Vanguard Natural Resources, LlC Announces Preliminary Financial and Operating Results for the Fourth Quarter of 2014 and Full Year 2014; Provides Earnings Guidance for 2015 and 2016
For 2015, the company expects adjusted EBITDA of $373 million; capital expenditures of $113.5 million; and distributable cash flow of $147 million. Total net production is expected to be in the range of 360,400 Mcfe per day to 398,000 Mcfe per day. The company currently anticipate a capital budget for 2015 of approximately $113.5 million, excluding any potential future acquisitions. The company expects to spend approximately 50% of the 2015 capital budget on activities in the Green River Basin (Pinedale Anticline) where the company will participate as a non-operated partner in the drilling and completion of vertical natural gas wells. Additionally, the company expects to spend approximately 25% of the 2015 capital budget in the Gulf Coast Basin on the newly acquired East Haynesville assets drilling both vertical and horizontal wells and several recompletion projects. The balance of the 2015 budget is related to maintenance activities in the other operating areas.
For 2016, the company expects adjusted EBITDA of $377.5 million; capital expenditures of $117 million; and distributable cash flow of $143.8 million. Total net production is expected to be in the range of 353,000 Mcfe per day to 393,200 Mcfe per day. During 2015 and 2016, the company intends to concentrate the drilling on low risk, development opportunities with the majority of drilling capital focused on high Btu natural gas wells. For purposes of 2016 guidance, the company assumed the same allocation of capital and drilling results as the 2015 capital plan.