Legacy Reserves (LGCY) received a two-month extension to its credit facility, but has been left with increased interest costs. Legacy's $135 million capital expenditure budget appears likely to result in declining production. That combination of increased interest costs and declining production is a difficult situation to escape from, as Legacy's breakeven point is now estimated at around $65 WTI oil going forward.
Declining Production Results In Leverage Remaining High
Legacy's $135 million capital expenditure budget is very likely to lead to a decline in production from 2018 levels (I've estimated a roughly 4%