Legacy Reserves LP Units Representing Lt (LGCY) filed Quarterly Report for the period ended 2010-03-31.

Legacy Reserves Lp Units Representing Lt has a market cap of $813.8 million; its shares were traded at around $20.31 with a P/E ratio of 23.1 and P/S ratio of 6. The dividend yield of Legacy Reserves Lp Units Representing Lt stocks is 10.3%.

Highlight of Business Operations:

Legacy s revenues from the sale of oil were $37.7 million and $16.5 million for the three-month periods ended March 31, 2010 and 2009, respectively. Legacy s revenues from the sale of NGLs were $3.8 million and $2.1 for the three-month periods ended March 31, 2010 and 2009, respectively. Legacy s revenues from the sale of natural gas were $8.2 million and $4.5 million for the three-month periods ended March 31, 2010 and 2009, respectively. The $21.2 million increase in oil revenues reflects the increase in average realized price of $39.11 per Bbl (109%) as well as an increase in oil production of 44 MBbls (10%) due primarily to Legacy s purchase of the oil and natural gas properties in the Wyoming Acquisition. The $1.7 million increase in proceeds from NGL sales reflects the increase in realized NGL price of $0.47 per gallon (77%) as well as an increase in NGL production of approximately 69 MGals (2%) due primarily to Legacy s purchase of oil and natural gas properties in the Wyoming Acquisition. The $3.7 million increase in natural gas revenues reflects the increase in average realized price per Mcf of $3.10 per Mcf (86%) partially offset by a decrease in natural gas production of approximately 33 MMcf (3%) due primarily to pipeline shut-ins from our gas purchaser in the Texas Panhandle.

For the three-month period ended March 31, 2010, Legacy recorded $11.9 million of net gains on oil, NGL and natural gas derivatives comprised of realized gains of $4.8 million from net cash settlements of oil, NGL and natural gas derivative contracts and a net unrealized gain of $7.1 million. Legacy had unrealized net losses from oil derivatives because the price of oil increased during the three-month period ended March 31, 2010. As a point of reference, the NYMEX price for light sweet crude oil for the near-month close increased from $79.36 per Bbl at December 31, 2009 to $83.76 per Bbl at March 31, 2010, a price which is less than the average contract prices of Legacy s outstanding oil derivative contracts, but greater than the price at December 31, 2009, resulting in a reduction of unrealized net gain attributable to Legacy s outstanding oil derivative contracts. Due to the increase in oil prices during the quarter, the differential between Legacy s fixed price oil derivatives and NYMEX decreased, resulting in losses for the quarter. Legacy had unrealized net gains from NGL derivatives because NGL prices decreased during the three-month period ended March 31, 2010. Legacy had unrealized net gains from natural gas derivatives because the NYMEX natural gas prices decreased during the three-month period ended March 31, 2010. As a point of reference, the NYMEX price for natural gas for the near-month close decreased from $5.57 per MMBtu at December 31, 2010 to $3.87 per MMBtu at March 31, 2010, a price which is less than the average contract prices of Legacy s outstanding natural gas swap contracts resulting in an increase of unrealized net gain attributable to Legacy s outstanding natural gas swap contracts. For the three-month period ended March 31, 2009, Legacy recorded $19.5 million of net gains on oil, NGL and natural gas derivatives comprised of realized gains of $19.0 million from net cash settlements of oil, NGL and natural gas swap contracts and a net unrealized gain of $0.5 million on oil, NGL and natural gas swap contracts. Unrealized gains and losses represent a current period mark-to-market adjustment for commodity derivatives which will be settled in future periods.

Legacy s oil and natural gas production expenses, excluding ad valorem taxes, increased to $14.2 million ($17.94 per Boe) for the three-month period ended March 31, 2010, from $10.5 million ($14.07 per Boe) for the three-month period ended March 31, 2009. Production expenses increased primarily due to industry-wide cost increases, particularly those directly related to higher commodity prices, such as the cost of electricity, which powers artificial lift equipment and pumps involved in the production of oil. In addition, oil and natural gas production expenses increased approximately $1.4 million due to expenses related to the Wyoming Acquisition. Legacy s ad valorem expense decreased to $0.9 million ($1.16 per Boe) for the three-month period ended March 31, 2010, from $1.5 million ($1.96 per Boe) for the three-month period ended March 31, 2009 primarily due to an over-accrual of estimated ad valorem tax expenses for the three-month period ended March 31, 2009. The over-accrual resulted from lower realized ad valorem tax expenses during 2009 than anticipated. This lower realization rate also resulted in lower accruals for March 31, 2010 as ad valorem taxes are paid primarily during the fourth quarter of the year incurred and the first quarter of the following year. Due to this lag in actual payments, the first quarter of the following year may be impacted by immaterial revisions to expense to true up accrued costs to actual amounts paid.

Legacy s general and administrative expenses were $4.8 million and $3.4 million for the three-month periods ended March 31, 2010 and 2009, respectively. General and administrative expenses increased approximately $1.4 million between the three-month periods ended March 31, 2010 and 2009 primarily due to increases in non-cash LTIP expenses of $1.3 million due to increased grant amounts and rising unit prices. As the LTIP is tied to our unit performance, rising unit prices causes an increase in LTIP expenses whereas our unit prices decreased during the three-month period ended March 31, 2009, which more than offset the expenses related to our LTIP resulting in non-cash income of approximately $0.3 million.

Legacy s depletion, depreciation, amortization and accretion expense, or DD&A, was $13.1 million and $16.6 million for the three-month periods ended March 31, 2010 and 2009, respectively. DD&A decreased primarily because of the decrease in DD&A expense per Boe, to $16.62 from $22.19 for the three-month periods ended March 31, 2010 and 2009, respectively, which reflects the increased reserves basis due to higher commodity prices for the three month period ended March 31, 2010 compared to the three month period ended March 31, 2009. As the depletion rate is determined by the percentage of production compared to total reserves, the higher reserve volumes resulting from higher commodity prices reduces the depletion rate. This decrease was partially offset by $1.1 million of depletion incurred related to the Wyoming Acquisition.

For the three months ended March 31, 2010 and 2009, respectively, Adjusted EBITDA increased 32% to $32.7 million from $24.8 million primarily due to increased revenues from our oil, NGL and natural gas sales in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. These increased revenues more than offset the decreased realized commodity derivative settlements of approximately $14.2 million from $19.0 million for the three months ended March 31, 2009 to $4.8 million for the three months ended March 31, 2010. For the three months ended March 31, 2010 and 2009, respectively, Distributable Cash Flow increased 48% to $22.1 million from $14.9 million due to higher Adjusted EBITDA.

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