(Mark One)
|
||
x
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the quarterly period ended September 30, 2009
|
||
OR
|
||
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the transition period
from to
|
||
Commission
File Number: 001-33756
|
Delaware
|
61-1521161
|
|
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
(I.R.S.
Employer
Identification
No.)
|
7700
San Felipe, Suite 485
Houston,
Texas
|
77063
|
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Large
accelerated filer
o
|
Accelerated
filer
x
|
Non-accelerated
filer
o
|
Smaller
reporting company
o
|
(Do
not check if a smaller reporting company)
|
Page
|
||
/day
|
=
|
per
day
|
Mcf
|
=
|
thousand
cubic feet
|
|
Bbls
|
=
|
barrels
|
Mcfe
|
=
|
thousand
cubic feet of natural gas equivalents
|
|
Bcfe
|
=
|
billion
cubic feet of natural gas equivalents
|
MMBtu
|
=
|
million
British thermal units
|
|
Btu
|
=
|
British
thermal unit
|
MMcf
|
=
|
million
cubic feet
|
|
Gal
|
=
|
gallons
|
NGL
|
=
|
natural
gas liquids
|
|
|
|
Three Months
Ended
September
30,
|
Nine Months
Ended
September
30,
|
||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Revenues:
|
|
|
||||||||||||||
Natural
gas, natural gas liquids and oil sales
|
$
|
11,324
|
$
|
20,839
|
$
|
29,930
|
$
|
55,693
|
||||||||
Gain
(loss) on commodity cash flow hedges
|
(463
|
)
|
45
|
(1,737
|
)
|
616
|
||||||||||
Gain
(loss) on other commodity derivative contracts
|
(4,210
|
)
|
63,364
|
7,302
|
(16,453
|
)
|
||||||||||
Total
revenues
|
6,651
|
84,248
|
35,495
|
39,856
|
||||||||||||
Costs
and expenses:
|
||||||||||||||||
Lease
operating expenses
|
3,322
|
3,485
|
9,233
|
7,800
|
||||||||||||
Depreciation,
depletion, amortization, and accretion
|
3,272
|
4,187
|
9,700
|
10,341
|
||||||||||||
Impairment
of natural gas and oil properties
|
—
|
—
|
63,818
|
—
|
||||||||||||
Selling,
general and administrative expenses
|
2,137
|
1,560
|
8,230
|
4,843
|
||||||||||||
Production
and other taxes
|
974
|
1,263
|
2,537
|
3,658
|
||||||||||||
Total
costs and expenses
|
9,705
|
10,495
|
93,518
|
26,642
|
||||||||||||
Income
(loss) from operations
|
(3,054
|
)
|
73,753
|
(58,023
|
)
|
13,214
|
||||||||||
Other
income and (expense):
|
||||||||||||||||
Interest
income
|
—
|
4
|
—
|
16
|
||||||||||||
Interest
expense
|
(1,042
|
)
|
(1,489
|
)
|
(3,034
|
)
|
(3,863
|
)
|
||||||||
Gain
on acquisition of natural gas and oil properties
|
5,878
|
—
|
5,878
|
—
|
||||||||||||
Loss
on interest rate derivative contracts
|
(1,081
|
)
|
(459
|
)
|
(853
|
)
|
(510
|
)
|
||||||||
Total
other income (expense)
|
3,755
|
(1,944
|
)
|
1,991
|
(4,357
|
)
|
||||||||||
Net
income (loss)
|
$
|
701
|
$
|
71,809
|
$
|
(56,032
|
)
|
$
|
8,857
|
|||||||
Net
income (loss) per unit:
|
||||||||||||||||
Common
& Class B units – basic
|
$
|
0.05
|
$
|
5.90
|
$
|
(4.24
|
)
|
$
|
0.77
|
|||||||
Common
& Class B units – diluted
|
$
|
0.05
|
$
|
5.90
|
$
|
(4.24
|
)
|
$
|
0.77
|
|||||||
Weighted
average units outstanding:
|
||||||||||||||||
Common
units – basic & diluted
|
14,027,186
|
11,749,421
|
12,779,869
|
11,115,463
|
||||||||||||
Class
B units – basic & diluted
|
420,000
|
420,000
|
420,000
|
420,000
|
September
30,
2009
|
December 31,
2008
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 2,046 | $ | 3 | ||||
Trade
accounts receivable, net
|
5,410 | 6,083 | ||||||
Derivative
assets
|
19,516 | 22,184 | ||||||
Other
receivables
|
2,912 | 2,763 | ||||||
Other
current assets
|
766 | 845 | ||||||
Total
current assets
|
30,650 | 31,878 | ||||||
Natural gas and oil properties, at cost
|
341,898 | 284,447 | ||||||
Accumulated depletion
|
(175,493 | ) | (102,178 | ) | ||||
Natural
gas and oil properties evaluated, net – full cost
method
|
166,405 | 182,269 | ||||||
Other
assets
|
||||||||
Derivative assets
|
6,850 | 15,749 | ||||||
Deferred financing costs
|
3,301 | 882 | ||||||
Other assets
|
1,627 | 1,784 | ||||||
Total
assets
|
$ | 208,833 | $ | 232,562 | ||||
Liabilities
and members’ equity
|
||||||||
Current
liabilities
|
||||||||
Accounts payable – trade
|
$ | 611 | $ | 2,148 | ||||
Accounts payable – natural gas and oil
|
1,525 | 1,327 | ||||||
Payables to affiliates
|
866 | 2,555 | ||||||
Deferred swap liability
|
997 | — | ||||||
Derivative liabilities
|
29 | 486 | ||||||
Phantom unit compensation accrual
|
3,034 | — | ||||||
Accrued ad valorem taxes
|
1,591 | 34 | ||||||
Accrued expenses
|
344 | 1,214 | ||||||
Total
current liabilities
|
8,997 | 7,764 | ||||||
Long-term debt
|
123,500 | 135,000 | ||||||
Derivative liabilities
|
2,801 | 2,313 | ||||||
Deferred swap liability
|
2,075 | — | ||||||
Asset retirement obligations
|
4,133 | 2,134 | ||||||
Total
liabilities
|
141,506 | 147,211 | ||||||
Commitments
and contingencies
|
||||||||
Members’
equity
|
||||||||
Members’ capital, 16,078,673 common units issued and outstanding at
September 30, 2009 and 12,145,873 at December 31,
2008
|
67,409 | 88,550 | ||||||
Class B units, 420,000 issued and outstanding at September 30, 2009 and
December 31, 2008
|
6,045 | 4,606 | ||||||
Accumulated other comprehensive loss
|
(6,127 | ) | (7,805 | ) | ||||
Total
members’ equity
|
67,327 | 85,351 | ||||||
Total
liabilities and members’ equity
|
$ | 208,833 | $ | 232,562 |
Common
Units
|
Common
Units
Amount
|
Class
B
Units
|
Class
B
Units
Amount
|
Accumulated
Other Comprehensive Loss
|
Total
Members’
Equity
|
||||||||||||
Balance,
January 1, 2008
|
10,795,000
|
$
|
90,258
|
420,000
|
$
|
2,132
|
$
|
(10,059
|
)
|
$
|
82,331
|
||||||
Distributions
to members ($0.291, $0.445, $0.445 and $0.50 per unit to unitholders of
record February 7, 2008, April 30, 2008, July 31, 2008 and October 31,
2008, respectively)
|
—
|
(19,423
|
)
|
—
|
(706
|
)
|
—
|
(20,129
|
)
|
||||||||
Issuance
of common units for acquisition of natural gas and oil properties, net of
offering costs of $54
|
1,350,873
|
21,306
|
—
|
—
|
—
|
21,306
|
|||||||||||
Unit-based
compensation
|
—
|
161
|
—
—
|
3,180
|
—
|
3,341
|
|||||||||||
Net
loss
|
—
|
(3,752
|
)
|
—
|
—
|
—
|
(3,752
|
)
|
|||||||||
Settlement
of cash flow hedges in other comprehensive income
|
—
|
—
|
—
|
—
|
2,254
|
2,254
|
|||||||||||
Balance at December 31,
2008
|
12,145,873
|
$
|
88,550
|
420,000
|
$
|
4,606
|
$
|
(7,805
|
)
|
$
|
85,351
|
||||||
Distributions
to members ($0.50 per unit to unitholders of record January 31, 2009,
April 30, 2009 and July 31, 2009, respectively)
|
—
|
(18,219
|
)
|
—
|
(630
|
)
|
—
|
(18,849
|
)
|
||||||||
Issuance
of common units, net of offering costs of $491
|
3,932,800
|
53,192
|
—
|
—
|
—
|
53,192
|
|||||||||||
Unit-based
compensation
|
—
|
(82
|
)
|
—
|
2,069
|
—
|
1,987
|
||||||||||
Net
loss
|
—
|
(56,032
|
)
|
—
|
—
|
—
|
(56,032
|
)
|
|||||||||
Settlement
of cash flow hedges in other comprehensive income
|
—
|
—
|
—
|
—
|
1,678
|
1,678
|
|||||||||||
Balance at September 30,
2009
|
16,078,673
|
$
|
67,409
|
420,000
|
$
|
6,045
|
$
|
(6,127
|
)
|
$
|
67,327
|
Nine Months Ended
September
30,
|
||||||||
2009
|
2008
|
|||||||
Operating
activities
|
||||||||
Net
income (loss)
|
$ | (56,032 | ) | $ | 8,857 | |||
Adjustments
to reconcile net income (loss) to net cash provided by operating
activities:
|
||||||||
Depreciation,
depletion, amortization, and accretion
|
9,700 | 10,341 | ||||||
Impairment
of natural gas and oil properties
|
63,818 | — | ||||||
Amortization
of deferred financing costs
|
363 | 264 | ||||||
Unit-based
compensation
|
2,311 | 2,708 | ||||||
Unrealized
fair value of phantom units granted to officers
|
3,034 | — | ||||||
Amortization
of premiums paid and non-cash settlements on derivative
contracts
|
4,383 | 3,982 | ||||||
Unrealized
losses on other commodity and interest rate derivative
contracts
|
16,105 | 6,463 | ||||||
Gain
on acquisition of natural gas and oil properties
|
(5,878 | ) | — | |||||
Changes
in operating assets and liabilities:
|
||||||||
Trade
accounts receivable
|
673 | (6,730 | ) | |||||
Other
receivables
|
(149 | ) | — | |||||
Payables
to affiliates
|
(1,689 | ) | 662 | |||||
Other
current assets
|
11 | (435 | ) | |||||
Price
risk management activities, net
|
(13 | ) | (452 | ) | ||||
Accounts
payable
|
(1,339 | ) | 673 | |||||
Accrued
expenses
|
687 | 2,300 | ||||||
Other
assets
|
(27 | ) | — | |||||
Net
cash provided by operating activities
|
35,958 | 28,633 | ||||||
Investing
activities
|
||||||||
Additions
to property and equipment
|
(9 | ) | (70 | ) | ||||
Additions
to natural gas and oil properties
|
(2,981 | ) | (13,360 | ) | ||||
Acquisitions
of natural gas and oil properties
|
(49,964 | ) | (99,815 | ) | ||||
Deposits
and prepayments of natural gas and oil properties
|
(699 | ) | (901 | ) | ||||
Net
cash used in investing activities
|
(53,653 | ) | (114,146 | ) | ||||
Financing
activities
|
||||||||
Proceeds
from borrowings
|
16,800 | 112,900 | ||||||
Repayment
of debt
|
(28,300 | ) | (15,800 | ) | ||||
Distributions
to members
|
(18,849 | ) | (13,846 | ) | ||||
Proceeds
from equity offering
|
53,192 | — | ||||||
Financing
costs
|
(2,781 | ) | (274 | ) | ||||
Purchase
of units for issuance as unit-based compensation
|
(324 | ) | (236 | ) | ||||
Net
cash provided by financing activities
|
19,738 | 82,744 | ||||||
Net
increase (decrease) in cash and cash equivalents
|
2,043 | (2,769 | ) | |||||
Cash and cash
equivalents, beginning of period
|
3 | 3,110 | ||||||
Cash and cash
equivalents, end of period
|
$ | 2,046 | $ | 341 | ||||
Supplemental
cash flow information:
|
||||||||
Cash
paid for interest
|
$ | 2,964 | $ | 3,342 | ||||
Non-cash
financing and investing activities:
|
||||||||
Asset
retirement obligations
|
$ | 1,913 | $ | 2,155 | ||||
Derivatives
assumed in acquisition of natural gas and oil properties
|
$ | 4,128 | $ | 2,468 | ||||
Deferred
swap liability
|
$ | 3,072 | $ | — | ||||
Non-monetary
exchange of natural gas and oil properties
|
$ | 2,660 | $ | — | ||||
Issuance
of common units for acquisition of natural gas and oil
properties
|
$ | — | $ | 21,360 | ||||
Transfer
of deposit for natural gas and oil properties
|
$ | — | $ | 7,830 |
Three Months
Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income (loss)
|
$
|
701
|
$
|
71,809
|
$
|
(56,032
|
)
|
$
|
8,857
|
|||||||
Net
gains (losses) from derivative contracts:
|
||||||||||||||||
Unrealized
mark-to-market gains arising during the period
|
—
|
—
|
—
|
2,747
|
||||||||||||
Reclassification
adjustments for settlements
|
434
|
7
|
1,678
|
(564
|
)
|
|||||||||||
Other
comprehensive income
|
434
|
7
|
1,678
|
2,183
|
||||||||||||
Comprehensive income
(loss)
|
$
|
1,135
|
$
|
71,816
|
$
|
(54,354
|
)
|
$
|
11,040
|
1.
|
Summary
of Significant Accounting Policies
|
(a)
|
Basis of
Presentation and Principles of
Consolidation:
|
(b)
|
Recently
Adopted Accounting Pronouncements:
|
(c)
|
New
Pronouncements Issued But Not Yet
Adopted:
|
(d)
|
Use
of Estimates:
|
2.
|
Acquisitions
|
Pro-forma
(in
thousands, except per unit data)
(unaudited)
|
||||||||
Three
Months Ended
September
30, 2008
|
Nine
Months Ended
September
30, 2008
|
|||||||
Total
revenues
|
$ | 85,166 | $ | 48,181 | ||||
Net
income
|
$ | 72,138 | $ | 11,840 | ||||
Net
income per unit:
|
||||||||
Common & Class B units – basic
|
$ | 5.74 | $ | 0.94 | ||||
Common &
Class B units – diluted
|
$ | 5.74 | $ | 0.94 |
(in
thousands)
|
||||
Fair
value of assets and liabilities acquired:
|
||||
Natural
gas and oil properties
|
$ | 54,942 | ||
Derivative
assets
|
4,128 | |||
Other
currents assets
|
187 | |||
Accrued
expenses
|
(298 | ) | ||
Asset
retirement obligations
|
(2,254 | ) | ||
Total
fair value of assets and liabilities acquired
|
56,705 | |||
Fair
value of consideration transferred
|
50,827 | |||
Gain
on acquisition of natural gas and oil properties
|
$ | 5,878 |
Pro-forma
(in thousands,
except per unit data)
(unaudited)
|
||||||||||||||||||
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||
Total
revenues
|
$ | 8,156 | $ | 91,959 | $ | 41,880 | $ | 62,852 | ||||||||||
Net
income (loss)
|
$ | 1,858 | $ | 77,997 | $ | (53,002 | ) | $ | 26,814 | |||||||||
Net
income (loss) per unit:
|
||||||||||||||||||
Common & Class B units – basic
|
$ | 0.11 | $ | 4.73 | $ | (3.21 | ) | $ | 1.63 | |||||||||
Common &
Class B units – diluted
|
$ | 0.11 | $ | 4.73 | $ | (3.21 | ) | $ | 1.63 |
3.
|
Credit
Facility and Long-Term Debt
|
|
|
Amount Outstanding
(in
thousands)
|
|||||||||||
Description
|
Interest
Rate
|
Maturity Date
|
September
30,
2009
|
December 31,
2008
|
|||||||||
Senior secured
reserve-based credit facility
|
Variable
(1)
|
October
1, 2012
|
$ | 123,500 | $ | 135,000 |
Borrowing
Base Utilization Percentage
|
<50%
|
>50%
<75%
|
>75%
<90%
|
>90%
|
|||||
Eurodollar
Loans
|
2.25%
|
2.50%
|
2.75%
|
3.00%
|
|||||
ABR
Loans
|
1.25%
|
1.50%
|
1.75%
|
2.00%
|
|||||
Commitment
Fee Rate
|
0.50%
|
0.50%
|
0.50%
|
0.50%
|
|||||
Letter
of Credit Fee
|
2.25%
|
2.50%
|
2.75%
|
3.00%
|
4.
|
Price
Risk Management Activities
|
Gas
|
Oil
|
|||||||||
Contract
Period
|
MMBtu
|
Weighted
Average
Fixed
Price
|
Bbls
|
WTI
Price
|
||||||
October
1, 2009 - December 31, 2009
|
864,806
|
$
|
9.34
|
44,000
|
$
|
87.23
|
||||
January
1, 2010 - December 31, 2010
|
4,731,040
|
$
|
8.66
|
164,250
|
$
|
85.65
|
||||
January
1, 2011 - December 31, 2011
|
3,328,312
|
$
|
7.83
|
151,250
|
$
|
85.50
|
Contract
Period
|
Volume in MMBtu
|
Purchased NYMEX
Price Floor
|
|||
October
1, 2009 - December 31, 2009
|
651,446
|
$
|
7.85
|
|
Gas
|
Oil
|
||||||||||||||||||||||
|
MMBtu
|
Floor
|
Ceiling
|
Bbls
|
Floor
|
Ceiling
|
||||||||||||||||||
Production
Period:
|
||||||||||||||||||||||||
October
1, 2009 - December 31, 2009
|
249,999 | $ | 7.50 | $ | 9.00 | 9,200 | $ | 100.00 | $ | 127.00 | ||||||||||||||
January
1, 2010 - December 31, 2010
|
1,607,500 | $ | 7.73 | $ | 8.92 | — | $ | — | $ | — | ||||||||||||||
January
1, 2011 - December 31, 2011
|
1,933,500 | $ | 7.34 | $ | 8.44 | — | $ | — | $ | — |
Notional
Amount
(in
thousands)
|
Fixed
Libor
Rates
|
|||||
Period:
|
||||||
October
1, 2009 to December 18, 2010
|
$
|
10,000
|
1.50
|
%
|
||
October
1, 2009 to December 20, 2010
|
$
|
10,000
|
1.85
|
%
|
||
October
1, 2009 to January 31, 2011
|
$
|
20,000
|
3.00
|
%
|
||
October
1, 2009 to March 31, 2011
|
$
|
20,000
|
2.08
|
%
|
||
October
1, 2009 to December 10, 2012
|
$
|
20,000
|
3.35
|
%
|
||
October
1, 2009 to January 31, 2013
|
$
|
20,000
|
2.38
|
%
|
||
October
1, 2009 to October 31, 2009 (Basis Swap)
|
$
|
40,000
|
LIBOR
1M vs. LIBOR 3M
|
September
30, 2009
|
December
31, 2008
|
|||||||
(in
thousands)
|
||||||||
Assets:
|
||||||||
Commodity
derivatives
|
$ | 30,734 | $ | 39,875 | ||||
Interest
rate swaps
|
— | — | ||||||
$ | 30,734 | $ | 39,875 | |||||
Liabilities:
|
||||||||
Commodity
derivatives
|
$ | (4,739 | ) | $ | (1,942 | ) | ||
Interest
rate swaps
|
(2,459 | ) | (2,799 | ) | ||||
$ | (7,198 | ) | $ | (4,741 | ) |
Three Months Ended
September
30,
|
Nine Months Ended
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Realized
gains (losses):
|
||||||||||||||||
Other
commodity derivatives
|
$ | 8,010 | $ | (2,989 | ) | $ | 23,794 | $ | (10,410 | ) | ||||||
Interest
rate swaps
|
(506 | ) | (39 | ) | (1,240 | ) | (90 | ) | ||||||||
$ | 7,504 | $ | (3,028 | ) | $ | 22,554 | $ | (10,500 | ) | |||||||
Unrealized
gains (losses):
|
||||||||||||||||
Other
commodity derivatives
|
$ | (12,220 | ) | $ | 66,353 | $ | (16,492 | ) | $ | (6,043 | ) | |||||
Interest
rate swaps
|
(575 | ) | (420 | ) | 387 | (420 | ) | |||||||||
$ | (12,795 | ) | $ | 65,933 | $ | (16,105 | ) | $ | (6,463 | ) | ||||||
Total
gains (losses):
|
||||||||||||||||
Other
commodity derivatives
|
$ | (4,210 | ) | $ | 63,364 | $ | 7,302 | $ | (16,453 | ) | ||||||
Interest
rate swaps
|
(1,081 | ) | (459 | ) | (853 | ) | (510 | ) | ||||||||
$ | (5,291 | ) | $ | 62,905 | $ | 6,449 | $ | (16,963 | ) |
5.
|
Fair
Value Measurements
|
Level
1
|
Quoted
prices for identical instruments in active markets.
|
|
Level
2
|
Quoted
market prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are not active; and
model-derived valuations in which all significant inputs and significant
value drivers are observable in active markets.
|
|
Level 3
|
Valuations
derived from valuation techniques in which one or more significant inputs
or significant value drivers are unobservable. Level 3 assets and
liabilities generally include financial instruments whose value is
determined using pricing models, discounted cash flow methodologies, or
similar techniques, as well as instruments for which the determination of
fair value requires significant management judgment or estimation or for
which there is a lack of transparency as to the inputs
used.
|
|
September
30, 2009
(in
thousands)
|
|||||||||||||||
|
Fair Value Measurements Using
|
Assets/Liabilities
|
||||||||||||||
|
Level
1
|
Level
2
|
Level
3
|
at Fair value
|
||||||||||||
Assets:
|
||||||||||||||||
Commodity
price derivative contracts
|
$ | — | $ | 26,366 | $ | — | $ | 26,366 | ||||||||
Total
derivative instruments
|
$ | — | $ | 26,366 | $ | — | $ | 26,366 | ||||||||
Liabilities:
|
||||||||||||||||
Commodity
price derivative contracts
|
$ | — | $ | (371 | ) | $ | — | $ | (371 | ) | ||||||
Interest
rate derivative contracts
|
— | (2,459 | ) | — | (2,459 | ) | ||||||||||
Total
derivative instruments
|
$ | — | $ | (2,830 | ) | $ | — | $ | (2,830 | ) |
6.
|
Asset
Retirement Obligations
|
2009
|
2008
|
|||||||
(in
thousands)
|
||||||||
Asset
retirement obligations at January 1,
|
$ | 2,134 | $ | 190 | ||||
Liabilities
added during the current period
|
2,254 | 2,155 | ||||||
Accretion
expense
|
86 | 59 | ||||||
Revisions
of estimates
|
(341 | ) | — | |||||
Asset
retirement obligation at September 30,
|
$ | 4,133 | $ | 2,404 |
7.
|
Related
Party Transactions
|
8.
|
Common
Units and Net Income per Unit
|
9.
|
Unit-Based
Compensation
|
Number of
Non-vested Units
|
Weighted Average
Grant Date Fair Value
|
|||||||
|
|
|||||||
Non-vested
units at December 31, 2008
|
440,000 | $ | 18.10 | |||||
Granted
|
37,950 | $ | 8.07 | |||||
Vested
|
(385,000 | ) | $ | (17.97 | ) | |||
Non-vested
units at September 30, 2009
|
92,950 | $ | 14.54 |
10.
|
Shelf
Registration Statement
|
11.
|
Subsequent
Event
|
Contract
Period
|
Volume
(MMBtu)
|
Price
|
||||||
Put
and Swap Agreements Assumed:
|
||||||||
August
– December 2009
|
765,000 | $ | 8.00 | |||||
January
– December 2010
|
949,000 | $ | 7.50 | |||||
Collars
Added:
|
||||||||
January
– December 2010
|
693,500 | $ | 7.50 - $8.50 | |||||
January
– December 2011
|
1,569,500 | $ | 7.31 - $8.31 | (1) |
(1)
|
Price
is calculated based on weighted average
pricing.
|
Borrowing
Base Utilization Percentage
|
<50%
|
>50%
<75%
|
>75%
<90%
|
>90%
|
|||||
Eurodollar
Loans
|
2.25%
|
2.50%
|
2.75%
|
3.00%
|
|||||
ABR
Loans
|
1.25%
|
1.50%
|
1.75%
|
2.00%
|
|||||
Commitment
Fee Rate
|
0.50%
|
0.50%
|
0.50%
|
0.50%
|
|||||
Letter
of Credit Fee
|
2.25%
|
2.50%
|
2.75%
|
3.00%
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2009(c)
|
2008(b)
|
2009(c)
|
2008(a)(b)
|
|||||||||||||
Revenues:
|
||||||||||||||||
Natural
gas sales
|
$ | 4,742 | $ | 12,708 | $ | 15,500 | $ | 34,812 | ||||||||
Natural
gas liquids sales
|
1,136 | 601 | 1,811 | 824 | ||||||||||||
Oil
sales
|
5,446 | 7,530 | 12,619 | 20,057 | ||||||||||||
Natural
gas, natural gas liquids and oil sales
|
11,324 | 20,839 | 29,930 | 55,693 | ||||||||||||
Realized
gain (loss) on commodity cash flow hedges
|
(463 | ) | 45 | (1,737 | ) | 616 | ||||||||||
Realized
gain (loss) on other commodity derivative contracts
|
8,010 | (2,989 | ) | 23,794 | (10,410 | ) | ||||||||||
Unrealized
gain (loss) on other commodity derivative contracts
|
(12,220 | ) | 66,353 | (16,492 | ) | (6,043 | ) | |||||||||
Total
revenues
|
$ | 6,651 | $ | 84,248 | $ | 35,495 | $ | 39,856 | ||||||||
Costs
and expenses:
|
||||||||||||||||
Lease
operating expenses
|
$ | 3,322 | $ | 3,485 | $ | 9,233 | $ | 7,800 | ||||||||
Depreciation,
depletion, amortization, and accretion
|
3,272 | 4,187 | 9,700 | 10,341 | ||||||||||||
Impairment
of natural gas and oil properties
|
— | — | 63,818 | — | ||||||||||||
Selling,
general and administrative expenses
|
2,137 | 1,560 | 8,230 | 4,843 | ||||||||||||
Production
and other taxes
|
974 | 1,263 | 2,537 | 3,658 | ||||||||||||
Total
costs and expenses
|
$ | 9,705 | $ | 10,495 | $ | 93,518 | $ | 26,642 | ||||||||
Other
income and (expense):
|
||||||||||||||||
Interest
expense, net
|
$ | (1,042 | ) | $ | (1,485 | ) | $ | (3,034 | ) | $ | (3,847 | ) | ||||
Gain
on acquisition of natural gas and oil properties
|
5,878 | — | 5,878 | — | ||||||||||||
Realized
loss on interest rate derivative contracts
|
$ | (506 | ) | $ | (39 | ) | $ | (1,240 | ) | $ | (90 | ) | ||||
Unrealized
gain (loss) on interest rate derivative contracts
|
$ | (575 | ) | $ | (420 | ) | $ | 387 | $ | (420 | ) |
(a)
|
The
Permian Basin acquisition closed on January 31, 2008 and, as such, only
eight months of operations are included in the nine month period ended
September 30, 2008.
|
|
(b)
|
The
South Texas acquisition closed on July 28, 2008 and, as such, only two
months of operations are included in the three month and nine month period
ended September 30, 2008.
|
|
(c)
|
The
Sun TSH acquisition closed on August 17, 2009 and, as such, only
approximately one and a half months of operations are included in the
three month and nine month period ended September 30,
2009.
|
Three Months Ended
September
30,
|
Percentage
Increase
(Decrease)
|
|||||||
2009
|
2008
|
|||||||
Net
Natural Gas Production:
|
||||||||
Appalachian
gas (MMcf)
|
773
|
923
|
(16)
|
%
|
||||
Permian
gas (MMcf)
|
57
|
—
|
N/A
|
|||||
South
Texas gas (MMcf)
|
196
|
160
|
(a)
|
23
|
%
|
|||
Sun
TSH gas (MMcf)
|
139
|
(b)
|
—
|
N/A
|
||||
Total
natural gas production (MMcf)
|
1,165
|
1,083
|
8
|
%
|
||||
Average
Appalachian daily gas production (Mcf/day)
|
8,403
|
10,031
|
(16)
|
%
|
||||
Average
Permian daily gas production (Mcf/day)
|
617
|
—
|
N/A
|
|||||
Average
South Texas daily gas production (Mcf/day)
|
2,136
|
2,463
|
(a)
|
(13)
|
%
|
|||
Average
Sun TSH daily gas production (Mcf/day)
|
3,
088
|
(b)
|
—
|
N/A
|
||||
Average
Vanguard daily gas production (Mcf/day)
|
14,244
|
12,494
|
|
|||||
Average
Natural Gas Sales Price per Mcf:
|
||||||||
Net
realized gas price, including hedges
|
$ |
11.12
|
(c)
|
$10.84
|
(c)
|
3
|
%
|
|
Net
realized gas price, excluding hedges
|
$ |
4.07
|
$10.94
|
(63)
|
%
|
|||
Net
Oil Production:
|
||||||||
Appalachian
oil (Bbls)
|
25,451
|
11,122
|
129
|
%
|
||||
Permian
oil (Bbls)
|
57,525
|
54,924
|
5
|
%
|
||||
Sun
TSH oil (Bbls)
|
2,425
|
(b)
|
—
|
N/A
|
||||
Total
oil production (Bbls)
|
85,401
|
66,046
|
29
|
%
|
||||
Average
Appalachian daily oil production (Bbls/day)
|
277
|
121
|
129
|
%
|
||||
Average
Permian daily oil production (Bbls/day)
|
625
|
597
|
5
|
%
|
||||
Average
Sun TSH daily oil production (Bbls/day)
|
54
|
(b)
|
—
|
N/A
|
||||
Average
Vanguard daily oil production (Bbls/day)
|
956
|
718
|
||||||
Average
Oil Sales Price per Bbl:
|
||||||||
Net
realized oil price, including hedges
|
$ |
77.15
|
(c)
|
$93.26
|
(c)
|
(17)
|
%
|
|
Net
realized oil price, excluding hedges
|
$ |
63.76
|
$114.01
|
(44)
|
%
|
|||
Net
Natural Gas Liquids Production:
|
||||||||
Permian
natural gas liquids (Gal)
|
105,336
|
128,171
|
(18)
|
%
|
||||
South
Texas natural gas liquids (Gal)
|
436,922
|
421,680
|
(a)
|
4
|
%
|
|||
Sun
TSH natural gas liquids (Gal)
|
848,954
|
(b)
|
—
|
N/A
|
||||
Total natural gas
liquids production
(Gal)
|
1,391,212
|
549,851
|
153
|
%
|
||||
Average
Permian daily natural gas liquids production (Gal/day)
|
1,145
|
1,393
|
(18)
|
%
|
||||
Average
South Texas daily natural gas liquids production (Gal/day)
|
4,749
|
6,487
|
(a)
|
(27)
|
%
|
|||
Average
Sun TSH daily natural gas liquids production (Gal/day)
|
18,866
|
(b)
|
—
|
N/A
|
||||
Average Vanguard daily natural
gas liquids production
(Gal/day)
|
24,760
|
7,880
|
||||||
Average
Natural Gas Liquids Sales Price per Gal:
|
||||||||
Net
realized natural gas liquids price, including hedges
|
$ |
0.82
|
(c)
|
$1.09
|
(c)
|
(25)
|
%
|
|
Net
realized natural gas liquids price, excluding hedges
|
$ |
0.82
|
$1.09
|
(25)
|
%
|
(a)
|
The
South Texas acquisition closed on July 28, 2008 and, as such, only two
months of operations are included in the three month period ended
September 30, 2008.
|
|
(b)
|
The
Sun TSH acquisition closed on August 17, 2009 and, as such, only
approximately one and a half months of operations are included in the
three month period ended September 30, 2009.
|
|
(c)
|
Excludes
amortization of premiums paid and non-cash settlements on derivative
contracts.
|
Nine Months Ended
September
30,
|
Percentage
Increase
(Decrease)
|
|||||||
2009
|
2008
|
|||||||
Net
Natural Gas Production:
|
||||||||
Appalachian
gas (MMcf)
|
2,372
|
2,693
|
(12)
|
%
|
||||
Permian
gas (MMcf)
|
153
|
132
|
(a)
|
16
|
%
|
|||
South
Texas gas (MMcf)
|
624
|
179
|
(b)
|
249
|
%
|
|||
Sun
TSH gas (MMcf)
|
139
|
(c)
|
—
|
N/A
|
||||
Total
natural gas production (MMcf)
|
3,288
|
3,004
|
9
|
%
|
||||
Average
Appalachian daily gas production (Mcf/day)
|
8,691
|
9,827
|
(12)
|
%
|
||||
Average
Permian daily gas production (Mcf/day)
|
560
|
543
|
(a)
|
3
|
%
|
|||
Average
South Texas daily gas production (Mcf/day)
|
2,286
|
2,757
|
(b)
|
(17)
|
%
|
|||
Average
Sun TSH daily gas production (Mcf/day)
|
3,088
|
(c)
|
—
|
N/A
|
||||
Average
Vanguard daily gas production (Mcf/day)
|
14,625
|
13,127
|
|
|||||
Average
Natural Gas Sales Price per Mcf:
|
||||||||
Net
realized gas price, including hedges
|
$ |
11.13
|
(d)
|
$10.52
|
(d)
|
6
|
%
|
|
Net
realized gas price, excluding hedges
|
$ |
4.71
|
$11.29
|
(58)
|
%
|
|||
Net
Oil Production:
|
||||||||
Appalachian
oil (Bbls)
|
63,148
|
32,543
|
94
|
%
|
||||
Permian
oil (Bbls)
|
175,175
|
157,463
|
(a)
|
11
|
%
|
|||
Sun
TSH oil (Bbls)
|
2,425
|
(c)
|
—
|
N/A
|
||||
Total
oil production (Bbls)
|
240,748
|
190,006
|
27
|
%
|
||||
Average
Appalachian daily oil production (Bbls/day)
|
231
|
119
|
94
|
%
|
||||
Average
Permian daily oil production (Bbls/day)
|
642
|
648
|
(a)
|
(1)
|
%
|
|||
Average
Sun TSH daily oil production (Bbls/day)
|
54
|
(c)
|
—
|
N/A
|
||||
Average
Vanguard daily oil production (Bbls/day)
|
927
|
767
|
||||||
Average
Oil Sales Price per Bbl:
|
||||||||
Net
realized oil price, including hedges
|
$ |
74.64
|
(d)
|
$87.61
|
(d)
|
(15)
|
%
|
|
Net
realized oil price, excluding hedges
|
$ |
52.42
|
$105.56
|
(50)
|
%
|
|||
Net
Natural Gas Liquids Production:
|
||||||||
Permian
natural gas liquids (Gal)
|
340,536
|
128,171
|
(a)
|
166
|
%
|
|||
South
Texas natural gas liquids (Gal)
|
1,268,161
|
421,680
|
(b)
|
201
|
%
|
|||
Sun
TSH natural gas liquids (Gal)
|
848,954
|
(c)
|
—
|
N/A
|
||||
Total
natural gas liquids production (Gal)
|
2,457,651
|
549,851
|
347
|
%
|
||||
Average
Permian daily natural gas liquids production (Gal/day)
|
1,247
|
527
|
(a)
|
137
|
%
|
|||
Average
South Texas daily natural gas liquids production (Gal/day)
|
4,645
|
6,487
|
(b)
|
(28)
|
%
|
|||
Average
Sun TSH daily natural gas liquids production (Gal/day)
|
18,866
|
(c)
|
—
|
N/A
|
||||
Average Vanguard daily natural
gas liquids production
(Gal/day)
|
24,758
|
7,014
|
||||||
Average
Natural Gas Liquids Sales Price per Gal:
|
||||||||
Net
realized natural gas liquids price, including hedges
|
$ |
0.74
|
(d)
|
$1.50
|
(d)
|
(51)
|
%
|
|
Net
realized natural gas liquids price, excluding hedges
|
$ |
0.74
|
$1.50
|
(51)
|
%
|
(a)
|
The
Permian Basin acquisition closed on January 31, 2008 and, as such, only
eight months of operations are included in the nine month period ended
September 30, 2008.
|
|
(b)
|
The
South Texas acquisition closed on July 28, 2008 and, as such, only two
months of operations are included in the nine month period ended September
30, 2008.
|
|
(c)
|
The
Sun TSH acquisition closed on August 17, 2009 and, as such, only
approximately one and a half months of operations are included in the nine
month period ended September 30, 2009.
|
|
(d)
|
Excludes
amortization of premiums paid and non-cash settlements on derivative
contracts.
|
·
|
the
London interbank offered rate, or LIBOR, plus an applicable margin between
2.25% and 3.00% per annum; or
|
·
|
a
domestic bank rate plus an applicable margin between 1.25% and 2.00% per
annum.
|
·
|
incur
indebtedness;
|
·
|
grant
certain liens;
|
·
|
make
certain loans, acquisitions, capital expenditures and
investments;
|
·
|
make
distributions;
|
·
|
merge
or consolidate; or
|
·
|
engage
in certain asset dispositions, including a sale of all or substantially
all of our assets.
|
·
|
consolidated
net income plus interest expense, income taxes, depreciation, depletion,
amortization, accretion, changes in fair value of derivative instruments
and other similar charges, minus all non-cash income added to consolidated
net income, and giving pro-forma effect to any acquisitions or capital
expenditures, to interest expense of not less than 2.5 to
1.0;
|
·
|
consolidated
current assets, including the unused amount of the total commitments, to
consolidated current liabilities of not less than 1.0 to 1.0, excluding
non-cash assets and liabilities under ASC Topic 815, which includes the
current portion of derivative contracts;
and
|
·
|
consolidated
debt to consolidated net income plus interest expense, income taxes,
depreciation, depletion, amortization, accretion, changes in fair value of
derivative instruments and other similar charges, minus all non-cash
income added to consolidated net income, and giving pro-forma effect to
any acquisitions or capital expenditures of not more than 3.5 to
1.0.
|
·
|
failure
to pay any principal when due or any interest, fees or other amount within
certain grace periods;
|
·
|
a
representation or warranty is proven to be incorrect when
made;
|
·
|
failure
to perform or otherwise comply with the covenants in the credit agreement
or other loan documents, subject, in certain instances, to certain grace
periods;
|
·
|
default
by us on the payment of any other indebtedness in excess of $2.0 million,
or any event occurs that permits or causes the acceleration of the
indebtedness;
|
·
|
bankruptcy
or insolvency events involving us or our
subsidiaries;
|
·
|
the
entry of, and failure to pay, one or more adverse judgments in excess of
$1.0 million or one or more non-monetary judgments that could reasonably
be expected to have a material adverse effect and for which enforcement
proceedings are brought or that are not stayed pending
appeal;
|
·
|
specified
events relating to our employee benefit plans that could reasonably be
expected to result in liabilities in excess of $1.0 million in any year;
and
|
·
|
a
change of control, which includes (1) an acquisition of ownership,
directly or indirectly, beneficially or of record, by any person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules
of the Securities Exchange Commission) of equity interests representing
more than 25% of the aggregate ordinary voting power represented by our
issued and outstanding equity interests other than by Majeed S. Nami or
his affiliates, or (2) the replacement of a majority of our directors by
persons not approved by our board of
directors.
|
|
Payments Due by Year (in thousands)
|
|||||||||||||||||||||||||||
|
2009
|
2010
|
2011
|
2012
|
2013
|
After 2013
|
Total
|
|||||||||||||||||||||
Management
compensation
|
$ | 169 | $ | 112 | $ | — | $ | — | $ | — | $ | — | $ | 281 | ||||||||||||||
Asset
retirement obligations
|
— | 118 | 186 | 72 | 94 | 3,663 | 4,133 | |||||||||||||||||||||
Derivative
liabilities
|
38 | 3,541 | 2,459 | 889 | 271 | — | 7,198 | |||||||||||||||||||||
Long-term
debt (1)
|
— | — | — | 123,500 | — | — | 123,500 | |||||||||||||||||||||
Operating
leases
|
31 | 31 | — | — | — | — | 62 | |||||||||||||||||||||
Total
|
$ | 238 | $ | 3,802 | $ | 2,645 | $ | 124,461 | $ | 365 | $ | 3,663 | $ | 135,174 |
(1)
|
This
table does not include interest to be paid on the principal balances shown
as the interest rates on the reserve-based credit facility are
variable.
|
•
|
Net
interest expense, including write-off of deferred financing fees and
realized gains and losses on interest rate derivative
contracts;
|
•
|
Depreciation,
depletion, and amortization (including accretion of asset retirement
obligations);
|
•
|
Impairment
of natural gas and oil properties;
|
•
|
Amortization
of premiums paid and non-cash settlement on derivative
contracts;
|
•
|
Unrealized
gains and losses on other commodity and interest rate derivative
contracts;
|
•
|
Gains
and losses on acquisitions of natural gas and oil
properties;
|
•
|
Deferred
taxes;
|
•
|
Unit-based
compensation expense; and
|
•
|
Unrealized
fair value of phantom units granted to
officers.
|
Three
Months Ended
September
30,
|
Nine
Months Ended
September
30,
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income (loss)
|
$ | 701 | $ | 71,809 | $ | (56,032 | ) | $ | 8,857 | |||||||
Plus:
|
||||||||||||||||
Interest expense, including realized losses on interest rate derivative
contracts
|
1,548 | 1,489 | 4,274 | 3,863 | ||||||||||||
Depreciation, depletion, amortization, and accretion
|
3,272 | 4,187 | 9,700 | 10,341 | ||||||||||||
Impairment of natural gas and oil properties
|
- | - | 63,818 | - | ||||||||||||
Amortization of premiums paid and non-cash settlements on derivative
contracts
|
1,811 | 1,451 | 4,383 | 3,982 | ||||||||||||
Unrealized (gains) losses on other commodity and interest rate derivative
contracts
|
12,795 | (65,933 | ) | 16,105 | 6,463 | |||||||||||
Gain on acquisition of natural gas and oil properties
|
(5,878 | ) | - | (5,878 | ) | - | ||||||||||
Deferred taxes
|
(3 | ) | - | (204 | ) | - | ||||||||||
Unit-based compensation expense
|
548 | 812 | 2,311 | 2,708 | ||||||||||||
Unrealized fair value of phantom units granted to officers
|
782 | - | 3,034 | - | ||||||||||||
Less:
|
||||||||||||||||
Interest
income
|
- | 4 | - | 16 | ||||||||||||
Adjusted
EBITDA
|
$ | 15,576 | $ | 13,811 | $ | 41,511 | $ | 36,198 | ||||||||
October
1, -
December
31, 2009
|
Year
2010
|
Year
2011
|
||||||||||
Gas
Positions:
|
||||||||||||
Fixed
Price Swaps:
|
||||||||||||
Notional
Volume (MMBtu)
|
864,806 | 4,731,040 | 3,328,312 | |||||||||
Fixed
Price ($/MMBtu)
|
$ | 9.34 | $ | 8.66 | $ | 7.83 | ||||||
Puts:
|
||||||||||||
Notional
Volume (MMBtu)
|
651,446 | — | — | |||||||||
Floor
Price ($/MMBtu)
|
$ | 7.85 | $ | — | $ | — | ||||||
Collars:
|
||||||||||||
Notional
Volume (MMBtu)
|
249,999 | 1,607,500 | 1,933,500 | |||||||||
Floor
Price ($/MMBtu)
|
$ | 7.50 | $ | 7.73 | $ | 7.34 | ||||||
Ceiling
Price ($/MMBtu)
|
$ | 9.00 | $ | 8.92 | $ | 8.44 | ||||||
Total:
|
||||||||||||
Notional
Volume (MMBtu)
|
1,766,251 | 6,320,540 | 5,261,812 | |||||||||
Oil
Positions:
|
||||||||||||
Fixed
Price Swaps:
|
||||||||||||
Notional
Volume (Bbls)
|
44,000 | 164,250 | 151,250 | |||||||||
Fixed
Price ($/Bbl)
|
$ | 87.23 | $ | 85.65 | $ | 85.50 | ||||||
Collars:
|
||||||||||||
Notional
Volume (Bbls)
|
9,200 | — | — | |||||||||
Floor
Price ($/Bbl)
|
$ | 100.00 | $ | — | $ | — | ||||||
Ceiling
Price ($/Bbl)
|
$ | 127.00 | $ | — | $ | — | ||||||
Total:
|
||||||||||||
Notional
Volume (Bbls)
|
53,200 | 164,250 | 151,250 |
Notional
Amount
(in
thousands)
|
Fixed
Libor
Rates
|
|||||
Period:
|
||||||
October
1, 2009 to December 18, 2010
|
$
|
10,000
|
1.50
|
%
|
||
October
1, 2009 to December 20, 2010
|
$
|
10,000
|
1.85
|
%
|
||
October
1, 2009 to January 31, 2011
|
$
|
20,000
|
3.00
|
%
|
||
October 1,
2009 to March 31, 2011
|
$
|
20,000
|
2.08
|
%
|
||
October
1, 2009 to December 10, 2012
|
$
|
20,000
|
3.35
|
%
|
||
October
1, 2009 to January 31, 2013
|
$
|
20,000
|
2.38
|
%
|
||
October
1, 2009 to October 31, 2009 (Basis Swap)
|
$
|
40,000
|
LIBOR
1M vs. LIBOR 3M
|
Citibank,
N.A. (A+)
|
BNP
Paribas (AA)
|
The
Bank of Nova Scotia (AA-)
|
Wells
Fargo Bank N.A./
Wachovia
Bank, N.A. (AA)
|
Total
|
|||||||||||||||
Current
Asset, net
|
$
|
2,393
|
$
|
14,418
|
$
|
194
|
$
|
2,511
|
$
|
19,516
|
|||||||||
Current
Liability, net
|
—
|
—
|
—
|
(29
|
)
|
(29
|
)
|
||||||||||||
Long-Term
Asset, net
|
582
|
6,068
|
—
|
200
|
6,850
|
||||||||||||||
Long-Term
Liability, net
|
(92
|
)
|
(1,160
|
)
|
(1,163
|
)
|
(386
|
)
|
(2,801
|
)
|
|||||||||
Total
Amount Due from Counterparty/(Owed to Counterparty)
at
September 30, 2009
|
$
|
2,883
|
$
|
19,326
|
$
|
(969
|
)
|
$
|
2,296
|
$
|
23,536
|
·
|
the
level of consumer demand for natural gas and
oil;
|
·
|
the
domestic and foreign supply of natural gas and
oil;
|
·
|
commodity
processing, gathering and transportation availability, and the
availability of refining capacity;
|
·
|
the
price and level of imports of foreign crude natural gas and
oil;
|
·
|
the
ability of the members of the Organization of Petroleum Exporting
Countries to agree to and to enforce crude oil price and production
controls;
|
·
|
domestic
and foreign governmental regulations and
taxes;
|
·
|
the
price and availability of alternative fuel
sources;
|
·
|
weather
conditions;
|
·
|
political
conditions or hostilities in oil and gas producing regions, including the
Middle East, Africa and South
America;
|
·
|
technological
advances affecting energy consumption;
and
|
·
|
worldwide
economic conditions.
|
Period
|
Number of common units
repurchased
|
Average price paid per common
unit
|
||||||
July
1, 2009 to July 31, 2009
|
— | $ | N/A | |||||
August
1, 2009 to August 31, 2009
|
2,400 | 13.65 | ||||||
September
1, 2009 to September 30, 2009
|
— | N/A | ||||||
Total
common units purchased
|
2,400 | $ | 13.65 |
|
None.
|
|
None.
|
Exhibit
No.
|
Exhibit
Title
|
Incorporated
by Reference to the Following
|
||
3.1
|
Certificate
of Formation of Vanguard Natural Resources, LLC
|
Form
S-1/A, filed April 25, 2007 (File No. 333-142363)
|
||
3.2
|
Second
Amended and Restated Limited Liability Company Agreement of Vanguard
Natural Resources, LLC (including specimen unit certificate for the
units)
|
Form
8-K, filed November 2, 2007 (File No. 001-33756)
|
||
10.1
|
Underwriting
Agreement dated August 12, 2009, by and among Vanguard Natural
Resources, LLC and Citigroup Global Markets Inc., Wells Fargo Securities,
LLC and RBC Capital Markets Corporation, as representatives of the several
underwriters named therein
|
Form
8-K, filed August 12, 2009 (File No. 001-33756)
|
||
10.2
|
Second
Amended and Restated Credit Agreement dated August 31, 2009, by and
between Vanguard Natural Gas, LLC, Citibank, N.A., as administrative agent
and the lenders party hereto
|
Form
8-K, filed September 1, 2009 (File No. 001-33756)
|
||
10.3
|
First
Amendment to Second Amended and Restated Credit Agreement dated October
14, 2009, by and between Vanguard Natural Gas, LLC, Citibank, N.A., as
administrative agent and the lenders party hereto
|
Filed
herewith
|
||
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a — 14 of the
Securities and Exchange Act of 1934, as Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a — 14 of the
Securities and Exchange Act of 1934, as Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
|
Filed
herewith
|
||
32.1
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
Filed
herewith
|
||
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
Filed
herewith
|
|
|
VANGUARD
NATURAL RESOURCES, LLC
|
|
(Registrant)
|
|
Date:
November 4, 2009
|
|
/s/ Richard
A. Robert
|
|
Richard
A. Robert
|
|
Executive
Vice President and
|
|
Chief
Financial Officer
|
|
(Principal
Financial Officer and Principal Accounting
Officer)
|