Energy Prospectus

Carrizo Oil & Gas (CRZO) is now officially saying that oil production should be up more than 40% from 2013 to 2014. That will take it to 16,000 BOPD.

"Carrizo is increasing its full-year 2013 drilling and completion capital expenditure plan by $20 million to $550-$560 million in order to increase completion activity in the Eagle Ford Shale; the Company now plans to complete 41 net Eagle Ford Shale wells in 2013, up from 34 net wells previously. The additional completions are expected to be back-end loaded in the fourth quarter, and as a result, they are not expected to have a significant impact on 2013 production."

CRZO is very close to being promoted to the Sweet 16. I will take a very hard look at it later this month.

I am working on my forecast model now and should have it posted to the website this evening.

"For the fourth quarter 2013, Carrizo expects oil production to be 12,600-13,000 Bbls/d and natural gas and NGL production to be 68-75 MMcfe/d. Additionally, the Company is providing initial 2014 crude oil production growth guidance of at least 40%".

Hedges in place to reduce commodity price risk on CRZO.

Carrizo currently has hedges in place for nearly 80% of estimated crude oil production for the fourth quarter of 2013 (based on the midpoint of guidance). For the fourth quarter, Carrizo has hedged 10,100 Bbls/d of crude oil at a weighted average floor price of $90.28/Bbl (comprised of 4,000 Bbls/d of swaps at a $94.15 average price and 6,100 Bbls/d of collars at an $87.75 average floor price). For 2014, the Company has hedged approximately 10,500 Bbls/d of crude oil at a weighted average floor price of $90.96/Bbl (comprised of 6,996 Bbls/d of swaps at a $92.51 average price and 3,500 Bbls/d of collars at an average floor price of $87.85).

Carrizo also has hedges in place for over 75% of estimated natural gas and NGL production for the fourth quarter of 2013 (based on the midpoint of guidance). For the fourth quarter, Carrizo has swaps on 55,000 MMBtu/d at a weighted average price of $4.58/MMBtu. For 2014, the Company has swaps on 40,000 MMBtu/d at a weighted average price of $4.07/MMBtu and also has sold a call option on 10,000 MMBtu/d at $5.50/MMBtu.

Carrizo Oil & Gas (CRZO): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.

CRZO is in our Small-Cap Growth Portfolio.

Now that we have production guidance from the company, I have increased my Fair Value Estimate $8.00/share to $56.00/share. This valuations includes the dilution from the common stock offering they announced yesterday.