Legacy Reserves increases quarterly distribution to 57c per unit Legacy Reserves announced that the board of its general partner has approved a cash distribution attributable to 4Q12 of 57c per unit, payable on February 14 to unitholders of record at the close of business on February 1. This quarterly distribution is a 0.5c increase from the prior quarter and represents an annualized distribution of $2.28 per unit. On a year-over-year basis, Legacy's quarterly distribution has increased 3.6%.
Legacy Reserves downgraded to Neutral from Buy at UBS UBS downgraded Legacy Reserve (LGCY) to Neutral after after stress testing upstream MLPs to reflect scenarios in which oil remains depressed and recovery is limited. The firm expects MLPs that are better capitalized, well hedged and less levered to crude oil to outperform. It lowered its price target for shares to $5.50 from $14. UBS coupled the downgrade with an upgrade of Mid-Con Energy (MCEP) to Buy. Other Buy-rated upstream MLPs at the firm are Vanguard Natural (VNR), Memorial Production (MEMP) and Eagle Rock Energy (EROC). Sell-rated names are LINN Energy (LINE) and LinnCo (LNCO).