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Legacy Reserves to acquire East Texas assets for $440 million


Published Jul 9, 2015
Legacy Reserves LP

Legacy Reserves LP has entered into separate agreements with affiliates of Anadarko Petroleum and Western Gas Partners, LP to purchase natural gas properties and gathering and processing assets in East Texas for a combined $440 million.

These properties represent Legacy's entry into a new basin in East Texas and into meaningful gathering and processing operations supporting the natural gas properties. The closings of these transactions are expected to occur in the third quarter, and the purchase prices remain subject to customary adjustments. Legacy anticipates funding these transactions with borrowings under its revolver.

Highlights of this acquisition are as follows: •Estimated proved reserves of approximately 420 Bcfe of which 100% are natural gas, 95% are classified as proved developed producing, and 95% are operated •Estimated Q3 2015 production of approximately 70 Mmcfe/d, yielding a proved reserves-to-production ratio of 16.4 years •Multi-year development plan centered on recompletions and workovers to further flatten production declines and extend the productive life of the fields •Significant additional drilling inventory in a higher gas price environment •567 miles of high-pressure pipeline and low-pressure gathering lines and a 502 Mmcfe/d processing plant with access to 5 major gas markets •Expected NTM cash flow of approximately $60 million

Tags: Legacy Reserves LP




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