MIDLAND, Texas, April 22, 2010 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) today announced that the Board of Directors of its general partner has approved a cash distribution attributable to the first quarter of 2010 of $0.52 per unit, payable on May 14, 2010, to unitholders of record at the close of business on May 3, 2010. This quarterly distribution represents an annualized distribution of $2.08 per unit and maintains the distribution amount paid for the eighth straight quarter.
"We more than covered the $0.52 per unit distribution despite having issued 4,887,500 units in January ahead of the closing of our Wyoming acquisition on February 17, 2010. The newly acquired Wyoming assets contributed cash during less than one half of the first quarter. We anticipate our coverage in the second quarter to benefit from a full quarter of contribution from the Wyoming acquisition and partial contributions from expected second quarter acquisitions, which will be funded with our revolving credit facility. We have acquired or agreed to acquire approximately $155 million of oil and natural gas properties so far in 2010. We expect to realize the benefits of these pending acquisitions by the third quarter," commented Cary Brown, Chairman and Chief Executive Officer.
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) 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.
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 www.LegacyLP.com.
Withholding Information
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.