Encore Energy Partners LP said March 25 that the board of directors of the company’s general partner has received a proposal from Vanguard Natural Resources LLC whereby VNR would acquire all of the outstanding, publicly-held Encore Energy Partners common units VNR does not already own through a unit-for-unit exchange.
VNR is proposing consideration of 0.72 VNR common units for each outstanding publicly-held Encore Energy Partners common unit. This is subject to negotiation and execution of a definitive agreement. The proposed transaction would be structured as a merger of Encore Energy Partners with a wholly-owned subsidiary of VNR.
The proposal was referred to a committee of independent directors of the general partner which will study, review and evaluate the proposal. There is no assurance that a definitive agreement will be executed or that any transaction will be approved or consummated.
VNR owns 100% of the general partner of Encore Energy Partners and owns about 46% of the outstanding common units of Encore Energy Partners.
Encore Energy Partners LP is a publicly traded master limited partnership focused on the acquisition, production, and development of oil and natural gas properties. Encore Energy Partners’ assets consist primarily 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.