UPDATE: Wunderlich Securities Initiates Coverage on Legacy Reserves LP on Proven History with Strong Financial Metrics

In a report published Wednesday, Wunderlich Securities analyst Abhishek Sinha initiated coverage on

with a Buy rating and $31.00 price target. In the report, Wunderlich Securities noted, “We are initiating coverage of Legacy Reserves LP (LGCY) with a Buy rating and $31 price target. LGCY is an oil & gas upstream MLP headquartered in Midland, TX, having properties in the liquids-rich Permian Basin, Mid-Continent, and the Rocky Mountains. The company is liquids levered with 67% liquids in its production mix versus its peer average of 51%. With a long and successful acquisition track record, liquids-rich portfolio, and a solid coverage ratio, we believe LGCY should continue to trade at a premium to its peers and yield attractive returns with a strong potential for distributions growth. The company announced yesterday a 1% q-o-q increase in its distributions ($2.34/unit annualized) and an increase in its borrowing base from $737.5mm to $800mm.” Legacy Reserves LP closed on Tuesday at $28.73.