Skip to main content WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc Investor Presentation | Shale Experts
Loading...
Pm

WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc

Vanguard Natural Resources, Llc · Dec 6, 2011 · 22 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 1
    Wells Fargo Securities, 10th Annual Pipeline, MLP and Energy Symposium New York City December 6, 2011 Presented by: Richard Robert, EVP & CFO Scott W. Smith, President & CEO
  2. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 2
    Overview of Vanguard Natural Resources Upstream oil & gas LLC, headquartered in Houston, Texas Initial Public Offering VNR - October 2007 (Total Enterprise Value of 240 MM) Twelve strategic acquisitions totaling 1.37 billion expanded…
  3. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 3
    Encore Transaction Timeline November 13, 2010 Vanguard Board approved the Denbury Purchase, for a purchase price of 380 million December 21, 2010 Vanguard notified Denbury that it was exercising its right under the purchase…
  4. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 4
    ENP Transaction Rationale Largest acquisition to date at 826 million Increased exposure to crude oil for VNR unitholders Significantly increases size and scale, overall operating reach and cash flow stability Improved ability to…
  5. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 5
    VNR Operating Areas 6
  6. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 6
    VNR Proved Reserves by Area Standalone (1) 28.2 MMBoe Combined (1)(2) 78.8 MMBoe PERMIAN & BIG HORN GULF COAST 29% 42% PERMIAN & MISS GULF COAST 15% 26% ARK-LA-TEX 1% MISS 4% SOUTH TEXAS WILLISTON 32% APPALACHIA 5%…
  7. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 7
    VNR Proved Reserves Standalone (1) 28.2 MMBoe Combined (1)(2) 78.8 MMBoe NGLs NGLs 12% 15% Gas Oil Oil Gas 52% 47% 38% 36% PUD PUD 34% 16% PDP 62% PDP PNP PNP 80% 4% 4% Substantial Increase in Size and Scale…
  8. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 8
    Snapshot of Strategic Acquisitions Since IPO Acquisition Date Region Deal Proved Reserves/ Key Features Size PDP(1) Apache Feb 2008 Permian Basin 73.4M 4.4 MMBoe / 90% PDP 83% oil Dos Hermanos Jul 2008 South Texas 53.4M 20 Bcfe / 65%…
  9. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 9
    Accretive Acquisitions Drive Growth Reserves (MMBoe) (1) Production (Boe/d) 15,000 13,310 12,500 90.0 78.8 75.0 69.3 10,000 60.0 45.0 7,500 30.0 18.1 23.8 4,723 11.2 5,000 15.0 2,701 3,335 0.0 2,500 1,931 2007 2008 2009 2010…
  10. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 10
    Quarterly Adjusted EBITDA Growth Among E&P MLPs, Vanguard is ranked 2nd in Adjusted EBITDA growth 300 13% 250 200 (S in Millions) 150 100 18% 13% 9% 15% 50 2% NM 0 Q1 Q3 Q4 Q2 Q4 Q2 Q1 Q3 Q4 Q3 Q3 Q3 Q1 Q2…
  11. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 11
    Comparable Company Distribution Increases VNR Leads Peer Group in Overall Distribution Growth 40% 36% 36% 35% Peer 1 30% 27% Peer 2 VNR 25% 21% Peer 3 20% Peer 4 15% 9% 10% Peer 5 10% 5% 2% VNR 0% Calculations include…
  12. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 12
    FINANCIAL OVERVIEW 13
  13. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 13
    Hedging Philosophy Hedge commodity prices on estimated production from acquisitions for three to five years upon signing the Purchase and Sale Agreement to protect rate of return from price fluctuations Opportunistic hedging program…
  14. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 14
    Hedges Mitigate Distribution Risk More than 60% of expected crude oil production (total proved) thru 2014 is hedged via a combination of swaps and collars at a weighted average floor price of 87.07 per barrel Approximately 60% of…
  15. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 15
    Hedged Cash Flow=Stable Distribution Coverage 2012 Natural Gas Prices (/MMBtu) 2.00 3.00 4.00 5.00 6.00 2012 Crude Oil Prices WTI 70.00 1.21x 1.24x 1.27x 1.30x 1.32x 80.00 1.29x 1.32x 1.34x 1.37x 1.40x (/Bbl) 90.00 1.39x…
  16. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 16
    Locking in Acquisition Margins Through the use of hedging, Vanguard is able to lock in significant acquisition margins for the foreseeable future, helping to insure distribution stability 100.00 92.82 90.00 84.87 80.28 81.72…
  17. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 17
    Debt and Liquidity Update ( in millions) All figures shown as of 12/1/11 Senior Facility 2nd Lien Facility Facility Size 1,500.0 100.0 Borrowing Base 765.0 N/A Amount Outstanding 671.5 100.0 Borrowing Availability 93.5 N/A…
  18. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 18
    Interest Rate Hedges LIBOR swaps provide increased certainty in future financing costs The current low interest rate environment has provided for additional opportunities to lock-in historical low rates Currently, 40% of Encore and…
  19. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 19
    Consistent Distribution Growth VNR has raised its distribution +36% since IPO equating to 8.11 in cumulative distributions 2007* 2008 2009 2010 2011 *Q4 2007 distribution of 0.425 is pro rata for October 29, 2007-December 31,…
  20. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 20
    Price Performance Since 2009 The results have been good. VNR has outperformed US Royalty Trusts, C-Corps and other E&P MLPs. The strategy works. 800% 700% VNR Total Return: 548% 600% 500% VNR: 371% 400% 300% E&P…
  21. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 21
    Comparable Company Distribution Yields CURRENT DISTRIBUTION YIELDS OF PEER GROUP 9.5% 9.6% 10% 8.1% 8.3% 7.5% 8% 6.2% 6.4% 6.5% 6.6% 6% 4.5% 4% 3.05 2.04 2.76 2.18 2.31 1.90 1.74 2% 0% *USRT *G&P *Pipe EVEP PSE LINE LGCY VNR…
  22. WELLS FARGO SECURITIES 10TH ANNUAL PIPELINE MLP AND ENERGY SYMPOSIUM – Vanguard Natural Resources, Llc – slide 22
    Key Investor Considerations Management and unitholders are well aligned High quality, long lived reserves Asset base generates stable cash flow Multi-year hedge program mitigates commodity risk Geographic and commodity…

From the store

Browse maps, data & reports in the Shale Experts store