EnerCom Presentation Richard Robert, EVP & CFO August 18, 2015
Overview of Vanguard Natural Resources Upstream oil & gas LLC, headquartered in Houston, TX; Initial Public Offering VNR October 2007 had a Total Enterprise Value of Asset Profile(1) 240mm Twenty three strategic acquisitions…
Experienced Management Team Years of Name Title Prior Affiliations Experience Ensource Energy Scott W. Smith President and CEO The Wiser Oil Company 34 San Juan Partners Enbridge USA Richard A. Robert EVP and CFO Midcoast…
Geographically Diversified Reserve Base Core Areas Overview Green River Basin Big Horn Basin Williston Basin 2.03 Tcfe (339 MMBoe) proved reserves Proved Reserves: 765 Bcfe Proved Reserves: 104 Bcfe Proved Reserves: 25 Bcfe 73% gas…
VNR Investment Thesis Strong record of evaluating and integrating assets, completing over 4.2 billion since VNRs IPO in 2007 Designated business development and acquisition evaluation team We review between 125-150 and evaluate…
2015 Capital Program Maintaining Production 20% reduction in total 2015 capital budget from 2014 Pinedale and East Haynesville account for 75% of 2015E Budget After consideration of ethane rejection beginning in January 2015, VNR…
Pinedale / East Haynesville Returns Even in todays commodity environment, the Pinedale and East Haynesville generate good rate of returns without assuming any savings on the drilling and completion costs Budget of 3.8 MM per…
Strategy Dependent on Acquisitions 1) Continue to Make Accretive Acquisitions- Take advantage of significant opportunities in 2015 Large inventory in the U.S. of mature oil and natural gas basins which provide significant opportunity…
LRR Energy, L.P. Overview Capitalization Table(1) Publicly traded Upstream MLP formed in November 2011 ( in millions) (NYSE: LRE) Equity Market Capitalization 133 Operates more than a dozen fields in 3 regions; Permian Basin, Net…
Eagle Rock Energy Partners, L.P. Overview Publicly traded upstream MLP formed in May 2006 (NASDAQ: EROC) based in Houston, TX Capitalization Table(1) ( in millions) Owns operated and non-operated wells located in four significant…
VNR: Strategic Rationale VNR + LRE + EROC Transaction Transaction adds attractive portfolio of mature, long-lived assets well-suited to upstream MLP structure Mature asset bases with proved reserve life of more than 10 years Adds…
Operational Metrics of Pro Forma Company VNR + LRE + EROC Vanguard LRR Energy Eagle Rock Energy PF Vanguard PUD PUD PUD 12% PUD 22% 32% PDNP 29% Reserves(1) 15% PDNP 6% PDP PDNP PDP by Category PDNP 4% 64% PDP PDP 5% 66% 73%…
Financial Overview
Pro Forma Capitalization and Liquidity VNR + LRE + EROC Leverage metrics expected to improve 2015 and beyond Capitalization Table (6/30/15) ( in millions) Vanguard LRR Energy Eagle Rock Pro Form a VNR Cash 4 8 0 12 Credit Facility…
Hedges Mitigate Commodity Price Risk (VNR + LRE + EROC) Combined transactions modestly improve Vanguards hedge book, increasing volumes hedged and increases weighted average price in most years PF Natural Gas Hedges PF Oil Hedges…
Investment Questions Invest In MLPs Medium To Long-Term Investor Current Income Is Important Like Potential For Income Growth Looking For Tax Advantaged Income OK With Getting A K-1 Invest In Upstream MLPs Believe Oil/Gas Prices…
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