Replies to post #31 on Vanguard Natural Resources Inc. (fka VNRRQ)

[sumisu]

Vanguard Natural Resources, LLC to Present at the Global Hunter Securities 100 Energy Conference

Press Release: Vanguard Natural Resources, LLC – 15 hours ago.. .

http://finance.yahoo.com/news/vanguard-natural-resources-llc-present-203100809.html

HOUSTON--(BUSINESS WIRE)--

Vanguard Natural Resources, LLC ("Vanguard" or “Company”) (VNR) today announced that Richard A. Robert, Executive Vice President and Chief Financial Officer, will deliver a presentation at the Global Hunter Securities 100 Energy Conference to be held in San Francisco, California on Monday, June 25, at 8:30 a.m. Pacific Time. The presentation slides will be available on Monday, June 25, 2012 on Vanguard’s website under Presentations on the Investor Relations tab at www.vnrllc.com.

About Vanguard Natural Resources, LLC

Vanguard Natural Resources, LLC is a publicly traded limited liability company focused on the acquisition, production and development of oil and natural gas properties. The Company’s assets consist primarily of producing and non-producing oil and natural gas reserves located in the Permian Basin in West Texas and New Mexico, the Big Horn Basin in Wyoming and Montana, South Texas, the Williston Basin in North Dakota and Montana, Mississippi and the Arkoma Basin in Arkansas and Oklahoma. More information on Vanguard can be found at www.vnrllc.com.

Contact:

Vanguard Natural Resources, LLC
Investor Relations
Lisa Godfrey, 832-327-2234
[e-mail]

[Timothy Smith]

Since its IPO in 2007, Vanguard Natural Resources LLC (VNR) has rewarded investors with a steadily increasing dividend and a significantly higher share price. However, over the last year-and-a-half, the share price growth has stagnated, pushing the yield on VNR shares well above its peers.

Vanguard Natural Resources is an E&P energy company with an emphasis on the P - production. The company's business model is to purchase producing oil and gas assets with long projected production lives and some potential for increased production through drilling. It its short history to date, Vanguard Natural Resources has completed a total of 15 acquisitions out of the 50 or so the company evaluates each year. After the most recent acquisition of natural gas assets in the Arkoma basin, the company has 136 MMboe of proved reserves. About one-third of the reserves are crude oil and about 14% natural gas liquids - NGL's - leaving just over half in natural gas.

Vanguard Natural Resources attempts to hedge the majority of its oil and gas production. Currently 80% of crude oil production through 2014 is hedged with a price floor of $90.89. For natural gas, 85% of projected production through the first half of 2017 at $5.11 MMbtu. About half of the crude hedging is done with collars, allowing some upside price participation.

[Timothy Smith]

Considering VNR pays 8.24%/year in distributions on a monthly basis, shareholders could double their initial investment in roughly 8.5 years, assuming share price and distribution rate stay static.

In fact, I feel investors could beat this static estimate, as share price and distribution payouts should increase with continued acquisitions, guided by VNR's experienced leadership.

In addition, 85% of natural gas production is hedged through the first half of 2017, and 80% of oil production hedged through 2015. These hedges offer pricing stability, which ensure additional safety to VNR's already low risk asset portfolio.

At an estimated 5.0x EBITDA/CapEx ratio for 2012, VNR's shares seem attractive relative to peers in the group. I am watching VNR for an entry point.

http://seekingalpha.com/article/928101-vanguard-natural-resources-an-impressive-mlp-with-monthly-distributions