"Gassers": CRZO, GST and RRC

dan_s · Post by **dan_s** » Sat Jan 21, 2012 5:48 pm

An updated Net Income and Cash Flow Forecast for Carrizo Oil & Gas (CRZO) has been posted under the Sweet 16 Tab.

Our Fair Value estimate has been adjusted to reflect lower natural gas prices expected in 2012.

I will be watching very carefully for the increased liquids production I expect to see coming from CRZO's Eagle Ford drilling program. CRZO is expected to focus this year's capital program on the Eagle Ford, Niobrara and the liquids rich area of the Marcellus Shale. If they do, the company should be fine.

The market has "punished" all of our "Gassers" (CRZO, GST, and RRC) this week. All three are in the Sweet-16 because I expect them to report significant increases in liquids production this year. IMO RRC is now oversold. Investors should take a hard look at their natural gas hedges for 2012.

GST will be hosting our luncheon on January 31. All EPG members in the Houston area should attend this luncheon as I believe GST is on the verge of a significant increase in production.