Wells Fargo Conference Scott W. Smith, President & CEO Richard Robert, EVP & CFO December 8, 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 five 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 Proved Reserves: 765 Bcfe Proved Reserves: 104 Bcfe 2.55 Tcfe (425 MMBoe) proved reserves Proved Reserves: 25 Bcfe 84%…
VNR Investment Thesis: Disciplined Acquisition Strategy Strong record of evaluating and integrating assets, Acquisitions Completed Since IPO in 2007 completing over 5.0 billion in acquisitions since VNRs IPO in 2007 Natural Gas…
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 Q42015-2016 Large inventory in the U.S. of mature oil and natural gas basins which provide significant…
LRR Energy, L.P. Overview Asset Profile (1) Transaction Highlights Permian Region Closing announced on Monday, October 5, 2015 Acreage: 149,408 gross / 122,002 net Proved Reserves: 97.9 Bcfe (68% liquids) Total consideration of…
Eagle Rock Energy Partners, L.P. Overview Asset Profile (1) Transaction Highlights Closing announced on Thursday, October 8, 2015 NM OK Mid-Continent Assets Total consideration of 28.3mm VNR common units and the assumption of…
EROC Mid-Continent Position Mid-continent comprises 80% of the proved reserves as of 6/30/15 20,000 net acres in the highly prospective oil-weighted South Central Oklahoma Oil Province (SCOOP) play and 5,000 net acres in the STACK.…
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
Historical Yield And Notable Acquisitions And Distribution Activity Since 2007 IPO In July In May, In June, In April, closed In January purchased 2008, 2009, purchased the 269mm In January, purchased assets in assets in the Permian…
Pro Forma Capitalization and Liquidity Capitalization Table (Current) ( in millions) Vanguard Cash 10 Credit Facility 1,690 7.875% Senior Notes due 2020 550 8.375% Senior Notes due 2019 51 Lease Financing Obligations 27 Total…
Peer G&A and LOE as % of Revenue 1H15 LOE % Of Revenue G&A (cash) % Of Revenue 60.0% 14.0% 11.6% 50.0% 48.2% 12.0% 10.0% 8.7% 8.7% 40.0% 35.5% 8.1% 7.6% 30.4% 8.0% 6.9% 30.0% 26.5% 26.9% 24.8% 24.7% 21.3% 22.3% 20.9% 6.0%…
Hedges Mitigate Commodity Price Risk 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 83.27 86.71…
Current Upstream MLP Yields Upstream MLP yields range from 17-53%, with a median of 23% 60.0% 53.2% 50.8% 50.0% 40.0% 30.0% 24.1% 23.1% 22.4% 20.0% 17.2% 10.0% 0.0% 0.0% 0.0% EVEP ARP MEMP VNR BBEP LGCY LINE MCEP…
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…
Appendix
VNR Basins: North Operated & Non-operated Big Horn Basin Green River Basin Piceance Basin Powder River Basin Williston Basin Wind River Basin 23
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