MIDLAND, Texas, June 18, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy") announced today that it has, together with its subsidiaries (collectively, the "Company"), commenced voluntary cases under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas (the "Bankruptcy Court"), pursuant to the terms of the previously announced global restructuring support agreement (the "Global RSA") between the Company, its lenders under its revolving credit facility (the "RBL Lenders"), its lenders under its second lien term loan ("Second Lien Lenders), and an ad hoc group of senior noteholders (the "Ad Hoc Group of Senior Noteholders", which, together with the other creditors party to the Global RSA, hold most of the Company's outstanding unsecured notes).

The Company intends to operate in the ordinary course of business during the chapter 11 cases, and has filed a number of customary "first day" motions to enable the Company's operations to continue as usual.  Specifically, the Company requested authority, among other things, to pay in full on a normal-course basis employee wages and honor existing employee benefit programs, vendors and other operating expenses, joint interest billings for non-operated properties, and royalties to mineral interest owners under terms of applicable agreements. As previously announced, the Company has received a commitment for $350 million in debtor-in-possession ("DIP") financing that, subject to court approval, will refinance portions of the Company's existing reserve-based credit facility and, when combined with cash from operations, will provide ample liquidity to support the Company's continuing business operations during the chapter 11 cases.

As previously announced, under the Global RSA, creditors constituencies across all classes of the Company's capital structure have reached an agreement on the terms of a plan of reorganization ("Plan"). Under the terms of the Global RSA, the Company's unsecured notes will be extinguished with substantially impaired class treatment, and all common stock of Legacy will be extinguished with no associated recovery. The Company expects to file the Plan within 45 days. 

Legacy's stockholders are cautioned that trading in shares of Legacy's common stock during the pendency of the chapter 11 cases will be highly speculative and will pose substantial risks. Legacy expects that its common stock will be delisted from The Nasdaq Stock Market LLC for non-compliance with marketplace rules as result of the chapter 11 cases.  Additionally, Legacy expects there will be no recovery for any equity holder in the chapter 11 cases. Accordingly, Legacy urges extreme caution with respect to existing and future investments in its common stock.

Court filings and information about the chapter 11 cases can be found at a website maintained by the Company's claim agent, Kurtzman Carson Consultants LLC, at www.kccllc.net/legacyreserves, or by calling (866) 967-0495 (toll-free domestic) or (310) 751-2695 (international). 

Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., is acting as financial advisor for the Company, Sidley Austin LLP is acting as legal advisor, and Alvarez & Marsal is acting as restructuring advisor.  PJT Partners LP is acting as financial advisor for the Second Lien Lenders, and Latham & Watkins LLP is acting as legal advisor.  Houlihan Lokey is acting as financial advisor for the Ad Hoc Group of Senior Noteholders, and Davis Polk & Wardwell LLP is acting as legal advisor.  RPA Advisors, LLC is acting as financial advisor to Wells Fargo Bank, as administrative agent for the RBL Lenders, and Orrick Herrington & Sutcliffe LLP is acting as legal advisor.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the Company's ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court; the ability of the Company to negotiate, develop, confirm and consummate a plan of reorganization; the ability of the Company to consummate the rights offering; the effects of the chapter 11 cases on the Company's liquidity or results of operations or business prospects; the effects of the bankruptcy filing on the Company's business and the interests of various constituents; the length of time that the Company will operate under chapter 11 protection; risks associated with third-party motions in the chapter 11 cases; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, June 14, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy", and collectively with its subsidiaries, the "Company") announced today that its board of directors has approved, and the Company has executed, a global restructuring support agreement (the "Global RSA") with its lenders under its reserve based revolving credit facility ("RBL Lenders"), its lenders under its second lien term loan ("Second Lien Lenders"), and a group of the Company's unsecured noteholders (the "Noteholder Group").  The proposed financial restructuring will provide the Company with go-forward liquidity and a right-sized pro forma capital structure while minimizing operational disruptions by ensuring trade creditors will be paid in full. 

The Company previously announced that it executed a restructuring support agreement with the RBL Lenders and Second Lien Lenders on June 10, 2019, but was continuing active discussions with the Noteholder Group regarding the terms for their support of the Company's financial restructuring.  The Global RSA represents a broad agreement of creditor constituencies across all tranches of the Company's capital structure on the terms of a pre-arranged plan of reorganization (the "Plan") that the parties have agreed to support.   The Global RSA contemplates a $256.3 million backstopped equity commitment and rights offering, $500 million in committed exit financing from certain of the existing RBL Lenders, the equitization of approximately $797.2 million of principal outstanding debt, a potential additional equity investment of $125 million, and payment in full of the Company's trade and other unsecured creditors.  The Company expects to file voluntary petitions for reorganization in the United States Bankruptcy Court for the Southern District of Texas (the "Court") to facilitate the financial restructuring and implement the Plan contemplated by the Global RSA.  Consummation of the Plan, including the infusion of new equity, will be subject to confirmation by the Court in addition to the other conditions to be set forth in the Plan and related transaction documents. 

As previously announced, the Company will continue to operate its business in the normal course without material disruption to its vendors, partners or employees, and expects to have sufficient liquidity to meet its financial obligations during the restructuring.  The Company has secured commitments for debtor-in possession ("DIP") financing from certain of its existing RBL Lenders, including Wells Fargo Bank, National Association that, subject to Court approval, will refinance portions of the Company's existing reserve-based credit facility and provide an additional $100 million of revolving, new money financing to support the Company's day-to-day operations and finance the restructuring process. 

Dan Westcott, Chief Executive Officer of the Company, said, "After exploring all options and months of negotiations, we are very pleased to have reached an agreement for a consensual restructuring with our RBL Lenders, Second Lien Lenders and the Noteholder Group.  We believe that the restructuring contemplated by the Global RSA will provide us with the capital structure and liquidity to compete and grow in today's challenging oil and gas environment. We plan to continue working with our creditor constituencies to move through the restructuring process expeditiously with minimal operational disruptions."

Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., is acting as financial advisor for the Company, Sidley Austin LLP is acting as legal advisor, and Alvarez & Marsal is acting as restructuring advisor.  PJT Partners LP is acting as financial advisor the Second Lien Lenders, and Latham & Watkins LLP is acting as legal advisor.  Houlihan Lokey is acting as financial advisor for the Noteholder Group, and Davis Polk & Wardwell LLP is acting as legal advisor.  RPA Advisors, LLC is acting as financial advisor to Wells Fargo Bank, as administrative agent for the RBL Lenders, and Orrick Herrington & Sutcliffe LLP is acting as legal advisor.

For inquiries regarding the restructuring, please call the hotline established by the Company's noticing agent, Kurtzman Carson Consultants LLC, at (866) 967-0495 (toll-free domestic) or (310) 751-2695 (international).

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the Company's ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court; the ability of the Company to negotiate, develop, confirm and consummate a plan of reorganization; the ability of the Company to consummate the rights offering and obtain the funding under backstop commitment agreements; the effects of the chapter 11 cases on the Company's liquidity or results of operations or business prospects; the effects of the bankruptcy filing on the Company's business and the interests of various constituents; the length of time that the Company will operate under chapter 11 protection; risks associated with third-party motions in the chapter 11 cases; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, June 13, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy", and collectively with its subsidiaries, the "Company") announced today that the Company has entered into third forbearance agreements (the "Third Forbearance Agreements") with its lenders under its reserve based revolving credit facility ("RBL Lenders") and its lenders under its second lien term loan ("Second Lien Lenders").  As previously announced, on June 7, 2019, the Company entered into second forbearance agreements with the RBL Lenders and Second Lien Lenders that were scheduled to terminate on 11:59 p.m. (ET) on June 12, 2019. 

Under the terms of the Third Forbearance Agreements, the RBL Lenders and Second Lien Lenders have agreed to extend the forbearance period during which the lenders will forbear from exercising any and all remedies available to them in respect of (a) any event of default arising from the maturity of the revolving credit facility on May 31, 2019 and (b) any event of default arising from Legacy not making the interest payments due on June 3, 2019 with respect to its outstanding (i) 8% senior notes due 2020, (ii) 6.625% senior notes due 2021, and (iii) 8% convertible senior notes due 2023.  Additionally, the Second Lien Lenders have agreed to further extend the waiver of the covenant that required Legacy to deliver audited financial statements without a "going concern" or like qualification or exception.  The forbearance period now extends through 11:59 p.m. (ET) on June 18, 2019, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional, or other strategic alternative and whether any such financial, transactional, or other strategic alternative will be completed; whether the Company will be able to receive any future forbearances; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, June 11, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy", and collectively with its subsidiaries, the "Company") announced today that its board of directors has approved, and the Company has executed, a restructuring support agreement (the "Restructuring Agreement") with its lenders under its reserve based revolving credit facility ("RBL Lenders") and its lenders under its second lien term loan ("Second Lien Lenders").  The proposed financial restructuring would significantly reduce the Company's debt, provide access to additional capital, and establish a more sustainable capital structure. 

To facilitate the financial restructuring and implement the pre-arranged plan of reorganization (the "Plan") contemplated by the Restructuring Agreement, the Company expects to file voluntary petitions for reorganization in the United States Bankruptcy Court for the Southern District of Texas (the "Court") pursuant to chapter 11 of the United States Bankruptcy Code.  The Plan, which the RBL Lenders and Second Lien Lenders have agreed to support, will provide for, among other things: (1) significant de-leveraging of the Company's capital structure by over $900 million, including an infusion of at least $200 million in equity capital through a rights offering and a committed equity backstop; and (2) payment in full of the Company's other secured creditors, tax and other priority claimants, trade creditors and employees.  Consummation of the Plan, including the infusion of new equity, will be subject to confirmation by the Court in addition to other conditions to be set forth in the Plan and related transaction documents.  The Plan is expected to be filed within 30 days following the commencement of the chapter 11 cases.  The Company is also in active discussions with the advisors for a group of the Company's noteholders regarding terms for their support of the Restructuring Agreement.

The Company will continue to operate its business in the normal course without material disruption to its vendors, partners or employees, and expects to have sufficient liquidity to meet its financial obligations during the restructuring.  The Restructuring Agreement contemplates that the Company will obtain debtor-in possession ("DIP") financing provided by certain of its existing RBL Lenders, including Wells Fargo Bank, National Association.  The DIP financing, subject to Court approval, will refinance portions of the Company's existing reserve-based credit facility and provide an additional $100 million in new money to support the Company's day-to-day operations and finance the restructuring process.  The Restructuring Agreement further provides that, upon confirmation of the Plan and emergence from chapter 11, the Company will obtain access to a senior secured asset-based lending credit facility in a maximum amount of $500 million provided by certain of the existing RBL Lenders.

Dan Westcott, Chief Executive Officer of the Company, said, "We explored a wide variety of alternatives to address our balance sheet and looming bank maturity during a sustained downturn in oil and gas prices.   After concluding this broad process, we believe that the financial restructuring negotiated with our creditors provides the best path forward for the Company. Through the proposed terms of the plan of reorganization, we believe our right-sized balance sheet will enable us to successfully compete in the current environment.  

"I want to express my gratitude to the employees for their continued dedication and hard work, and to our service providers, business partners and other stakeholders for their ongoing support during this time.  We are grateful to GSO Capital Partners LP, who, as Plan Sponsor, has committed to ensure that at least $200 million of new equity is invested into the Company.  Following the negotiated restructuring, we look forward to having substantially less debt and significantly enhanced prospects for our Company, our employees and our future stakeholders."

Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., is acting as financial advisor for the Company, Sidley Austin LLP is acting as legal advisor, and Alvarez & Marsal is acting as restructuring advisor.  PJT Partners LP is acting as financial advisor for GSO Capital Partners LP, and Latham & Watkins LLP is acting as legal advisor.

For inquiries regarding the restructuring, please call the hotline established by the Company's noticing agent, Kurtzman Carson Consultants LLC, at (866) 967-0495 (toll-free domestic) or (310) 751-2695 (international).

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the Company's ability to obtain Bankruptcy Court approval with respect to motions or other requests made to the Bankruptcy Court; the ability of the Company to negotiate, develop, confirm and consummate a plan of reorganization; the ability of the Company to consummate the rights offering; the effects of the chapter 11 cases on the Company's liquidity or results of operations or business prospects; the effects of the bankruptcy filing on the Company's business and the interests of various constituents; the length of time that the Company will operate under chapter 11 protection; risks associated with third-party motions in the chapter 11 cases; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, June 7, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy", and collectively with its subsidiaries, the "Company") announced today that the Company has entered into second forbearance agreements (the "Second Forbearance Agreements") with its lenders under its reserve based revolving credit facility ("RBL Lenders") and its lenders under its second lien term loan ("Second Lien Lenders").  As previously announced, on May 31, 2019, the Company entered into forbearance agreements with the RBL Lenders and Second Lien Lenders that were scheduled to terminate on 5:00 p.m. (ET) on June 7, 2019. 

Under the terms of the Second Forbearance Agreements, the RBL Lenders and Second Lien Lenders have agreed to extend the forbearance period during which the lenders will forbear from exercising any and all remedies available to them in respect of (a) any event of default arising from the maturity of the revolving credit facility on May 31, 2019 and (b) any event of default arising from Legacy not making the interest payments due on June 3, 2019 with respect to its outstanding (i) 8% senior notes due 2020, (ii) 6.625% senior notes due 2021, and (iii) 8% convertible senior notes due 2023.  Additionally, the Second Lien Lenders have agreed to further extend the waiver of the covenant that required Legacy to deliver audited financial statements without a "going concern" or like qualification or exception.  The forbearance period now extends through 11:59 p.m. (ET) on June 12, 2019, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.

As previously announced, the Company retained Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., as financial advisor and Sidley Austin LLP as legal advisor to assist Legacy in evaluating and exploring potential strategic alternatives.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional, or other strategic alternative and whether any such financial, transactional, or other strategic alternative will be completed; whether the Company will be able to receive any future forbearances; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: 

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, June 1, 2019 /PRNewswire/ -- Legacy Reserves Inc. (NASDAQ: LGCY) ("Legacy", and collectively with its subsidiaries, the "Company") announced today that the Company has entered into forbearance agreements (the "Forbearance Agreements") with its lenders under its reserve based revolving credit facility ("RBL Lenders") and its lenders under its second lien term loan ("Second Lien Lenders").  The loans provided under the revolving credit facility matured on May 31, 2019.  Legacy also announced that it has elected not to make its interest payments on June 3, 2019 (the "June Interest Payments") with respect to its outstanding (i) 8% senior notes due 2020, (ii) 6.625% senior notes due 2021, and (iii) 8% convertible senior notes due 2023 (collectively, the "Unsecured Notes").  Non-payment of this interest is not an event of default under the indentures governing the Unsecured Notes, but would become an event of default if the payments are not made within 30 days.

Under the terms of the Forbearance Agreements, the RBL Lenders and Second Lien Lenders have agreed to forbear from exercising any and all remedies available to them in respect of (i) any event of default arising from the maturity of the revolving credit facility on May 31, 2019 and (ii) any event of default arising from Legacy not making the June Interest Payments.  Additionally, the Second Lien Lenders have agreed to further extend the waiver of the covenant that required Legacy to deliver audited financial statements without a "going concern" or like qualification or exception.  The forbearance period extends through 5:00 p.m. (ET) on June 7, 2019, and will terminate upon the earlier of the end of the forbearance period or the occurrence of a specified forbearance termination event.

As previously announced, the Company retained Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., as financial advisor and Sidley Austin LLP as legal advisor to assist Legacy in evaluating and exploring potential strategic alternatives.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States.  Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.  Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional, or other strategic alternative and whether any such financial, transactional, or other strategic alternative will be completed; whether the Company will be able to receive any future forbearances; 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 Legacy Reserves Inc.'s filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, May 9, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") (NASDAQ:LGCY) today announced 2019 first quarter results including the following highlights:

• Generated quarterly oil production of 17,922 Bbls/d, a 4% increase relative to Q1'18;
• Reduced lease operating expense by 9% quarter-over-quarter; and
• Generated net loss of $78.4 million and adjusted EBITDA of $63.9 million.

As previously announced, Legacy is evaluating and exploring potential strategic alternatives. These alternatives include, among others, a sale or other business combination transaction, sales of assets, financing transactions, or some combination of these.

Financial and Operating Results - Three-Month Period Ended March 31, 2019 Compared to Three-Month Period Ended March 31, 2018

• Production increased 1% to 46,389 Boe/d from 46,078 Boe/d primarily due to additional oil production from our Permian Basin horizontal drilling program. This was partially offset by natural production declines.
• Average realized price, excluding net cash settlements from commodity derivatives, decreased 14% to $28.38 per Boe in 2019 from $33.15 per Boe in 2018 driven by a decrease in average realized price due to a decrease in the average West Texas Intermediate ("WTI") crude price of  $8.09 per Bbl coupled with the widening Mid-Cush and other regional differentials, and a decrease in the realized NGL price of 44% to $0.45 per gallon in 2019 from $0.80 per gallon in 2018. These decreases were partially offset by an average realized natural gas price increase of 1% to $2.60 per Mcf in 2019 from $2.57 per Mcf in 2018.
• Production expenses, excluding ad valorem taxes, were relatively flat at $45.0 million in 2019, a decrease from $45.6 million in 2018.
• General and administrative expenses, excluding unit-based Long-Term Incentive Plan ("LTIP") compensation expense, increased to $12.4 million in 2019 from $11.3 million in 2018 due to a $0.9 million increase in costs related to our strategic alternative process.
• Cash settlements received on our commodity derivatives during 2019 were $9.6 million compared to $2.8 million paid in 2018. The increase in cash settlements is a result of lower commodity prices.
• Total development capital expenditures decreased to $39.4 million in 2019 from $59.7 million in 2018. The 2019 activity was in line with our previously announced capital budget and was primarily related to our Permian horizontal drilling program.

Quarterly Report on Form 10-Q

Financial results contained herein are preliminary and subject to the final, unaudited financial statements and related footnotes included in Legacy's Form 10-Q which will be filed on or about May 10, 2019.

About Legacy Reserves Inc.

Legacy is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions. Additional information is available at www.LegacyReserves.com.

Non-GAAP Financial Measures

"Adjusted EBITDA" is a non-generally accepted accounting principles ("non-GAAP") measure which may be used periodically by management when discussing our financial results with investors and analysts. The following presents a reconciliation of this non-GAAP financial measure to its nearest comparable generally accepted accounting principles ("GAAP") measure.

Adjusted EBITDA is presented as management believes it provides additional information concerning the performance of our business and is used by investors and financial analysts to analyze and compare our current operating and financial performance relative to past performance and such performances relative to that of other exploration and production companies. Adjusted EBITDA may not be comparable to similarly titled measures of other exploration and production companies because all companies may not calculate such measures in the same manner.

Certain factors impacting Adjusted EBITDA may be viewed as temporary, one-time in nature, or being offset by reserves from past performance or near-term future performance. Financial results are also driven by various factors that do not typically occur evenly throughout the year that are difficult to predict, including rig availability, weather, well performance, the timing of drilling and completions and near-term commodity price changes.

"Adjusted EBITDA" should not be considered as an alternative to GAAP measures, such as net income, operating income, cash flow from operating activities, or any other GAAP measure of financial performance.

The following table presents a reconciliation of our consolidated net loss to Adjusted EBITDA:

Commodity Derivative Contracts

We enter into oil and natural gas derivative contracts to help mitigate the risk of changing commodity prices. As of May 8, 2019, we had entered into derivative agreements to receive average prices as summarized below.

Location and quality differentials attributable to our properties are not reflected in the above prices. The agreements provide for monthly settlement based on the difference between the agreement fixed price and the actual reference oil and natural gas index prices.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the evaluation of financial transactions and other strategic alternatives, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional, or other strategic alternative and whether any such financial, transactional, or other strategic alternative will be completed; whether Legacy will be able to receive extension of it revolving credit facility; 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 Legacy's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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.

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, April 9, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy" or the "Company") (NASDAQ: LGCY) today disclosed that Baines Creek Partners, L.P.'s ("Baines Creek") notice of director nominations for the Company's 2019 Annual Meeting is invalid for failure to comply with the requirements set forth in Legacy's bylaws. Legacy's bylaws were established for the protection of the Company and all of its stockholders. Following review by Legacy and its legal advisors, Legacy determined that Baines Creek failed to become a "stockholder of record" of the Company prior to giving such notice, as required by the bylaws.  

Pursuant to Legacy's bylaws, the deadline for stockholders to nominate candidates for election to the Board at the Company's 2019 Annual Meeting was April 1, 2019.

A copy of the Company's letter to Baines Creek describing the deficiency in further detail was filed on a Form 8-K with the SEC today.

Sidley Austin LLP is serving as legal counsel to Legacy, and Tudor Pickering & Holt L.P. and Perella Weinberg Partners L.P. are serving as financial advisors to Legacy.

About Legacy
Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.

Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the evaluation of financial, transactional, and other strategic alternatives, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional or other strategic alternative and whether any such financial, transaction or other strategic alternative will be completed; whether Legacy will be able to receive an extension to the maturity date of its revolving credit facility; 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 Legacy's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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.

Important Additional Information and Where to Find It
STOCKHOLDERS ARE STRONGLY ADVISED TO READ THE COMPANY'S PROXY STATEMENT FOR THE 2019 ANNUAL MEETING (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain a free copy of the proxy statement and accompanying WHITE proxy card, any amendments or supplements to the proxy statement and other documents that the Company files with the SEC from the SEC's website at www.sec.gov or the Company's website at www.legacyreserves.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC.

Certain Information Regarding Participants to the Solicitation
The Company, its directors, its nominees for election as director (when chosen) and certain executive officers will be participants in the solicitation of proxies from stockholders in connection with the matters to be considered at the Company's 2019 Annual Meeting of Stockholders. Exhibit 99.2 to the Current Report on Form 8-K filed with the SEC on April 5, 2019 ("Exhibit 99.2") contains information regarding the direct and indirect interests, by security holdings or otherwise of the Company's directors and executive officers in the Company's securities. In the event that holdings of the Company's securities change from the amounts printed in such Exhibit 99.2, such changes will be set forth in SEC filings on Forms 3, 4, and 5, which can be found on the SEC's website at www.sec.gov or the Company's website at www.legacyreserves.com as soon as reasonably practicable after such materials are electronically filed with, or furnished to, the SEC. Information can also be found in Legacy's other SEC filings, including Legacy's most recently filed Annual Report on Form 10-K. Updated information regarding the identities of potential participants, and their direct or indirect interests, by security holdings or otherwise, will be set forth in the Company's proxy statement in connection with the 2019 Annual Meeting of Stockholders and other relevant documents to be filed with the SEC.

Contact:
Legacy Reserves Inc.
Investor Relations
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, March 18, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") (NASDAQ: LGCY) today announced the 2018 fourth quarter and year-end results. These results are subject to the completion of audited financial statements to be filed within our forthcoming Form 10-K.

Highlights since the third quarter 2018 include:

• Generated quarterly oil production of 18,630 Bbls/d and record annual oil production of 18,162 bbls/d which represents a 32% year-over-year increase;
• Brought 7 Permian horizontal wells online late in the quarter, including:
• One 4-well pad of 10,000' Wolfcamp B wells in Martin County, each of which achieved average peak rates of nearly 1,100 bbls/d prior to installation of artificial lift equipment; and
• Three 7,500'-8,000' wells in Lea County in the 1^st, 2^nd and 3^rd Bone Spring formations, which achieved average peak rates of nearly 1,000 bbls/d;
• Drilled our first two horizontal Wolfcamp wells in Lea County with first production expected Q1 2019;
• Commenced drilling a 6-well pad in Northern Midland County consisting of 7,500' laterals across four horizons;
• Completed three Permian land swaps, enhancing drilling prospects and adding drilling locations in Lea County, NM and Martin and Midland Counties, TX:
• Increased net lateral footage by 62,000'; and
• Increased average lateral lengths 17% to approximately 7,500' for the 106 gross drilling locations comprising the 4 affected prospect areas;
• Completed 6 divestitures of 554 non-core, low-value wells generating approximately $19 million of proceeds;
• Extinguished $16.7 million of debt through equity exchanges, including exchanges after year end, at an average implied conversion price of $2.76 per share; and
• Generated net income of $78.0 million and Adjusted EBITDA of $55.7 million for the fourth quarter.

Dan Westcott, Legacy's Chief Executive Officer, commented, "The team continues to execute on our goals to efficiently develop our significant Permian horizontal resource, high-grade our assets by divesting non-core properties, and enhance our near-term drilling prospects by trading our small tracts.  We're proud of our recent well results in Martin County and look forward to executing in new areas across Midland and Howard Counties later this year.  I am proud of the Legacy team and their ability to post strong results despite our challenged financial situation."

Robert Norris, Legacy's Chief Financial Officer, commented, "Through 2018, Legacy completed a corporate reorganization, improved our total leverage metrics, participated in value-accretive acreage trades, and sold non-core assets in an effort to improve our leverage profile and access to capital markets.  We continue that effort with our announced $135 million 2019 capital budget, which is a meaningful reduction in activity, designed to drill within cash flow. We look forward to working with our stakeholders and advisors to address our capital structure and determine the best path forward for Legacy."

Proved Reserves

The following information represents estimates of our proved reserves as of December 31, 2018 which have been prepared in compliance with the SEC rules using an average WTI price, as posted by Plains Marketing L.P., of $65.56 per Bbl for oil and an average natural gas price, as posted by Platts Gas Daily, of $3.10 per MMBtu.

2019 Capital Program By Category

We serve as operator of more than 90% of our anticipated capital program, and accordingly, maintain significant control of the capital program budget and may deviate materially from the figures above based on market conditions, credit conditions, or otherwise.

Credit Agreement Update and Strategic Alternatives

Legacy continues to diligently work with the lenders under its revolving credit facility (the "Facility") for the execution of a maturity extension under the Facility.

As previously announced, Legacy is evaluating and exploring potential strategic alternatives. These alternatives include, among others, a sale or other business combination transaction, sales of assets, financing transactions, or some combination of these.

Director Transition

In association with his promotion to Chief Executive Officer, Dan Westcott, has been appointed to the Board of Directors effective immediately.  In an effort to enhance the Company's governance practices, Cary Brown, a former Chief Executive Officer of Legacy's predecessor entity, has elected to resign as a director of the Board coincident with Mr. Westcott's appointment. Mr. Brown stated, "Legacy has been a blessing in my life since its inception. I pray for their success through this difficult backdrop and trust the management team and Board will keep fighting for the Company's best interests."

Annual Financial and Operating Results - 2018 Compared to 2017

• Production increased 6% to an annual record of 47,564 Boe/d in 2018 from 44,967 Boe/d in 2017 primarily due to additional oil production from our Permian Basin horizontal drilling operations and higher realized ethane recoveries associated with our Piceance assets for portions of 2018. This was partially offset by natural production declines and individually immaterial divestitures completed in 2018 and 2017.
• Average realized price, excluding net cash settlements from commodity derivatives, increased 20% to $31.96 per Boe in 2018 from $26.58 per Boe in 2017. Average realized oil price increased 19% to $56.64 in 2018 from $47.59 in 2017. This increase was primarily driven by an increase in the average West Texas Intermediate ("WTI") crude oil price of $14.43 per Bbl and partially offset by widening realized regional differentials. Average realized natural gas price decreased 5% to $2.59 per Mcf in 2018 from $2.74 per Mcf in 2017. This decrease was primarily driven by widening realized regional differentials partially offset by an increase in the average NYMEX pricing. Finally, our average realized NGL price increased 3% to $0.67 per gallon in 2018 from $0.65 per gallon in 2017.
• Production expenses, excluding ad valorem taxes, increased 10% to $191.3 million in 2018 from $173.6 million in 2017 primarily due to increased workover and repair activity across all operating regions, increased well count due to our Permian horizontal drilling program, partially offset by general cost reduction efforts. On an average cost per Boe basis, production expenses increased to $11.02 per Boe in 2018 from $10.58 per Boe in 2017, driven primarily by increased well count, working interests, and general cost inflations.
• Non-cash impairment expense totaled $68.0 million in 2018 primarily driven by the further decline in oil and natural gas futures prices in early 2018 as well as increased expenses and well performance during 2018.
• General and administrative expenses, excluding transaction-related expenses and unit-based Long-Term Incentive Plan ("LTIP") compensation expense increased to $39.0 million in 2018 compared to $34.0 million in 2017 primarily due to reduced overhead income which is recognized as a reduction in general and administrative expenses. The reduction is related to dispositions of oil and natural gas properties and as such, lower recovery results in an increase in our expenses. The remaining increase was due to general cost increases.
• Cash settlements paid on our commodity derivatives during 2018 were $11.7 million as compared to cash receipts of $24.2 million in 2017. The decrease in cash settlements is a result of fluctuating commodity prices and reduced nominal volumes hedged.
• Total development capital expenditures increased to $229.5 million in 2018 from $176.8 million in 2017. The 2018 activity was comprised mainly of the drilling and completion of horizontal Permian wells.

Financial and Operating Results - Fourth Quarter 2018 Compared to Fourth Quarter 2017

• Production decreased 3% to 47,543 Boe/d from 49,185 Boe/d primarily due to additional natural production declines in our Piceance assets as well as immaterial asset sales. This was partially offset by increased oil production from our Permian Basin horizontal drilling program.
• Average realized price, excluding net cash settlements from commodity derivatives, remained relatively flat at $30.38 per Boe in 2018 compared to $30.30 per Boe in 2017. Average realized oil price decreased 7% to $48.69 per Bbl in 2018 from $52.30 per Bbl in 2017. This decrease of $3.61 was primarily attributable to widening regional differentials as the average WTI crude oil price increased by $4.70. Average realized natural gas prices increased 6% to $2.92 per Mcf in 2018 from $2.76 per Mcf in 2017. This increase of $0.16 was primarily attributable to an increase in the average Henry Hub gas price. Finally, our average realized NGL price decreased 5% to $0.72 per gallon in 2018 from $0.76 per gallon in 2017.
• Production expenses, excluding ad valorem taxes, increased 16% to $49.4 million in 2018 from $42.6 million in 2017. Production expenses increased primarily due to increased workover and repair activity across all operating regions and increased well count due to our Permian horizontal drilling program, partially offset by general cost reduction efforts. On a per Boe basis, production expenses increased to $11.30 from $9.41 or 20% driven primarily by increased well work activities, decreased low cost oil production, increased competition in the market place and general cost inflations.
• Non-cash impairment expense totaled $13.6 million in 2018 primarily driven by the write-off of unproved properties acquired since 2010 as well as declining oil and natural gas futures prices, increased costs and well performance.
• General and administrative expenses, excluding acquisition costs and LTIP compensation expense, increased to $11.7 million in 2018 from $9.9 million in 2017 primarily due to reduced overhead income which is recognized as a reduction in general and administrative expenses. The reduction is related to dispositions of oil and natural gas properties and as such, lower recovery results in an increase in our expenses. The remaining increase was due to general cost increases.
• Cash settlements paid on our commodity derivatives were $7.7 million during 2018 compared to receipts of $6.4 million in 2017. The decrease in cash settlements is a result of fluctuating commodity prices and reduced nominal volumes hedged.
• Total development capital expenditures were $58 million in the fourth quarter of 2018.

Commodity Derivative Contracts

The following tables summarize, for the periods indicated, our oil and natural gas derivatives in place as of March 13, 2019 covering the period from January 1, 2019 through December 31, 2019. We use derivatives, including swaps, enhanced swaps and three-way collars, as our mechanism for offsetting the cash flow effects of changes in commodity prices whereby we pay the counterparty floating prices and receive fixed prices from the counterparty, which serves to reduce the effects on cash flow of the floating prices we are paid by purchasers of our oil and natural gas. These transactions are mostly settled based upon the monthly average closing price of front-month NYMEX WTI oil and the price on the last trading day of front-month NYMEX Henry Hub natural gas.

Oil Swaps:

Natural Gas Swaps:

We have entered into regional crude oil differential swap contracts in which we have swapped the floating WTI-ARGUS (Midland) crude oil price for floating WTI-ARGUS (Cushing) less a fixed-price differential. As noted above, we receive a discount to the NYMEX WTI crude oil price at the point of sale. Due to refinery downtimes and limited takeaway capacity that has impacted the Permian Basin, the difference between the WTI-ARGUS (Midland) price, which is the price we receive on almost all of our Permian crude oil production, and the WTI-ARGUS (Cushing) price reached historic highs in late 2012 and early 2013 and again in late 2014. We entered into these differential swaps to negate a portion of this volatility. The following table summarizes the oil differential swap contracts currently in place as of March 13, 2019, covering the period from January 1, 2019 through December 31, 2019:

We have entered into regional crude oil differential enhanced swap contracts in which we have swapped the floating WTI-ARGUS (Midland) crude oil price for floating WTI-ARGUS (Cushing) crude oil price less a fixed-price differential combined with a short call option to enhance the price of the differential swap. The following table summarizes the oil differential contracts currently in place as of March 13, 2019, covering the period from January 1, 2019 through December 31, 2019:

We have also entered into regional natural gas differential swap contracts in which we have swapped the floating CIG natural gas price for a floating NYMEX Henry Hub price less a fixed differential. The following table summarizes these type of enhanced swap contracts currently in place as of March 13, 2019, covering the period from January 1, 2019 through December 31, 2019:

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Our current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions. Additional information is available at www.LegacyReserves.com.

Cautionary Statement Relevant to Forward-Looking information

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the evaluation of financial, transactional, and other strategic alternatives, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional or other strategic alternative and whether any such financial, transactional or other strategic alternative will be completed; whether Legacy will be able to receive an extension to the maturity of its revolving credit facility; 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 Legacy's and Legacy Reserves LP's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports of Form 8-K. 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. Our consolidated, audited financial statements and related footnotes will be available in our annual 2018 Form 10-K which is expected to be filed no later than April 2, 2019.

Non-GAAP Financial Measures

This press release, the financial tables and other supplemental information include "Adjusted EBITDA" which is a  non-generally accepted accounting principles ("non-GAAP") measure which may be used periodically by management when discussing our financial results with investors and analysts. The following presents a reconciliation of this non-GAAP financial measure to its nearest comparable generally accepted accounting principles ("GAAP") measure.

Adjusted EBITDA is presented as management believes it provides additional information concerning the performance of our business and is used by investors and financial analysts to analyze and compare our current operating and financial performance relative to past performance. Adjusted EBITDA may not be comparable to similarly titled measures of other companies because all companies may not calculate such measure in the same manner.

Certain factors impacting Adjusted EBITDA may be viewed as temporary, one-time in nature, or being offset by reserves from past performance or near-term future performance. Financial results are also driven by various factors that do not typically occur evenly throughout the year that are difficult to predict, including rig availability, weather, well performance, the timing of drilling and completions and near-term commodity price changes.

"Adjusted EBITDA" should not be considered as an alternative to GAAP measures, such as net income, operating income, cash flow from operating activities, or any other GAAP measure of financial performance.

Adjusted EBITDA is defined as net income (loss) plus:

• Interest expense;
• (Gain) loss on extinguishment of debt;
• Income tax expense (benefit);
• Depletion, depreciation, amortization and accretion;
• Impairment of long-lived assets;
• (Gain) loss on sale of partnership investment;
• Loss (gain) on disposal of assets;
• Equity in (income) loss of equity method investees;
• Unit-based compensation expense (benefit) related to LTIP unit awards accounted for under the equity or liability methods;
• Minimum payments received in excess of overriding royalty interest earned;
• Equity in EBITDA of equity method investee;
• Net (gains) losses on commodity derivatives;
• Net cash settlements received (paid) on commodity derivatives; and
• Transaction costs.

The following table presents a reconciliation of our consolidated net income (loss) to Adjusted EBITDA:

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, March 13, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") (NASDAQ:LGCY) today announced that it is evaluating and exploring potential strategic alternatives. These alternatives include, among others, a sale or other business combination transaction, sales of assets, financing transactions, or some combination of these. Legacy is encouraging proposals from existing stakeholders and interested third parties. Legacy continues to work with the administrative agent and the other lenders under its Revolving Credit Facility to extend the maturity of the Facility.

Legacy has engaged Tudor Pickering & Holt L.P. and Perella Weinberg Partners L.P. as financial advisors, and Sidley Austin LLP as outside legal counsel.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.

The principal executive offices of Legacy are located at 303 W. Wall St., Suite 1800, Midland, Texas 79701. Additional information is available at www.LegacyReserves.com.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, the evaluation of financial, transactional, and other strategic alternatives, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, the structure and timing of any financial, transactional or other strategic alternative and whether any such financial, transaction or other strategic alternative will be completed; whether Legacy will be able to receive an extension to the maturity date of its revolving credit facility; 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 Legacy's and Legacy Reserves LP's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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.

CONTACT: 
Legacy Reserves Inc.
Investor Relations
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, Feb. 11, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") (NASDAQ:LGCY) announced today the appointment of Robert L. Norris as Chief Financial Officer effective February 19, 2019.

Dan Westcott, President, commented, "We are excited to have Robert join the Legacy team. Robert fits seamlessly with Legacy's culture, mission and values and brings very relevant experience to the table from his principal investments across the energy value chain and having been a public company officer through the energy cycle. We look forward to working together as a team to maximize stakeholder value."

Mr. Norris has over 15 years of experience in the energy industry. Prior to joining Legacy, Mr. Norris served as a Principal at The Catalyst Group, an Austin-based private equity fund, where he was responsible for sourcing and evaluating potential investment opportunities, structuring and negotiating transactions, leading due diligence and managing portfolio investments including several in the oil and gas industry. Previously, Mr. Norris served in various senior strategy and corporate development roles at Oil States International, Inc. and its spin-off, Civeo Corporation. He earned an MBA and a B.A. in economics from The University of Texas at Austin.

Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

As an inducement to Mr. Norris' employment, the Compensation Committee of the Board of Directors of Legacy granted, effective February 19, 2019, Mr. Norris a one-time award of 496,894 restricted stock units ("RSUs"). This grant is being made outside of the Legacy Reserves Inc. 2018 Omnibus Incentive Plan (the "Plan") but will be subject to terms and conditions generally consistent with those in the Plan. The RSUs will vest over a three-year period, with 25% vesting in each of February 2020 and 2021 and the remaining 50% vesting in February 2022, subject to Mr. Norris' continued employment with Legacy. Additionally, the RSUs may be subject to accelerated vesting in certain events.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.

The principal executive offices of Legacy are located at 303 W. Wall St., Suite 1800, Midland, Texas 79701. Additional information is available at www.LegacyReserves.com.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, 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 Legacy's and Legacy Reserves LP's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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.

CONTACT:

Legacy Reserves Inc.
Investor Relations
432-689-5200

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SOURCE Legacy Reserves Inc.

MIDLAND, Texas, Nov. 28, 2018 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") (NASDAQ:LGCY) announced today that Dan Westcott, President and Chief Financial Officer, and Kyle Hammond, Executive Vice President and Chief Operating Officer, will participate at the Bank of America Merrill Lynch Leveraged Finance Conference held in Boca Raton, Florida, December 4-5, 2018.  The webcast and presentation slides will be available on Legacy's website at www.LegacyReserves.com. 

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions.

The principal executive offices of Legacy are located at 303 W. Wall St., Suite 1800, Midland, Texas 79701. Additional information is available at www.LegacyReserves.com.

Cautionary Statement Relevant to Forward-Looking Information

This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, without limitation, statements regarding the expected future growth and dividends of the company, and plans and objectives of management for future operations. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that Legacy expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of Legacy, which could cause results to differ materially from those expected by management of Legacy. Such risks and uncertainties include, but are not limited to, 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 Legacy's and Legacy LP's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. 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.

CONTACT: 

Legacy Reserves Inc.
Dan Westcott
President and Chief Financial Officer
432-689-5200

View original content to download multimedia:http://www.prnewswire.com/news-releases/legacy-reserves-inc-announces-participation-at-the-bank-of-america-merrill-lynch-leveraged-finance-conference-300757090.html

SOURCE Legacy Reserves Inc.