 and the company anticipates closing this acquisition on or before April 1. The company intends to fund this acquisition with borrowings under its existing reserve-based credit facility.

Headquartered in Houston, Vanguard Natural Resources is a publicly traded limited liability company focused on the acquisition, production and development of oil and natural gas properties.