The VNR price dropped a couple of bucks when the additional shares were placed on the market and the price now is below that when the new shares were sold. The yield makes you wonder why they couldn't have floated debt instead of stock at a price better than 8.8%. The number of MLPs that are out there trying to purchase additional property also looks like reasonable purchase prices for growth are hard to come by. VNR is part of my portfolio that I treat just like a junk bond, not counting on much of a distribution increase. Just hope the distribution lasts for the long haul.
I think Vanguard is going to be around for a long time and its distributions will increase...historically every mlp that issues shares has a pps drop and then some.
I bought more, its going to go up and by next earnings I believe it will go back to 33 and might even be higher especially with pricing of ng and oil going up.
Note the following: "As of March 31, 2012, the company had total proved reserves of 71.9 million barrels of oil equivalent, as well as owned working interests in 1,459 net productive wells. Vanguard Natural Resources, LLC was founded in 2006..."
I like being a part-owner in 71.9 million barrels and 1459 net productive wells...the additional shares were sold out including the additional 1.2 million shares...that may bother some regarding dilution but I think that these guys are smart since the IPO (2006) they have grown their proven reserves of oil and gas 1177%....not too shabby if you ask me....ok dont ask me. ps distribution is payable next week. Enjoy.