Legacy Reserves LP (NASDAQ:LGCY) Advancing Ahead of Earnings Call


Legacy Reserves LP (NASDAQ:LGCY) shares are edging higher after the company scheduled its conference call to report its quarterly earnings.

The company is scheduled to report its financial results on May 4, 2016 after the market close on Nasdaq trading, and teleconference and webcast will be held on Thursday, May 5, 2016, beginning at 9:00 a.m. Central Time. A number of oil and energy companies have recently been reporting weak earnings or filing for bankruptcy protection, but Legacy Reserves LP (NASDAQ:LGCY) could be poised for growth.

Natural gas prices have exhibited volatility in the past five years, more so in the recent months as it has been vulnerable to changes in crude oil. Still, natural gas is outpacing coal for domestic power generation and there are several opportunities for gains. For one, natural gas is dependent on weather changes and conditions are looking favorable so far.

As an article on Seeking Alpha shares, investors could be bullish on Legacy Reserves LP (NASDAQ:LGCY) primarily for the company’s low operations costs. Its break even cost is at $43/barrel for crude oil and the commodity price is currently trading around those levels as of this writing.

The article also points out that the company has solid leadership and has been conducting timely acquisitions, allowing the company to score better deals at much lower costs. A number of assets were purchased inexpensively because of underutilization earlier in the year but these could add a lot of value down the line. With that, the stock offers good reward-to-risk, particularly if the energy sector is poised for a continuous recovery from here.

Legacy Reserves LP (NASDAQ:LGCY) is based in Midland, Texas. The company focuses on the acquisition and development of oil and natural gas properties primarily located in the Permian Basin, East Texas, Mid-Continent and Rocky Mountain regions of the United States.

DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.