Legacy Reserves LP Overview Midland, Texas-based Master Limited Partnership (NASDAQ: LGCY) Focused on owning and operating long-lived oil and natural gas properties with stable, low-decline production Todays presentation will focus…
Current Asset Profile Total 139.0 MMBoe proved reserves(1) 50% Oil and NGLs 89.5% PDP 33,778 Boe / d current production(2) Rocky Mountain PDP R/P of 10.4(1) 59.6 MMBoe proved reserves 11,121 gross / 4,307 net producing wells 29%…
Recent Developments Capital Budget 2015 spending of 30 million compared to 2014 spending of 133 million Credit Agreement Pricing remains intact (L+150-250bps) 700 million borrowing base Financial covenants changed through maturity…
2015 Capital Budget 30 million Capital Budget(1) 2mm 7% 6mm 19% 13mm 43% 9mm 31% Permian Basin Drilling Permian Basin CO2 Expansions Workovers / Recompletions Facilities Capital Approximately 45% of our 2015…
DrillCo Opportunity Currently evaluating potential options to exploit a portion of our Midland Basin and Delaware Basin acreage Targeting horizontal development of Wolfcamp, Spraberry and Bone Spring Potential to spend greater than…
Delaware Basin Position Approximately 30,000 net acres in the Delaware Basin 1/2 holds Wolfcamp/Bone Spring Lea Unit / Hamon Successfully drilled 6 horizontal Bone Spring wells in Lea County, NM to date EURs range from 800…
Delaware Basin Analogous Results 3rd Bone Spring 3rd Bone Spring Fasken Oil & Ranch Legacy Reserves Quail 16 State 4H Lea Unit 30 H IP24: 1,082 Boe/d IP24: 887 Boe/d Lea Unit / Hamon 3rd Bone Spring 2nd Bone Spring Legacy…
Midland Basin Position Approximately 44,000 net acres in the Midland Basin EURs range from 750 1,000 MBoe Projected single well IRRs are 35%+ at todays current strip Key offset operators include: Encana Apache Pioneer…
Midland Basin Analogous Results Wolfcamp B Lower Spraberry American Energy Partners Tall City Exploration University 48 0701H Hamlin 19-30 1H IP24: 1,448 Boe/d IP24: 1,275 Boe/d Wolfcamp B Wolfcamp A American Energy Partners…
Dan Westcott Executive Vice President & Chief Financial Officer 13
Disciplined Acquisition Approach Pursuing mature, long-lived oil and natural gas properties 700 700 40 654 35 600 530 30 500 27 24 25 ( Total Deal Value) 400 ( of Transactions) 19 20 16 280 16 300 15 15…
Capital Structure ( in millions) March 31, 2015 Cash and cash equivalents 3.5 Long-term debt: Revolving credit facility due 2019 (1) 112.0 8% Senior Notes due 2020 300.0 6.625% Senior Notes due 2021 550.0 Total Debt 962.0…
Hedging Commodity Basis Exposure Natural Gas Crude Oil Upon agreeing to the WPX Currently seeing meaningful pricing Acquisition, we layered on basis improvement due to Cactus, swaps on top of our NYMEX hedges BridgeTex, and other…
Investment Rationale High-quality, geographically diversified, low-decline asset portfolio 50% Liquids 10.4 PDP R/P Experienced, aligned, and incentivized Insiders 15% of outstanding units held by Insiders Strong track record…
Appendix 21
Oil Hedge Schedule Oil Swaps: Oil 3-Way Collars: Quarter Ending Volumes Avg /Bbl Quarter Ending Volumes Avg Short Put /Bbl Avg Long Put /Bbl Avg Short Call /Bbl 6/30/2015 632,213 78.97 6/30/2015 323,960 65.06 89.21 113.10 9/30/2015…
Gas Hedge Schedule Gas Swaps: Gas 3-Way Collars: Quarter Ending Volumes Avg /Bbl Quarter Ending Volumes Avg Short Put /Bbl Avg Long Put /Bbl Avg Short Call /Bbl 6/30/2015 4,656,900 4.39 6/30/2015 2,010,000 3.66 4.21 5.01 9/30/2015…
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%…
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…
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…
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