Legacy Reserves (LGCY) Tops Q1 EPS by 43c

Legacy Reserves (NASDAQ: LGCY) reported Q1 EPS of $0.16, $0.43 better than the analyst estimate of ($0.27). Revenue for the quarter came in at $99.55 million versus the consensus estimate of $102.67 million.

• Deployed $23.7 million of development capital as follows:- $16.7 million on drilling 8 and completing 7 Permian horizontal wells in Howard County, TX and Lea County, NM under our Joint Development Agreement ("JDA")- $4.1 million on workovers across all operating regions- $1.5 million on infrastructure and CO2- $1.4 million on non-operated properties
• Spent approximately $4.8 million acquiring additional Midland Basin leasehold adding 24 gross potential horizontal drilling locations.
• Generated net income of $16.4 million.

Obtained the reaffirmation of a $600 million borrowing base under our revolving credit facility.
Paul T. Horne, Chairman, President and Chief Executive Officer, commented, “Our company started the year off well as we grew oil production by 9% relative to Q4 of last year, driven by our recent Permian horizontal drilling efforts. While LOE was up 19% relative to Q4, the primary driver was an increase in returning wells to production and workovers that are now economic in an improved commodity price environment. This proactive well work in the Permian Basin and East Texas served to further reduce oil and gas declines for our portfolio of shallow-decline properties, the base from which we intend to grow the business in 2017 and beyond.”

Dan Westcott, Executive Vice President and Chief Financial Officer, commented, “We are extremely proud of our team’s execution of the Permian horizontal development that we outlined at year-end. Our front-end weighted capital program is concentrated on high-return projects and we anticipate continued oil production growth throughout the year. During the quarter, we again improved our credit profile as we reduced our borrowings outstanding by $15 million and maintained our $600 million borrowing base. We remain focused on the prudent management of our shallow-decline properties and the efficient development of our horizontal Permian potential.”

For earnings history and earnings-related data on Legacy Reserves (LGCY) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• SanDisk upgraded at JPMorgan after investor day; shares climb
• Rein Therapeutics Inc. (RNTX) Tops Q2 EPS by 39c