Vanguard Natural Resources, LLC Signs Agreement to Acquire Properties in Wyoming

  Vanguard Natural Resources, LLC Signs Agreement to Acquire Properties in
  Wyoming

Business Wire

HOUSTON -- December 30, 2013

Vanguard Natural Resources, LLC (NASDAQ: VNR) (“Vanguard” or “the Company”)
today announced it has entered into a definitive agreement to acquire natural
gas and oil properties in the Pinedale and Jonah fields of Southwestern
Wyoming for a purchase price of $581 million from an unnamed source. The
properties being sold consist of approximately 87,000 gross acres (14,000 net
acres) that are currently producing approximately 113.4 Mmcfe per day with
approximately 80% being natural gas, 4% oil and 16% natural gas liquids
(“NGLs”). The effective date of the acquisition is October 1, 2013 and the
Company anticipates closing this acquisition on or before January 31, 2014.

Scott W. Smith, President and Chief Executive Officer, commented, “Acquiring
an interest in one of the country’s most prolific natural gas fields, operated
by companies with an unparalled history of successful development, is a
milestone event for Vanguard. At closing, our reserves and daily production
will increase approximately 80% and 55% respectively, and we will add an
inventory of approximately 970 proved undeveloped drilling locations. This
property will be an excellent addition to our portfolio of long life, mature
assets and represents a great start to our 2014 acquisition program.”

Richard Robert, Executive Vice President and Chief Financial Officer, added,
“This acquisition will mark an important change in the Vanguard strategy. For
the first time in its history, Vanguard will be allocating capital to drilling
wells on these acquired properties which is expected to not only maintain cash
flow but grow cash flow. Based on the numerous proved undeveloped drilling
locations and the current number of drilling rigs in use by the operators,
this combined maintenance and growth capital program will be sustainable for
over ten years. Furthermore, this strategy change will allow Vanguard to more
effectively compete for new acquisitions that contain both mature stable
production and a significant inventory of proven undeveloped drilling
locations.”

Highlights of the acquisition include:

  *Immediately accretive to distributable cash flow at closing;
  *Estimated reserve life of over 20 years based on internally estimated
    proved reserves of 847 Bcfe

Proved reserves are divided geographically and by commodity mix as follows:

                                              
          Proved Reserves                      
Field     Natural Gas  Oil    NGL     Total   % Proved
           (Bcf)         (MMBl) (MMBl)   (Bcfe)   Developed
Jonah     17.7         0.2    0.6     22.3    49
Pinedale  654.5        5.5    22.9    825.0   43
Total     672.2        5.7    23.5    847.3   43
                                      

Current net production of approximately 113.4 MMcfe/d is divided
geographically and by commodity as follows:

                                                       
          Current Net Production                        
Basins    Natural Gas  Oil       NGL       Total      % Natural Gas
           (MMcf/d)      (MBbl/d)   (MBbl/d)   (MMcfe/d)
Jonah     2.0          0.0       0.1       2.5        79
Pinedale  88.7         0.7       3.0       110.9      80
Total     90.7         0.7       3.1       113.4      80
                                           

  *Approximately 2,000 producing wells and over 970 proved undeveloped
    drilling locations; there are approximately 5,200 additional locations not
    booked at this time due to the current expectation that they will not be
    drilled within a five year period as required by the SEC for recording
    proved reserves;
  *100% non-operated properties with an average working interest of 10% and
    partnering with two major operators in the area, Ultra Petroleum Corp.
    (NYSE: UPL) and QEP Resources, Inc. (NYSE: QEP);
  *Expect an 8 rig drilling program, with each rig anticipated to drill 2
    wells per month in 2014;
  *Vanguard intends to significantly hedge the expected natural gas and oil
    production through 2017; management will continue to evaluate hedging the
    natural gas liquids component and act prudently and swiftly should the NGL
    pricing market justify a hedged component.

The Company intends to fund this acquisition with borrowings under its
existing reserve-based credit facility.

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, the
Arkoma Basin in Arkansas and Oklahoma, the Piceance Basin in Colorado, the
Powder River and Wind River Basin in Wyoming, the Williston Basin in North
Dakota and Montana, Mississippi and South Texas. More information on Vanguard
can be found at www.vnrllc.com.

Forward-Looking Statements

We make statements in this news release that are considered forward-looking
statements within the meaning of the Securities Exchange Act of 1934. These
forward-looking statements are largely based on our expectations, which
reflect estimates and assumptions made by our management. These estimates and
assumptions reflect our best judgment based on currently known market
conditions and other factors. Although we believe such estimates and
assumptions to be reasonable, they are inherently uncertain and involve a
number of risks and uncertainties that are beyond our control. In addition,
management's assumptions about future events may prove to be inaccurate.
Management cautions all readers that the forward-looking statements contained
in this news release are not guarantees of future performance, and we cannot
assure you that such statements will be realized or the forward-looking events
and circumstances will occur. Actual results may differ materially from those
anticipated or implied in the forward-looking statements due to factors listed
in the "Risk Factors" section in our SEC filings and elsewhere in those
filings. All forward-looking statements speak only as of the date of this news
release. We do not intend to publicly update or revise any forward-looking
statements as a result of new information, future events or otherwise.

Contact:

Vanguard Natural Resources, LLC
Investor Relations:
Lisa Godfrey, 832-327-2234
investorrelations@vnrllc.com
 
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