Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today
announced the Company's financial results for the fourth quarter of
2014 and provided an operational update, which included the
following highlights:
- Record Oil Production of 22,130 Bbls/d, 70% above the
fourth quarter of 2013
- Record Total Production of 37,696 Boe/d, 52% above the
fourth quarter of 2013
- Oil Revenue of $140.9 million, representing 86% of
total revenue, and 28% above the fourth quarter of
2013
- Total Revenue of $163.3 million, 26% above the fourth
quarter of 2013
- Income From Continuing Operations of $129.5 million, or
$2.79 per diluted share, and Adjusted Net Income (as defined below)
of $14.8 million, or $0.32 per diluted share
- Adjusted EBITDA (as defined below) of $128.5 million,
27% above the fourth quarter of 2013
- Delivered 513% reserve replacement from all sources
with a drill-bit F&D cost of $15.73 per Boe
- Reiterating 2015 crude oil production growth target of
17%
Carrizo reported fourth quarter of 2014 income from continuing
operations of $129.5 million, or $2.84 and $2.79 per basic and
diluted share, respectively, as compared to a loss from continuing
operations of $22.2 million, or ($0.52) per basic and diluted share
in the fourth quarter of 2013. The income from continuing
operations for the fourth quarter of 2014 includes certain items
typically excluded from published estimates by the investment
community. Adjusted net income, which excludes the impact of these
items as described in the statements of operations included below,
for the fourth quarter of 2014 was $14.8 million, or $0.32 per
basic and diluted share compared to $16.5 million, or $0.39 and
$0.38 per basic and diluted share, respectively, in the fourth
quarter of 2013.
For the fourth quarter of 2014, adjusted earnings before
interest, income taxes, depreciation, and depletion and
amortization, as described in the statements of operations included
below ("Adjusted EBITDA"), was $128.5 million, an increase of 27%
from the prior year quarter.
Production volumes during the fourth quarter of 2014 were 3,468
MBoe, or 37,696 Boe/d, an increase of 52% versus the fourth quarter
of 2013 and 12% versus the prior quarter. The year-over-year
production growth was driven primarily by strong results from the
Company's Eagle Ford Shale assets. Oil production during the fourth
quarter of 2014 averaged 22,130 Bbls/d, an increase of 70% versus
the fourth quarter of 2013 and 11% versus the prior quarter;
natural gas and NGL production averaged 93,413 Mcfe/d during the
fourth quarter of 2014. Fourth quarter of 2014 production exceeded
the high end of Company guidance for both oil and natural gas and
NGLs due primarily to strong performance from the Company's Eagle
Ford Shale assets and a lower-than-expected amount of voluntary
production curtailments from its Marcellus Shale assets.
Drilling and completion capital expenditures for the fourth
quarter of 2014 were $186.9 million. Approximately 63% of the
fourth quarter drilling and completion spending was in the Eagle
Ford Shale. Land and seismic expenditures during the quarter were
$19.2 million. For 2015, Carrizo's drilling and completion capital
expenditure plan is unchanged at $450.0-$470.0 million. The
Company's 2015 land and seismic capital expenditure plan is also
unchanged at $35.0 million; Carrizo currently expects to allocate
the majority of this capital to bolt-on acreage acquisitions in the
Eagle Ford Shale.
Carrizo is maintaining its 2015 oil production guidance of
21,800-22,400 Bbls/d. Using the midpoint of this range, the
Company's 2015 oil production growth guidance equates to 17%. For
natural gas and NGLs, Carrizo is also maintaining its 2015 guidance
of 65-75 MMcfe/d. For the first quarter of 2015, Carrizo expects
oil production to be 20,300-20,700 Bbls/d and natural gas and NGL
production to be 63-73 MMcfe/d. A summary of Carrizo's production
and cost guidance is provided in the attached tables.
S.P. "Chip" Johnson, IV, Carrizo's President and CEO, commented
on the results, "This was another strong quarter for Carrizo as we
once again delivered crude oil production growth that exceeded our
forecast. The continued outperformance versus our forecast is a
testament not only to the quality of our assets but also to the
quality of our technical and operational team.
"While 2014 was a record year for Carrizo as we delivered crude
oil production growth of approximately 63%, this year is shaping up
to be a more challenging environment given the sell-off in
commodity prices. However, with our combination of high-return
assets, operational flexibility, and a strong balance sheet, we
believe we are well positioned to manage the downturn and take
advantage of quality opportunities that may arise.
"We currently have a deep inventory of drilling locations that
are economical even at today's depressed commodity prices, with
more than half of our inventory being economical below $50/Bbl oil.
And in the Eagle Ford Shale, where we plan to spend most of our
capital this year, over 80% of the more than 930 net wells we have
in inventory are expected to be economical below $44/Bbl oil.
Despite the low breakeven cost of our assets, we think the prudent
thing to do in this environment is to downshift our production
growth until commodity prices recover. Our 2015 drilling and
completion plan currently calls for us to spend approximately 35%
less capital than last year and hold our oil production roughly
flat with the fourth quarter of 2014. This should maintain our
strong balance sheet and also position us to quickly resume rapid
oil production growth once commodity prices recover.
"We remain focused on cost savings in the current environment,
and continue to make good progress on this front. Currently, we
have achieved drilling cost reductions of approximately 8% and
completion cost reductions of approximately 19% from late 2014
levels, which puts us ahead of the projected cost savings pace we
outlined at our recent analyst conference."
2014 Proved Reserves
The Company's proved reserves as of December 31, 2014 were 151.1
MMBoe, a 49% increase over year-end 2013, including a record 100.7
MMBbls of crude oil, a 62% increase over year-end 2013. The
Company's PV-10 value was a record $3.3 billion as of December 31,
2014.
The table below summarizes the Company's year-end 2014 proved
reserves and PV-10 by region as determined by the Company's
independent reservoir engineers, Ryder Scott Company, L.P. in
accordance with Securities and Exchange Commission guidelines,
using pricing for the twelve months ended December 31, 2014 based
on the West Texas Intermediate benchmark crude oil price of
$94.99/Bbl and the Henry Hub benchmark natural gas price of
$4.35/MMBtu, before adjustment for differentials.
|
Crude Oil |
NGLs |
Natural Gas |
Total |
PV-10 |
Region |
(MMBbl) |
(MMBbl) |
(Bcf) |
(MMBoe) |
($MM) |
Eagle Ford |
96.1 |
12.8 |
81.8 |
122.5 |
$2,967 |
Niobrara |
4.4 |
0.6 |
3.8 |
5.6 |
131 |
Marcellus |
— |
— |
133.5 |
22.3 |
145 |
Utica and other |
0.2 |
0.1 |
1.9 |
0.7 |
18 |
Total |
100.7 |
13.5 |
221.0 |
151.1 |
$3,261 |
The table below summarizes the changes in the Company's proved
reserves during 2014.
|
Crude Oil |
NGLs |
Natural Gas |
Total |
|
(MMBbl) |
(MMBbl) |
(Bcf) |
(MMBoe) |
Proved reserves - December 31,
2013 |
62.0 |
8.2 |
188.0 |
101.5 |
Revisions of previous estimates |
3.1 |
1.2 |
18.9 |
7.6 |
Extensions and discoveries |
29.8 |
3.7 |
30.3 |
38.5 |
Purchases of reserves in place |
12.7 |
1.3 |
8.7 |
15.5 |
Production |
(6.9) |
(0.9) |
(24.9) |
(12.0) |
Proved reserves - December 31,
2014 |
100.7 |
13.5 |
221.0 |
151.1 |
Proved developed - December 31,
2014 |
35.2 |
5.3 |
149.7 |
65.5 |
The following table summarizes the Company's costs incurred in
oil and gas property acquisition, exploration and development
activities for the year ended December 31, 2014.
|
Total |
|
($MM) |
Property acquisition costs |
|
Proved property acquisition costs |
$183.6 |
Unproved property acquisition costs |
215.0 |
Total property acquisition costs |
398.6 |
Exploration costs |
195.0 |
Development costs |
530.3 |
Total costs incurred
(1) |
$1,123.9 |
|
|
(1) Total costs incurred
includes capitalized general and administrative expense and asset
retirement obligations and excludes capitalized interest. |
2014 highlights include:
- Total reserve replacement from all sources was 513% at an all
sources F&D cost of $18.25 per Boe
- Excluding acquisitions, reserve replacement was 384% at a
drill-bit F&D cost of $15.73 per Boe
- Crude oil reserve replacement from all sources was 661%
- Crude oil represents 67% of total proved reserves and 88% of
the total PV-10 value at December 31, 2014
- Proved developed reserves increased to 65.5 MMBoe at year-end
2014, a 68% increase from the 38.9 MMBoe at year-end 2013
- 43% of total proved reserves at December 31, 2014 are
classified as proved developed, compared to 38% at year-end
2013
- Eagle Ford reserves increased to 122.5 MMBoe, a 66% increase
from the 73.9 MMBoe at year-end 2013
Operational Update
In the Eagle Ford Shale, Carrizo drilled 21 gross (19.1 net)
operated wells during the fourth quarter, and completed 12 gross
(9.9 net) wells. Crude oil production from the play rose to
approximately 19,700 Bbls/d for the quarter, an increase of roughly
11% versus the prior quarter. At the end of the quarter, Carrizo
had 25 gross (22.5 net) operated Eagle Ford Shale wells waiting on
completion, equating to net crude oil production potential of more
than 8,400 Bbls/d. The Company is currently running one rig in the
Eagle Ford Shale while it awaits delivery of two new build
Generation 3 rigs in March. Once these rigs have been delivered,
the Company expects to run a three-rig program in the Eagle Ford
Shale for the balance of the year. Carrizo currently expects to
drill approximately 61 gross (54 net) operated wells in the play
during 2015.
Carrizo is currently developing its Eagle Ford Shale acreage on
a combination of 330 ft. and 500 ft. spacing. As highlighted in the
recent analyst conference presentation, Carrizo continues to be
pleased with the performance of its wells drilled on 330 ft.
spacing as it has yet to see any interference between the wells. Of
the Company's year-end 2014 drilling inventory of more than 930 net
locations, about 65% are 330-ft.-spaced locations. Carrizo is
testing 330 ft. spacing on its remaining acreage, and currently has
four two-well pads online in these areas with two additional pads
scheduled to be brought online in the first half of the year. The
Company plans to provide an update on these wells later this year
once it has more production data. Downspacing to 330 ft. on
the Company's remaining Eagle Ford Shale acreage would add another
approximately 150 net locations to the Company's inventory. Carrizo
is also testing a stagger stack concept in the Eagle Ford Shale
during 2015, which may allow it to further reduce effective lateral
spacing in the lower Eagle Ford below 330 ft.
Carrizo has continued to add bolt-on acres to its position in
the Eagle Ford Shale, with the added acreage located within the
volatile oil window primarily in LaSalle County. The Company's
position in the trend now stands at approximately 82,000 net acres.
This represents an increase of approximately 1,000 net acres since
year-end 2014. Carrizo continues to lease acreage in the core
volatile oil window of the Eagle Ford Shale.
In the Utica Shale, Carrizo drilled 3 gross (2.2 net) operated
wells during the fourth quarter, and completed 1 gross (0.5 net)
well. Condensate production during the quarter was approximately
150 Bbls/d, and was entirely attributable to non-operated wells.
Due to the downturn in commodity prices, the Company elected to
release the rig it was operating in the Utica Shale earlier this
quarter. At the end of the fourth quarter, the Company had two
wells waiting on completion on its Wagler pad in northern Guernsey
County, Ohio. Both wells have since been completed and are
currently resting. Carrizo operates the Wagler wells with an 83%
working interest. While Carrizo does not currently plan to drill or
complete any additional Utica Shale wells this year, it is laying
the groundwork to ramp activity back up in 2016 in the event of an
improved commodity price environment.
The Company continues to be encouraged by the performance of its
second operated well in the Utica Shale, the Brown 1H in Guernsey
County. The well has been flowing for approximately 28 days and has
averaged 478 Bbl/d of condensate. The well has recently been
flowing at a stabilized rate of more than 525 Bbl/d of condensate
and 1.1 MMcfe/d of rich natural gas on a 22/64 in. adjustable
choke. Carrizo operates the Brown 1H well with a 50% working
interest.
In the Niobrara Formation, Carrizo drilled 8 gross (4.2 net)
operated wells during the fourth quarter, and completed 5 gross
(1.8 net) wells. Crude oil production from the Niobrara was
approximately 2,300 Bbls/d for the quarter, roughly flat with the
prior quarter. Carrizo is currently operating one rig in the
Niobrara and expects to drill 12 gross (4 net) operated wells
during 2015. The Company also expects to continue to participate
with Whiting and Noble in high-density projects in the play within
its core area.
In the Marcellus Shale, Carrizo did not complete any operated
wells during the fourth quarter. Natural gas production from the
Marcellus was 52.5 MMcf/d in the fourth quarter, up from 44.1
MMcf/d in the prior quarter due to a lower level of voluntary
production curtailments. However, in recent months, local market
prices in Appalachia have weakened significantly. As a result, the
Company expects voluntary curtailments in 2015 to exceed the amount
curtailed in 2014. Due to the voluntary curtailments and
infrastructure limitations, Carrizo continues to produce well below
its productive capacity in the play, which the Company estimates to
be approximately 90 MMcf/d. For 2015, Carrizo expects to have only
a minimal amount of capital allocated to the Marcellus Shale.
Financial Position and Liquidity
As of December 31, 2014, Carrizo had total debt outstanding
of $1,354.4 million and cash and cash equivalents of $10.8 million.
Net Debt to Adjusted EBITDA (as defined by the agreement governing
the revolving credit facility and based on the trailing four
quarters) was 2.3x for the fourth quarter. The borrowing base on
the Company's senior credit facility is currently $800.0 million,
with an elected commitment of $685.0 million, and as of February
20, 2015, Carrizo had $210.0 million drawn on the facility, which
includes the payment of the remaining balance of approximately
$150.0 million for the recent Eagle Ford Minerals acquisition.
Hedging Activity
During the first quarter of 2015, Carrizo entered into
derivative transactions offsetting its existing crude oil hedge
positions covering the periods from March 2015 through December
2016. As a result, the Company has locked in $166.4 million of cash
flows to be received from those crude oil hedges which will be
recognized as revenue and Adjusted EBITDA in the periods the cash
is received. Subsequently, the Company entered into costless
collars for the periods from March 2015 through December 2016 which
will continue to provide the Company with solid downside protection
on 12,200 Bbls/d in 2015 and 4,000 Bbls/d in 2016 of crude oil at
prices below the floor of $50/Bbl yet allow Carrizo to benefit from
an increase in crude oil up to the ceiling of $66.46/Bbl in 2015
and $76.50/Bbl in 2016.
Carrizo currently has hedges in place for approximately 55% of
estimated crude oil production for 2015 (based on the midpoint of
guidance). For the year, the Company has hedged approximately
12,200 Bbls/d of crude oil at a weighted average floor price of
$56.91/Bbl (comprised of 1,697 Bbls/d of swaps at an average price
of $92.98/Bbl and 10,503 Bbls/d of collars with an average floor
price of $50.99/Bbl).
Carrizo also has hedges in place for over 40% of estimated
natural gas and NGL production for 2015 (based on the midpoint of
guidance). For the year, the Company has swaps on approximately
30,000 MMBtu/d at a weighted average price of $4.29/MMBtu. (Please
refer to the attached tables for a detailed summary of the
Company's derivative contracts.)
Conference Call Details
The Company will hold a conference call to discuss 2014 fourth
quarter financial results on Tuesday, February 24, 2015 at 9:00 AM
Central Standard Time. To participate in the call, please dial
(800) 754-1382 (U.S. & Canada) or +1 (212) 231-2932
(Intl./Local) ten minutes before the call is scheduled to begin. A
replay of the call will be available through Tuesday, March 3, 2015
at 10:59 AM Central Standard Time at (800) 633-8284 (U.S.
& Canada) or +1 (402) 977-9140 (Intl./Local). The
reservation number for the replay is 21761654 for U.S., Canadian
and International callers.
A simultaneous webcast of the call may be accessed over the
internet by visiting our website at http://www.carrizo.com,
clicking on "Upcoming Events," and then clicking on "Fourth Quarter
2014 Earnings Call Webcast." To listen, please go to the website in
time to register and install any necessary software. The webcast
will be archived for replay on the Carrizo website for 15 days.
Carrizo Oil & Gas, Inc. is a Houston-based energy company
actively engaged in the exploration, development, and production of
oil and gas from resource plays located in the United States. Our
current operations are principally focused in proven, producing oil
and gas plays primarily in the Eagle Ford Shale in South Texas, the
Utica Shale in Ohio, the Niobrara Formation in Colorado, and the
Marcellus Shale in Pennsylvania.
Non-GAAP Measures
This release makes reference to adjusted EBITDA, adjusted net
income, adjusted total revenues, discretionary cash flows from
continuing operations, PV-10 value, all sources and drill-bit
F&D cost, reserve replacement from all sources and reserve
replacement excluding acquisitions, all of which are non-GAAP
measures.
The following table reconciles the standardized measure of
future net cash flows, the most directly comparable GAAP measure,
to the pre-tax PV-10 value of the Company's proved reserves as of
December 31, 2014.
Reconciliation of Standardized
Measure of Discounted Future Net Cash Flows (GAAP) to PV-10 Value
(Non-GAAP) |
As of December 31, 2014 (in
millions) |
Standardized measure of discounted future net
cash flows (GAAP) |
$2,555 |
Add: present value of future income taxes
discounted at 10% per annum |
706 |
PV-10 value (Non-GAAP) |
$3,261 |
Statements in this release that are not historical facts,
including but not limited to those related to capital requirements,
capital expenditure and other spending plans, economical basis of
wells, rig program, effect of transactions offsetting hedge
positions, production, average well returns, effects of
transactions, targeted ratios and other metrics, the ability to
acquire additional acreage, midstream infrastructure availability
and capacity, timing and levels of production, downspacing, crude
oil production potential and growth, oil and gas prices,
downspacing results, drilling and completion activities, drilling
inventory, including timing thereof, production mix, development
plans, growth, midstream matters, use of proceeds, hedging
activity, the Company's or management's intentions, beliefs,
expectations, hopes, projections, assessment of risks, estimations,
plans or predictions for the future, results of the Company's
strategies, expected income tax rates and other statements that are
not historical facts are forward-looking statements that are based
on current expectations. Although the Company believes that its
expectations are based on reasonable assumptions, it can give no
assurance that these expectations will prove correct. Important
factors that could cause actual results to differ materially from
those in the forward-looking statements include assumptions
regarding well costs, estimated recoveries, pricing and other
factors affecting average well returns, results of wells and
production testing, failure of actual production to meet
expectations, performance of rig operators, availability of
gathering systems, actions by governmental authorities, joint
venture partners, industry partners, lenders and other third
parties, actions by purchasers of properties, satisfaction of
closing conditions, integration of acquisitions, market and other
conditions, availability of well connects, capital needs and uses,
commodity price changes, effects of the global economy on
exploration activity, results of and dependence on exploratory
drilling activities, operating risks, right-of-way and other land
issues, availability of capital and equipment, weather, and other
risks described in the Company's Form 10-K for the year ended
December 31, 2013 and its other filings with the U.S. Securities
and Exchange Commission. There can be no assurance any transaction
described in this press release will occur on the terms or timing
described, or at all.
CARRIZO OIL & GAS,
INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31, |
Year Ended
December 31, |
|
2014 |
2013 |
2014 |
2013 |
Revenues |
|
|
|
|
Crude oil |
$140,882 |
$110,227 |
$610,483 |
$421,311 |
Natural gas liquids |
5,381 |
3,998 |
25,050 |
15,530 |
Natural gas |
17,012 |
15,503 |
74,654 |
83,341 |
Total revenues |
163,275 |
129,728 |
710,187 |
520,182 |
Net cash from derivative settlements |
11,970 |
2,208 |
(13,529) |
12,491 |
Adjusted total revenues |
175,245 |
131,936 |
696,658 |
532,673 |
Costs and Expenses |
|
|
|
|
Lease operating |
23,155 |
11,902 |
74,157 |
46,828 |
Production taxes |
6,878 |
5,124 |
29,544 |
19,811 |
Ad valorem taxes |
2,881 |
1,853 |
8,450 |
8,701 |
General and administrative |
13,879 |
11,735 |
51,151 |
45,119 |
Total costs and expenses |
46,793 |
30,614 |
163,302 |
120,459 |
Adjusted EBITDA, as
defined |
$128,452 |
$101,322 |
$533,356 |
$412,214 |
Adjusted EBITDA per common share-Basic |
$2.81 |
$2.36 |
$11.76 |
$10.11 |
Adjusted EBITDA per common share-Diluted |
$2.77 |
$2.32 |
$11.55 |
$9.97 |
|
|
|
|
|
Other items of expense included in
Adjusted Net Income, as defined |
|
|
|
|
Depreciation, depletion and
amortization |
($88,471) |
($62,704) |
($317,383) |
($214,291) |
Interest expense, net |
(16,614) |
(12,322) |
(53,171) |
(54,689) |
Adjusted income before income taxes |
23,367 |
26,296 |
162,802 |
143,234 |
Adjusted income tax expense |
(8,529) |
(9,756) |
(59,423) |
(53,140) |
Adjusted Net Income, as
defined |
$14,838 |
$16,540 |
$103,379 |
$90,094 |
Adjusted net income per common
share-Basic |
$0.32 |
$0.39 |
$2.28 |
$2.21 |
Adjusted net income per common
share-Diluted |
$0.32 |
$0.38 |
$2.24 |
$2.18 |
|
|
|
|
|
Other items of income (expense)
included in Income From Continuing Operations |
|
|
|
|
Non-cash gain (loss) on
derivatives, net |
$178,784 |
($4,139) |
$215,436 |
($30,908) |
Stock-based compensation (expense)
benefit, net |
2,331 |
(10,035) |
(25,878) |
(29,373) |
Other income (expense), net |
(614) |
(1,910) |
(2,150) |
(2,815) |
Loss on sale of Barnett Shale
properties |
— |
(45,377) |
— |
(45,377) |
Income (Loss) From Continuing
Operations Before Income Taxes |
203,868 |
(35,165) |
350,210 |
34,761 |
Income tax (expense) benefit |
(74,417) |
12,950 |
(127,927) |
(12,903) |
Income (Loss) From Continuing
Operations |
$129,451 |
($22,215) |
$222,283 |
$21,858 |
Income (Loss) From Discontinued
Operations, Net of Income Taxes |
4,808 |
(1,774) |
4,060 |
21,825 |
Net Income (Loss) |
$134,259 |
($23,989) |
$226,343 |
$43,683 |
|
|
|
|
|
Net Income (Loss) Per Common Share -
Basic |
|
|
|
|
Income (loss) from continuing operations |
$2.84 |
($0.52) |
$4.90 |
$0.54 |
Income (loss) from discontinued operations,
net of income taxes |
0.10 |
(0.04) |
0.09 |
0.53 |
Net income (loss) |
$2.94 |
($0.56) |
$4.99 |
$1.07 |
|
|
|
|
|
Net Income (Loss) Per Common Share -
Diluted |
|
|
|
|
Income (loss) from continuing operations |
$2.79 |
($0.52) |
$4.81 |
$0.53 |
Income (loss) from discontinued operations,
net of income taxes |
0.10 |
(0.04) |
0.09 |
0.53 |
Net income (loss) |
$2.89 |
($0.56) |
$4.90 |
$1.06 |
|
|
|
|
|
Weighted Average Common Shares
Outstanding |
|
|
|
|
Basic |
45,656 |
42,853 |
45,372 |
40,781 |
Diluted |
46,455 |
43,583 |
46,194 |
41,355 |
|
CARRIZO OIL & GAS,
INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(in thousands, except share and
per share data) |
(Unaudited) |
|
|
|
|
December 31,
2014 |
December 31,
2013 |
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$10,838 |
$157,439 |
Accounts receivable, net |
92,946 |
111,195 |
Derivative assets |
171,101 |
— |
Deferred income taxes |
— |
4,201 |
Other current assets |
3,736 |
6,926 |
Total current assets |
278,621 |
279,761 |
Property and equipment |
|
|
Oil and gas properties, full cost
method |
|
|
Proved properties, net |
2,086,727 |
1,408,484 |
Unproved properties, not being
amortized |
535,197 |
377,437 |
Other property and equipment,
net |
7,329 |
8,294 |
Total property and equipment,
net |
2,629,253 |
1,794,215 |
Derivative assets |
43,684 |
9,284 |
Debt issuance costs |
25,403 |
22,899 |
Other assets |
4,515 |
4,601 |
Total Assets |
$2,981,476 |
$2,110,760 |
|
|
|
Liabilities and Shareholders'
Equity |
|
|
Current liabilities |
|
|
Accounts payable |
$106,819 |
$57,146 |
Revenues and royalties payable |
66,954 |
79,136 |
Accrued capital expenditures |
106,149 |
87,031 |
Accrued interest |
21,149 |
17,430 |
Advances for joint operations |
8,814 |
19,967 |
Liabilities of discontinued
operations |
4,405 |
10,936 |
Deferred income taxes |
61,258 |
— |
Other current liabilities |
48,756 |
51,189 |
Total current liabilities |
424,304 |
322,835 |
Long-term debt |
1,351,346 |
900,247 |
Liabilities of discontinued
operations |
8,394 |
17,336 |
Deferred income taxes |
77,349 |
16,856 |
Asset retirement obligations |
12,187 |
6,576 |
Other liabilities |
4,455 |
5,306 |
Total liabilities |
1,878,035 |
1,269,156 |
Commitments and contingencies |
|
|
Shareholders' equity |
|
|
Common stock, $0.01 par value,
90,000,000 shares authorized; 46,127,924 issued and
outstanding as of December 31, 2014 and 45,468,675 issued and
outstanding as of December 31, 2013 |
461 |
455 |
Additional paid-in
capital |
915,436 |
879,948 |
Retained earnings (Accumulated
deficit) |
187,544 |
(38,799) |
Total shareholders' equity |
1,103,441 |
841,604 |
Total Liabilities and
Shareholders' Equity |
$2,981,476 |
$2,110,760 |
|
CARRIZO OIL & GAS,
INC. |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS FROM OPERATING ACTIVITIES |
(in thousands) |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Year Ended
December 31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Cash Flows From Operating
Activities |
|
|
|
|
Net income (loss) |
$134,259 |
($23,989) |
$226,343 |
$43,683 |
(Income) loss from discontinued operations,
net of income taxes |
(4,808) |
1,774 |
(4,060) |
(21,825) |
Adjustments to reconcile income (loss) from
continuing operations to net cash provided by operating activities
from continuing operations |
|
|
|
|
Depreciation, depletion and
amortization |
88,471 |
62,704 |
317,383 |
214,291 |
Non-cash (gain) loss on
derivatives, net |
(178,784) |
5,102 |
(215,436) |
30,908 |
Loss on sale of oil and gas
properties |
— |
45,377 |
— |
45,377 |
Stock-based compensation, net |
(2,331) |
10,035 |
25,878 |
29,373 |
Deferred income taxes |
74,417 |
(14,919) |
127,927 |
10,934 |
Non-cash interest expense, net |
2,251 |
715 |
4,272 |
3,932 |
Other, net |
4,084 |
1,915 |
2,379 |
3,704 |
Changes in operating assets and
liabilities-- |
|
|
|
|
Accounts receivable |
433 |
9,647 |
(1,334) |
11,557 |
Accounts payable |
(5,786) |
(25,248) |
27,238 |
13,595 |
Accrued liabilities |
2,277 |
(14,637) |
(3,096) |
(12,588) |
Other, net |
(895) |
(1,255) |
(5,219) |
(5,467) |
Net cash provided by operating
activities from continuing operations |
$113,588 |
$57,221 |
$502,275 |
$367,474 |
Changes in working capital
attributable to operating activities and other non-recurring items,
net |
3,971 |
31,493 |
(16,906) |
(7,097) |
Discretionary cash flows from
continuing operations |
$117,559 |
$88,714 |
$485,369 |
$360,377 |
|
CARRIZO OIL & GAS,
INC. |
PRODUCTION VOLUMES AND
PRICES |
(Unaudited) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Year Ended
December 31, |
|
2014 |
2013 |
2014 |
2013 |
|
|
|
|
|
Total production volumes
-- |
|
|
|
|
Crude oil (MBbls) |
2,036 |
1,199 |
6,906 |
4,231 |
NGLs (MBbls) |
278 |
123 |
926 |
531 |
Natural gas (MMcf) |
6,926 |
5,742 |
24,877 |
31,422 |
Total Natural gas and NGLs (MMcfe) |
8,594 |
6,480 |
30,433 |
34,608 |
Total barrels of oil equivalent
(MBoe) |
3,468 |
2,279 |
11,978 |
9,999 |
|
|
|
|
|
Daily production volumes by product
-- |
|
|
|
|
Crude oil (Bbls/d) |
22,130 |
13,033 |
18,921 |
11,592 |
NGLs (Bbls/d) |
3,022 |
1,337 |
2,537 |
1,455 |
Natural gas (Mcf/d) |
75,283 |
62,413 |
68,156 |
86,088 |
Total Natural gas and NGLs (Mcfe/d) |
93,413 |
70,435 |
83,378 |
94,816 |
Total barrels of oil equivalent
(Boe/d) |
37,696 |
24,772 |
32,816 |
27,395 |
|
|
|
|
|
Daily production volumes by region
(Boe/d) -- |
|
|
|
|
Eagle Ford |
25,220 |
13,949 |
21,131 |
12,628 |
Niobrara |
2,846 |
2,031 |
2,585 |
1,724 |
Barnett |
— |
2,156 |
— |
6,625 |
Marcellus |
8,748 |
6,502 |
8,354 |
6,139 |
Utica and other |
882 |
134 |
746 |
279 |
Total barrels of oil equivalent
(Boe/d) |
37,696 |
24,772 |
32,816 |
27,395 |
|
|
|
|
|
Average realized prices
-- |
|
|
|
|
Crude oil ($ per Bbl) |
$69.20 |
$91.93 |
$88.40 |
$99.58 |
Crude oil ($ per Bbl) -
including impact of derivative settlements |
$74.69 |
$91.21 |
$87.06 |
$98.23 |
NGLs ($ per Bbl) |
$19.36 |
$32.50 |
$27.05 |
$29.25 |
Natural gas ($ per Mcf) |
$2.46 |
$2.70 |
$3.00 |
$2.65 |
Natural gas ($ per Mcf) -
including impact of derivative settlements |
$2.57 |
$3.23 |
$2.83 |
$3.23 |
Natural gas and NGLs ($ per
Mcfe) |
$2.61 |
$3.01 |
$3.28 |
$2.86 |
|
CARRIZO OIL & GAS,
INC. |
COMMODITY DERIVATIVE CONTRACTS
- AS OF FEBRUARY 20, 2015 |
(Unaudited) |
|
|
|
|
|
|
CRUDE OIL DERIVATIVE
CONTRACTS (1) |
|
|
|
|
|
|
Period |
Type of
Contract |
Volume (in
Bbls/d) |
Weighted Average Floor Price
($/Bbl) |
Weighted Average Ceiling
Price ($/Bbl) |
Weighted Average Sold Put
Price ($/Bbl) |
Q1 2015 |
Total Volume |
12,200 |
|
|
|
|
Fixed Price Swaps |
6,883 |
$92.98 |
|
|
|
Costless Collars |
4,661 |
$53.94 |
$69.83 |
|
|
Three-way Collars |
656 |
$85.00 |
$105.00 |
$65.00 |
Q2 2015 |
Total Volume |
12,200 |
|
|
|
|
Costless Collars |
12,200 |
$50.00 |
$66.46 |
|
Q3 2015 |
Total Volume |
12,200 |
|
|
|
|
Costless Collars |
12,200 |
$50.00 |
$66.46 |
|
Q4 2015 |
Total Volume |
12,200 |
|
|
|
|
Costless Collars |
12,200 |
$50.00 |
$66.46 |
|
FY 2016 |
Total Volume |
4,000 |
|
|
|
|
Costless Collars |
4,000 |
$50.00 |
$76.50 |
|
|
NATURAL GAS DERIVATIVE
CONTRACTS |
Period |
Type of
Contract |
Volume (in
MMBtu/d) |
Weighted Average Floor Price
($/MMBtu) |
Q1 2015 |
Total Volume |
30,000 |
|
|
Fixed Price Swaps |
30,000 |
$4.29 |
Q2 2015 |
Total Volume |
30,000 |
|
|
Fixed Price Swaps |
30,000 |
$4.29 |
Q3 2015 |
Total Volume |
30,000 |
|
|
Fixed Price Swaps |
30,000 |
$4.29 |
Q4 2015 |
Total Volume |
30,000 |
|
|
Fixed Price Swaps |
30,000 |
$4.29 |
|
|
|
|
(1) On February 11, 2015, Carrizo
entered into derivative transactions offsetting its existing crude
oil derivative contracts covering the periods from March 2015
through December 2016. Both the existing crude oil derivative
contracts as well as the offsetting positions have been excluded
from the table above. As a result, in addition to the net cash to
be paid or received from settlements of the derivative contracts
listed above, Carrizo will receive cash from, and will recognize
revenue and Adjusted EBITDA for, the offsetting transactions as
follows: |
|
FIXED REVENUE AND
ADJUSTED EBITDA FROM OFFSETTING HEDGE TRANSACTIONS |
|
|
Period |
Net Cash from Derivative
Settlements (in thousands) |
Q2 2015 |
$39,968 |
Q3 2015 |
$39,968 |
Q4 2015 |
$38,966 |
|
|
Q1 2016 |
$18,338 |
Q2 2016 |
$9,266 |
Q3 2016 |
$9,266 |
Q4 2016 |
$7,912 |
|
|
Q1 2017 |
$2,695 |
|
CARRIZO OIL & GAS,
INC. |
FIRST QUARTER AND FULL YEAR
2015 GUIDANCE SUMMARY |
|
|
|
|
First Quarter
2015 |
Full Year 2015 |
Daily Production Volumes
-- |
|
|
Crude oil (Bbls/d) |
20,300 - 20,700 |
21,800 - 22,400 |
Natural gas and NGLs (Mcfe/d) |
63,000 - 73,000 |
65,000 - 75,000 |
Total (Boe/d) |
30,800 - 32,867 |
32,633 - 34,900 |
|
|
|
Net cash from derivative settlements (in
millions) |
$49.0 -- $50.0 |
N/A |
|
|
|
Costs and Expenses -- |
|
|
Lease operating ($/Boe) |
$6.75 -- $7.50 |
$6.75 -- $7.50 |
Production taxes (% of total
revenues) |
4.25% - 4.50% |
4.25% - 4.75% |
Ad valorem taxes (in millions) |
$2.8 -- $3.8 |
$11.0 -- $15.0 |
General and administrative (in
millions) |
$18.5 -- $19.0 |
$54.0 -- $56.0 |
DD&A ($/Boe) |
$25.00 -- $26.00 |
$24.50 -- $25.50 |
|
|
|
Drilling and completion capital expenditures
(in millions) |
N/A |
$450.0 -- $470.0 |
CONTACT: Jeffrey P. Hayden, CFA, VP - Investor Relations
(713) 328-1044
David L. Pitts, Chief Financial Officer
(713) 328-1000
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