Vanguard Natural Resources LLC, Houston, (NYSE: VNR) has closed its purchase of Encore Energy Partners LP, Houston, (NYSE: ENP) for approximately $921 million.
Vanguard issued 0.75 Vanguard common unit per Encore unit for a total issue of 34.1 million units. Cash will be paid to Encore unitholders in accordance with the merger agreement in lieu of any fractional units they otherwise would have been entitled to receive.
Encore is now a subsidiary of Vanguard.
Encore Energy Partners, with its subsidiaries, has assets primarily in the Big Horn Basin in Wyoming and Montana; the Williston Basin in North Dakota and Montana; the Permian Basin in West Texas and New Mexico; and the Arkoma Basin in Arkansas and Oklahoma. As of year-end 2010, the company had 1,112 operated wells and 1,653 nonoperated wells.
Total proved reserves as of year-end 2010 were 28.7 million stock tank barrels of oil and 74.5 billion cubic feet of gas.
Vanguard president and chief executive Scott W. Smith says, "With this transaction, we more than doubled our reserves and production and have expanded our operating platform in the prolific Permian Basin and established new oil focused operating areas in the Big Horn Basin in northwestern Wyoming and in the Williston Basin in North Dakota and Montana."
Jefferies & Co. Inc. was financial advisor to Encore. RBC Capital Markets was financial advisor to Vanguard. Legal advisors for this transaction are Vinson & Elkins LLP for Vanguard, Potter Anderson & Corroon LLP for the Vanguard conflicts committee, and Bracewell & Giuliani LLP and Richards, Layton & Finger PA for the Encore conflicts committee.
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