Vanguard Natural Resources to Acquire Share
in Encore Energy Partners

Vanguard Natural Resources, LLC (VNR) announced on November 17, 2010 that it had reached a definitive agreement with Denbury Resources, Inc. (DNR) to acquire Denbury's interests in Encore Energy Partners, L.P. (ENC). Both Vanguard and Encore are MLPs in the upstream oil and gas sector, focused on acquisition, production and development of oil and gas properties. Vanguard has been a publicly traded MLP since October 2007. Encore Energy Partners was formed in February 2007 by Encore Acquisition Company, which owned its general partner. Encore Acquisition Company was subsequently acquired by Denbury on March 9, 2010.

Denbury's interests in Encore include full ownership of Encore's general partner and roughly 21 million common units, or 46% of Encore's outstanding common units. The purchase, which is expected to be completed on or about December 31, is priced at $380 million. Sources of funding include a $175 million acquisition term loan being led by BNP Paribas, RBC Capital Markets, Credit Agricole, and Citi; borrowings under Vanguard's senior secured credit facility; and up to $80 million worth of Vanguard common units which may be issued to Denbury at Vanguard's option.

Following the purchases, the two MLPs will continue to operate independently in a manner consistent with past practices, maintaining separate boards of directors with independent directors on each board. Where appropriate, the companies will work together to identify mutually beneficial transactions.

Click here to see the press release announcing the agreement.

Click here to see Vanguard's presentation on the acquisition.