Vanguard Natural Resources Reports Third Quarter EPS of $.09

Vanguard Natural Resources, LLC VNR today reported financial and operational results for the third quarter ended September 30, 2010.

Third Quarter 2010 Highlights:

• Adjusted EBITDA (a non-GAAP financial measure defined below) increased 42% to $22.2 million from $15.6 million in the third quarter of 2009 and rose 16% from the $19.1 million recorded in the second quarter of 2010.  
• Distributable Cash Flow (a non-GAAP financial measure defined below) was increased 12% to $14.5 million from the $13.0 million in the third quarter of 2009 and increased 31% sequentially from the $11.1 million generated in the second quarter of 2010.  
• Net income for the quarter of $1.9 million or $0.09 per basic unit compared to a reported net income of $0.7 million or $0.05 per basic unit in the third quarter of 2009; however, both quarters included special items.  The recent quarter included $10.7 million of unrealized net losses in our commodity and interest rate derivatives contracts, and a $0.06 million non-cash compensation charge for the unrealized fair value of phantom units granted to management.  The 2009 third quarter results included $12.8 million in unrealized net losses in our commodity and interest rate derivatives contracts and a $0.8 million non-cash compensation charge for the unrealized fair value of phantom units granted to management.
• Excluding the net impact of the specific non-cash items mentioned above, Adjusted Net Income (a non-GAAP financial measure defined below) was $12.7 million in the third quarter of 2010 or $0.57 per basic unit, as compared to Adjusted Net Income of $8.4 million or $0.58 per basic unit, in the third quarter of 2009.
• Reported average production of 30,455 Mcfe per day, up 49% over 20,396 Mcfe per day produced in the third quarter of 2009 and up 11% over second quarter 2010 average volumes.