5 July 2012asset acquisition disposition▲ Good
Closed the Antero Resources Arkoma Basin acquisition at an adjusted $434.4 million, funded entirely through its reserve-based credit facility.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
4 June 2012material agreement▲ GoodMajor
Agreed to buy $445 million of Woodford and Fayetteville Shale gas assets in the Arkoma Basin from Antero Resources - its largest deal since the Encore merger.
4 Apr 2012debt financing● NeutralMajor
Raised $350 million through its first public bond offering - 7.875% senior notes due 2020 - and used the proceeds to pay off its second-lien term loan and reduce credit-facility borrowings, diversifying away from bank debt alone.
29 Feb 2012material agreement● Neutral
Agreed to swap 1.9 million of its own units for Appalachian Basin gas assets (Ariana Energy and Trust Energy) owned by trusts controlled by Majeed Nami - a founding unitholder from the company's 2007 IPO - folding a related party's private gas interests into the public company.
24 Jan 2012material agreement● Neutral
Sold 4 million new common units and helped Denbury Onshore sell down 3.14 million units it had received as Encore merger consideration, at $27.71 per unit; Vanguard kept only the proceeds of its own 4 million units.
19 Oct 2011business combination● Neutral
Vanguard filed Amendment No. 3 to its registration for the Encore Energy Partners merger, with the terms unchanged: each Encore unit not already owned by Vanguard's subsidiary converts into 0.75 Vanguard common units, and the subsidiary's 20,924,055 Encore units (about 46.0%) will be voted in favor. Both companies' unitholders must still approve it. The ownership percentages, the Vanguard meeting date (shown only as 'November , 2011') and unit prices are still blank in this draft, so it continues the process without settling the vote.
5 Oct 2011material agreement▲ GoodMajor
Lined up a much larger credit facility - borrowing base jumping to $765 million - conditioned on completing the pending Encore Energy Partners merger, reflecting the combined company's bigger reserve base.
3 Oct 2011business combination● Neutral
Vanguard filed Amendment No. 2 to the Encore merger registration, keeping the same 0.75 exchange ratio and now setting the Vanguard unitholder vote for November 14, 2011. The unit issuance needs a majority of votes cast, provided that is also a majority of outstanding units, so the deal moves closer to a decision but is not yet approved.
12 Sept 2011material agreement● Neutral
Expanded its at-the-market equity program to $200 million with Knight Capital, its main channel for incremental unit sales alongside larger underwritten offerings.
6 Sept 2011business combination● Neutral
Vanguard filed Amendment No. 1 to its registration for the Encore merger, with the same terms as the first filing: 0.75 Vanguard unit per Encore unit, with Vanguard's subsidiary holding about 46.0% of Encore. The meeting dates and ownership percentages are still blank, so the deal is not yet put to a vote.
3 Aug 2011asset acquisition disposition● Neutral
Vanguard completed a Permian Basin purchase in West Texas on July 29, 2011 for an adjusted $40.7 million from an undisclosed seller, funded by credit facility borrowings. The properties hold 2.74 million barrels of oil equivalent of proved reserves (all proved developed) and produced about 500 barrels of oil equivalent per day at closing, with hedges placed on a substantial portion of production through 2014. It continues the acquisition strategy and adds to the debt on the credit facility.
2 Aug 2011business combination● NeutralMajor
Vanguard filed to register units for a merger with Encore Energy Partners, in which each Encore unit not already owned by Vanguard would be converted into 0.75 Vanguard units. Vanguard's subsidiary already holds 20,924,055 Encore units (about 46.0%), and up to 19,119,406 new Vanguard units could be issued. Vanguard unitholders keep their existing units but must vote to approve the issuance, so existing holders face dilution; the percentage split is left blank in this draft. The merger agreement is dated July 10, 2011.
11 July 2011business combination▲ GoodMajor
Agreed to fully merge with Encore Energy Partners, converting all remaining public ENP units into 0.75 Vanguard units each - the roll-up of the MLP it had taken control of seven months earlier into a single company.
23 June 2011material agreement▲ Good
Agreed to buy another $42.5 million of Permian Basin oil and gas properties from a private seller, continuing its acquire-and-hedge growth model.
3 Jan 2011asset acquisition disposition▲ GoodMajor
Completed the $380 million purchase of Encore Energy Partners' general partner and Denbury's 46% common-unit stake, becoming Encore's controlling owner and setting up a full merger down the road.
28 Dec 2010capital raising announcement● Neutral
Elected to pay $80 million of the Encore Energy Partners purchase price in unregistered units issued directly to Denbury's Encore Operating affiliate rather than in cash.
17 Nov 2010debt financing▲ GoodMajor
Agreed to buy Denbury Resources' entire stake in Encore Energy Partners - its general partner plus a 46% common-unit position - for $380 million, financed with a new term loan and credit-facility borrowings. This was a step toward eventual full control of a separate public MLP, not just another property purchase.
7 Oct 2010material agreement● Neutral
Sold 4.15 million common units at $25.40 each in another underwritten offering, continuing to fund its acquisition pipeline with new equity.
10 Aug 2010material agreement● Neutral
Set up an at-the-market equity program allowing it to sell up to $60 million of common units gradually through Knight Capital Markets rather than in one underwritten block.
4 June 2010material agreement● Neutral
Reset its credit facility borrowing base to $240 million and gained the ability to hedge acquired production as soon as a deal is signed rather than waiting for closing.
24 May 2010asset acquisition disposition▲ GoodMajor
Vanguard completed a second Permian-area purchase on May 20, 2010: producing oil and gas properties in Mississippi, Texas and New Mexico from a private seller for an adjusted $114.6 million. The properties hold 4.7 million barrels of oil equivalent of proved reserves (about 96% oil), about 56% of expected production is hedged through 2013 at $91.70 per barrel, and the price was paid from about $71.5 million of net proceeds from a recent equity offering plus credit facility borrowings. This continues the acquisition-by-borrowing-and-new-units pattern, and is its largest deal in the record so far.
13 May 2010material agreement● Neutral
Sold 3.25 million common units at $23.00 each, helping fund the pending $113.1 million multi-state acquisition announced days earlier.
5 May 2010material agreement▲ GoodMajor
Agreed to buy $113.1 million of producing oil and gas assets across Mississippi, Texas and New Mexico from a private seller (Alpine Gas Investors) - its largest single deal to date.
10 Feb 2010asset acquisition disposition● Neutral
Vanguard filed the required financial statements for the $55.0 million Permian Basin purchase from private sellers, which closed December 2, 2009 and was funded from its reserve-based credit facility. The filing says the properties hold 3.2 million barrels of oil equivalent of proved reserves (about 83% oil) and that about 90% of expected oil production from existing wells is hedged with swaps from January 2010 through December 2013. It adds more swaps and collars for 2012-2013 on oil production in other areas. This follows up the December 2009 deal already reported.
4 Dec 2009material agreement▲ GoodMajor
Agreed on November 27, 2009 to buy Permian Basin oil and gas assets from private sellers for $55 million, closing on December 2 and funding it from its credit facility. It hedged about 90% of the acquired oil production through 2013.
2 Dec 2009material agreement● Neutral
Raised additional equity, selling 2.25 million common units at $18.00 each, as unit prices recovered from the 2008-09 downturn.
16 Oct 2009asset acquisition disposition▲ GoodMajor
Vanguard filed the financial statements for a second South Texas purchase from Lewis Energy affiliate Segundo Navarro Drilling. It closed August 17, 2009 at an adjusted $50.5 million, funded by credit facility borrowings and a public offering of 3.5 million common units. The properties hold 27 Bcfe of proved reserves (about 94% gas), and with added hedges about 90% of expected gas production from existing producing wells is hedged through 2011.
1 Sept 2009material agreement● Neutral
Refinanced its reserve-based credit facility at a $175 million borrowing base maturing 2012, continuing the pattern of using bank debt to fund acquisitions.
18 Aug 2009asset acquisition disposition▲ Good
Closed the second Segundo Navarro/Lewis Energy gas acquisition for $52.25 million, funded by the August equity raise and credit-facility borrowings.
12 Aug 2009material agreement● Neutral
Sold 3.5 million common units at $14.25 each to help fund its pending second South Texas gas acquisition from Lewis Energy.