Agenda Company Overview Distinctive Growth Opportunities Investment Rationale Dan Westcott Chief Financial Officer 3
Legacy Reserves LP Overview Midland, Texas-based Master Limited Partnership (NASDAQ: LGCY) Focused on long-lived oil and natural gas properties with stable, low-decline production Aligned organizational structure 18% insider…
Core Asset Areas 142.6 Mmboe of Proved Reserves (92% PDP) (1) 7% 41% 52% Permian Basin Rocky Mountain Mid-Continent 8% 47% 46% Oil Gas NGL (1) Includes reserves as of 12/31/13 per the 10-K, plus WPX Acquisition…
First and Only MLP with 3rd Party Drop-Down Opportunities Recent Strategic Alliance with WPX established newly-created IDRs 10% issued and vested 20% issued and unvested: vesting hinges on consummation of additional acquisitions 70%…
Proven History of Growth Average Daily Production (Boe / d) 36,000 30,000 24,000 18,000 30,868 12,000 19,668 6,000 13,071 14,811 7,582 8,225 9,611 4,970 0 2007 2008 2009 2010 2011 2012 2013 PF Adjusted EBITDA ( MM)…
Avg. 250 Consistent Track Record of Distribution Growth 20 200 0 Quarterly Distribution per Unit 0.700 160 WTI Spot Price ( / Bbl) Cumulative distributions since inception = 15.875/unit LGCY Unit Price 140 0.61 0.59 0.595 0.600…
Capital Structure ( in millions) June 30, 2014 Cash and cash equivalents 10.1 Long- term debt: Revolving credit facility due 2019 325.0 8% Senior Notes due 2020 300.0 6.625% Senior Notes due 2021 550.0 Total Debt 1,175.0…
Costless Hedging Strategy Clear objective to reduce cash flow volatility to protect our borrowing base and future distribution levels Target approximately 85% of estimated PDP production over the next 18-24 months on a rolling…
Investment Rationale High-quality, geographically diversified, low-decline asset portfolio 54% Liquids 11.7 PD R/P Experienced, Aligned, and Incentivized Management Team 18% of outstanding units held by Management/Insiders…
Appendix 12
Strategic Alliance with WPX Energy Key Economic Terms Asset Highlights On May 6th, we announced a Strategic Alliance with 276 Bcfe (46 MMBoe) proved reserves (100% PDP) WPX. Initial acquisition is 2,680 Piceance Basin natural gas wells…
LGCYs New IDR: Comparison to Typical IDRs Similarities Offer Comfort Differences Offer Advantages IDR Distributions (i.e. Payout) based Far-reaching Scope on one schedule of LGCY distribution Typical structures have access to one…
Investment Rationale of WPX Acquisition WPX is a world-class Rockies operator with a deep inventory of MLP-friendly assets Unmatched experience, infrastructure, and economics in the Piceance Basin IDRs incentivize both parties to make…
Pro Forma Assets Standalone(1) Acquisitions(2)(3) Pro Forma 6% 11% (88% PD) (99% PD) (92% PD) 87.6 MMBoe 55.0 MMBoe 142.6 MMBoe 7% 89% 40% 53% 41% 11% 46% 11% 11% 52% 78% Permian Basin Rocky Mountain Mid-Continent…
IDR Key Terms Units: 1,000,000 IDRs authorized and available for issuance by LGCY Founding Investors, WPX: Issued 300,000 IDRs Directors Public and Management Vesting: 100,000 IDRs immediately vest; 200,000 IDRs are available to…
Hedging the WPX Acquisition and Basis Exposure Similar to our corporate Natural Gas Hedges Related to WPX strategy, we have taken a 100% 1 4.34 rolling stair-step approach to 4.79 hedging the WPX Acquisition 80% 0.8 through costless…
WPX Company Overview WPX Energy (NYSE: WPX), based in Tulsa, Oklahoma, Williston Marcellus 106 MMBoe Proved 328 Bcfe Proved has a 5.2 billion market cap, 7.1 billion TEV (as of 176 MMBoe 3P 1,555 Bcfe 3P 9/18/14), and reported 779…
Adjusted EBITDA Reconciliation The following presents a reconciliation of Adjusted EBITDA which is a non-GAAP measure, to its nearest comparable GAAP measure. Adjusted EBITDA should not be considered as an alternative to GAAP measures,…
Reg G Reconciliation ( in millions) 2007 2008 2009 2010 2011 2012 2013 Net income (loss) (55.7) 158.2 (92.8) 10.8 72.1 68.6 (35.3) Interest expense 7.1 21.2 13.2 25.8 18.6 20.3 50.1 Income taxes 0.3 0.0 0.6 0.5 1.0 1.1 0.6…
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