Legacy Reserves LP Announces Cash Distributions and Schedules Conference Call to Report Third Quarter 2015 Results
October 26 2015 - 9:00AM
Legacy Reserves LP ("Legacy") (NASDAQ:LGCY) today announced that
the Board of Directors of its general partner has approved a cash
distribution attributable to the third quarter of 2015 of $0.15 per
unit, payable on November 13, 2015, to unitholders of record at the
close of business on November 5, 2015.
Paul T. Horne, Legacy's President and Chief Executive Officer
stated, "The management team and Board of Directors have decided to
reduce the distribution from an annualized $1.40 per unit to $0.60
per unit. This difficult decision was not based on this quarter's,
next quarter's or next year's distribution capability. It was
also not based on our financial liquidity as we project more than
ample headroom to run the business. However, as commodity
prices and our financial markets have continued to erode, we
believe the right step for Legacy is to better position the balance
sheet in the event this depressed market persists. While we
expect higher commodity prices over time as a result of a more
balanced supply and demand environment, we have prioritized a
number of objectives including reducing debt, maximizing liquidity,
and being positioned to capitalize on opportunities in the current
market environment. We intend to monitor our markets actively
and may further alter our distributions accordingly. We look
forward to providing additional color on this decision as well as
updates on our recent operational and financial performance at our
upcoming Q3 earnings announcement and conference call."
Legacy's general partner also declared a cash distribution for
both its 8% Series A Fixed-to-Floating Rate Cumulative Redeemable
Perpetual Preferred Units and its 8% Series B Fixed-to-Floating
Rate Cumulative Redeemable Perpetual Preferred Units of $0.166667
per unit payable on November 16, 2015 to preferred unitholders of
record on November 2, 2015.
Legacy will provide additional context of its decision to reduce
its distribution along with details of its third quarter 2015
operating and financial performance with its earnings report which
is scheduled to be released on Wednesday, November 4, 2015,
following the close of NASDAQ trading.
Earnings Conference Call
A teleconference and webcast will be held on Thursday, November
5, 2015, beginning at 9:00 a.m. Central Time. Those wishing to
participate in the conference call should dial 877-266-0479. A
replay of the call will be available through Thursday, November 12,
2015, by dialing 855-859-2056 or 404-537-3406 and entering replay
code 62019645. Those wishing to listen to the live or archived
webcast via the Internet should go to the Investor Relations tab of
our website at www.LegacyLP.com.
About Legacy Reserves LP
Legacy Reserves LP is a master limited partnership headquartered
in Midland, Texas, focused on the acquisition and development of
oil and natural gas properties primarily located in the Permian
Basin, Rocky Mountain, East Texas and Mid-Continent regions of the
United States. Additional information is available at
www.LegacyLP.com.
Cautionary Statement Relevant to Forward-Looking
Information
This press release contains forward-looking statements relating
to our operations that are based on management's current
expectations, estimates and projections about its operations. Words
such as "anticipates," "expects," "intends," "plans," "targets,"
"projects," "believes," "seeks," "schedules," "estimated," and
similar expressions are intended to identify such forward-looking
statements. These statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
other factors, some of which are beyond our control and are
difficult to predict. Among the important factors that could cause
actual results to differ materially from those in the
forward-looking statements are realized oil and natural gas prices;
production volumes, lease operating expenses, general and
administrative costs and finding and development costs; future
operating results and the factors set forth under the heading "Risk
Factors" in our annual and quarterly reports filed with the
Securities and Exchange Commission. Therefore, actual outcomes
and results may differ materially from what is expressed or
forecasted in such forward-looking statements. The reader should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this press release. Unless legally
required, Legacy undertakes no obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Withholding Information
This release is intended to be a qualified notice under Treasury
Regulation Section 1.1446-4(b). Brokers and nominees should treat
one hundred percent (100.0%) of Legacy's distributions to foreign
investors as being attributable to income that is effectively
connected with a United States trade or business. Accordingly,
Legacy's distributions to foreign investors are subject to federal
income tax withholding at the highest applicable rate.
CONTACT: Legacy Reserves LP
Dan Westcott
Executive Vice President and Chief Financial Officer
432-689-5200
Legacy Reserves Inc. (MM) (NASDAQ:LGCY)
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