ACQUISITION OF LRR ENERGY – Vanguard Natural Resources, Llc

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Slides

Acquisition of LRR Energy, L.P. April 21, 2015
Transaction Overview VNR to acquire LRR Energy by issuing 0.55 units of VNR for each LRR unit Consideration Implied purchase price of 8.93 per LRR Energy common unit based on Vanguards closing price on April 20, 2015 Total…
LRR Energy, L.P. Overview Publicly traded Upstream MLP formed in November 2011 Capitalization Table(1) (NYSE: LRE) ( in millions) Operates more than a dozen fields in 3 regions; Permian Basin, Equity Market Capitalization 219…
Attractive Operational Overlap Arkoma Basin Permian Basin South Texas Gulf Coast Basin 5
Operational Metrics of Pro Forma Company Vanguard LRR Energy PF Vanguard PUD 12% PUD PUD 32% 30% PDNP 15% Reserves by Category PDP PDNP PDNP PDP 64% 5% 4% 65% PDP 73% 2,031 Bcfe 203 Bcfe(1) 2,234 Bcfe Permian Gulf…
VNR: Strategic Rationale Transaction adds attractive portfolio of mature, long-lived assets well-suited to upstream MLP structure Mature asset base with proved reserve life of 14 years Adds additional scale in Permian and Arkoma…
Pro Forma Capitalization and Liquidity Little change to historical metrics, but expected to improve 2015 leverage metrics Capitalization Table ( in millions) Vanguard LRR Energy PF Vanguard Cash 10 2 12 Credit Facility 1,360 240…
Hedges Mitigate Commodity Price Risk Transaction modestly improves Vanguards hedge book, increasing weighted average price and volumes hedged PF Natural Gas Hedges PF Oil Hedges 120,000 5,000 4.36 4.37 4.23 77.67 84.21 84.34…