Energy Prospectus

My valuation of Carrizo Oil & Gas (CRZO) is $46/share (based on the fundamentals). The article below is based on technical analysis of their chart. - Dan

By BRUCE KAMICH Follow | NOV 22, 2017 | 9:05 AM EST

Carrizo Oil & Gas Inc. (CRZO) has made a bottom over the past six months, and aggressive traders looking for an energy play with some upside and a nearby risk point might read further. While the energy sector may not have the flash of the latest technology "thing" or the newest online retail offering, or Chinese IPO, it can deliver some upside when you properly pick your spots.

In this daily bar chart of CRZO, below, we can see that prices rallied above the flat 50-day moving average line in September and retested the now rising line in late October. Prices stopped short of the declining 200-day moving average line earlier this month, but we could soon see a close above that longer-term trend indicator. The On-Balance-Volume (OBV) line made a low in June and a retest in late August, but has been on the rise with the price action.

A rising OBV line tells us that buyers of CRZO have become more aggressive, with heavier turnover on days when prices close higher. In the lower panel is the 12-day momentum study, and the key thing to notice is the higher lows from June to August compared to the lower lows in price. The improving momentum picture is a bullish divergence and tells us that the pace of the decline slowed in the August/September lows.

Full article with charts: https://realmoney.thestreet.com/article ... yptr=yahoo

They sure picked the wrong day for their announcement.

DJ Basin package sold for a bit more than I thought it would. These sales will shore up Carrizo's balance sheet. They are in good shape heading into 2018. - Dan

Carrizo Oil & Gas Provides Update on Divestiture Program

HOUSTON--(BUSINESS WIRE)-- Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today announced that it has closed on both of its previously-announced Appalachia divestitures and has entered into an agreement to sell substantially all of its assets in the DJ Basin.

Carrizo previously announced that it had entered into agreements to sell substantially all of its assets in the Utica Shale and Marcellus Shale for cash proceeds of $62 million and $84 million, respectively, subject to customary closing terms and conditions, plus contingent payments based on the level of commodity prices over the next three years. Net production from these assets was 661 Boe/d (28% oil, 50% liquids) and 36,722 Mcf/d, respectively, during the third quarter of 2017. The sale of the Company's Utica Shale assets closed on November 15, 2017, while the sale of the Company’s Marcellus Shale assets closed on November 21, 2017. The Company received a combined total of approximately $128 million at the closings of the two dispositions, which excludes the previously-received deposit.

On November 20, 2017, Carrizo entered into an agreement to sell substantially all of its assets in the DJ Basin for $140 million in cash, subject to customary closing terms and conditions. Additionally, Carrizo could receive contingent payments of up to $15 million in the aggregate based on crude oil prices exceeding certain thresholds over the next three years. Net production from these assets was 2,427 Boe/d (69% oil, 84% liquids) during the third quarter of 2017. The effective date of the transaction is September 1, 2017, and the transaction is currently expected to close in January, 2018.

S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented, “With the announced sale of our DJ Basin assets, we have now executed on the non-core divestiture program that we announced to the market earlier this year. The sale of the DJ Basin assets is another step towards achieving our leverage reduction goals and positioning Carrizo to be able to deliver strong, high-return production growth within cash flow.”

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.