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Legacy Reserves Successfully Completes Financial Restructuring

MIDLAND, Texas, Dec. 11, 2019 /PRNewswire/ -- Legacy Reserves Inc. ("Legacy") and certain of its subsidiaries (collectively, the "Company") announced today that it has emerged from chapter 11, successfully completing its financial restructuring and implementing the Company's confirmed plan of reorganization (the "Plan").  

Legacy Reserves LP Logo (PRNewsfoto/Legacy Reserves LP)

The Company has significantly reduced its debt through a combination of an equitization of existing debt and approximately $255 million of new equity capital. The Company emerges with $388 million of total debt outstanding, all of which is under a new reserve-based credit facility with an initial borrowing base of $460 million. This facility is led by Wells Fargo Bank, National Association as Administrative Agent, RBC Capital Markets as Syndication Agent, Joint Lead Arranger and Joint Bookrunner, along with Wells Fargo Securities, LLC, BMO Capital Markets Corp., Barclays Bank PLC, BofA Securities, Inc., JPMorgan Chase Bank, N.A., Citigroup Global Markets Inc., and Credit Agricole Corporate and Investment Bank as additional Joint Lead Arrangers and Joint Bookrunners.

Dan Westcott, Legacy's Chief Executive Officer, stated, "Today marks a fresh start for Legacy. I am thankful for the persistence of our supporting stakeholders throughout this process and for the new investment they have made in this company.  I greatly appreciate our banks who stepped up to help us during a difficult time in this market.  Our departing Board of Directors has been incredibly diligent in their service and steadfast in their support – we wish them the best.  Last but not least, I want to thank our employees for their patience and dedication to their daily work during a stressful period of unknowns.  As a team, we are grateful for our new positioning and look forward to delivering value to our investors, employees, and the community through safe and profitable oil and gas operations."

Legacy also welcomes a new Board of Directors including Gary Gould (former COO of EQT Corporation and former Senior VP of Production and Resource Development with Continental Resources), Richard Betz (former CEO and COO of Resolute Corporation), Robert W. Baker (former Executive VP and general counsel of El Paso Corporation), David Coppe (former Head of Energy Private Equity of Caisse de depot de placement du Quebec), Robert Horn (Senior Managing Director and Co-Head of GSO's Energy Group), Dan Westcott (CEO of Legacy) and Kyle Hammond (President and COO of Legacy).

Court filings and information about the Company's chapter 11 cases, including a copy of the Plan and information regarding the Company's emergence, can be found at a website maintained by the Company's claims agent, Kurtzman Carson Consultants LLC, at www.kccllc.net/legacyreserves, or by calling (866) 967-0495 (toll-free domestic) or (310) 751-2695 (international).

Sidley Austin LLP is acting as legal advisor to the Company, Perella Weinberg Partners and its affiliate, Tudor Pickering Holt & Co., is acting as its financial advisor, and Alvarez & Marsal is acting as its restructuring advisor. PJT Partners LP is acting as financial advisor for GSO Capital Partners LP, and Latham & Watkins LLP is acting as legal advisor. Houlihan Lokey is acting as financial advisor for the Ad Hoc Group of Senior Noteholders, and Davis Polk & Wardwell LLP is acting as legal advisor. RPA Advisors, LLC is acting as financial advisor to Wells Fargo Bank, as administrative agent for the RBL Lenders, and Orrick Herrington & Sutcliffe LLP is acting as legal advisor.

About Legacy Reserves Inc.

Legacy Reserves Inc. is an independent energy company engaged in the development, production and acquisition of oil and natural gas properties in the United States. Its current operations are focused on the horizontal development of unconventional plays in the Permian Basin and the cost-efficient management of shallow-decline oil and natural gas wells in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions. Additional information regarding the Company is available at www.legacyreserves.com.

Forward-Looking Statements

This press release may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future, are forward-looking statements. 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 forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties, factors and risks, many of which are outside the control of the Company, which could cause results to differ materially from those expected by management of the Company. Such risks and uncertainties include, but are not limited to, the effects of the emergence from chapter 11 on the Company's liquidity or results of operations or business prospects; the effects of the bankruptcy filing on the Company's business and the interests of various constituents; risks associated with third-party motions in the chapter 11 cases; 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 Legacy's filings with the SEC, including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, and in the Disclosure Statement filed with the Bankruptcy Court. 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, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Legacy Reserves Inc.
Robert L. Norris
Chief Financial Officer
432-689-5200

SOURCE Legacy Reserves Inc.