This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Legacy Reserves LP Announces Second Quarter 2013 Results

Stock quotes in this article: LGCY

"While quarter-over-quarter WTI prices stayed relatively flat, our company-wide oil differential improved by approximately $9.00 per barrel during the second quarter as both the Permian and the Rockies regions improved to levels inside of their historical norms and above our expectations. We expect these differentials to be at or around normal levels for the remainder of 2013, with company-wide oil differentials of $5.25-$6.25 per barrel. Natural gas realizations during the first half of the year were negatively impacted by infrastructure issues and declining NGL prices. We currently expect second-half 2013 positive natural gas differentials of $0.90-$1.00 per Mcf.

"On the development front, we continue to be pleased with our program that is focused on oil-weighted projects in the Permian Basin. Our results from our operated Wolfberry drilling program remain solid, and we continue to participate in several attractive non-operated drilling projects, including a horizontal Bone Spring well in which we own a 50% working interest. We are excited about the second half of 2013, as our development pace will accelerate to include the drilling of two operated horizontal Bone Spring wells along with our drilling in the Wolfberry.

"We are pleased with our year-to-date acquisitions which total approximately $90 million of oil-weighted producing properties at attractive metrics. We have evaluated and are continuing to evaluate a strong pipeline of acquisitions of various sizes in all of our core areas, and hope to expand our acquisitions in the second half of the year. 

"Based on these strong financial and operational results as well as our positive outlook, we increased our distribution for the 11 th consecutive quarter to $0.58 per unit, resulting in year-over-year distribution growth of 3.6%. For the quarter, we generated Distributable Cash Flow of $38.8 million or $0.68 per unit, covering our second quarter distribution by 1.17 times."

Dan Westcott, Executive Vice President and Chief Financial Officer, commented, "We are very pleased with our strong financial and operational results during the second quarter. On May 28, we closed a $250 million private offering of 6.625% senior notes due in 2021. With this opportunistic financing, we were able to access unsecured long-term capital at very attractive rates that will provide us with greater liquidity to pursue our acquisition and development plans. In accordance with the provisions of our credit agreement, our borrowing base was automatically reduced from $800 million to $737.5 million upon the closing of our senior notes offering. As of August 5, we had $311 million of debt outstanding under our revolving credit facility, giving us a record of approximately $426 million of current availability.  Given this availability, our recent performance, and our expectations from our recent $90 million of acquisitions, we are looking forward to the second half of the year and executing on our objectives."

2 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs