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…
Proven History of Unlevered Growth Average Daily Production (Boe / d) 36,000 30,000 24,000 18,000 32,109 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 Q3'14 Adjusted…
Consistent Distributions Through Volatile Oil Quarterly Distribution per Unit 0.700 160 WTI Spot Price ( / Bbl) Cumulative distributions since inception = 16.485/unit 140 0.61 0.61 0.59 0.595 0.600 0.58 0.585 0.575 0.57 0.56…
Rapid Industry Development in the Permian 58% of current basin-wide oil production is less than 3 years old and exhibits steep declines; a reduction in basin-wide rig count could result in dramatically lower…
Emerging Permian Potential Central Basin System Series Delaware Basin Northwest Shelf Midland Basin Platform Dewey Lake Dewey Lake Dewey Lake Dewey Lake Rustler Rustler Rustler Rustler Ochoa Salado Salado Salado Salado Castile…
Capital Structure September 30, 2014 Cash and cash equivalents 3.0 Long-term debt: Revolving credit facility due 2019 (1) 65.0 8% Senior Notes due 2020 300.0 6.625% Senior Notes due 2021 550.0 Total Debt 915.0 Market…
Relative Strength of Our Balance Sheet 6.00x 5.00x Debt / EBITDA (1) 4.00x 3.00x 2.00x 1.00x 0.00x LGCY Peer Avg. Wtd. Peer Avg. Alerian Avg. (1) Debt outstanding based on latest public filings; EBITDA based on…
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…
Hedging Commodity Basis Exposure Natural Gas Crude Oil Upon agreeing to the WPX Q1-Q3 2014 Midland-to-Cushing Acquisition, we layered on basis differential has suffered due to swaps on top of our NYMEX hedges infrastructure…
Investment Rationale High-quality, geographically diversified, low-decline asset portfolio 54% Liquids 11.2 PD R/P Experienced, aligned, and incentivized Insiders 15% of outstanding units held by Insiders Strong track record…
Appendix 14
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%…
Strategic Alliance with WPX Energy Key Economic Terms Asset Highlights On May 6th, we announced a Strategic Alliance with WPX. 276 Bcfe (46 MMBoe) proved reserves (100% PDP) 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…
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…
WPX Company Overview WPX Energy (NYSE: WPX), based in Tulsa, Oklahoma, Williston Marcellus 106 MMBoe Proved 328 Bcfe Proved has a 2.4 billion market cap, 4.3 billion TEV (as of 176 MMBoe 3P 1,555 Bcfe 3P 12/1/14), and reported 230…
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 Q3 14 Net income (loss) (55.7) 158.2 (92.8) 10.8 72.1 68.6 (35.3) 63.8 Interest expense 7.1 21.2 13.2 25.8 18.6 20.3 50.1 19.1 Income taxes 0.3 0.0 0.6 0.5 1.0…
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