crzo/sm thoughts?
Re: crzo/sm thoughts?
(Bloomberg) -- Carrizo Oil & Gas Inc. is weighing a tie-up with U.S. energy explorer SM Energy Co., according to people familiar with the matter.
Carrizo has held early-stage discussions with SM about a potential combination, the people said, asking not to not be identified because the information is private. There’s no certainty the deliberations will lead to a transaction, the people said.
Shares of SM, based in Denver, climbed about 2.5 percent to $16.09 in at 10:20 a.m. in New York, giving it a market value of more than $1.8 billion. Carrizo rose 4.9 percent to $12.19 for a market valuation of $1.1 billion.
Carrizo has held early-stage discussions with SM about a potential combination, the people said, asking not to not be identified because the information is private. There’s no certainty the deliberations will lead to a transaction, the people said.
Shares of SM, based in Denver, climbed about 2.5 percent to $16.09 in at 10:20 a.m. in New York, giving it a market value of more than $1.8 billion. Carrizo rose 4.9 percent to $12.19 for a market valuation of $1.1 billion.
Re: crzo/sm thoughts?
This merger does make sense because they both have core areas in the Eagle Ford and Permian Basin. I have tracked and modeled these two for over five years. I have a HIGH level of confidence in my forecast models for these two (both former Sweet 16 companies).
Q1 2019 production estimates:
CRZO: 61,800 Boepd (39,500 BOPD)
SM: 118,900 Boepd (53,000 BOPD)
They both have a lot of HBP leasehold (i.e. - "running room") and the combination would have a clear path to production of 200,000 Boepd by year-end 2019. A company of this size would draw a lot more attention from the Wall Street Gang.
Read the Bloomberg article here: https://finance.yahoo.com/news/carrizo- ... 49924.html
Q1 2019 production estimates:
CRZO: 61,800 Boepd (39,500 BOPD)
SM: 118,900 Boepd (53,000 BOPD)
They both have a lot of HBP leasehold (i.e. - "running room") and the combination would have a clear path to production of 200,000 Boepd by year-end 2019. A company of this size would draw a lot more attention from the Wall Street Gang.
Read the Bloomberg article here: https://finance.yahoo.com/news/carrizo- ... 49924.html
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group