MIDLAND, Texas, Oct. 26, 2015 (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 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.
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