New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
November 29, 2012
18:30 EDTLRELRR Energy to acquire oil and gas producing properties from Lime Rock Resources
LRR Energy (LRE)announced that it signed a definitive agreement to acquire oil and natural gas properties in the Mid-Continent region in Oklahoma from its sponsor, Lime Rock Resources, for a purchase price of $21M, subject to customary purchase price adjustments. As part of the transaction, LRE will acquire commodity hedge contracts that LRE estimates to be currently valued at approximately $1.7M. The purchase price will be adjusted based on the value of the hedge contracts at the closing of the transaction. The effective date of the transaction is October 1, and closing of the transaction is expected to occur on or about January 3, 2013, and is subject to customary approvals and closing conditions. LRE plans to finance the transaction with borrowings under its existing revolving credit facility. Terms of the transaction were approved on November 29 by the Board of Directors of the general partner of LRE and by the Board's conflicts committee, which is comprised entirely of independent directors. The properties are located in Dewey and Custer Counties, Oklahoma. The acquisition is expected to be immediately accretive to distributable cash flow per unit.
News For LRE From The Last 14 Days
Sign up for a free trial to see the rest of the stories you've been missing.
April 21, 2015
06:39 EDTLREVanguard Natural to host conference call
Subscribe for More Information
05:07 EDTLREVanguard Natural to acquire LRR Energy for $539M
Vanguard Natural (VNR) and LRR Energy (LRE) announced that they have entered into a Purchase Agreement and Plan of Merger pursuant to which a subsidiary of Vanguard will merge into LRR Energy and, at the same time, Vanguard will acquire LRE GP, the general partner of LRR Energy, for total consideration of $251M in Vanguard common units and the assumption of LRE’s net debt of $288M. As a result of the transaction, LRR Energy and its general partner will become wholly owned subsidiaries of Vanguard. The transaction, which has been approved by the boards of both companies, including the Conflicts Committee of the board of LRR Energy, will be a tax-free unit-for-unit transaction with an exchange ratio of 0.55 Vanguard common units per LRE common unit. In addition, Vanguard will acquire all of the limited liability company interests in LRE GP in exchange for 12,320 Vanguard common units. The consideration to be received by LRE unitholders is valued at $8.93 per LRR Energy common unit based on Vanguard’s closing price as of April 20, representing a 13% premium to LRR Energy’s closing price on April 20, and a 19% premium to LRR Energy’s ten day volume weighted average price. Vanguard and LRR Energy expect the transaction to close in Q3. The merger is subject to customary closing conditions, including the approval of the LRR Energy unitholders. Affiliates of Lime Rock Resources, LRE’s largest unitholder, have agreed to support and vote in favor of the transaction. Upon the closing of the transaction, LRR Energy will be terminating the existing management services agreement with Lime Rock Management and Lime Rock Resources Operating Company. Offset by incremental corporate hires, Vanguard expects to generate significant general and administrative expense savings. Vanguard expects that the transaction will be immediately accretive to distributable cash flow per unit while also lowering Vanguard’s pro forma debt leverage.

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use