Carrizo Oil & Gas (CRZO) Update - Dec 31

[dan_s]

Carrizo is at the top of my list for promotion to the 2019 version of The Sweet 16.

CRZO is currently trading at $11.39
> First Call's price target is $27.10
> In the last 3 months, 11 ranked analysts set 12-month price targets for CRZO that range from $18.00 to $34.00. The average price target among the analysts is $26.00.
> Carrizo sold their Utica Shale and DJ Basin assets late in 2017 to shore up the balance sheet and acquire a nice acreage block in the Delaware Basin.
> They have a strong balance sheet and more than enough liquidity to continue funding a six rig D&C program (4 in EF and 2 in the Permian)
> They are selling their Eagle Ford oil at ~$5/bbl premium to WTI. There are no pipeline takeaway capacity issues in the EF.
> Double digit production growth is locked in with 17% to 18% YOY growth expected in 2019
> They have over a decade of low-risk high-return drilling locations
> Operating cash flow per share s/b $7.00 to $8.00 in 2019 and fund most of their D&C capex budget. If WTI rebounds to $60/bbl they should be generating free cash flow from operations.