MIDLAND, Texas, April 23, 2009 (GLOBE NEWSWIRE) -- Legacy Reserves LP (Nasdaq:LGCY) today announced that the Board of Directors of its general partner has approved a cash distribution attributable to the first quarter of 2009 of $0.52 per unit, payable on May 14, 2009, to unitholders of record at the close of business on May 3, 2009. This quarterly distribution represents an annualized distribution of $2.08 per unit and is flat with the prior three quarters.
Our distribution is supported by commodity swap settlements of $19.0 million received in the first quarter of 2009, along with our cash flows from production and reduced expenses compared to the third and fourth quarters of 2008. We will provide details on our first quarter 2009 operating and financial performance with our earnings press release in early May.
To reduce debt, our Board of Directors today approved a reduction in our 2009 development capital budget to $10.7 million from the $20 million budget approved in February 2009. We continue to review our distribution policy to maintain liquidity given the volatile commodity price and capital markets environment.
About Legacy Reserves LP
Legacy Reserves LP is an independent oil and natural gas limited partnership headquartered in Midland, Texas, focused on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin and Mid-continent regions of the United States. Additional information is available at www.LegacyLP.com.
The Legacy Reserves logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=3201
Withholding Information
This release is intended to be a qualified notice under Treasury Regulation Section 1.1446-4(b). Brokers and nominees should treat one hundred percent (100.0%) of Legacy's distributions to foreign investors as being attributable to income that is effectively connected with a United States trade or business. Accordingly, Legacy's distributions to foreign investors are subject to federal income tax withholding at the highest applicable rate.