Vanguard Natural buys assets in Permian Basin
Vanguard Natural Resources buys oil and natural gas assets in Permian Basin for $275 million
HOUSTON (AP) -- Vanguard Natural Resources LLC is buying natural gas and oil assets in the Permian Basin for $275 million.
The company, which focuses on the acquisition, production and development of oil and natural gas properties, is buying the assets from independent oil and natural gas producer Range Resources Corp. Vanguard already has oil and natural gas reserves in the Permian Basin, which is located in West Texas and New Mexico.
"These properties are a nice complement to one of Vanguard's core operating areas and have some excellent behind pipe and development drilling opportunities that will enhance our cash flow as they are developed over the next four to six years," Mark Carnes, Vanguard's director of acquisitions, said in a statement on Thursday.
Vanguard said that it plans to fund the deal with borrowings under an existing credit facility.
The acquisition is expected to close by April 1.
The Houston company's stock fell 2 cents to $27.74 in morning trading. Range Resources rose 38 cents to $74.58.
