Hedging | Capital Markets
Vanguard Closes Several Asset Sales; Borrowing Base Revised & Hedges Increased
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Vanguard Natural Resources has reported several updates including a deal closure, borrowing base determination as well as a hedging update.
Deal Closure
The Company has closed its previously announced divestments of certain properties in the Permian Basin, Green River Basin, and Mississippi. Click here for more details on this deal.
Update Hedges
The Company has entered into additional Rockies natural gas basis hedges for 57,480 MMbtu per day at a weighted average price of ($0.6758) per MMbtu for the period of July 2018 - October 2018. This equates to more than 35% of the Company's Rockies natural gas production for the period.
Borrowing Base Revised
The first scheduled redetermination of the revolving credit facility borrowing base was scheduled for August 2018. The Company proactively engaged lenders to close on the redetermination on July 5, 2018. The redetermination, which includes the impact of the recently closed divestitures, resulted in a revised borrowing base of $729.7 million.
As of June 29, 2018, Vanguard has $688.5 million in outstanding borrowings, approximately $0.2 million in outstanding letters of credit, and current cash on hand of approximately $8.0 million, resulting in liquidity at the time of redetermination of approximately $49 million.
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