Vanguard Natural Resources Inc. (fka VNRRQ)

[OilStockReport]

A little DD.

Vanguard Natural Resources (VNR) has increased the size and liquids resources of the company through acquisitions. If you are an investor for income, this company has a 6.9% dividend. This company IPO'd in October of 2007. Since then they have made six acquisitions. Vanguard has a diverse holding of mature long lasting oil and gas properties. They are also well hedged, which helps to support distributions. It has 69.3 MMBoe of total proved resource. Of this, 55% is oil with another 8% coming from natural gas liquids. Since Vanguard's IPO, the company's reserves have grown 519%. Also, this company was 100% gas in 2007, which has shifted to liquids through purchases. The largest and most important acquisition was done recently. Encore Energy Partners (ENP) was not only an increase in crude reserves, but also was strategic with respect to where those resources are. Encore added to Vanguard's current Permian acreage, but also granted access to the Williston Basin. Although this strategy is different from royalty trusts, c-corps., and MLPs, it has proved it works. This is an ideal investment for one looking for dividend income, plus it provides a growth platform through acquisitions.