Energy Prospectus

Carrizo Oil & Gas (CRZO): An updated profile and forecast model for CRZO has been posted under the Sweet 16 Tab. We are expecting a significant increase in liquids production from CRZO this year.

Carrizo is closing an asset sale this month that shores up the balance sheet. More than 80% of the company's revenues will be from the sales of liquids by Q4.

Wall Street considers CRZO a "gasser". As their image changes, the share price should move toward my Fair Value esimate.

TPH comments on CRZO below.

Carrizo Oil & Gas (CRZO – $27.53 – B) – Fundamentals improve rapidly in 2012/2013 as EV/EBITDA
contracts from 10x in 2011 to 3x in 2013 with cash flow per debt-adjusted share doubling each year on
Eagle Ford, Niobrara, North Sea oil growth. We expect top-tier improvement in cash margins and ROCE
(10% in 2010 goes to 26% average 2013-2015) and acceleration of production growth per debt-adjusted
share (+13% y/y in 2010 goes to average +29% 2013-2015). Main hang-up on stock is liquidity overhang –
expect CRZO to address this in 2012 with asset sales (Barnett/Niobrara).