highlights----
Carrizo Oil & Gas, Inc. Announces Record Oil Production, Revenue, and EBITDA in Third Quarter 2012 Financial Results
Press Release: Carrizo Oil & Gas, Inc.
HOUSTON, TX--(Marketwire - Nov 6, 2012) - Carrizo Oil & Gas, Inc. ( NASDAQ : CRZO ) today announced the Company's record financial results for the third quarter of 2012, which included the following highlights:
Results for the third quarter of 2012-
•Record Oil Production of 8,652 Bbls/d, a 14% sequential increase over the second quarter of 2012 and a 257% increase over the third quarter of 2011
•Natural Gas and NGL Production of 101,576 Mcfe/d
•Total Production of 2,354 Mboe, or 25,587 Boe/d
•Record Oil Revenue of $76.9 million, amounting to 80% of total revenue, a 12% sequential increase over the second quarter of 2012 and a 286% increase over the third quarter of 2011
•Record Revenue of $96.2 million, or adjusted revenue of $105.9 million, including the impact of realized hedges, a 15% sequential increase over the second quarter of 2012
•Net Loss of $0.9 million, $0.02 per diluted share, primarily attributable to a $24.7 million unrealized loss on derivatives, or Adjusted Net Income, (as defined below) of $17.8 million, $0.44 per diluted share
•Record EBITDA, (as defined below) of $86.5 million, a 25% sequential increase over the second quarter of 2012 and a 108% increase over the third quarter of 2011
complete report here---------
http://finance.yahoo.com/news/carrizo-o ... 00405.html
CRZO reports
Re: CRZO reports
ok, so what's negative in this report? crzo trading down 45c as i write this.
Re: CRZO reports
Good news from Carrizo. Production came in above my forecast. I will be updating CRZO and all of the Sweet 16 forecast models this week.
BTW I think ROSE will have an impressive 3rd quarter.
BTW I think ROSE will have an impressive 3rd quarter.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CRZO reports
For GAAP accounting CRZO reported a loss of $0.02/share. It was caused by a higher DD&A rate and a large mark-to-market adjustment on their hedges. Both are non-cash accounting adjustments. The DD&A rate should go down in Q4 and 2013 as a result of Eagle Ford proven reserve additions. This is yet one more prime example of how confusing the GAAP accounting rules are for E&P companies. FOCUS ON CASH FLOW PER SHARE & PRODUCTION GROWTH. Those are the real keys for E&P companies.
I do find the way CRZO reports quarterly results very confusing. Much different then most E&P companies do it.
"Depreciation, depletion and amortization ("DD&A") expense for the third quarter of 2012 increased $26.2 million to $46.5 million ($19.76 per Boe) from the DD&A expense for the third quarter of 2011 of $20.3 million ($10.84 per Boe). The $26.2 million increase in DD&A is attributable to both the increase in production and an increase in the DD&A rate per Boe. The increase in the DD&A rate per Boe is largely due to the impact of the significant decrease in natural gas reserves in the Barnett Shale as result of the Atlas sale as well as the significant increase in crude oil reserves in the Eagle Ford Shale that were added in 2011 and 2012, which have a higher finding cost per Boe than our natural gas reserves."
I do find the way CRZO reports quarterly results very confusing. Much different then most E&P companies do it.
"Depreciation, depletion and amortization ("DD&A") expense for the third quarter of 2012 increased $26.2 million to $46.5 million ($19.76 per Boe) from the DD&A expense for the third quarter of 2011 of $20.3 million ($10.84 per Boe). The $26.2 million increase in DD&A is attributable to both the increase in production and an increase in the DD&A rate per Boe. The increase in the DD&A rate per Boe is largely due to the impact of the significant decrease in natural gas reserves in the Barnett Shale as result of the Atlas sale as well as the significant increase in crude oil reserves in the Eagle Ford Shale that were added in 2011 and 2012, which have a higher finding cost per Boe than our natural gas reserves."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CRZO reports
Carrizo is "in transition". Read the comments below. When the smoke clears their balance sheet should be very strong, especially if they can close on the sale of their North Sea assets. I remain very bullish on what these guys are doing. - Dan
S.P. "Chip" Johnson, IV, President and CEO of Carrizo, commented on the quarter's results, "We continue to make significant progress in shifting our production mix towards oil and in strengthening our balance sheet. We are very pleased to have exceeded our internal targets and guidance for both production and costs while reducing our capital expenditures incurred in the quarter. Not only did our oil production set another record, averaging over 8,600 barrels per day, our total revenue grew over 80% from the same quarter last year. Our operations are becoming increasingly efficient; our EBITDA for the quarter was over $36.70 per Boe of production, reflecting the effect of our improvement in costs per unit of production and the benefit of our oilier production mix. We believe these metrics should compare very favorably to our peer group and represent our success in growing our production while continuing to hold our costs down.
"We announced a number of transactions over the last two months, all of which bolstered our liquidity: In early September, we issued $300 million of 7.5% coupon notes due in 2020, and during October we announced over $172 million in cash and drilling carries from (1) the sale of our legacy onshore Gulf Coast properties, (2) the sale of a portion of our Utica acreage, and (3) the entry into two joint ventures covering our position in the Niobrara. We paid off the outstanding balance on our revolver late in the third quarter and currently have approximately $70 million in cash which should cover a significant portion of our expected fourth quarter spending before any contribution from operating cash flow. Our activity forecast for the fourth quarter is to continue at the same pace as the third quarter; drilling with three rigs in the Eagle Ford Shale, one rig in the Marcellus Shale in northern Pennsylvania, and one rig in the Niobrara with plans to add another Niobrara rig early in the first quarter of next year.
"The Eagle Ford Shale continues to be the focus of our investing; we have recently added approximately 2,000 tuck-in acres in La Salle County, bringing our total to approximately 48,000 net acres. In addition, we have finalized our plans to drill our first Pearsall Shale test to spud later this month on one of our acreage blocks in southern Frio County. In the last five days, ten of our fourteen drilled and completed wells in the Marcellus Shale of Wyoming County, Pennsylvania have been brought on line. Natural gas production from the ten wells is approximately 50 MMcf/day gross, 15 MMcf/day net while cleaning up and is flowing north on the new southern Laser Pipeline to an interconnect with the Tennessee Interstate gas transmission line. The remaining four wells are expected to come on line at the end of November.
"Our effort to sell our interest in the Huntington Development Project in the U.K. North Sea is proceeding, with the potential buyer finalizing the completion of the necessary financing."
S.P. "Chip" Johnson, IV, President and CEO of Carrizo, commented on the quarter's results, "We continue to make significant progress in shifting our production mix towards oil and in strengthening our balance sheet. We are very pleased to have exceeded our internal targets and guidance for both production and costs while reducing our capital expenditures incurred in the quarter. Not only did our oil production set another record, averaging over 8,600 barrels per day, our total revenue grew over 80% from the same quarter last year. Our operations are becoming increasingly efficient; our EBITDA for the quarter was over $36.70 per Boe of production, reflecting the effect of our improvement in costs per unit of production and the benefit of our oilier production mix. We believe these metrics should compare very favorably to our peer group and represent our success in growing our production while continuing to hold our costs down.
"We announced a number of transactions over the last two months, all of which bolstered our liquidity: In early September, we issued $300 million of 7.5% coupon notes due in 2020, and during October we announced over $172 million in cash and drilling carries from (1) the sale of our legacy onshore Gulf Coast properties, (2) the sale of a portion of our Utica acreage, and (3) the entry into two joint ventures covering our position in the Niobrara. We paid off the outstanding balance on our revolver late in the third quarter and currently have approximately $70 million in cash which should cover a significant portion of our expected fourth quarter spending before any contribution from operating cash flow. Our activity forecast for the fourth quarter is to continue at the same pace as the third quarter; drilling with three rigs in the Eagle Ford Shale, one rig in the Marcellus Shale in northern Pennsylvania, and one rig in the Niobrara with plans to add another Niobrara rig early in the first quarter of next year.
"The Eagle Ford Shale continues to be the focus of our investing; we have recently added approximately 2,000 tuck-in acres in La Salle County, bringing our total to approximately 48,000 net acres. In addition, we have finalized our plans to drill our first Pearsall Shale test to spud later this month on one of our acreage blocks in southern Frio County. In the last five days, ten of our fourteen drilled and completed wells in the Marcellus Shale of Wyoming County, Pennsylvania have been brought on line. Natural gas production from the ten wells is approximately 50 MMcf/day gross, 15 MMcf/day net while cleaning up and is flowing north on the new southern Laser Pipeline to an interconnect with the Tennessee Interstate gas transmission line. The remaining four wells are expected to come on line at the end of November.
"Our effort to sell our interest in the Huntington Development Project in the U.K. North Sea is proceeding, with the potential buyer finalizing the completion of the necessary financing."
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CRZO reports
Sweet 16 Growth Portfolio: An updated Net Income & Cash Flow Forecast model for Carrizo Oil & Gas (CRZO) has been posted under the Sweet 16 Tab. My updated Fair Value Estimate can be found at the bottom of the spreadsheet.
First Call's Price Target = $34.53
The sale of their North Sea assets late this year should draw a lot of attention to CRZO.
First Call's Price Target = $34.53
The sale of their North Sea assets late this year should draw a lot of attention to CRZO.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: CRZO reports
Analyst Actions: Carrizo Oil & Gas Target Deflated By $4 At Credit Suisse; Maintains Neutral Rating; Shares Slide 3% 11/14 11:40 AM
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12:40 PM EST, 11/14/2012 (MidnightTrader) -- Analysts at Credit Suisse have maintained a Neutral rating on Carrizo Oil & Gas. Inc. (CRZO:$20.74,00$-0.49,00-2.31%) , but have lowered the price target on shares of from $26 to $22. The firm also lowered its estimates on the energy company.
"Although CRZO has not presented its revised 2012 capital budget, we now estimate the company spending ~$700MM in 2012," said Credit Suisse, adding that it lowered the target price due to an increase in net debt. "We revise our 2012, 13, 14 EPS estimates by -15%,-13%, -9% to $1.57, $3.84, $5.56 on updated guidance and commentary."
CRZO trades in a 52-week range of $19.03 - $31.62.
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12:40 PM EST, 11/14/2012 (MidnightTrader) -- Analysts at Credit Suisse have maintained a Neutral rating on Carrizo Oil & Gas. Inc. (CRZO:$20.74,00$-0.49,00-2.31%) , but have lowered the price target on shares of from $26 to $22. The firm also lowered its estimates on the energy company.
"Although CRZO has not presented its revised 2012 capital budget, we now estimate the company spending ~$700MM in 2012," said Credit Suisse, adding that it lowered the target price due to an increase in net debt. "We revise our 2012, 13, 14 EPS estimates by -15%,-13%, -9% to $1.57, $3.84, $5.56 on updated guidance and commentary."
CRZO trades in a 52-week range of $19.03 - $31.62.