Legacy Reserves LP Increases Quarterly Cash Distribution to $0.57 Per Unit, Announces Its 2013 Capital Budget and Schedules Conference Call to Report Fourth Quarter and Annual 2012 Results
MIDLAND, Texas, Jan. 22, 2013 (GLOBE NEWSWIRE) -- 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 fourth quarter of 2012 of $0.57 per unit, payable on February 14, 2013, to unitholders of record at the close of business on February 1, 2013. This quarterly distribution is a $0.005 increase from the prior quarter and represents an annualized distribution of $2.28 per unit. On a year-over-year basis, Legacy's quarterly distribution has increased 3.6%.
In addition, Legacy announced the Board of Directors approved a 2013 development capital budget of $90 million of which $68 million will be considered maintenance capital. Cary D. Brown, Chairman and Chief Executive Officer of Legacy Reserves GP, LLC, the general partner of Legacy said, "Given our high-quality asset base and significant development opportunities following the Concho acquisition, we believe our best course of action for Legacy unitholders is to increase our capital budget and timely develop our properties rather than slowing our capital spend and diminishing present value. Establishing our 2013 maintenance capital responds to many of our unitholders' requests and more closely aligns us to our peers in the calculation of Distributable Cash Flow.
"The fourth quarter was a pivotal time for Legacy as we announced and closed our largest acquisition, issued our inaugural senior notes and completed our largest equity offering. We are excited with initial indications from our Concho acquisition that closed on December 20, 2012. However, we continued to experience wider-than-normal oil differentials in the Permian which negatively impacted our cash flow. We are starting to see this price difference narrow and are pleased with our preliminary normalized financial results. To address this exposure going forward, we have hedged the Midland-to-Cushing oil differential at $1.47 per barrel for Q2-Q4 2013 for virtually all of our estimated PDP Permian production. We are excited about our expanded asset profile, increased employee base, and our path forward in 2013 and beyond," said Mr. Brown.
Legacy will provide the details of its fourth quarter and annual 2012 operating and financial performance with its earnings report which is scheduled to be released on Monday, February 25, 2013, following the close of NASDAQ trading.
Earnings Conference Call
A teleconference and webcast will be held on Tuesday, February 26, 2013, 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 Saturday, March 2, 2013, by dialing 855-859-2056 or 404-537-3406 and entering replay code 92534708.
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 an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States. Additional information is available at www.LegacyLP.com.
The Legacy Reserves logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3201
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.
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.