Monday, December 15, 2008

Legacy Reserves

Legacy Reserves LP NASDAQ:LGCY

"We are an independent oil and natural gas limited partnership headquartered in Midland, Texas, and are
focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin and Mid-continent regions of the United States. We were formed in October 2005 to own and operate the oil and
natural gas properties that we acquired from our 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.

Our primary business objective is to generate stable cash flows allowing us to make cash distributions to our unitholders and to 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."


Market cap(15.12.2008):268.48M

Yield:24.07%($0.52/qrt)

Adjusted EBITDA(millions): 2007: $70.2 2006: $36.5

Reserves(proved)(MMboe): 2007:32.1(29.0 developed) 2006:18.8 2005:12.2 current reserves consist of 72% oil& NGL, 28% natural gas, RLI(proved reserves) 14 years(year end 2007)

Production (boe/d ): latest(9 months):7,255 8400 2007: 4,970 2006: 3,058 2005: 1,438

Production costs per boe(excluding taxes) latest: $19.53 2007: $14.96 2006: $14.28 2005: $12.14

Total Assets(000's): $665,048

Total liabilities(000's): $395,479

Hedging:
"We enter into oil, NGL and natural gas derivatives to reduce the impact of oil, NGL and natural gas price volatility on our operations. Currently, we use swaps and collars to offset price volatility on NYMEX oil, NGL and natural gas prices, which do not include the additional net discount that we typically experience in the Permian Basin. At September 30, 2008, we had in place oil, NGL and natural gas swaps covering significant portions of our estimated 2008 through 2012 oil, NGL and natural gas production. As of November 7, 2008, we have swap contracts covering approximately 65% of our remaining expected oil, natural gas liquid and natural gas production for 2008. As of November 7, 2008, we also have swap and collar contracts covering approximately 58% of our currently expected oil and natural gas production for 2009 through 2012 from existing estimated total proved reserves"


Insider activity

*Founding investors, management and directors own 40% outstanding units

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