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Vanguard Natural Resources, LLC (VNR)
Q3 2011 Earnings Conference Call
November 3, 2011 10:30 AM ET
Lisa Godfrey - Investor Relations
Scott Smith - President and Chief Executive Officer
Richard Robert - Executive Vice President Chief Financial Officer
Britt Pence - Senior Vice President of Operations
Ethan Bellamy – Robert W. Baird
Previous Statements by VNR
» Vanguard Natural Resources' CEO Discusses Q2 2011 Results - Earnings Call Transcript
» Vanguard Natural Resources CEO Discusses Q1 2011 Results - Earnings Call Transcript
» Vanguard Natural Resources CEO Discusses Q4 2010 Results - Earnings Call Transcript
At this time, all participants are in a listen-only mode. Following the presentation, e will conduct the question-and-answer session. Instructions will be provided at that time for you to queue up for questions.
(Operator instructions) I would like to remind everyone that this conference call is being recorded today Thursday November 3, 2011 at 10:30 AM Eastern Time. I would now like to turn the conference over to Ms. Lisa Godfrey, Investor Relations. Please go ahead.
Good morning everyone, and welcome to the Vanguard Natural Resources LLC and Encore Energy Partners LP joint Third Quarter 2011 Earnings Conference Call. We appreciate you joining us today. Before I introduce Scott Smith, our President and Chief Executive Officer, I have some information to provide to you.
Proxy materials of both ENP and VNR unitholders to vote on the upcoming merger began mailing on Monday October 31. Please note, when you receive your proxy statement and voting material in the mail, it will include a controller number.
For your convenience, you can go to www.proxyvote.com and enter your unique control number to vote your units online. In addition, a sample of the voting material and instruction s and a link to www.proxyvote.com can be found on the Vanguard website at www.vnrllc.com under the investor relations tab, under the section proxy materials/voting.
Encore unitholders can access the information on the Encore website at www.encoreenp.com under the investor relations tab, under the section special meeting proxy voting material. If you would like to listen to a replay of today’s call, it will be available through December 3rd, 2011, and may be accessed by dialing 303-590-3030 and using the passcode 4483164. A webcast archive will also be available on the Investor Relations page of Vanguard’s website at www.vnrllc.com, and will be accessible online for approximately 30 days.
For more information, or if you would like to be on our email distribution list to receive future news releases, please contact me at 832-327-2234 or via email at email@example.com.
Please note this information was also provided in this morning’s earnings release. The information reported on this call speaks only as of today, Thursday November 3rd, 2011, and therefore you are advised that time sensitive information may no longer be accurate as of the time of any replay.
Before we get started, please note that some of the comments today could be considered forward-looking statements and are based on certain assumptions and expectations of management. For a detailed list of all of the risk factors associated with our business, please refer to the Vanguard and Encore 10-Qs that will be filed by early next week and will be available on our website under the Investor Relations tab and on Edgar.
Now, I would like to turn the call over to Scott Smith, President and Chief Executive Officer.
Thanks, Lisa. Good morning to everyone and thanks for joining us today on this joint conference call for both Encore and Vanguard unitholders to review the results for the third quarter of 2011. On the call with me this morning are Richard Robert, our Executive Vice President and Chief Financial Officer; and Britt Pence, Senior Vice President of Operations.
In light of the press release we put out Tuesday morning, I’d like to go over the status of the merger between Vanguard and Encore Energy Partners LLP before we get started reviewing the results for the quarter.
For those listeners that may not have seen the press release, we are pleased to announce that on Monday this week, the SEC granted effectiveness of our joint proxy statement and we began mailing the proxy materials to both sets of unitholders and set the meeting date for the merger on November the 30th. Provided the retrofit number of units are voted in favor of the merger at both entities, the merger between the two entities will be completed on that day.
During the call this morning, all of the production results and capital expenditures and acquisition particulars, I’ll be going over – will be on a consolidated basis and I won’t be spending any time discussing the results of the individual companies.
Although this maybe a bit unconventional, we think this approach makes the most sense that it will provide the unitholders of both companies a better sense of what the combined company is doing performance wise and what we are doing on both the acquisitions and development front.
I’ll begin with a review of the third quarter production results and capital expenditures, then turn the call over to Britt for a summary of the significant drilling projects that the company has participated in during the third quarter and provide an estimate for our capital spending in the fourth quarter. I’ll then review our acquisition activity in the quarter and then turn the call over to Richard for the financial review.
I’ll begin with a brief summary of this quarter’s production. Average daily production for the third quarter was 13,371 BOE per day, which was slightly above the second quarter average daily production of 13,286 BOE per day and up 163% from the 5076 BOE per day produced in the third quarter of 2010. The 153% increase in total production on a BOE basis is primarily due to the Encore acquisition which was effective December 31 of 2010.