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Legacy Reserves

DB:LRTI
Snowflake Description

Weak fundamentals or lack of information.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LRTI
DB
$666K
Market Cap
  1. Home
  2. DE
  3. Energy
Company description

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. The last earnings update was 5 days ago. More info.


Add to Portfolio Compare Print
  • Legacy Reserves has significant price volatility in the past 3 months.
LRTI Share Price and Events
7 Day Returns
0%
DB:LRTI
-0.5%
DE Oil and Gas
0%
DE Market
1 Year Returns
-
DB:LRTI
59.8%
DE Oil and Gas
9.9%
DE Market
LRTI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Legacy Reserves (LRTI) 0% 0% 0% - -100% -100%
DE Oil and Gas -0.5% 3.2% 28.1% 59.8% 36.3% 135.8%
DE Market 0% 4.4% 13.6% 9.9% 14.6% 18.2%
1 Year Return vs Industry and Market
  • No trading data on LRTI.
  • No trading data on LRTI.
Price Volatility
LRTI
Industry
5yr Volatility vs Market

Value

 Is Legacy Reserves undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.

In this section, we usually try to help investors determine whether Legacy Reserves is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Legacy Reserves has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis. You can see them here.

Show me the analysis anyway

INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
  • It is not possible to calculate the future cash flow value for Legacy Reserves. This is due to cash flow or dividend data being unavailable. The share price is €0.0009.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Legacy Reserves's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Legacy Reserves's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LRTI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $-1.78
OTCPK:LGCY.Q Share Price ** OTCPK (2019-08-20) in USD $0.01
Europe Oil and Gas Industry PE Ratio Median Figure of 97 Publicly-Listed Oil and Gas Companies 10.32x
Germany Market PE Ratio Median Figure of 398 Publicly-Listed Companies 19.5x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Legacy Reserves.

DB:LRTI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= OTCPK:LGCY.Q Share Price ÷ EPS (both in USD)

= 0.01 ÷ -1.78

-0x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legacy Reserves is loss making, we can't compare its value to the Europe Oil and Gas industry average.
  • Legacy Reserves is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Legacy Reserves's expected growth come at a high price?
Raw Data
DB:LRTI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
Europe Oil and Gas Industry PEG Ratio Median Figure of 61 Publicly-Listed Oil and Gas Companies 0.71x
Germany Market PEG Ratio Median Figure of 253 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Legacy Reserves, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Legacy Reserves's assets?
Raw Data
DB:LRTI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $-3.95
OTCPK:LGCY.Q Share Price * OTCPK (2019-08-20) in USD $0.01
Germany Oil and Gas Industry PB Ratio Median Figure of 6 Publicly-Listed Oil and Gas Companies 1.11x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.86x
DB:LRTI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= OTCPK:LGCY.Q Share Price ÷ Book Value per Share (both in USD)

= 0.01 ÷ -3.95

-0x

* Primary Listing of Legacy Reserves.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legacy Reserves has negative assets, we can't compare the value of its assets to the DE Oil and Gas industry average.

Next steps:

  1. Take a look at our analysis of LRTI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. When valuing a company like this, investors focus more on how they perceive the potential returns from the core activities, the size of each contract's opportunity, and the capacity of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Legacy Reserves's regulatory filings and announcements.
  3. Show me more potentially undervalued companies in the Oil and Gas industry
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Value checks
We assess Legacy Reserves's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Oil and Gas industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Oil and Gas industry average (and greater than 0)? (1 check)
  5. Legacy Reserves has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Legacy Reserves expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Legacy Reserves has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-7.1%
Expected Oil and Gas industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Legacy Reserves expected to grow at an attractive rate?
  • Unable to compare Legacy Reserves's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Legacy Reserves's earnings growth to the Germany market average as no estimate data is available.
  • Unable to compare Legacy Reserves's revenue growth to the Germany market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
DB:LRTI Future Growth Rates Data Sources
Data Point Source Value (per year)
Germany Oil and Gas Industry Earnings Growth Rate Market Cap Weighted Average -7.1%
Europe Oil and Gas Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LRTI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LRTI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
DB:LRTI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 467 96 -199
2019-06-30 514 98 -111
2019-03-31 536 157 -99
2018-12-31 555 176 44
2018-09-30 559 186 -60
2018-06-30 521 180 -46
2018-03-31 474 119 -1
2017-12-31 436 100 -54
2017-09-30 391 76 -139
2017-06-30 368 49 -114
2017-03-31 348 53 -165
2016-12-31 314 3 -56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Legacy Reserves is high growth as no earnings estimate data is available.
  • Unable to determine if Legacy Reserves is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LRTI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Legacy Reserves Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LRTI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
DB:LRTI Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 -1.78
2019-06-30 -1.01
2019-03-31 -0.93
2018-12-31 0.42
2018-09-30 -0.58
2018-06-30 -0.45
2018-03-31 -0.01
2017-12-31 -0.54
2017-09-30 -1.49
2017-06-30 -1.33
2017-03-31 -2.31
2016-12-31 -0.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Legacy Reserves will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of LRTI’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Legacy Reserves's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Energy companies here
  3. Legacy Reserves's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Legacy Reserves's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Legacy Reserves has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Legacy Reserves performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Legacy Reserves's growth in the last year to its industry (Oil and Gas).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Legacy Reserves does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Legacy Reserves's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Legacy Reserves's 1-year growth to the Europe Oil and Gas industry average as it is not currently profitable.
Earnings and Revenue History
Legacy Reserves's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Legacy Reserves Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LRTI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 466.67 -199.37 70.83
2019-06-30 514.38 -110.99 75.12
2019-03-31 535.88 -98.93 59.84
2018-12-31 554.86 43.83 67.40
2018-09-30 559.06 -59.51 78.91
2018-06-30 520.67 -45.52 71.16
2018-03-31 474.23 -1.14 54.14
2017-12-31 436.30 -53.90 40.60
2017-09-30 390.80 -138.70 34.79
2017-06-30 367.53 -113.89 34.00
2017-03-31 348.05 -164.57 39.51
2016-12-31 314.36 -55.82 38.39
2016-09-30 302.71 -313.58 39.92
2016-06-30 308.67 -399.35 46.10
2016-03-31 323.10 -385.57 38.16
2015-12-31 338.78 -720.54 37.59
2015-09-30 378.44 -707.91 35.43
2015-06-30 438.62 -554.01 27.98
2015-03-31 487.94 -529.47 34.78
2014-12-31 532.30 -295.34 33.56
2014-09-30 534.74 -5.99 33.08
2014-06-30 521.24 -68.48 33.05
2014-03-31 502.51 -28.04 30.27
2013-12-31 485.49 -35.27 28.91
2013-09-30 453.90 13.50 27.20
2013-06-30 401.92 -6.65 26.26
2013-03-31 362.69 54.54 24.36
2012-12-31 346.46 68.64 24.53

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Legacy Reserves has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.
  • It is difficult to establish if Legacy Reserves has efficiently used its assets last year compared to the Europe Oil and Gas industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Legacy Reserves improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Legacy Reserves's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Oil and Gas industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Legacy Reserves has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Legacy Reserves's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Legacy Reserves's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Legacy Reserves's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Legacy Reserves's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Legacy Reserves's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Legacy Reserves has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Legacy Reserves Company Filings, last reported 1 month ago.

DB:LRTI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 -453.61 563.00 13.12
2019-06-30 -321.53 1,327.13 1.11
2019-03-31 -262.88 1,299.42 2.83
2018-12-31 -192.63 1,289.57 3.14
2018-09-30 -281.96 1,283.18 6.11
2018-06-30 -250.99 1,289.98 5.95
2018-03-31 -201.11 1,296.95
2017-12-31 -271.69 1,346.77 2.08
2017-09-30 -247.22 1,330.80 7.55
2017-06-30 -214.29 1,180.14 1.21
2017-03-31 -204.84 1,148.59 1.86
2016-12-31 -222.08 1,161.39 2.56
2016-09-30 -118.95 1,161.44 2.03
2016-06-30 -116.11 1,173.01 1.14
2016-03-31 -72.74 1,242.77 5.27
2015-12-31 -179.68 1,429.63 2.01
2015-09-30 177.97 1,455.77 1.63
2015-06-30 295.51 967.10 3.66
2015-03-31 362.21 968.98 3.45
2014-12-31 637.21 940.96 0.73
2014-09-30 710.96 1,199.23 3.00
2014-06-30 680.98 1,153.69 10.14
2014-03-31 477.03 891.15 2.97
2013-12-31 510.40 878.69 2.58
2013-09-30 589.92 844.31 4.05
2013-06-30 625.72 852.87 3.99
2013-03-31 635.63 778.09 2.34
2012-12-31 670.28 775.84 3.51
  • Legacy Reserves has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.
  • Irrelevant to check if Legacy Reserves's debt level has increased considering it has negative shareholder equity.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Legacy Reserves has less than a year of cash runway based on current free cash flow.
  • Legacy Reserves has less than a year of cash runway if free cash flow continues to grow at historical rates of 5.9% each year.
X
Financial health checks
We assess Legacy Reserves's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Legacy Reserves has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Legacy Reserves's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Legacy Reserves dividends.
If you bought €2,000 of Legacy Reserves shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Legacy Reserves's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Legacy Reserves's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LRTI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Europe Oil and Gas Industry Average Dividend Yield Market Cap Weighted Average of 68 Stocks 5.7%
Germany Market Average Dividend Yield Market Cap Weighted Average of 333 Stocks 2.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.7%
Germany Bottom 25% Dividend Yield 25th Percentile 1.3%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LRTI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
DB:LRTI Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2017-11-01 0.000 0.000
2017-08-04 0.000 0.000
2017-08-03 0.000 0.000
2017-05-03 0.000 0.000
2017-02-22 0.000 0.000
2016-11-02 0.000 0.000
2016-08-03 0.000 0.000
2016-05-04 0.000 0.000
2016-02-26 0.000 0.000
2016-02-24 0.000 0.000
2015-01-23 2.440 68.347
2014-10-20 2.440 17.006
2014-07-22 2.440 8.584
2014-04-22 2.380 8.269
2014-01-24 2.360 9.014
2013-10-22 2.340 8.491
2013-07-22 2.320 8.506
2013-04-22 2.300 8.563
2013-01-22 2.280 8.652
2012-10-22 2.260 9.107
2012-07-23 2.240 8.016
2012-04-19 2.220 8.389
2012-01-20 2.200 7.586
2011-10-21 2.180 7.835
2011-07-25 2.160 7.990
2011-04-20 2.120 7.066
2011-01-18 2.100 6.882
2010-10-21 2.080 7.686
2010-07-21 2.080 8.529
2010-04-22 2.080 9.166
2010-01-19 2.080 9.596
2009-10-22 2.080 11.295
2009-07-23 2.080 12.964
2009-04-23 2.080 16.525
2009-01-20 2.080 19.545

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Legacy Reserves has not reported any payouts.
  • Unable to verify if Legacy Reserves's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Legacy Reserves's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Legacy Reserves has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Legacy Reserves's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.7%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Legacy Reserves afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Legacy Reserves has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Legacy Reserves's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Westcott
COMPENSATION $16,005,385
AGE 39
TENURE AS CEO 0.7 years
CEO Bio

Mr. James Daniel Westcott, also known as Dan, has been the Chief Executive Officer of Legacy Reserves Inc. since March 1, 2019 and has been its Director since March 18, 2019. Mr. Westcott served as the President of Legacy Reserves Inc. from March 1, 2018 to March 1, 2019 and served as its Chief Financial Officer from September 24, 2012 to February 19, 2019. He served as Executive Vice President of Legacy Reserves Inc. from September 24, 2012 to March 1, 2018. From July 2006 to his appointment at Legacy, Mr. Westcott served as a Principal at GSO Capital Partners LP, a division of The Blackstone Group L.P., where he was involved in the sourcing, structuring, evaluation and management of debt and equity investments for public and private companies in the energy and power industries. From August 2004 to July 2006, Mr. Westcott worked as an investment banker at J.P. Morgan’s Global Energy Group. Mr. Westcott is a Director of Peace Gospel International, a non-profit organization with charitable programs in Asia and Africa. Mr. Westcott received a Bachelor of Arts degree in Science Technology & Society and a Master of Science degree in Management Science, both from Stanford University.

CEO Compensation
  • Dan's compensation has increased whilst company is loss making.
  • Dan's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Legacy Reserves management team in years:

0.8
Average Tenure
39
Average Age
  • The average tenure for the Legacy Reserves management team is less than 2 years, this suggests a new team.
Management Team

Dan Westcott

TITLE
CEO & Director
COMPENSATION
$16M
AGE
39
TENURE
0.7 yrs

Kyle Hammond

TITLE
President & COO
COMPENSATION
$11M
AGE
58
TENURE
0.7 yrs

Robert Norris

TITLE
Chief Financial Officer
AGE
39
TENURE
0.8 yrs

Micah Foster

TITLE
Chief Accounting Officer & Controller
AGE
39
TENURE
7.6 yrs

Cory Elliott

TITLE
Chief Information Officer
AGE
41
TENURE
0.8 yrs

Bert Ferrara

TITLE
General Counsel & Corporate Secretary
AGE
34
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Legacy Reserves board of directors in years:

3.5
Average Tenure
62
Average Age
  • The tenure for the Legacy Reserves board of directors is about average.
Board of Directors

Paul Horne

TITLE
Chairman of the Board
COMPENSATION
$13M
AGE
57
TENURE
3.5 yrs

Dan Westcott

TITLE
CEO & Director
COMPENSATION
$16M
AGE
39
TENURE
0.7 yrs

Kyle Vann

TITLE
Lead Independent Director
COMPENSATION
$266K
AGE
72
TENURE
3.5 yrs

G. Lawrence

TITLE
Independent Director
COMPENSATION
$233K
AGE
67
TENURE
13.5 yrs

Bill Granberry

TITLE
Independent Director
COMPENSATION
$231K
AGE
76
TENURE
11.8 yrs

Doug York

TITLE
Independent Director
COMPENSATION
$86K
AGE
57
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Jun 19 Sell Jeremy Carter Individual 12. Jun 19 12. Jun 19 -147,317 €0.10 €-14,903
13. Jun 19 Sell James Schumacher Individual 12. Jun 19 12. Jun 19 -5,000 €0.10 €-504
13. Jun 19 Sell Kevin Tracy Individual 12. Jun 19 12. Jun 19 -7,000 €0.10 €-680
13. Jun 19 Sell Brian Williams Individual 12. Jun 19 12. Jun 19 -476,500 €0.11 €-50,519
13. Jun 19 Sell Baines Creek Capital, LLC Company 12. Jun 19 12. Jun 19 -9,416,540 €0.10 €-952,584
12. Jun 19 Sell Baines Creek Capital, LLC Company 11. Jun 19 11. Jun 19 -11,983,512 €0.10 €-1,164,881
11. Jun 19 Sell Baines Creek Capital, LLC Company 07. Jun 19 10. Jun 19 -3,300,000 €0.27 €-861,900
03. Apr 19 Buy Kevin Tracy Individual 20. Mar 19 20. Mar 19 1,000 €0.48 €480
03. Apr 19 Buy Brian Williams Individual 11. Feb 19 27. Mar 19 1,071,137 €1.33 €0
27. Mar 19 Buy James Schumacher Individual 25. Mar 19 25. Mar 19 2,514 €0.44 €1,111
27. Mar 19 Buy Brian Williams Individual 26. Mar 19 27. Mar 19 100,000 €0.44 €44,435
27. Mar 19 Buy Baines Creek Capital, LLC Company 26. Mar 19 27. Mar 19 150,000 €0.44 €66,653
20. Mar 19 Buy Brian Williams Individual 18. Mar 19 18. Mar 19 100,000 €0.44 €44,110
20. Mar 19 Buy Baines Creek Capital, LLC Company 18. Mar 19 20. Mar 19 300,000 €0.48 €136,509
14. Mar 19 Buy Brian Williams Individual 12. Mar 19 12. Mar 19 50,000 €1.15 €57,584
14. Mar 19 Buy Baines Creek Capital, LLC Company 12. Mar 19 12. Mar 19 10,000 €1.15 €11,517
11. Mar 19 Buy Brian Williams Individual 07. Mar 19 11. Mar 19 71,137 €1.18 €79,147
06. Mar 19 Buy Brian Williams Individual 06. Mar 19 06. Mar 19 25,000 €1.05 €26,287
06. Mar 19 Buy Brian Williams Individual 05. Mar 19 06. Mar 19 75,000 €1.12 €83,816
01. Mar 19 Buy Brian Williams Individual 28. Feb 19 01. Mar 19 100,000 €1.02 €101,952
27. Feb 19 Buy Brian Williams Individual 22. Feb 19 26. Feb 19 100,000 €1.17 €110,415
20. Feb 19 Buy Brian Williams Individual 15. Feb 19 20. Feb 19 150,000 €1.20 €179,341
13. Feb 19 Buy Baines Creek Capital, LLC Company 04. Feb 19 04. Feb 19 25,000 €1.43 €35,652
13. Feb 19 Buy Brian Williams Individual 01. Feb 19 13. Feb 19 150,000 €1.44 €195,983
05. Feb 19 Buy Brian Williams Individual 01. Feb 19 04. Feb 19 50,000 €1.40 €66,711
05. Feb 19 Buy Baines Creek Capital, LLC Company 04. Feb 19 04. Feb 19 25,000 €1.44 €36,090
18. Jan 19 Buy Brian Williams Individual 18. Jan 19 18. Jan 19 10,000 €1.49 €14,880
18. Jan 19 Buy Baines Creek Capital, LLC Company 16. Jan 19 18. Jan 19 65,000 €1.49 €93,421
31. Dec 18 Buy Brian Williams Individual 28. Dec 18 31. Dec 18 75,600 €1.21 €87,878
11. Jan 19 Buy Jeremy Carter Individual 07. Dec 18 07. Dec 18 5,000 €1.76 €8,818
11. Jan 19 Buy James Schumacher Individual 07. Dec 18 07. Dec 18 4,000 €1.84 €7,370
11. Jan 19 Buy Brian Williams Individual 07. Dec 18 31. Dec 18 275,600 €1.82 €398,573
11. Jan 19 Buy Baines Creek Capital, LLC Company 06. Dec 18 31. Dec 18 679,937 €1.82 €943,136
31. Dec 18 Buy Baines Creek Capital, LLC Company 27. Dec 18 31. Dec 18 395,186 €1.21 €474,227
17. Dec 18 Buy Baines Creek Capital, LLC Company 13. Dec 18 14. Dec 18 110,000 €1.43 €147,508
10. Dec 18 Buy Baines Creek Capital, LLC Company 06. Dec 18 10. Dec 18 383,751 €1.83 €655,480
X
Management checks
We assess Legacy Reserves's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Legacy Reserves has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

Details
Name: Legacy Reserves Inc.
LRTI
Exchange: DB
Founded: 2005
$602,774
114,810,671
Website: http://www.legacyreserves.com
Address: Legacy Reserves Inc.
303 West Wall Street,
Suite 1800,
Midland,
Texas, 79701,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
OTCPK LGCY.Q Common Shares Pink Sheets LLC US USD 12. Jan 2007
DB LRTI Common Shares Deutsche Boerse AG DE EUR 12. Jan 2007
Number of employees
Current staff
Staff numbers
337
Legacy Reserves employees.
Industry
Oil and Gas Exploration and Production
Energy
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/17 22:58
End of day share price update: 2019/08/20 00:00
Last estimates confirmation: 2019/03/18
Last earnings filing: 2019/11/12
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.