LGCY Profile
Legacy
Reserves LP (LGCY) is a publicly-traded master limited partnership
(MLP) focused on the development, production, and acquisition of oil
and natural gas properties in the United States. The company was
founded in 2005 and is headquartered in Midland, Texas.
Legacy
Reserves' operations are focused primarily on unconventional shale
plays, including the Permian Basin, East Texas, and the Rocky
Mountains. The company operates approximately 1,300 wells and has an
estimated 145 million barrels of oil equivalent (BOE) in proved
reserves.
As with most MLPs, Legacy Reserves operates as a
pass-through entity, with the majority of its earnings paid out to
shareholders in the form of distributions. The company's distribution
yield has fluctuated over the years and was suspended in 2019 due to
its bankruptcy proceedings. However, the company emerged from
bankruptcy in 2020 with a plan to restructure its operations and
improve its financial position.
Legacy Reserves faces a number
of challenges, including volatile commodity prices, regulatory risks,
and the high level of debt carried on its balance sheet. However, the
company has taken steps to address these challenges, including
reducing its debt load and increasing its focus on cost-efficient
operations.
Investors in Legacy Reserves should be aware of the
risks associated with investing in MLPs, including exposure to
commodity price fluctuations, tax considerations, and potential
liquidity issues. However, for those willing to accept these risks,
Legacy Reserves may offer an opportunity for income-seeking investors
looking to gain exposure to the ene
|
