US based oil and natural gas producer Vanguard Natural Resources has signed an agreement to acquire Eagle Rock Energy Partners for $614m, including $140m net debt.

The agreement is subject to customary closing conditions, which includes approval by the unit holders in both the firms.

The acquired assets will increase Vanguard’s portfolio in the existing East Texas and Permian basins, and help it in establishing a new operating platform in the SCOOP/STACK play in the Anadarko basin.

"The assets being acquired are attractive bolt-ons to our Mid-Continent, Permian and Gulf Coast basin operations."

Vanguard also expects the deal to result in cost savings through G&A synergies. The acquisition will also add 1,778 producing wells and approximately 202,632 acres to Vanguard Natural Resources.

Vanguard president and chief executive officer Scott W. Smith said: "The assets being acquired are attractive bolt-ons to our Mid-Continent, Permian and Gulf Coast basin operations.

"Eagle Rock has a meaningful position in the SCOOP and STACK plays which will provide attractive drilling opportunities for the next several years.

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"Considering the previously announced merger agreement with LRR Energy, we believe that all three companies’ unitholders will benefit from a larger, more diversified entity with lower financial leverage and strong positions in several key U.S. basins.

"The all-unit nature of the transaction will allow Vanguard, LRR Energy and Eagle Rock unitholders to jointly reap the value growth in an improving commodity price cycle."

Eagle Rock chairman of the board and chief executive officer Joseph A. Mills said: "We believe the transaction is compelling for Eagle Rock’s unitholders by creating a significantly larger and more diverse asset base, an attractive premium and an opportunity to deliver significant value for our combined unitholders in the future."

In April, Vanguard Natural Resources had announced to acquire LRE, the general partner of LRR Energy for $539m.