Vanguard Natural Resources, LLC (NYSE: VNR) today announced it has entered into a definitive agreement to acq uire natural gas and liquids assets in the Piceance Basin in Colorado and the Powder River and Wind River Basins in Wyoming for a purchase price of $335 million from Bill Barrett
Corporation. The effective date of the acquisition is October 1, 2012 and the Company anticipates closing this acquisition on or before December 31, 2012.
Scott W. Smith, President and Chief Executive Officer, commented,
"After both a successful bond and equity offering we are very pleased to sign an agreement that will put some of our new liquidity to work. These assets will be a great addition to our portfolio as they exhibit the characteristics we are looking for: a mature developed production base, predictable operating costs and significant free cash flow with very limited need for reinvested capital based on our acquisition
Significant benefits expected from the acquisition include:
-- Immediately accretive to distributable cash flow;
-- Proved reserves of approximately 300 Bcfe based on three-streams and forward
strip pricing. Proved reserves are divided geographically as follows: