**Important note to readers here**
According to SEC documentation, officers have received significantly less compensation when compared to previous years, when $WTIC and $NATGAS prices were higher.
It is important to note that the rotating credit facility with The Blackstone group NYSE: BX, was announced on October 25 2016. On that day, Legacy Reserves NASDAQ: LGCY closed at $1.36 per share.
Since the funding agreement was announced, LGCY touched a high of $2.77, a 100% gain.
While the stock has traded lower since then, it is still trading at a premium compared to where it was before. I don’t know of any rational person who considers a substantial gain in the PPS since the agreement, a “death spiral.”
It should also be noted that the credit facility provided by Blackstone has a substantial amount that has yet to be borrowed against. It can hardly be called toxic debt, if the loans have yet to be taken.
The facility has a due date of 2021, and there have been no shares issued to Blackstone as a result of the agreement.
The credit facility so far, has been used to provide the necessary liquidity to allow LGCY to invest in new and existing wells in their core areas of operation, while also helping them to pay down some long term liabilities and divest non-core assets.
False claims that “Blackstone owns Legacy” are nonsense.
LGCY currently has a market cap of around $148,435,000.
I find it unlikely that a respected asset management company like The Blackstone Group NYSE: BX, would give a $600,000,000 rotating credit facility to a company only worth $150M.
It looks to me like LGCY could trade at a 4x premium from these levels, just to achieve the valuation assigned by The Blackstone Group in their credit facility agreement.
These are the facts as we know them to date. Please verify at your leisure.
Hope that gives everyone a starting point to begin their research.
IMO and FWIW.
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