Vanguard to acquire competitor Eagle Rock
HOUSTON, May 22, 2015 – Oil and gas producer Vanguard Natural Resources announced on Thursday that it will acquire rival upstream company Eagle Rock Energy as a wholly-owned, indirect subsidiary in a deal for $474 million plus debt.
Both companies are concentrated on domestic onshore exploration and production. The tax-free, unit-for-unit deal will serve to add Eagle Rock’s assets in east Texas and Permian Basin to Vanguard’s operations.
“The acquisition will add about 1,778 producing wells and about 202,632 net acres to Vanguard’s assets,” said Scott Smith, President and CEO of Vanguard.
Vanguard announced a similar deal in late April of its planned acquisition of limited partnership LRR Energy for $250 million. Both deals are expected to come to a close in the third quarter of this year. This deal comes on the heels of increased activity in mergers and acquisitions due to low oil prices.