LGCY - Legacy Reserves Doesn't Appear Able To Deleverage Enough Via Growth
One of the main questions surrounding Legacy Reserves (LGCY) is how much capex it needs to be able to maintain production levels. Based on a detailed look, it appears that Legacy may be able to hold total production at late 2018 levels with around $200 million to $220 million in capital expenditures, while the focus on adding horizontal Permian production would result in its oil percentage increasing a bit. This would result in slightly positive cash flow (such as positive $9 million) at $57 WTI oil in 2019.
It doesn't appear that Legacy