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