MIDLAND, Texas, Jan. 18, 2011 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) today announced that the Board of Directors of its general partner has approved a cash distribution attributable to the fourth quarter of 2010 of $0.525 per unit, payable on February 14, 2011, to unitholders of record at the close of business on January 31, 2011. This quarterly distribution is a $0.005 increase from the prior quarter and represents an annualized distribution of $2.10 per unit.
"After ten quarters of maintaining our distributions through the financial crisis and the commodity price collapse, we are pleased that our business has improved to the point where we are comfortable increasing our cash distribution," said Cary D. Brown, Chairman and Chief Executive Officer of Legacy Reserves GP, LLC, the general partner of Legacy.
Steven H. Pruett, President and Chief Financial Officer, stated, "We substantially increased our development capital budget in 2010 to $31 million from $13.7 million spent in 2009, while improving our balance sheet. The $115 million of acquisitions that we closed during the fourth quarter, coupled with our strong drilling results and favorable commodity hedges, positions Legacy well in 2011."
About Legacy Reserves LP
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, Mid-Continent and Rocky Mountain regions of the United States. Additional information is available at .
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Cautionary Statement Relevant to Forward-Looking Information
This press release contains forward-looking statements relating to our operations that are based on management's current expectations, estimates and projections about its operations. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "schedules," "estimated," and similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control and are difficult to predict. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements are realized oil and natural gas prices; production volumes, lease operating expenses, general and administrative costs and finding and development costs; future operating results and the factors set forth under the heading "Risk Factors" in the 2009 Annual Report on Form 10-K filed March 5, 2010 (File No. 001-33249), our Quarterly Report for the period ended June 30, 2010, and subsequent filings with the Securities and Exchange Commission. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. The reader should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Legacy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Legacy's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Legacy's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.
CONTACT: Legacy Reserves LP Steven H. Pruett, 432-689-5200 President and Chief Financial Officer