Vanguard Natural Resources LLC subsidiary Vanguard Operating LLC agreed to a stalking-horse bid from OXY USA Inc. of $78.3 million for oil and gas assets as part of its Chapter 11 proceedings.
In a motion filed with the U.S. Bankruptcy Court for the Southern District of Texas, Vanguard registered plans to auction the acreage in Glasscock County, Texas, under bidding procedures allowing qualified bidders to submit better offers, according to a March 24 SEC filing. The auction will be held on or around May 2.
Under the purchase and sale agreement, OXY USA would make a deposit to an escrow account, which would be credited against the purchase price and released to Vanguard if the bid is accepted and the deal closes.
The agreement may be terminated in the event of exceptions such as mutual written consent, the deal not closing before June 18, Vanguard accepting a better bid for the assets or the bankruptcy court not authorizing the sale.
The deal is scheduled to close May 5, subject to the bankruptcy court's approval and if other qualified bids are made and accepted in time.
Vanguard filed for Chapter 11 restructuring Feb. 2 that would clear $708 million of debt.