Energy Prospectus

I just don't get it. CRZO beats and is down big. Yesterday LONE opens up big, and is flat by the end of the day. It's a mystery to me.

So many of the Wall Street Gang trades are now done by computers that moves like happen on a regular basis and they don't make sense.

What may have happened is that CRZO has made a nice run up since a low of ~$14/share in late February that the hedge funds that ran it up put on very tight stop loss orders heading into the Q2 results. So, despite a good quarter, a few funds hitting the sell button (to lock in their profits) can cause a cascade of sales.

I am working on the Carrizo forecast/valuation model now.

I really like this move because Eagle Ford oil is selling at a premium to WTI:
"Given the relative outlook for crude oil prices in the Eagle Ford Shale and Delaware Basin over the next 18 months, Carrizo has elected to shift capital to the Eagle Ford Shale in order to take advantage of the superior returns offered from the play in the current environment. At the end of the first quarter, Carrizo was running four rigs in the Delaware Basin and two rigs in the Eagle Ford Shale. The Company moved one of its rigs to the Eagle Ford Shale during the second quarter and recently added a fourth rig to the play. For the balance of the year, Carrizo currently plans to run an average of six rigs, with four located in the Eagle Ford Shale and two located in the Delaware Basin, and two to three completion crews. Given the faster cycle times in the Eagle Ford Shale, as well as the Company’s decision to maintain a six-rig program for the remainder of the year, Carrizo now expects to drill 123-132 gross (112-121 net) operated wells and complete 108-117 gross (93-102 net) operated wells during the year. This compares to the Company’s estimate of 93-103 gross (82-91 net) operated wells drilled and 113-123 gross (96-105 net) operated wells completed under the prior plan. As a result of the increased drilling activity, Carrizo is increasing its 2018 drilling, completion, and infrastructure capital expenditure guidance to $800-$825 million from $750-$800 million."

Don't we all love a good mystery.