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Legacy Oil + Gas Announces Year-End Results

Legacy Oil + Gas Inc. (LEG.TO) announced year-end results and filed its annual information form.

ACCOMPLISHMENTS

- Demonstrated strong year over year per share growth: reserves per share 7% increase; production per share 26% increase; and cash flow per share 16%.

- Increased average production from 12,650 Boe per day in 2011 to 16,301 Boe per day in 2012 (29% increase); increased average production from 14,880 Boe per day in the fourth quarter of 2011 to 17,439 Boe per day in the fourth quarter of 2012 (17% increase).

- Increased funds generated from operations from $188.9 million in 2011 to $222.9 million in 2012 (21% increase); increased funds generated from operations from $1.32 per share in 2011 to $1.53 per share in 2012 (16% increase).

- Reduced operating costs from $15.52 per Boe in 2011 to $14.36 per Boe in 2012 (7 percent decrease); reduced operating costs from $16.40 per Boe in the fourth quarter of 2011 to $13.88 per Boe in the fourth quarter of 2012 (15% decrease).

- Reduced general and administrative costs from $3.05 per Boe in 2011 to $2.90 per Boe in 2012 (5% decrease).

- Drilled 145 gross (110.4 net) oil wells with a 100% success rate in 2012. Drilled 32 gross (24.7 net) oil wells in the fourth quarter of 2012, with a 100% success rate.

- Total capital expenditures on organic opportunities for 2012 were $307.7 million (not including capitalized G&A, corporate fixed assets or net acquisitions and divestitures) relative to guidance of $305 million.

- Increased gross proved plus probable reserves from 88.0 MMBoe at December 31, 2011 to 94.2 MMBoe at December 31, 2012 (7% increase); proved plus probable reserve additions replaced 205% of production in the year

- Generated solid 2012 total proved plus probable finding, development and acquisition costs of $22.74 per Boe (including future development costs, representing a 2.0 times recycle ratio based on $44.42 per Boe operating netbacks (including effect of realized derivatives).

- Completed a Contingent Oil Resource Assessment on a portion of Legacy oil resource play lands, demonstrating capture of a significant light oil resource and potential reserve base.

- Completed the issuance to CPPIB Credit Investments Inc., a wholly-owned subsidiary of the CPP Investment Board, of US$200 million of unsecured, five year term notes with a 7.5% coupon.

- Entered a new syndicated banking facility and increased available line of credit to $525 million. Year end net debt was $485.6 million, representing approximately 1.9 times estimated forward cash flow (using strip pricing) and only 54 percent total utilization of the borrowing base of $525 million and 67% of the debt capacity of $725 million, taking into account the term notes described above.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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