This article was originally published by TheStreet, and also appeared on Yahoo! Finance, on September 19, 2014.
NEW YORK (TheStreet) -- Vanguard Natural Resources (VNR) has struggled to increase the amount of cash it can distribute to its investors, but the natural-gas producer is hoping that two major acquisitions it has announced during the last two months will help mend that problem.
This year, in the first six months of operations, Vanguard's distributable cash flow fell by 2% to $88 million from the same period a year ago, largely because of declining prices for natural-gas liquids, or NGLs. Meanwhile, the company's distribution coverage ratio for the first two quarters of this year has been less than 1, meaning that the company has paid out more cash than it has generated as distributable cash flow.
