MIDLAND, Texas, Oct. 21, 2011 (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 2011 of $0.545 per unit, payable on November 14, 2011, to unitholders of record at the close of business on November 2, 2011. This quarterly distribution is a $0.005 increase from the prior quarter and represents an annualized distribution of $2.18 per unit. On a year-over-year basis, Legacy's quarterly distribution has increased 4.8%.
Legacy will provide the details of its third quarter 2011 operating and financial performance with its earnings report which is scheduled to be released on Wednesday, November 2, 2011, following the close of NASDAQ trading.
Increase in Development Capital Budget to $70 Million
Legacy's Board of Directors approved today an increase in our 2011 development capital investment budget to $70 million from $60 million. The increase reflects higher working interests than anticipated in operated Wolfberry drilling projects, more non-operated development projects than planned, and modest increases in drilling and completion costs. Cary D. Brown commented, "We are pleased with the results of our development projects that are meeting or exceeding our expectations. Accordingly, we chose to drill higher working interest Wolfberry wells than initially planned to capture more value for our unitholders. The additional $10 million of development capital represents organic growth opportunities that will support future cash distributions."
Promotion of Micah C. Foster to Controller
We are pleased to announce the promotion of Micah C. Foster to the position of Controller. This position was formerly held by William M. Morris, who continues as Vice President and Chief Accounting Officer, who commented, "As one of our founding employees, Micah's promotion reflects his growing contribution to our accounting organization and to our partnership overall."
Earnings Conference Call
A teleconference and web cast will be held on Thursday, November 3, 2011, 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 Monday, November 7, 2011, by dialing 855-859-2056 or 404-537-3406 and entering replay code 20782217.
Those wishing to listen to the live or archived web cast 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.
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.