Vanguard - Encore Merger Proposed

Vanguard Natural Resources, LLC (VNR) has proposed to its publicly traded subsidiary, Encore Energy Partners L.P. (ENP), that Vanguard acquire all the outstanding publicly held units of Encore that it does not currently own through a unit-for-unit exchange. In an offer sent to the chairman of the Conflicts Committee of Encore's Board of Directors on March 25, Vanguard proposed a transaction under which Encore unitholders would receive 0.72 Vanguard units for each Encore unit and Encore would be merged into a wholly-owned subsidiary of Vanguard. The proposal was referred to a committee of independent directors of the general partner which will study, review and evaluate the proposal.

Vanguard currently owns 100 percent of the general partner of Encore and approximately 46 percent of the outstanding publicly held units. It acquired its interest in Encore from Denbury Resources on December 31, 2010 in exchange for $300 million in cash and approximately 3.14 million Vanguard common units.

Vanguard Natural Resources, LLC is a publicly traded limited liability company focused on the acquisition, production and development of natural gas and oil properties. Its assets consist primarily of producing and non-producing natural gas and oil reserves located in the southern portion of the Appalachian Basin, the Permian Basin in West Texas and New Mexico, South Texas and Mississippi.

Encore Energy Partners LP is a publicly traded master limited partnership with assets primarily consisting of producing and non-producing oil and natural gas properties in the Big Horn Basin in Wyoming and Montana, the Williston Basin in North Dakota and Montana, the Permian Basin in West Texas and New Mexico, and the Arkoma Basin in Arkansas and Oklahoma.

Click here to go to Vanguard's press release

Click here to go to Encore's press release