Vanguard Natural Resources (OTCQX:VNRR)(VNR) is still struggling with its a high level of debt despite exiting restructuring in 2017. Many oil and gas companies that have restructured have been able to shed most of their debt, but due to Vanguard's large proportion of credit facility debt, it still has over $900 million in debt remaining. This is around half of its debt level when it restructured, but its production is also down around 15% since then.
This has led Vanguard to look at selling assets, which appears necessary to deal with its credit facility debt covenant. The combination of negative value hedges and relatively weak natural gas prices will likely result in that debt to EBITDA covenant being violated by late 2018 without future asset sales.
