Legacy Reserves LP Overview Longstanding Midland, Texas-based operator (NASDAQ: LGCY) Unique balance of diversified, stable PDP footprint with significant horizontal Permian potential Produce from 10,775 gross / 4,515 net wells in…
2016 Key Achievements Production: Generated record production of 43,800 Boe/d. LOE: Reduced absolute LOE by 13 million and achieved record low lifting cost of 10.59/Boe Drilling Efficiencies: Reduced D&C cost of horizontals by 15%…
Recent Successful Cost Reduction Efforts Efficiency Gains Drive D&C Reductions Reduced well pads from 4 to 2 per half section Average Lateral Feet per Day (1) D&C Cost per Lateral Ft. (increased from 2 to 4 wells per pad) (15%)…
Valuation and Credit Profile Underpinned by Significant PDP 970 million Proved PV-10 based on Strip Pricing(1) Weighted average 3-year PDP decline…
Identified Operated Permian Horizontal Acreage Northwest Shelf Midland Basin Total Acreage Total Acreage Gross Net Gross Net(1) Net + JDA 6,400 5,900 10,000 7,800 9,200 Delaware Central Basin Basin Platform Total Acreage…
Significant Operated Permian Horizontal Development Inventory Permian Horizontal Inventory Extensive Permian horizontal Operated Horizontal Drilling Locations(1) Wells activity has de-risked a 2017 Development 2018+ Development…
2017 Capital Budget ( in millions) 55 million Capital Budget Gross Net 250.0 225.0 60.0 55.0 +76% +86% 50.0 200.0 Development Capital Development Capital 40.0 150.0 127.7 29.5 30.0 100.0 20.0 50.0 10.0 2016A…
JDA Structure Industry-Leading Capital Efficiency Metrics Efficient structure has driven industry-leading JDA Activity Highlights ( in millions)(1)(2) F&D Costs and significant ROI Gross / Net PDP Well Count at YE'16 17 / 3 Despite…
JDA Economics Enhance Near-Term Cash Flow Effective November 2016, JDA economics were amended to increase LGCYs initial working interest from 12.5% to 20% Removed interim (1.0x ROI) reversion Increased tranche(1) size from 24 to 48…
Howard County Well Performance Type Well Statistics(1) Lateral D&C EUR Payout 140,000 Length Zone (MM) (MBoe) IRR (Yrs) Lwr. 7,500' 5.0 865 69% 1.2 Spra 120,000 7,500' WCA 5.0 615 40% 1.9 Avg. Cum. Production - Lwr Spraberry…
Howard County Activity Update Map Results(1) Borden First Lat. Peak 30-Day Well Name Zone Prod. Length (ft) (Boe/d) Talbot A 1SH L Sprby Dec-15 7,500 1,144 Martin Talbot B 2AH WC A Dec-15 7,500 814 Howard Talbot C 3SH L Sprby…
Lea Unit Well Performance Type Well Statistics(1) Lateral D&C EUR Payout 160,000 Length Zone (MM) (MBoe) IRR (Yrs) Avg. Cum. Production - 1st BS 5,000/7,500 2nd BS 5.25 560 40% 1.8 5,000/7,500 3rd BS 5.25 765 69% 1.1 140,000 Avg.…
Lea-Hamon Activity Update Map Results First Lat. Peak 30-Day Well Name Zone Prod. Length (ft) (Boe/d) Lea 32H 3rd BS Nov-15 7,500 1,091 Lea 33H 3rd BS Oct-15 5,000 876 Lea 34H 3rd BS Nov-15 5,000 1,523 Lea 44H 3rd BS Nov-15 5,000…
Balance Sheet ( in millions) 12/31/2015 12/31/2016 No Near-Term Debt Maturities Revolving credit facility due 2019 608.0 463.0 12% 2nd Lien Term Loan due 2021 60.0 600 8% Senior Notes due 2020 300.0 233.0 463 493 500 6.625%…
Improved Pro Forma Credit Profile The following pro forma assumes we caused a Reversion to occur under the JDA increasing LGCYs WI in the assets: LGCY + JDA Adjustment = Pro Forma Standalone Numerator 1,189 (1) 73(3) 1,262 (2)…
Hedge Summary + Price Sensitivities Added meaningful hedges over the past 6 months. Below is our current position: % Oil Hedged(1) % Natural Gas Hedged(1) 80% 80% 76% 68% 70% 70% 60% 60% 55% 60% 50% 50% 42% 40% 40% 30%…
2017 Guidance ( in thousands unless otherwise noted) FY 2017E Range Production: Oil (MBbls) 4,300 - 4,400 Natural gas liquids (MGal) 35,800 - 36,800 Natural gas (MMcf) 61,300 - 62,900 Total (MBoe) 15,369 - 15,760 Average daily…
PDP Decline Rates Since its formation, Legacy remained resolute to its strategy of acquiring long-lived, shallow-decline, producing assets, leading to a best-in-class production decline rate PDP Decline PDP Decline % of Q416 % of…
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