Vanguard Natural Resources emerges from Chapter 11 as Grizzly Energy

Vanguard Natural Resources Inc. has emerged from Chapter 11 as Grizzly Energy LLC.

Through its financial restructuring, the company eliminated more than $500 million of secured debt. It emerges from Chapter 11 with $375 million of funded debt and $47 million of liquidity comprised of more than $7 million in cash and $40 million of unused revolver capacity.

As of midyear, the company’s total estimated proved reserves are 1,044 bcf of gas equivalent—64% natural gas, 20% oil, and 16% natural gas liquids. The company said 91% of its reserves are considered proved developed and with an average 10-year proved developed decline rate of 9%.

The company’s assets in the Green River, Piceance, Arkoma, Permian, and Big Horn basins account for 86% of proved reserves.

Also as of midyear, the company’s total capital expenditures were $22 million during this year’s first half this year. The company expects a total capital expenditures budget of $43-50 million for the full year for ongoing drilling and uplift projects in the Woodford play of the Arkoma, the Red Lake area of the Permian, and Pinedale field in the Green River basin, as well as maintenance capital across all the assets.