Carrizo Oil & Gas (CRZO)

[dan_s]

Carrizo Oil & Gas, Inc. has added a new press release to its website:

Carrizo Oil & Gas Announces the Divestiture of a Portion of Its Eagle Ford Acreage
HOUSTON--(BUSINESS WIRE)-- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced that it entered into an agreement to divest a portion of its assets in the Eagle Ford Shale for $245 million in cash, subject to adjustment and customary closing terms and conditions. The divested assets include approximately 24,500 net acres, located primarily in the downdip area of the volatile oil window, and had associated net production during the third quarter of 2017 of approximately 3,400 Boe/d (63% oil, 19% gas, 18% NGLs). The effective date of the transaction is October 1, 2017, and the transaction is currently expected to close by the end of January, 2018. The production associated with the divestiture accounts for less than 10% of the Company’s total in the Eagle Ford Shale. Following the close of the transaction, Carrizo will hold approximately 78,500 net acres in the Eagle Ford Shale, exclusively located within the core volatile oil fairway.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “Our activity in the Eagle Ford Shale is expected to be focused on the updip volatile oil window of the play. Given this, we believe it made sense to bring the value of these assets forward and use the proceeds to further strengthen our balance sheet by retiring additional debt. Combined with our previously-announced, non-core divestitures, this transaction brings the total announced proceeds from our divestiture program to approximately $530 million.”

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused on proven, producing oil and gas plays in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.

I will update my forecast/valuation model for CRZO and it will be posted to the EPG website later today. - Dan

[jb2257]

Unfortunately after losing on my first investment in CRZO I tried again and just sold yesterday with an additional $1,600 loss. I have never seen such poor performance by a supposedly good stock. Do you have any explanation why this is sinking like it is considering that the price of oil is over 57 and the stock market is up 150 pts.?

[dan_s]

Most of the Sweet 16 are trading near the bottom of their 52-week range despite oil being higher than a year ago. NGL prices are also higher.

As I mentioned in the podcast, the only reasonable explanation is that tax loss selling is more intense than usual this year.

Carrizo's asset sales have improved the balance sheet and they have lots of running room, but in this market it does not seem to matter. Just remember that the Wall Street Herd can change directions quickly.