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.