US natural gas independent Vanguard Natural Resources LLC on Wednesday priced 5.25 million of its common units in an initial public offering at $19 each, the low end of its expected range, and was trading at $18.85/unit in early New York trade.
The company on October 11 lowered its expected IPO price for what equates to a 46.8% interest in Vanguard and raised the number of common units to be offered. US gas prices have been moving lower, causing some companies to shut in production.
Vanguard, with properties in the Appalachian Basin, had lowered the price it expected to get for its common units by $3 to $19-21/unit, according to a securities filing. It also raised the number of units it would sell to 6 million from a 5.75 million estimate in September.
Expected net proceeds dropped to $97.7 million from $107 million, the company said.
Vanguard said its properties are located primarily in southeast Kentucky and northeast Tennessee.
For the six months ended June 30, Vanguard said it drilled 41 gross wells in which it owns an approximate 39% working interest. It said it owned working interests in 891 gross (805 net) productive wells at June 30 and that its average net production for the 12 months ended December 31, 2006, and for the six months ended June 30 was 11,995 Mcf/d of gas equivalent and 11,925 Mcfe/d, respectively.
Vanguard said its estimated proved reserves at March 31 were 66.7 Bcfe, of which about 98% were gas and 75% were classified as proved developed.
The company on October 11 lowered its expected IPO price for what equates to a 46.8% interest in Vanguard and raised the number of common units to be offered. US gas prices have been moving lower, causing some companies to shut in production.
Vanguard, with properties in the Appalachian Basin, had lowered the price it expected to get for its common units by $3 to $19-21/unit, according to a securities filing. It also raised the number of units it would sell to 6 million from a 5.75 million estimate in September.
Expected net proceeds dropped to $97.7 million from $107 million, the company said.
Vanguard said its properties are located primarily in southeast Kentucky and northeast Tennessee.
For the six months ended June 30, Vanguard said it drilled 41 gross wells in which it owns an approximate 39% working interest. It said it owned working interests in 891 gross (805 net) productive wells at June 30 and that its average net production for the 12 months ended December 31, 2006, and for the six months ended June 30 was 11,995 Mcf/d of gas equivalent and 11,925 Mcfe/d, respectively.
Vanguard said its estimated proved reserves at March 31 were 66.7 Bcfe, of which about 98% were gas and 75% were classified as proved developed.
