Vanguard Natural Resources, LLC Announces Closing of Properties in Wyoming

  Vanguard Natural Resources, LLC Announces Closing of Properties in Wyoming

Business Wire

HOUSTON -- February 3, 2014

Vanguard Natural Resources, LLC (NASDAQ: VNR) (“Vanguard” or “the Company”)
today announced that on January 31, 2014 it consummated the previously
announced acquisition of natural gas and oil properties in the Pinedale and
Jonah fields of Southwestern Wyoming for an adjusted purchase price of $549.1
million, subject to customary final post-closing adjustments. The effective
date of the acquisition is October 1, 2013.

Significant benefits expected from the acquisition:

  *Immediately accretive to distributable cash flow at closing;
  *Estimated reserve life of over 20 years based on internally estimated
    proved reserves of 847 Bcfe;
  *Properties 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”);
  *Reserves and daily production will increase approximately 80% and 55%,
    respectively;
  *Approximately 2,000 producing wells;
  *Additional inventory of approximately 970 proved undeveloped drilling
    locations;
  *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.

The Company funded this acquisition with borrowings under its existing
reserve-based credit facility. As of January 31, 2014 and pro forma for the
financing for this acquisition, the Company has borrowings under its reserved
based credit facility of $935 million which leaves $365 million of undrawn
capacity.

2014 production and financial results guidance will be included in the
fourth-quarter and 2013 year end results press release which is expected to be
issued on February 26, 2014.

New commodity derivative contracts put in place for this acquisition are as
follows:

              Year              Year              Year          Year
                2014                2015                2016            2017
Gas
Positions:
Fixed-Price
Swaps:
Notional
Volume          29,010,000          27,375,000          18,300,000      18,250,000
(MMBtu)
Fixed Price     $ 4.26              $ 4.16              $  4.12         $  4.14
($/MMBtu)
Basis
Swaps:
Northwest
Rockies
Pipeline
Notional
Volume            26,875,000          23,725,000           —               —
(MMBtu)
Fixed Price     $ (0.20      )      $ (0.29      )      $  —            $  —
($/MMBtu)
Put Options
Sold:
Notional
Volume          3,340,000           7,300,000           —               —
(MMBtu)
Put Sold        $ 3.50              $ 3.50              $  —            $  —
($/MMBtu)
                                                                           
Oil
Positions:
Fixed-Price
Swaps:
Notional
Volume            146,000             73,000               73,200          73,000
(Bbls)
Fixed Price     $ 96.48             $ 90.55             $  87.70        $  86.60
($/Bbl)
Put Options
Sold:
Notional
Volume          73,000              73,000              73,200          73,000
(Bbls)
Put Sold        $ 75.00             $ 75.00             $  75.00        $  75.00
($/Bbl)
                                                                           

For a summary of all commodity and interest rate derivative contracts in place
as of December 31, 2013, please refer to our Annual Report on Form 10-K which
is expected to be filed on or about February 28, 2014.

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 Green River Basin in
Southwestern Wyoming, 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
Director, Investor Relations
Lisa Godfrey, 832-327-2234
investorrelations@vnrllc.com
 
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