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Legacy Reserves LP Message Board

  • pdb3838 pdb3838 Jan 25, 2013 3:37 PM Flag


    I have been in and out of this stock for many years. Was sorry to see Pruett go as he was an excellent officer. But the reason for this post is my inability to understand why so many (or one with many names) posters have turned so negetative. And reading the posts lends no information as the posts are obviously from ignorant posters who simply state thiis stock is a POS, a pig, a hog or such inanities andname calling andthen simpy click strong sell. None of them provide any ratiionale for their conclusions and enjoy name calling rather than substantive insight. I hereby challenge them as well as positive longs to comment on the validity of this company as we come to another divident payment. First the stock pays a nice divy or distribution if you want to be technical, the pps has stayed relatively intact,although oer the long term is down from the 29s and 30s. The company just accquired new producing acreage and issued a secondary to pay for it so a secondary is off the table at least short term and the production shoud be going up in light of the acuiitions which contribues to cash flow. I conceed the high PE but agree with the poster who stated that PE in a MLP is not relevant as its distributable cash flowwhich moves the divy which is why post of us are here. Also the earnigns are soewhat suspect as they are manipulated//effected by hedging gains and losses which are noncash and sometimes can lead to very poor earnings because of hedging losses even though the company does well.And this of couerse affects the PE. In sum while one is not going to make a PPS fortune here andthe main reason to be here is the income, I don't see any real deficiencies in the company which warrants such diatribes by multiple named posters. And the provide no reason for their unsupported conclusioons other than calling names. I'm open to any insightful comments on either side to educate me. In the meantime, i'm planning to buy another thousand or more shares in preparation for the divy as my reasearch has shown that the ppps remains roughlystable after xdate and its nice to pocket a generous divy. Thanks in advance for any thoughtfu insight

    Sentiment: Buy

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    • LGCY is conservatively and properly my opinion it's akin to a very high quality bond + the opportunity for distribution increases. Well worth the risk. The negative comments flow from misunderstanding of the MLP structure and/or desire to shake the confidence of weak hands and purchase their shares at lower prices. Doubt it will work with LGCY because investors aren't traders...and LGCY has lots and lots of long term investors.

    • My thoughts are that Legacy is one of the better managed E&P MLPs. These guys stick to what they know, don't take a lot of risks, finance their deals in such a way that the balance sheet does not get over extended, they hedge their production and finally, they under promise and over deliver.

      They may not be the fastest growing MLP, but you can feel certain that they are looking to grow prudently while minimizing risk.

    • pdb,

      This is a conservatively managed organization with, in my amateurish opinion, the ability to continue to pay distributions for many years to come. I presume the negative comments are from those who wish to short the stock successfully. We're continuing to accumulate shares because we have confidence in a management which is well aligned with shareholders through their own possession of shares.

      Sentiment: Buy

      • 1 Reply to criticalthinker0227
      • I agree with your thinking and have followed this stock formany yrs aand regulrly invest to get the divy. But I am in several MLPs but none of them have the vitolic posts that this onehas and their track record is basically good except for their paper losses caused by hedging. Oh well, the only opinion that really matters is mine and where I put my money and LGCY is still on my list

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