Past year: ▼ 100%(0.37c – 1.54 USD)
Each one in plain English, with the numbers worked through for a shareholder.
24 May 2013debt financing● NeutralMajor
On May 22, 2013 Legacy agreed to sell $250 million of 6.625% Senior Notes due 2021 at 98.405% of face, for about $240.6 million of net proceeds. The money is for general partnership purposes including potential future acquisitions, and meanwhile will pay down the revolving credit facility. This is a second notes issue after the $300 million 8% notes of Dec 2012.
17 May 2013material agreement● Neutral
A Fifth Amendment to the credit agreement, effective May 15, 2013, raised the amount of senior notes Legacy may have outstanding from $500 million to $750 million and raised the permitted investments basket from $4 million to $20 million. Lenders also waived the interest rate hedging covenant for existing swaps. The higher note cap leaves room for more bond issuance, which the next filing shows (inference).
24 Dec 2012asset acquisition disposition▲ GoodMajor
Legacy closed the $520 million cash purchase of Permian Basin properties from Concho Resources on Dec 20, 2012, resolving the pending deal from November. It was paid for with the net proceeds of the 9,170,000-unit offering (including a partial exercise of the underwriters' option) and the $300 million senior notes. Separately, the bank credit facility's borrowing base rose from $600 million to $800 million in a Fourth Amendment, with six new lenders joining (Barclays, BB&T, IberiaBank, JPMorgan, Sovereign, Texas Capital).
10 Dec 2012debt financing● NeutralMajor
On Dec 4, 2012 Legacy issued the $300 million 8% Senior Notes due Dec 1, 2020 under an indenture with Wells Fargo as trustee, with interest paid each June 1 and Dec 1 starting June 1, 2013. Proceeds are held in escrow pending the Concho acquisition, with mandatory redemption if it doesn't close by Jan 31, 2013. The notes carry covenants restricting things like paying distributions, selling assets and taking on more debt, and Legacy agreed to register an exchange offer for the notes.
20 Nov 2012debt financing● NeutralMajor
Legacy agreed on Nov 19, 2012 to sell $300 million of 8% Senior Notes due 2020 to initial purchasers at 97.848% of face, for about $286.5 million of net proceeds. The money is meant to fund part of the $520 million Concho Permian acquisition and sits in escrow until it closes; if the deal isn't closed by Jan 31, 2013 or is terminated, the notes are redeemed at 97.848% plus accrued interest. This continues the Concho acquisition funding, alongside the Nov 2012 unit offering and credit facility.
15 Nov 2012material agreement● NeutralMajor
Legacy agreed to sell 8,700,000 new units at $24.80 each ($23.808 net), with an option for 1,305,000 more, closing November 15, 2012, to help fund the $520 million Concho acquisition (the acquisition filing says part would be equity-funded). This dilutes existing unitholders. Lenders also granted a limited waiver, covering interest rate hedging and borrowing base reductions on any senior note issuance, until the earlier of January 31, 2013 or the borrowing base redetermination at closing. About $522 million was borrowed under the credit facility as of November 9, 2012, including a $52 million deposit on the acquisition, and Legacy plans to seek an interim borrowing base redetermination at closing.
8 Nov 2012material agreement▲ GoodMajor
On November 5, 2012 Legacy agreed to buy Permian Basin properties from Concho Resources subsidiaries for $520 million, far larger than its earlier deals with Concho ($105 million in 2010). The properties hold an estimated 25.6 MMBoe of proved reserves (62% oil) and are expected to produce 5,238 Boe/d from 1,584 wells. Closing is expected in December 2012, with funding from a mix of new equity, credit facility borrowings, or possibly debt securities. Legacy expects about $80 million of added operating cash flow in 2013 under the stated price assumptions.
10 Nov 2011material agreement● NeutralMajor
Legacy sold 3,400,000 new units at $28.85 each ($27.696 net of underwriting discount), with a 30-day option for the underwriters to buy 510,000 more, closing November 14, 2011. This continues the pattern of unit offerings (last at $25.36 in November 2010) and dilutes existing unitholders; the filing does not state the use of proceeds.
25 Aug 2011material agreement● Neutral
Legacy set up an at-the-market program with Knight Capital Americas under which it may sell units worth up to $60 million from time to time at market prices on Nasdaq, under a shelf registration. Any sales would dilute existing unitholders; the filing does not say how many units will be sold or what the money is for.
17 Mar 2011debt financing▲ GoodMajor
On March 10, 2011 Legacy replaced its 2009 credit facility with a new five-year $1 billion secured revolver (BNP Paribas as agent) maturing March 10, 2016. The borrowing base is $500 million, with $348 million drawn and $152 million available; the first drawings paid off the old facility in full. The leverage limit (total debt to EBITDA) is now 4.00x versus 3.75x before, and Legacy may issue up to $500 million of senior notes (previously $250 million).
27 Dec 2010asset acquisition disposition▲ GoodMajor
Legacy completed the Permian Basin purchase from a Concho Resources subsidiary on December 22, 2010 for $103.3 million in cash, subject to post-closing adjustments. This is slightly below the $105 million contract price announced in November and completes that pending deal.
23 Nov 2010material agreement● NeutralMajor
Legacy sold 3,000,000 new units at $25.36 each ($24.29 net of underwriting discount), and the underwriters exercised their option in full for 450,000 more, for 3,450,000 units in total, closing November 23, 2010. This follows the January 2010 offering at $20.42 and means further dilution for existing unitholders; the filing does not state the use of proceeds (inference: it may relate to the pending Concho acquisition, but the text does not say so).
10 Nov 2010material agreement▲ GoodMajor
On November 5, 2010 Legacy agreed to buy Permian Basin oil and gas properties from a Concho Resources subsidiary (COG Operating LLC) for $105 million, expected to close around December 22, 2010 and to be funded by borrowings under its existing credit facility. The properties produce 1,419 barrels of oil equivalent per day (47% oil), have estimated proved reserves of 5.8 MMBoe, and over 95% sit near Legacy's existing operations. Legacy also entered crude oil swaps for 2011-2015 (209,698 barrels in 2011 at $88.90, falling to 145,051 barrels in 2015 at $90.50), described as tied to the acquisition and recent development activity.
5 Apr 2010material agreement▲ GoodMajor
Legacy amended its March 2009 bank credit facility effective March 31, 2010, raising the borrowing base from $340 million to $410 million. The amendment also lets Legacy issue up to $250 million of senior notes (which would cut the borrowing base by 25% of the notes' face value, or $62.5 million for a full $250 million) and keeps hedging counterparties that leave the lender group secured alongside the lenders. This follows the Wyoming acquisition, for which an interim borrowing base increase had been requested; the filing does not mention Wyoming, so linking the two is an inference.
23 Feb 2010asset acquisition disposition▲ GoodMajor
Legacy closed the Wyoming acquisition from St. Mary Land & Exploration on February 17, 2010, buying thirteen operated oil fields in the Big Horn and Wind River Basins for about $125.2 million in cash, subject to adjustments. This is below the $130 million price announced in December 2009 and completes that pending deal.
14 Jan 2010material agreement● NeutralMajor
Legacy sold 4,250,000 new units to the public at $20.42 each ($19.56 net of underwriting discount), and the underwriters took their full option for another 637,500 units, for 4,887,500 units in total. Closing was scheduled for January 15, 2010. This follows the September 2009 offering at $15.85, and the filing does not state the use of proceeds (an inference is that it relates to the pending Wyoming purchase, but the text does not say so). Existing unitholders are diluted.
22 Dec 2009material agreement● NeutralMajor
Legacy agreed on December 17, 2009 to buy working interests in 13 operated oil fields in Wyoming's Big Horn and Wind River Basins from St. Mary Land & Exploration for $130 million, with closing expected February 2010 and funding from its credit facility. Legacy has asked its lenders for an interim borrowing base redetermination, and the lenders waived the 85% hedging limit tied to this deal. It also entered oil and gas swaps for 2010-2014 covering 1,792,389 barrels of oil and 717,600 MMBtu of gas on the Wyoming properties, plus additional ANR-Oklahoma and Waha gas swaps for existing assets.
20 Oct 2009material agreement termination● Neutral
Legacy and Black Oak mutually terminated the September 2008 Participation Agreement on October 19, 2009. Legacy was never required to invest anything under it and incurred no termination costs. The termination also releases Legacy from the obligation to offer certain business opportunities to Black Oak.
17 Sept 2009material agreement● NeutralMajor
Legacy sold 3,300,000 new units to the public at $15.85 each ($15.18 net of underwriting discount), and the underwriters took their full option for another 495,000 units, for 3,795,000 units in total. Closing was scheduled for September 18, 2009. The filing does not state how the proceeds will be used. Existing unitholders are diluted by the new units.
1 Apr 2009debt financing▼ BadMajor
On March 27, 2009 Legacy replaced its 2006 credit facility with a new three-year $600 million secured revolver maturing April 1, 2012. The borrowing base is $340 million, below the $383.76 million set in October 2008, and $300 million is already drawn, leaving $40 million available. Borrowings are secured by mortgages on over 80% of its oil and gas properties and a pledge of its operating subsidiaries. Interest margins are higher (LIBOR plus 2.25%-3.0%), and the total debt to EBITDA cap stays at 3.75 times. The initial borrowings paid off the old facility.
7 Oct 2008asset acquisition disposition● NeutralMajor
Legacy closed the Pantwist acquisition from Cano Petroleum on October 1, 2008 for about $40.8 million in cash, slightly below the $42.7 million announced in September. It also signed a Fifth Amendment raising the borrowing base to $383.76 million, with higher interest margins (LIBOR plus 1.50%-2.125%) and a new covenant capping total debt at 3.75 times EBITDA. Royal Bank of Canada and Wells Fargo joined the lenders and Comerica left. Legacy also added interest rate swaps on $100 million of borrowings at a weighted average fixed 3.185% through October 2011. Whether Pantwist requires separate financial statements is still undecided.
30 Sept 2008material agreement● Neutral
Legacy agreed to invest up to $20 million over three years alongside Black Oak Resources, taking an 8% interest in properties Black Oak acquires (Black Oak takes 92%) and paying 8% of development costs. Black Oak will manage and generally operate the properties, and the agreement includes rights of first offer and drag-along/tag-along sale terms. Legacy also agreed not to enter similar arrangements during the period.
10 Sept 2008material agreement● NeutralMajor
Legacy agreed on September 5, 2008 to buy Pantwist, LLC from Cano Petroleum for about $42.7 million, with closing expected October 1, 2008 and funding from its credit facility. Pantwist owns oil and gas properties in four Texas Panhandle counties. Legacy also locked in fixed prices through commodity swaps covering 2008-2012: 453,000 barrels of oil at $109.125 and 943,100 MMBtu of gas at $8.10.
5 May 2008asset acquisition disposition● NeutralMajor
Legacy closed the previously announced acquisition (called the COP III Acquisition) on April 30, 2008 for about $82 million, paying $50.6 million in cash and issuing 1,345,291 units. The cash portion came in below the $55 million estimated in March. The properties are mainly in the Permian Basin of West Texas and southeastern New Mexico, with some in Oklahoma and Kansas. Legacy has not yet decided whether the deal is large enough to require separate financial statements.
25 Apr 2008debt financing● Neutral
Legacy signed a Fourth Amendment to its March 2006 credit agreement, raising the borrowing base to $272 million, and to $320 million when the acquisition scheduled to close April 30, 2008 completes. This is up from the $225 million set in October 2007. Interest margins went up (LIBOR plus 1.250%-1.875%, from 1.000%-1.750%), and The Bank of Nova Scotia joined the lenders. This supports funding the cash portion of the pending acquisition.
18 Mar 2008capital raising announcement● NeutralMajor
Legacy agreed on March 13, 2008 to buy Permian Basin (plus some Oklahoma and Kansas) oil and gas properties from private third parties for about $82 million: $55 million cash plus 1,345,291 newly issued units. The cash is to be borrowed under the existing credit facility, and closing is expected in April 2008. Legacy also entered interest rate swaps on $60 million of its borrowings, paying floating and receiving a fixed 2.68%, running April 2008 to April 2011. The unit issuance means existing unitholders are diluted.
9 Nov 2007capital raising announcement● NeutralMajor
Legacy sold 3,642,369 new units to institutional investors in a private placement at $20.50 each (about $75 million), closed November 8, 2007. Proceeds are to mainly repay credit-facility debt that funded the roughly $74 million of October acquisitions. This adds units for existing holders (dilution is an inference). Legacy must register the units within 90 days, with liquidated damages if not effective within 180 days.
29 Oct 2007debt financing▲ GoodMajor
On October 24, 2007 Legacy amended its credit agreement again: maximum credit rose to $500 million and the borrowing base to $225 million (from $150 million after the May amendment). Fortis Capital and Compass Bank were added as lenders; Eurodollar loans bear LIBOR plus 1.000%-1.750%. This follows the October acquisitions, though the filing does not link them.
4 Oct 2007asset acquisition disposition▲ GoodMajor
The Texas Panhandle acquisition announced in September closed October 1, 2007: properties bought from The Operating Company and private parties for about $60.5 million in cash, matching the agreed price. Required financial statements will be filed later.
4 Oct 2007asset acquisition disposition▲ Good
Legacy closed the Summit acquisition on October 1, 2007: Permian Basin producing properties from private parties for about $13.5 million in cash. It has not yet decided whether the deal is large enough to require separate financial statements.
