On January 3, 2017, Vanguard Natural Resources, LLC (“Vanguard” or “the Company”) paid the second $37.5 million deficiency payment installment under the Senior Secured Reserve-Based Credit Facility (the “Credit Facility”). In connection with this planned payment, Vanguard completed a monetization of substantially all of its commodity and interest rate hedges with net proceeds totaling $11.7 million on December 19, 2016. The Company used these net proceeds along with $6.0 million in net proceeds from recent asset sales and $19.8 million from cash on hand to make this $37.5 million deficiency payment.

As of January 4, 2017, there were approximately $1.25 billion of outstanding borrowings under the Credit Facility with a current borrowing base of $1.1 billion resulting in a borrowing base deficiency of $150 million under the Credit Facility. The remaining $150 million borrowing base deficiency is required to be paid in four equal monthly installments of $37.5 million beginning on February 2, 2017. The Company continues to believe that current cash flow from operations will not be sufficient to pay the remaining borrowing base deficiency installments on the Credit Facility. The Company intends to actively consider all available options including continued dialogue with potential new investors and existing creditors about longer term balance sheet solutions.

About Vanguard Natural Resources, LLC (NASDAQ:VNR)

Vanguard Natural Resources, LLC is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming. The Company owns working interests in approximately 14,460 gross (over 5,280 net) productive wells. In addition, the Company owns approximately 881,510 gross undeveloped leasehold acres surrounding its existing wells.

Vanguard Natural Resources, LLC (NASDAQ:VNR) Recent Trading Information

Vanguard Natural Resources, LLC (NASDAQ:VNR) closed its last trading session down -0.020 at 0.800 with 1,804,905 shares trading hands.