Vanguard Natural Resources, Inc. Reports Fourth Quarter 2017 Results
HOUSTON - March 21, 2018 - (PR NEWSWIRE) - Vanguard Natural Resources, Inc. (OTCQX: VNRR) (“Vanguard,” “VNRR,” or “the Company”) today reported financial and operational results for the quarter ended December 31, 2017.
Initiated strategic shift from an upstream MLP toward a focused, traditional E&P company
Preliminary 2018 capital budget of $160 MM focused primarily on the Company’s growth assets in the Pinedale field, Piceance Basin and Arkoma Basin
Continued improvement in lease operating expenses as the Company remains focused on cost efficiencies
Participated in three successful horizontal wells in the Pinedale field and expecting horizontal activity to increase as Ultra Petroleum focuses more on horizontal development
Completed the sale of non-core assets in the Williston Basin in December 2017 for gross proceeds of $38.5 million to reduce debt and improve liquidity
Progressing additional asset divestiture opportunities across the portfolio to reduce debt and to refocus the asset base as a traditional E&P company
Significantly hedged for 2018 through 2020, with 2018 production hedged 72%, 85% and 42% for natural gas, oil and NGLs, respectively, at the mid-point of previously announced guidance
Mr. R. Scott Sloan, President and CEO, commented, “The close of 2017 signifies a remarkable turn for Vanguard’s corporate journey. I am proud of the hard work and determination that our employees exhibited during the downturn, positioning us for a positive trajectory into 2018. As we have highlighted in our emergence deck and previous releases, we are making a strategic shift in 2018 from an upstream MLP to an E&P company, focusing on organic growth and financial discipline.
During 2018 we will focus on three strategic initiatives: simplifying and refocusing the asset base, increasing liquidity and reducing financial leverage, and assessing organic development opportunities within our portfolio. In our current portfolio of assets, we have identified three core growth areas including the Pinedale field, Piceance Basin and Arkoma Basin. With more than 80% of our 2018 capital budget focused on these key assets, we are showing our commitment to organic growth as we look to efficiently develop these assets to maximize value for the Company.”
Fourth Quarter 2017 Financial Results(a)
Reported average production of 362 MMcfe per day in the fourth quarter of 2017 representing a 7% decrease compared to 389 MMcfe per day produced in the fourth quarter of 2016 and a 3% decrease compared to 372 MMcfe per day for the third quarter of 2017. On a Mcfe basis, crude oil, natural gas, and NGLs accounted for 16%, 69% and 15%, respectively, of our fourth quarter 2017 production. Production for the fourth quarter 2017 was impacted by curtailments in the Permian Basin and a temporary refinery shut down in the Big Horn Basin resulting in lower production during the quarter. Pro forma for the Williston sale, fourth-quarter 2017 production would have been approximately 356 MMcfe per day.
The following information was filed by Vanguard Natural Resources, Inc. (VNRR) on Wednesday, March 21, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.