To some extent this is just a "bookkeeping" entry for me to keep track of operators in the Bakken. Vanguard Natural already controlled Encore, and Denbury Onshore acquired much of Encore's Bakken acreage last year. I assume we will see some "Encore" activity for awhile in the Bakken but over time the name "Encore" should disappear completely, having been bought by Denbury Onshore and Vanguard Natural.
Vanguard Natural Resources LLC (VNR) agreed to buy the 54 percent of Encore Energy Partners LP (ENP) it doesn’t already own in all-stock deal that values the oil and natural-gas producer at about $998 million.
Encore shareholders would receive 0.75 common units of Vanguard for each unit held, the Houston-based companies said today in a statement. Based on July 8 closing prices, the agreement values Encore at $21.94 a unit, a 20-cent premium. Vanguard on March 25 announced it had offered 0.72 units for Encore, which at the time amounted to $23.20 each, or $1.05 billion.
Consolidation will reduce operating costs and eliminate a $6.5 million annual payment from Encore to Vanguard. Vanguard already controls Encore through ownership of its general partner, according to the statement. Vanguard bought its stake in Encore in December from Denbury Resources Inc. for about $380 million.
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