<p>Although the company booked adjusted EBITDA of $23.3 million in the first nine months of the year, up from $20.5 million in the same period of 2006, its net income in the period stood at $1.7 million, a significant drop from the $24.4 million booked in the same period of 2006.<br /><br />The company produced 1,070 million cubic feet equivalent (mcfe) during the third quarter and 3,229mcfe during the first nine months of the year. <br /><br />Scott Smith, CEO and president of Vanguard, said: We are pleased with the results of our third quarter. Production in the quarter and for the first nine months was in line with our expectations due to the success of our drilling program despite the drilling of fewer wells than expected.<br /><br />Richard Robert, executive vice president and CFO of Vanguard, said: Our hedging strategy produced the desired results during the quarter as derivative settlements added approximately $2.8 million in cash flow. Our hedging program through 2009 is designed to protect distributions to our unit holders regardless of the commodity price environment. We feel this is particularly important considering recent price volatility in the natural gas market.</p>
