LGCY - Legacy Reserves: Restructuring Continues To Appear Very Likely After Q1 2019 Report
Legacy Reserves (LGCY) reported Q1 2019 earnings that weren't terrible, but doesn't provide hope that it can avoid restructuring given that the company has little margin for error.
Legacy's average daily oil production dropped from Q4 2018 to Q1 2019, indicating that the company may have trouble maintaining oil production with its reduced 2019 capital expenditure budget. In addition to the effect of decreased oil production, lower realised prices for NGLs are negatively affecting its projected EBITDA, leaving its projected leverage above 4.5x at the end of the year.
As well, Legacy may