Vanguard Natural Resources, LLC (NYSE:VNR) ("Vanguard" or "the Company") today reported financial and operational results for the quarter ended September 30, 2012.
Scott W. Smith, President and CEO, commented, “With the announcement of our agreement for the acquisition of natural gas and natural gas liquids properties in Colorado and Wyoming from Bill Barrett Corporation, we are on track to invest over $800 million in oil and gas assets in 2012. These acquisitions will drive our production and distribution growth as we head into 2013.”
Selected Financial Information
A summary of selected financial information follows. For consolidated financial statements, please see accompanying tables.
|Three Months Ended||Nine Months Ended|
|September 30,||September 30,|
|($ in thousands, except per unit data)|
|Production (Boe/d) (1)||24,367||13,371||16,786||13,312|
|Oil, natural gas and natural gas liquids sales (1)||$||78,871||$||74,429||$||228,029||$||226,838|
|Realized gain (loss) on commodity derivative contracts (1)||$||318||$||1,902||$||(756||)||$||4,474|
|Unrealized gain (loss) on commodity derivative contracts (1)||$||(51,332||)||$||109,639||$||9,243||$||68,625|
|Operating expenses (1)||$||26,567||$||21,923||$||75,918||$||63,002|
|Selling, general and administrative expenses (1)||$||5,499||$||6,493||$||15,298||$||18,713|
|Depreciation, depletion, amortization, and accretion (1)||$||31,245||$||21,419||$||73,897||$||62,797|
|Impairment of oil and natural gas properties||$||18,029||—||$||18,029||—|
|Net Income (Loss) attributable to Vanguard unitholders (1)||$||(68,727||)||$||75,884||$||32,696||$||77,271|
|Adjusted Net Income attributable to Vanguard unitholders (2)||$||17,932||$||14,137||$||48,153||$||46,472|
|Adjusted Net Income per unit attributable to Vanguard unitholders (2)||$||0.34||$||0.47||$||0.92||$||1.54|
|Adjusted EBITDA attributable to Vanguard unitholders (2)||$||66,277||$||37,028||$||163,965||$||111,105|
|Interest expense, including realized losses on interest rate derivative contracts (1)||$||12,857||$||8,173||$||29,158||$||23,306|
|Drilling, capital workover and recompletion expenditures (1)||$||16,925||$||15,000||$||40,285||$||23,729|
|Distributable Cash Flow (2)||$||36,640||$||19,029||$||100,044||$||72,999|
|Distributable Cash Flow per unit (2)||$||0.67||$||0.63||$||1.89||$||2.42|
|(1)||The operating results and production of the subsidiaries we acquired in the ENP Purchase through the date of the completion of the ENP Merger on December 1, 2011 were subject to a 53.4% non-controlling interest.|
|(2)||Non-GAAP financial measures. Please see Adjusted Net Income, Adjusted EBITDA and Distributable Cash Flow tables at the end of this press release for a reconciliation of these measures to their nearest comparable GAAP measure.|
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