MIDLAND, Texas, Oct. 20, 2014 (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 2014 of $0.61 per unit, payable on November 14, 2014, to unitholders of record at the close of business on October 31, 2014. This quarterly distribution is 4.3% higher than the comparable period's distribution in 2013.
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 17, 2014 to preferred unitholders of record on November 3, 2014.
Cary D. Brown, Chairman, President and Chief Executive Officer of Legacy's general partner, commented: "We have recently witnessed a meaningful drop in oil prices and a significant decline in our unit price. While we certainly enjoy higher oil prices, we have a robust hedge portfolio in place and a balanced reserve mix to help insulate us from this downward swing in oil prices. Further, we have substantial liquidity with over $875 million of availability under our $950 million borrowing base and a strong balance sheet that will allow us to continue to pursue growth opportunities in this environment. We are reminded that, since going public in January 2007, we have operated in a wide range of commodity prices and have been able to deliver strong financial results and increasing distributions to our unitholders. We have never decreased or discontinued our distributions and we do not plan on doing so. The management and Board own over 14% of our outstanding units and are focused on continuing to develop and implement the strategies required to maximize long-term unitholder value. We look forward to speaking with investors at our upcoming quarterly conference call where we plan to discuss our Q3 results and address any questions from existing or potential investors."
Legacy will provide the details of its third quarter operating and financial performance with its earnings report which is scheduled to be released on Wednesday, October 29, 2014, following the close of NASDAQ trading.
Earnings Conference Call
A teleconference and webcast will be held on Thursday, October 30, 2014, 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 6, 2014, by dialing 855-859-2056 or 404-537-3406 and entering replay code 20171053. 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, Mid-Continent and Rocky Mountain 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.
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.