MIDLAND, Texas, June 4, 2014 (GLOBE NEWSWIRE) -- Legacy Reserves LP ("Legacy") (Nasdaq:LGCY) today announced that it has closed on its previously-announced agreement to purchase an escalating working interest in over 2,680 natural gas wells in the Piceance Basin from WPX Energy. Legacy purchased an initial 29% working interest that steps up to 37% on January 1, 2015, then 41% on January 1, 2016 for $355 million in cash (subject to customary purchase price adjustments) plus a portion of Legacy's newly-created Incentive Distribution Units.
Cary Brown, Chairman, President and Chief Executive Officer of Legacy Reserves GP, LLC, the general partner of Legacy, commented, "Closing this transaction represents a key first step in our exciting strategic alliance with WPX Energy. This acquisition, combined with the ability to complete future transactions with WPX, greatly enhances our goal of delivering long-term unitholder value. We look forward to realizing the benefits of these assets and remain hopeful of the potential of additional transactions together. I would like to thank all of our employees for their hard work during this process and would also like to thank the folks at WPX for all of their work as well."
About Legacy Reserves LP
Legacy Reserves LP is a master 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.
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 our annual and quarterly reports filed with the SEC. 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.
CONTACT: Legacy Reserves LP Dan Westcott Executive Vice President and Chief Financial Officer 432-689-5200
Source:Legacy Reserves LP