LGCY - Legacy Reserves: Looking At The New Company After Restructuring
Legacy Reserves (LGCY) is planning on shedding most of its existing debt through its restructuring plan and cancelling its current stock in the process. The post-restructuring Legacy appears to be generally competitive, with net debt under 1.5x EBITDAX and a low-$50s WTI breakeven point. At 6 cents on the dollar, its unsecured bonds are probably trading at a fair price that values the post-restructuring Legacy at around 4.0x EBITDAX at high-$50s WTI oil.
Notes On Maintenance Capital Expenditures
One thing to note is that Legacy expects to hold production mostly flat (excluding the