Legacy Reserves 8K Regulation FD Disclosure | SEC 17 Jan 08

Exhibit 99.1

Legacy Reserves LP

IPAA OGIS MLP Conference

January 17, 2008

Page 2

Forward-Looking Statements

Statements made by representatives of Legacy Reserves LP (the “Partnership”) during the course
of this presentation that are not historical facts are forward-looking statements. These statements
are based on certain assumptions made by the Partnership based on management’s experience
and perception of historical trends, current conditions, anticipated future developments and other
factors believed to be appropriate. Such statements are subject to a number of assumptions, risks
and uncertainties, many of which are beyond the control of the Partnership, which may cause actual
results to differ materially from those implied or expressed by the forward-looking statements. These
include risks relating to financial performance and results, availability of sufficient cash flow to pay
distributions and execute our business plan, prices and demand for oil a
nd natural gas, our ability to
replace reserves and efficiently exploit our current reserves, our ability to make acquisitions on
economically acceptable terms, and other important factors that could cause actual results to differ
materially from those anticipated or implied in the forward-looking statements.  Please see the
factors described in the Partnership’s Annual Report on Form 10-K in Item 1A under “Risk Factors”. 
The Partnership undertakes no obligation to publicly update any forward-looking statements,
whether as a result of new information or future events.

Page 3

Other

Related

Entities

Dale Brown &

Jack McGraw

form

company

Cary &

Dale Brown

form

Moriah

Formation Transaction

Through

Private Placement

March

January

IPO

Brothers

Production

Company

Brothers

Moriah

Brothers

MBN

Moriah

Legacy

Kyle McGraw

Cary Brown

Assume

Management

Pruett, Brown

& McGraw

co-found MBN

Legacy History

Page 4

Name	Title	Years Experience in the Permian Basin	Years Experience in the Oil & Gas Industry
Cary D. Brown, CPA	Chairman & CEO	15	17
Steven H. Pruett	President & CFO	18	23
Kyle A. McGraw	EVP, Business Development & Land	24	24
Paul T. Horne	VP, Operations	21	23
William M. Morris, CPA	VP, Controller & CAO	25	26

William D. Sullivan

Former EVP

Anadarko Petroleum

G. Larry Lawrence

Former Controller

Pure Resources

Kyle D. Vann

Former CEO

Entergy - Koch, LP

Independent Board Members

Legacy Management Team

Page 5

Asset Overview

Page 6

(1)
              
Taken from reserve reports prepared by LaRoche Petroleum Consultants, Ltd. as of 12/31/06 for Legacy Reserves LP plus proved reserves from 2007 acquisitions from internal
reserve reports: Binger (4.1 MMBoe), TSF/Ameristate (1.4 MMBoe), Slaughter/Rocker A (1.0 MMBoe), Raven (1.2 MMBoe), TOC (4.0 MMBoe), Summit (0.7 MMBoe) and
Pan-Ellis/Mariner/SMB/Chevron (1.07 MMBoe).  Excludes acquisitions announced January 14, 2008.

(2)
              
Pro forma 2007 acquisitions of Binger, TSF, Ameristate, Slaughter/Rocker A, Raven, Samson, Carlow, TOC, Summit and Pan-Ellis/Mariner/SMB/Chevron.  Excludes acquisitions
announced January 14, 2008.

Legacy Base Asset Overview

q
              
32.6 MMBoe of proved reserves (1)

q
              
Reserves-to-production ratio of over
14.5 years

q
              
Diversified across over 3,000 wells

q
              
70% operated

q
              
6,165 net Boe per day (2)

q
              
74% liquids

Page 7

(1) 
              
Source: http://www.utpb.edu

Map Source: Midland Map Company.

Stable Platform

Why the Permian Basin?

q
              
Over 24 BBbls produced since 1921

q
              
Represents 20% of lower 48 states
and 68% of Texas oil production (1)

q
              
Multiple producing formations

q
              
Established infrastructure and ample
take-away capacity

q
              
Long-lived reserves

q
              
Predictable, shallow decline rates

q
              
Fragmented ownership

Page 8

Top 5
Operators

1,700+
Operators

0.3%

(1)  Ownership based on production.  Permian Basin includes Texas Railroad Commission Districts 7C, 8, 8A and Lea and Eddy County, New Mexico. 
Permian Basin data as of July 31, 2005; Legacy production data as of September 30, 2006.

63.6%

36.1%

Permian Basin Ownership Profile (1)

Consolidation Opportunities in the Permian Basin

q
              
Fragmented ownership provides numerous
acquisition opportunities

q
              
Acquisition niche - large PDP component

q
              
Connected in Permian Basin deal network

Page 9

$342 million of purchases
at an average cost of
$9.20 per Boe of proved
reserves in over 41 deals

13.4

20.2

37.2

6.8

13.4

6.8

13.4

17.0

Acquired Reserves (1999 - 2007)

Legacy & Predecessor Acquisition History

Page 10

Acquisition Update

q
              
Over $225 million of acquisitions since IPO in January 2007

q
              
Seventeen transactions averaging:

–
              
$14.01 per Boe of proved reserves

–
              
93% PDP, R/P ratio of 14.7 years

–
              
$75,147 per Boepd

–
              
5.2 times cash flow

Page 11

Financial Summary

Page 12

Financial and Operating Data - Latest Twelve Months

q
              
Third Quarter earnings continue solid growth trend

–
              
14.4% sequential volume growth over Q2

–
              
Q3 production, revenue, distributable cash flow, and adjusted EBITDA exceeded analyst estimates

–
              
Q3 does not include contribution from Panhandle, Summit and November acquisitions

(1)
              
Please see pages 20 and 21

Consensus Analyst

($ in millions)

12-31-06

3-31-07

6-30-07

9-30-07

Estimates - Q3 2007

Production (Boe/d)

3,625

3,655

4,540

5,195

5,083

Revenue with realized hedges

$18.5

$18.4

$24.1

$29.8

$27.4

Distributable Cash Flow

$1.6

$6.8

$9.5

$14.5

$12.5

Distributable Cash Flow per Unit

$0.08

$0.36

$0.36

$0.56

$0.48

Adjusted EBITDA

(1)

$11.3

$11.1

$14.7

$18.9

$17.4

Quarter Ending

Summary Financial Information

Page 13

(1)
              
Acquisitions closed subsequent to 9/30/2007, including cash flow adjustment paid to Legacy at deal closing.

(2)
              
Pro forma PIPE and November acquisitions.

Pro Forma Capitalization

Page 14

2007 Exploitation Program

q
              
$16 million of maintenance and growth capital

q
              
45% of capital directed toward higher return, recompletion, reactivation and restimulation
projects

q
              
Double digit organic growth over the 12 months ended September 30, 2007

q
              
Program summary (gross production rates):

–
              
12-well infill drilling program at Langlie Mattix, IP avg 40 Bopd + 45 Mcfd/well

–
              
6 Happy / Dover field recompletions, 180 Bopd + 80 Mcfd increase

–
              
Clayton Johnson high volume lift, 70 Bopd + 60 Mcfd increase

–
              
6 SJU refracs (6 more in progress), 75 Bopd + 15 Mcfd increase

–
              
1 Hutex, 1 PHD, and 1 SMB recompletions, 120 Bopd + 150 Mcfd

–
              
2 Binger infill drill wells, testing over 200 Bopd

–
              
Drilled and completed 2 Wolfcamp wells, online in January 2008

Page 15

8.3%

4.3%

6.3%

6.3%

6.6%

6.4%

8.0%

7.3%

7.4%

7.0%

Energy MLP’s as of 1/14/08

As of 1/11/08:

(1) Includes General Partners of Alliance, Atlas, Buckeye, Crosstex, Energy Transfer, Enterprise, Hiland, Inergy, Magellan, NuStar, Penn Virginia.

(2) Includes Alliance, Natural Resource Partners, Penn Virginia.

(3) Includes Atlas, Copano, Crosstex, DCP, Genesis, Hiland, Holly, Mark West, Martin, Regency, Sunoco, TC, Transmontaigne, Williams.

(4) Includes Buckeye, Boardwalk, Enbridge, Energy Transfer, Enterprise, Kinder Morgan, Magellan, NuStar, Oneok, Plains, TEPPCO.

9.0%

9.9%

10.2%

10.4%

Comparable Company Trading Yields

Page 16

(1)
              
WTI oil swaps used to hedge NGL production in 2009 (85,200 Bbls), 2010 (84,600 Bbls), 2011 (78,000 Bbls) and 2012 (75,600 Bbls).

(2)
              
Includes NYMEX and Waha / ANR-OK swaps, where the latter indexes trade at a discount to NYMEX Henry Hub but better reflect what Legacy is paid for its
natural gas.

(3)
              
Does not include hedges for acquisitions announced January 14, 2008.

2,534

2,331

2,066

1,068

Oil (1)

Natural Gas (2)

Over 72% of forecasted production hedged for 2008 and over 58% hedged through 2010.

Commodity Price Hedging Summary

Page 17

NGL’s

BOE’s

Over 72% of forecasted production hedged for 2008 and over 58% hedged through 2010.

Commodity Price Hedging Summary

Page 18

GP Interest

<0.1%

Public
Unitholders

32.4%

144A & PIPE
Unitholders

20%

Sellers of Assets to
Legacy

2.5%

Founding Investors,
Directors and Management

45%

Ticker:
              
LGCY

Exchange:
              
NASDAQ

Unit Price (1/14/08):
              
$20.67 per unit

Quarterly Distribution:
              
$0.43 per unit

Yield:
              
8.3%

Market Capitalization:
              
$614 million

Note:  Ownership as of 1/11/08

Legacy Ownership

Page 19

Legacy Summary

q
              
Only MLP focused on the oil-weighted Permian Basin and Mid-continent regions

q
              
Experienced management team with significant equity ownership

q
              
Significant organic and external growth opportunities

q
              
Long-lived, diversified multi-pay properties

q
              
Demonstrated reserve replacement capability

q
              
Long-term hedges in place

q
              
Tax advantaged yield

q
              
Low level of debt

q
              
MLP structure with no IDRs

Page 20

Adjusted EBITDA Reconciliation

This presentation, the financial tables and other supplemental information, including the reconciliations
of certain non-generally accepted accounting principles ("non-GAAP") measures to their nearest
comparable generally accepted accounting principles ("GAAP") measures, may be used periodically
by management when discussing Legacy's financial results with investors and analysts and they are
also available on Legacy's website under the Investor Relations tab.  Adjusted EBITDA is defined in
our revolving credit facility as net income (loss) plus interest expense; depletion, depreciation,
amortization and accretion; impairment of long-lived assets; (gain) loss on sale of partnership
investment; (gain) loss on sale of assets; equity in (income) loss of partnerships; non-cash
compensation expense and unrealized (gain) loss on oil and natural gas swaps.  Adjusted EB
ITDA is
presented as management believes it provides additional information and metrics relative to the
performance of Legacy's business, such as the cash distributions we expect to pay to our unitholders,
as well as our ability to meet our debt covenant compliance tests. Management believes that these
financial measures indicate to investors whether or not cash flow is being generated at a level that can
sustain or support an increase in our quarterly distribution rates. Adjusted EBITDA may not be
comparable to a similarly titled measure of other publicly traded limited partnerships or limited liability
companies because all companies may not calculate Adjusted EBITDA in the same manner.

Page 21

                  Note: Adjusted EBITDA is a non-GAAP financial measure.

Reconciliation of Net Income to Adjusted EBITDA

Adjusted EBITDA Reconciliation

Legacy Reserves LP

Legacy Reserves Inactive 8-KRegulation FD Disclosure