Carrizo Oil & Gas (CRZO)

dan_s · Post by **dan_s** » Sat Feb 13, 2016 1:14 pm

I have updated my forecast model for Carrizo and it will be posted to the EPG website late today.

Carrizo is an Eagle Ford / Permian Basin company. It has a strong balance sheet and more than half of its oil production for 2016 is hedged at good prices, yet it trades at a discount to most of the companies in it's peer group. IMO their IR group needs to do a better job of telling their story. They are based in Houston, yet they refuse to present to our group despite being invited to do so several times. Our average attendance at EPG luncheons in Houston is 100+, so it always amazing to me when an IR manager refuses to present to our group.

Proceeds from the stock offering in October and cash flow from operations should cover their capital program through December, 2016.

My valuation is $48.00, compared to First Call's price target of $38.42.