Legacy Reserves – LGCY – Increases Quarterly Cash Distribution to $0.565 Per Unit

Legacy Reserves LP (Nasdaq:LGCY) announced that the Board of Directors of its general partner has approved a cash distribution attributable to the third quarter of 2012 of $0.565 per unit, payable on November 14, 2012, to unitholders of record at the close of business on November 1, 2012.

This quarterly distribution is a $0.005 increase from the prior quarter and represents an annualized distribution of $2.26 per unit. On a year-over-year basis, Legacy’s quarterly distribution has increased 3.7%.

About Legacy Reserves LP – LGCY

Legacy Reserves LP (LGCY) is an independent oil and natural gas limited partnership. LGCY focuses 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. As of December 31, 2011, the Company had proved reserves of approximately 63.4 one thousand barrels of crude oil equivalent (MMBoe), of which 68% were oil and natural gas liquids (NGLs) and 85% were classified as proved developed producing, 2% were proved developed non-producing, and 13% were proved undeveloped. During the year ended December 31, 2011, the Company completed 28 acquisitions of oil and natural gas properties.

LGCY is an independent oil and natural gas limited partnership headquartered in Midland, Texas, and is 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. LGCY was formed in October 2005 to own and operate the oil and natural gas properties that they acquired from their founding investors and three charitable foundations in connection with the closing of our private equity offering on March 15, 2006. On January 18, 2007, we completed our initial public offering.

LGCY primary business objective is to generate stable cash flows allowing them to make cash distributions to unitholders and to support and increase quarterly cash distributions per unit over time through a combination of acquisitions of new properties and development of our existing oil and natural gas properties.

LGCY – Key Statistics

LGCY – Oil and natural gas production and reserve data as of December 31, 2011 are as follows:

• Had proved reserves of approximately 63.4 MMBoe, of which 68% were oil and natural gas liquids (“NGLs”) and 85% were classified as proved developed producing, 2% were proved developed non-producing, and 13% were proved undeveloped;
• Proved reserves had a standardized measure of $1.1 billion; and
• Proved reserves to production ratio was approximately 12.6 years based on the average daily net production of 13,750 Boe/d (approximately 73% operated) for the three months ended December 31, 2011.

Company states: We have grown primarily through two activities: the acquisition of producing oil and natural gas properties and the development of properties in established producing trends. From 2007 through 2011, we completed 93 acquisitions of oil and natural gas properties for a total of approximately $847 million, excluding $57.5 million of non-cash asset retirement obligations. These acquisitions of primarily long-lived, oil-weighted assets, along with our ongoing development activities and operational improvements, have allowed us to achieve significant operational and financial growth during this time period.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.