HOUSTON, Dec. 18, 2015 (GLOBE NEWSWIRE) — Vanguard Natural Resources, LLC (NASDAQ:VNR) (“Vanguard”) has declared a cash distribution attributable to the month of November 2015 of $0.03 per common unit ($0.36 per unit on an annual basis) payable on January 14, 2016 to common unitholders of record on January 4, 2016. This distribution level represents an approximate 75% reduction from the $0.1175 per common unit monthly distribution ($1.41 per common unit on an annual basis) paid last month. Based on yesterday’s closing price of $2.89, the new distribution provides a current yield of 12.5%.
Vanguard has also declared cash distributions for its 7.875% Series A Cumulative Redeemable Perpetual Preferred Units (NASDAQ:VNRAP) of $0.1641 per unit, its 7.625% Series B Cumulative Redeemable Perpetual Preferred Units (NASDAQ:VNRBP) of $0.15885 per unit, and its 7.75% Series C Cumulative Redeemable Perpetual Preferred Units (NASDAQ:VNRCP) of $0.16146 per unit, all payable on January 15, 2016 to unitholders of record on January 4, 2016.
Scott W. Smith, President & CEO of Vanguard commented, “Given the current commodity and capital markets environment, we believe the most prudent strategy is to reduce the cash distribution payout on our common units. Lowering the common unit distribution from $1.41 annualized to $0.36 annualized reduces the cash required for distributions from approximately $185 million to $47 million. Excess cash flow that is generated by this action will be directed at paying down debt under Vanguard’s revolving credit facility and is expected to result in significant distribution coverage in both 2016 and 2017 based on current commodity strip prices. We believe it is in the best long-term interest of the Company to redirect our excess cash flow in this manner and better position Vanguard when a commodity price recovery occurs in the future.”