Vanguard Natural Resources, LLC (NASDAQ: VNR) ("Vanguard" or "the Company") today reported financial and operational results for the quarter ended September 30, 2013.
Mr. Scott W. Smith, President and CEO, commented, "Our quality asset base continues to deliver solid operational results. We remain active in the acquisitions market and with approximately $900 million of liquidity available, we are well positioned to be competitive for MLP type assets that come to market in the fourth quarter."
Mr. Richard A. Robert, EVP and CFO, added, “We are pleased with where we stand today as a company. Stable cash flows and a strong balance sheet put us in very firm financial footing and bodes well for our continued ability to create long term value for our unitholders. In addition, we remain conservative and prudent with increases to our common unit monthly cash distribution that currently generates an approximate 9.0% yield for our unitholders.”
|Three Months Ended September 30,||Nine Months Ended September 30,|
|($ in thousands, except per unit data)||(Unaudited)|
|Oil, natural gas and natural gas liquids sales||$||121,510||$||78,871||$||334,929||$||228,029|
|Realized gain (loss) on commodity derivative contracts||$||(5,359||)||$||318||$||(2,175||)||$||(756||)|
|Unrealized gain (loss) on commodity derivative contracts||$||(12,355||)||$||(51,332||)||$||13,781||$||9,243|
|Selling, general and administrative expenses||$||5,730||$||5,499||$||19,179||$||15,298|
|Depreciation, depletion, amortization, and accretion||$||41,750||$||31,245||$||123,354||$||73,897|
|Impairment of oil and natural gas properties||$||-||$||18,029||$||-||$||18,029|
|Net income (loss) available to common and Class B unitholders||$||1,881||$||(68,727||)||$||56,007||$||32,696|
|Adjusted Net Income Available to Common and Class B Unitholders (1)||$||22,601||$||17,932||$||58,591||$||48,153|
|Adjusted Net Income Available to Common and Class B Unitholders, per unit (1)||$||0.29||$||0.34||$||0.82||$||0.92|
|Adjusted EBITDA (1)||$||82,687||$||66,277||$||235,401||$||163,965|
|Interest expense, including realized losses on interest rate derivative contracts||$||15,819||$||12,857||$||49,129||$||29,158|
|Drilling, capital workover and recompletion expenditures||$||12,774||$||16,925||$||42,192||$||40,285|
|Distributions to preferred unitholders||$||1,240||$||-||$||1,392||$||-|
|Distributable Cash Flow Available to Common and Class B Unitholders (1)||$||52,854||$||36,640||$||142,688||$||100,044|
|Distributable Cash Flow per common and Class B unit (1)||$||0.68||$||0.67||$||1.93||$||1.89|
|Common and Class B units distribution coverage (1)||1.09||x||1.12||x||1.05||x||1.06||x|
|Weighted average common and Class B units outstanding||77,903||53,139||71,351||52,555|
|(1) Non-GAAP financial measures. Please see Adjusted Net Income Available to Common and Class B Unitholders, Adjusted EBITDA and Distributable Cash Flow Available to Common and Class B Unitholders tables at the end of this press release for a reconciliation of these measures to their nearest comparable GAAP measure.|
Third Quarter 2013 Highlights:
- Adjusted EBITDA (a non-GAAP financial measure defined below) increased 25% to $82.7 million in the third quarter of 2013 from $66.3 million in the third quarter of 2012 and increased 3% from the $80.3 million recorded in the second quarter of 2013.
- Distributable Cash Flow Available to Common and Class B Unitholders (a non-GAAP financial measure defined below) increased 44% to $52.9 million from the $36.6 million generated in the third quarter of 2012 and increased 9% from the $48.4 million generated in the second quarter of 2013.
- We reported net income available to common and Class B unitholders for the quarter of $1.9 million or $0.02 per basic unit compared to a reported net loss of $68.7 million or $(1.29) per basic unit in the third quarter of 2012. The recent quarter includes net non-cash losses of $20.6 million that are adjustments to arrive at Adjusted Net Income Available to Common and Class B Unitholders (a non-GAAP financial measure defined below). The third quarter of 2012 results included net non-cash losses of $86.7 million.
- Adjusted Net Income Available to Common and Class B Unitholders (a non-GAAP financial measure defined below) was $22.6 million in the third quarter of 2013, or $0.29 per basic unit, as compared to $17.9 million, or $0.34 per basic unit, in the third quarter of 2012.
- Reported average production of 35,250 BOE per day in the third quarter of 2013, up 45% over 24,367 BOE per day produced in the third quarter of 2012 and a 3% decrease over 36,477 BOE per day produced in the second quarter of 2013. On a BOE basis, crude oil, natural gas and natural gas liquids (“NGLs”) accounted for 24%, 64%, and 12% of our third quarter 2013 production, respectively.
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