Legacy Reserves +3% after strong Q1 results

|About: Legacy Reserves Inc (LGCY)|By:, SA News Editor

Legacy Reserves (NASDAQ:LGCY) +3.3% after-hours as it reports better than expected Q1 earnings, a 38% Y/Y increase in revenues to $137.5M and adjusted EBITDA of $70.7M, as the company transitions from an MLP to a C-corp.

Q1 production rose 9% Y/Y to 46K boe/day, primarily due to additional oil production from horizontal drilling operations in Howard County, Tex., and Lea County, N.M., while average realized price, excluding net cash settlements from commodity derivatives, jumped 27% to $33.15/boe, driven by higher commodity prices and increase in oil production as a percentage of total production.

For FY 2018, LGCY forecasts adjusted EBITDA of $287.7M-$332.7M and production of 46.5K-50.3K boe/day.

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