Carrizo Oil & Gas, Inc. (Nasdaq:CRZO)
today announced the Company’s financial results for the second
quarter of 2016 and provided an operational update, which includes
the following highlights:
• Oil Production of 23,942 Bbls/d, 7% above the
second quarter of 2015
• Total Production of 41,533 Boe/d, 15% above the second
quarter of 2015
• Loss From Continuing Operations of
$262.1 million, or $4.46 per diluted share, and Adjusted Net Income
of $17.1 million, or $0.29 per diluted share
• Adjusted EBITDA of $97.6 million
• Increasing de-risked Eagle Ford Shale drilling
inventory to more than 1,000 net locations
• Increasing 2016 crude oil production growth target to
10%
Carrizo reported a second quarter of 2016 loss
from continuing operations of $262.1 million, or $4.46 per basic
and diluted share compared to a loss from continuing operations of
$47.0 million, or $0.92 per basic and diluted share in the second
quarter of 2015. The loss from continuing operations for the second
quarter of 2016 includes certain items typically excluded from
published estimates by the investment community, including the
impairment of proved oil and gas properties recognized this
quarter. Adjusted net income, which excludes the impact of these
items as described in the non-GAAP reconciliation tables included
below, for the second quarter of 2016 was $17.1 million, or $0.29
per basic and diluted share compared to $20.4 million, or $0.40 and
$0.39 per basic and diluted share, respectively, in the second
quarter of 2015.
For the second quarter of 2016, Adjusted EBITDA
was $97.6 million, a decrease of 23% from the prior year quarter as
the impact of lower commodity prices more than offset the impact of
higher production volumes. The definition of Adjusted EBITDA and
the reconciliation to loss from continuing operations are presented
in the non-GAAP reconciliation tables included below.
Production volumes during the second quarter of
2016 were 3,780 MBoe, or 41,533 Boe/d, an increase of 15% versus
the second quarter of 2015. The year-over-year production growth
was driven by strong results from the Company’s Eagle Ford Shale
assets. Oil production during the second quarter of 2016 averaged
23,942 Bbls/d, an increase of 7% versus the second quarter of 2015;
natural gas and NGL production averaged 74,248 Mcf/d and 5,217
Bbls/d, respectively, during the second quarter of 2016. Second
quarter of 2016 production exceeded the high end of Company
guidance due primarily to stronger-than-expected gas and NGL
production from the Company’s Eagle Ford Shale assets and a
lower-than-planned level of voluntary production curtailments at
the Company's Marcellus Shale assets.
Drilling and completion capital expenditures for
the second quarter of 2016 were $103.3 million. Approximately 80%
of the second quarter drilling and completion spending was in the
Eagle Ford Shale, with the balance weighted towards the Delaware
Basin. Land and seismic expenditures during the quarter were $6.4
million. Given the improvement in the commodity price outlook since
the beginning of the year, Carrizo has elected to eliminate the
drilling and completion holidays it had originally scheduled for a
portion of the fourth quarter of 2016. Additionally, the Company
has elected to temporarily add a second frac crew in the Eagle Ford
Shale during the third quarter in order to simultaneously frac pads
located in close proximity of each other, which should result in a
more efficient development of the area. Primarily as a result of
these changes plus an increase in forecast non-operated activity,
Carrizo is increasing its 2016 drilling and completion capital
expenditure guidance to $370-$380 million from $270-$290 million.
The majority of the incremental activity is expected to occur in
the fourth quarter, and is not expected to have a material impact
on 2016 production. The Company is maintaining its land and seismic
capital expenditure guidance of $20 million for the year.
Carrizo is increasing its 2016 oil production
guidance to 25,150-25,400 Bbls/d from 24,800-25,300 Bbls/d
previously. Using the midpoint of this range, the Company’s 2016
oil production growth guidance is 10%. For natural gas and NGLs,
Carrizo is increasing its 2016 guidance to 64-66 MMcf/d and
4,600-4,700 Bbls/d, respectively, from 54-60 MMcf/d and 4,000-4,200
Bbls/d. For the third quarter of 2016, Carrizo expects oil
production to be 24,000-24,400 Bbls/d, and natural gas and NGL
production to be 56-60 MMcf/d and 4,100-4,300 Bbls/d, respectively.
A full summary of Carrizo’s guidance is provided in the attached
tables.
S.P. “Chip” Johnson, IV, Carrizo’s President and
CEO, commented on the results, “We delivered another strong quarter
operationally, with production again exceeding our forecast and
operating expenses coming in below our forecast. Financially, we
remain in a strong position as we have an excellent hedge book
through the middle of next year and ample liquidity available on
our revolver.
“Despite the recent decline in crude oil prices,
we remain cautiously optimistic on the outlook for crude oil in
2017 given the improving supply/demand fundamentals. And with the
strong economics we generate on our world-class Eagle Ford Shale
asset even at current strip prices, we have elected to remove the
drilling and completion holidays we had originally planned to take
in the fourth quarter. While this does not have a material impact
on 2016 production, it positions the Company to be able to deliver
double-digit crude oil production growth in 2017 while spending
within cash flow in a $55/Bbl WTI environment.
“Throughout the commodity price downturn, we
have sought to maintain both our financial as well as our
operational flexibility in order to be able to respond quickly to
changing commodity prices. The decision to increase our activity
level this year does not reduce this flexibility as we have not
entered into any additional long-term contracts as a result of the
planned activity increase. Thus, if commodity prices decline
materially from current levels, we could easily remove most of the
added capital from the 2016 plan.
“Our inventory of de-risked drilling locations
in the Eagle Ford Shale continues to expand as a result of our
downspacing initiatives. Based on results to date, we are
increasing our estimate of future de-risked drilling locations in
the play to more than 1,000 net locations excluding stagger-stack
potential, or more than 15 years of inventory at our current
drilling pace. Over time we expect to continue to expand our
drilling inventory on this world-class asset, which should fuel
strong production growth for years to come.
“We continued to test our Delaware Basin acreage
during the quarter and remain pleased with our recent results. We
elected to gather additional production history on the Liberator
State 1H well, which achieved a 30-day rate of approximately 1,400
Boe/d on a restricted choke after being brought back online. And in
late July, we brought online our most recent well in the play, the
Corsair State 3H. The well is still cleaning up, but the early
results are encouraging.”
Operational Update
In the Eagle Ford Shale, Carrizo drilled 19
gross (18.3 net) operated wells during the second quarter and
completed 19 gross (18.0 net) wells. Crude oil production from the
play was approximately 21,200 Bbls/d for the quarter, down from the
prior quarter as production was impacted by significant downtime
associated with planned shut-ins for offsetting completion
activity. The majority of the planned downtime occurred at Brown
Trust and RPG, two of the Company's oilier areas within its Eagle
Ford Shale position. At the end of the quarter, Carrizo had 33
gross (32.1 net) operated Eagle Ford wells waiting on completion,
equating to net crude oil production potential of more than 12,000
Bbls/d. The Company is operating two rigs in the Eagle Ford and
currently expects to drill approximately 67 gross (63 net) operated
wells and complete 73 gross (68 net) operated wells in the play
during 2016.
In the Lower Eagle Ford, Carrizo has been
developing its acreage on 330 ft. spacing for more than two years,
and has now tested a significant portion of its position. Based on
the results to date, the Company believes that the majority of the
acreage tested warrants development at this spacing.
The Company currently has three stagger stack
pilots with more than six months of production history. The pilots
are testing effective lateral spacing ranging from 165 ft. to 280
ft. On average, the pilot wells recorded a 30-day oil rate of
approximately 500 Bbls/d on a restricted choke. Average cumulative
production after 180 days was approximately 90 MBo and 70 MBo for
the pilots at Brown Trust and Irvin Ranch, respectively, which is
in line with the non-staggered wells drilled on the pilot pads. The
Company currently has three additional stagger-stack pilots with
less than six months of production history, and plans to test more
stagger-stack pilots on its core acreage position later this
year.
As a result of the inventory expansion
initiatives to date, Carrizo is increasing its de-risked drilling
inventory in the Lower Eagle Ford Shale by approximately 85 net
locations to more than 1,000 net locations, equating to more than
15 years of inventory at its current drilling pace. This figure
still does not include any potential from stagger-stack development
given the limited data set the Company has at this time. Carrizo
plans to continue testing multiple spacing initiatives across its
acreage position in order to further expand its inventory of highly
economical, de-risked drilling locations, and expects to provide
updates once sufficient production history is available.
In the Delaware Basin, Carrizo completed its
Corsair State 3H well in late July. The well was drilled with an
approximate 8,400 ft. lateral and completed with 37 frac stages.
The well was recently brought online, and the Company expects to
provide an update once the well has cleaned-up. Carrizo operates
the Corsair State 3H with a 100% working interest. The Company
currently expects to spud one additional Delaware Basin well during
2016. As a result, Carrizo now plans to drill three operated wells
and complete three operated wells in the Delaware Basin during
2016.
Additionally, the Company elected to further
test its Liberator State 1H well during the quarter. Upon being
brought back online, the well achieved a 30-day rate of
approximately 1,400 Boe/d (35% oil, 40% NGL, 25% gas) on a
restricted choke. Carrizo currently expects the well to be flowing
to sales later this quarter once infrastructure has been completed.
Carrizo operates the Liberator State 1H with a 100% working
interest.
In the Niobrara Formation, Carrizo did not drill
or complete any operated wells during the second quarter. Crude oil
production from the Niobrara was approximately 2,000 Bbls/d for the
quarter, down from the prior quarter due to the lack of activity.
For 2016, Carrizo has allocated a small amount of capital to the
Niobrara for the completion of 9 gross (5.2 net)
drilled-but-uncompleted wells in addition to continued non-operated
activity.
In Appalachia, which encompasses the Company's
Utica Shale and Marcellus Shale positions, Carrizo did not drill or
complete any operated wells during the second quarter. Oil and
condensate production from the Utica during the quarter was
approximately 520 Bbls/d, up from approximately 465 Bbls/d in the
prior quarter. In the dry gas window of the Marcellus, the
Company's production was 39.1 MMcf/d, up from 36.2 MMcf/d in the
prior quarter as the Company decreased its voluntary production
curtailments due to stronger-than-expected local market prices.
Carrizo expects to continue to vary its Marcellus production for
the balance of 2016 based on local market pricing. If pricing
deteriorates materially from current levels, the Company would
expect to increase its level of voluntary curtailments. However, if
regional pricing were to materially improve, the Company could
significantly ramp up its Marcellus production. Carrizo does not
currently plan to drill or complete any operated wells in
Appalachia during 2016.
Financial Position and
Liquidity
As of June 30, 2016, Carrizo had total debt
outstanding of $1,315.4 million and cash and cash equivalents of
$2.2 million. Total Secured Debt to Adjusted EBITDA, calculated in
accordance with the covenants on the Company's revolving credit
facility, was 0.2x for the second quarter while Net Debt to
Adjusted EBITDA, calculated using the same methodology, was 3.2x.
As of July 29, 2016, Carrizo had $60.0 million drawn on the
facility.
Hedging Activity
Carrizo currently has hedges in place for
approximately 55% of estimated crude oil production for the balance
of 2016 (based on the midpoint of guidance). For the remainder of
the year, the Company has hedges covering 13,750 Bbls/d of crude
oil (comprised of 9,750 Bbls/d of swaps at an average price of
$60.03/Bbl and 4,000 Bbls/d of collars at a weighted average floor
price of $50.00/Bbl and a weighted average ceiling price of
$76.50/Bbl). Additionally, Carrizo will receive $14.4 million of
cash flows for the remainder of 2016 relating to prior commodity
derivative transactions.
For the first half of 2017, Carrizo has swaps
covering 12,000 Bbls/d of crude oil at an average fixed price of
$50.13/Bbl. Additionally, Carrizo will receive $1.8 million of cash
flows during the first half of 2017 relating to prior commodity
derivative transactions. (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 2016 second quarter financial results on Thursday, August
4, 2016 at 10:00 AM Central Daylight Time. To participate in the
call, please dial (800) 931-1360 (U.S. & Canada) or
+1 (212) 231-2935 (Intl.) ten minutes before the call is
scheduled to begin. A replay of the call will be available through
Thursday, August 11, 2016 at 12:00 PM Central Daylight Time at
(800) 633-8284 (U.S. & Canada) or +1 (402) 977-9140
(Intl.). The reservation number for the replay is 21815292 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 the “Second Quarter 2016 Earnings Call” link. 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 7 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 Delaware Basin in West Texas, the
Niobrara Formation in Colorado, the Utica Shale in Ohio, and the
Marcellus Shale in Pennsylvania.
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 or inventory, rig program, effect of
transactions offsetting hedge positions, production, average well
returns, acquisitions, effects of transactions, targeted ratios and
other metrics, the ability to acquire additional acreage, midstream
infrastructure availability and capacity, timing, levels of and
potential production, downspacing, crude oil production potential
and growth, oil and gas prices, drilling and completion activities,
drilling inventory, including timing thereof, resource potential,
well costs, breakeven prices, production mix, development plans,
growth, midstream matters, use of proceeds, hedging activity, the
ability to maintain a sound financial position, 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 testing, failure of
actual production to meet expectations, performance of rig
operators, spacing test results, availability of gathering systems,
costs of oilfield services, actions by governmental authorities,
joint venture partners, industry partners, lenders and other third
parties, actions by purchasers or sellers of properties,
satisfaction of closing conditions, integration and effects 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, 2015 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.
(Financial Highlights to Follow)
CARRIZO OIL & GAS, INC. |
|
CONSOLIDATED BALANCE SHEETS |
|
(In thousands, except share and per share
data) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
June 30, 2016 |
|
December 31,
2015 |
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,158 |
|
|
$ |
42,918 |
|
|
Accounts receivable, net |
|
|
55,976 |
|
|
|
54,721 |
|
|
Derivative assets |
|
|
34,256 |
|
|
|
131,100 |
|
|
Other current assets |
|
|
6,484 |
|
|
|
3,443 |
|
|
Total current assets |
|
|
98,874 |
|
|
|
232,182 |
|
|
Property and
equipment |
|
|
|
|
|
Oil and gas properties, full cost method |
|
|
|
|
|
Proved properties, net |
|
|
1,142,383 |
|
|
|
1,369,151 |
|
|
Unproved properties, not
being amortized |
|
|
195,609 |
|
|
|
335,452 |
|
|
Other property and equipment, net |
|
|
11,475 |
|
|
|
12,258 |
|
|
Total property and equipment, net |
|
|
1,349,467 |
|
|
|
1,716,861 |
|
|
Deferred income taxes |
|
— |
|
|
46,758 |
|
|
Derivative assets |
|
— |
|
|
1,115 |
|
|
Other assets |
|
|
9,302 |
|
|
|
10,330 |
|
|
Total Assets |
|
$ |
1,457,643 |
|
|
$ |
2,007,246 |
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity
(Deficit) |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ |
41,595 |
|
|
$ |
74,065 |
|
|
Revenues and royalties payable |
|
|
52,912 |
|
|
|
67,808 |
|
|
Accrued capital expenditures |
|
|
51,647 |
|
|
|
39,225 |
|
|
Accrued interest |
|
|
21,989 |
|
|
|
21,981 |
|
|
Deferred income taxes |
|
— |
|
|
46,758 |
|
|
Other current liabilities |
|
|
34,504 |
|
|
|
35,647 |
|
|
Total current liabilities |
|
|
202,647 |
|
|
|
285,484 |
|
|
Long-term
debt |
|
|
1,298,196 |
|
|
|
1,236,017 |
|
|
Asset retirement
obligations |
|
|
16,955 |
|
|
|
16,183 |
|
|
Derivative
liabilities |
|
|
34,850 |
|
|
|
12,648 |
|
|
Other
liabilities |
|
|
15,412 |
|
|
|
12,860 |
|
|
Total liabilities |
|
|
1,568,060 |
|
|
|
1,563,192 |
|
|
Commitments and contingencies |
|
|
|
|
|
Shareholders'
equity (deficit) |
|
|
|
|
|
Common stock, $0.01 par value, 90,000,000 shares authorized;
58,974,437 issued and outstanding as of June 30, 2016 and
58,332,993 issued and outstanding as of December 31, 2015 |
|
|
590 |
|
|
|
583 |
|
|
Additional paid-in capital |
|
|
1,430,124 |
|
|
|
1,411,081 |
|
|
Accumulated deficit |
|
|
(1,541,131 |
) |
|
|
(967,610 |
) |
|
Total shareholders' equity
(deficit) |
|
|
(110,417 |
) |
|
|
444,054 |
|
|
Total Liabilities and Shareholders'
Equity (Deficit) |
|
$ |
1,457,643 |
|
|
$ |
2,007,246 |
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
Revenues |
|
|
|
|
|
|
|
|
Crude oil |
|
$ |
91,608 |
|
|
$ |
111,257 |
|
|
$ |
159,604 |
|
|
$ |
194,315 |
|
Natural gas liquids |
|
|
6,063 |
|
|
|
3,799 |
|
|
|
9,503 |
|
|
|
8,272 |
|
Natural gas |
|
|
9,653 |
|
|
|
8,438 |
|
|
|
19,479 |
|
|
|
20,957 |
|
Total revenues |
|
|
107,324 |
|
|
|
123,494 |
|
|
|
188,586 |
|
|
|
223,544 |
|
|
|
|
|
|
|
|
|
|
Costs and
Expenses |
|
|
|
|
|
|
|
|
Lease operating |
|
|
23,114 |
|
|
|
23,375 |
|
|
|
46,789 |
|
|
|
45,091 |
|
Production taxes |
|
|
4,623 |
|
|
|
5,031 |
|
|
|
8,054 |
|
|
|
9,049 |
|
Ad valorem taxes |
|
|
454 |
|
|
|
1,723 |
|
|
|
2,524 |
|
|
|
4,756 |
|
Depreciation, depletion and amortization |
|
|
51,966 |
|
|
|
79,331 |
|
|
|
111,543 |
|
|
|
153,202 |
|
General and administrative, net |
|
|
19,624 |
|
|
|
19,095 |
|
|
|
40,927 |
|
|
|
50,672 |
|
(Gain) loss on derivatives, net |
|
|
52,235 |
|
|
|
12,595 |
|
|
|
41,682 |
|
|
|
(13,844 |
) |
Interest expense, net |
|
|
19,010 |
|
|
|
16,999 |
|
|
|
37,723 |
|
|
|
35,195 |
|
Impairment of proved oil and gas properties |
|
|
197,070 |
|
|
— |
|
|
471,483 |
|
|
— |
Loss on extinguishment of debt |
|
— |
|
|
38,137 |
|
|
— |
|
|
38,137 |
|
Other expense, net |
|
|
1,162 |
|
|
|
281 |
|
|
|
1,069 |
|
|
|
7,273 |
|
Total costs and
expenses |
|
|
369,258 |
|
|
|
196,567 |
|
|
|
761,794 |
|
|
|
329,531 |
|
|
|
|
|
|
|
|
|
|
Loss From
Continuing Operations Before Income Taxes |
|
|
(261,934 |
) |
|
|
(73,073 |
) |
|
|
(573,208 |
) |
|
|
(105,987 |
) |
Income tax (expense)
benefit |
|
|
(192 |
) |
|
|
26,103 |
|
|
|
(313 |
) |
|
|
37,541 |
|
Loss From
Continuing Operations |
|
|
(262,126 |
) |
|
|
(46,970 |
) |
|
|
(573,521 |
) |
|
|
(68,446 |
) |
Income From
Discontinued Operations, Net of Income Taxes |
|
— |
|
|
838 |
|
|
— |
|
|
1,104 |
|
Net
Loss |
|
($ |
262,126 |
) |
|
($ |
46,132 |
) |
|
($ |
573,521 |
) |
|
($ |
67,342 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share - Basic |
|
|
|
|
|
|
|
|
Loss
from continuing operations |
|
($ |
4.46 |
) |
|
($ |
0.92 |
) |
|
($ |
9.79 |
) |
|
($ |
1.40 |
) |
Income
from discontinued operations, net of income taxes |
|
— |
|
|
0.02 |
|
|
— |
|
|
0.02 |
|
Net
loss |
|
($ |
4.46 |
) |
|
($ |
0.90 |
) |
|
($ |
9.79 |
) |
|
($ |
1.38 |
) |
|
|
|
|
|
|
|
|
|
Net Loss Per Common Share - Diluted |
|
|
|
|
|
|
|
|
Loss
from continuing operations |
|
($ |
4.46 |
) |
|
($ |
0.92 |
) |
|
($ |
9.79 |
) |
|
($ |
1.40 |
) |
Income
from discontinued operations, net of income taxes |
|
— |
|
|
0.02 |
|
|
— |
|
|
0.02 |
|
Net
loss |
|
($ |
4.46 |
) |
|
($ |
0.90 |
) |
|
($ |
9.79 |
) |
|
($ |
1.38 |
) |
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
58,806 |
|
|
|
51,225 |
|
|
|
58,583 |
|
|
|
48,827 |
|
Diluted |
|
|
58,806 |
|
|
|
51,225 |
|
|
|
58,583 |
|
|
|
48,827 |
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From
Operating Activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
($ |
262,126 |
) |
|
($ |
46,132 |
) |
|
($ |
573,521 |
) |
|
($ |
67,342 |
) |
|
Income from
discontinued operations, net of income taxes |
|
— |
|
|
(838 |
) |
|
— |
|
|
(1,104 |
) |
|
Adjustments to reconcile
loss from continuing operations to net cash provided by operating
activities from continuing operations |
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
|
51,966 |
|
|
|
79,331 |
|
|
|
111,543 |
|
|
|
153,202 |
|
|
Impairment of proved oil and gas properties |
|
|
197,070 |
|
|
— |
|
|
471,483 |
|
|
— |
|
(Gain) loss on derivatives, net |
|
|
52,235 |
|
|
|
12,595 |
|
|
|
41,682 |
|
|
|
(13,844 |
) |
|
Cash received for derivative settlements, net |
|
|
27,300 |
|
|
|
45,129 |
|
|
|
78,463 |
|
|
|
94,193 |
|
|
Loss on extinguishment of debt |
|
— |
|
|
38,137 |
|
|
— |
|
|
38,137 |
|
|
Stock-based compensation expense, net |
|
|
10,892 |
|
|
|
4,943 |
|
|
|
22,414 |
|
|
|
14,796 |
|
|
Deferred income taxes |
|
— |
|
|
(26,430 |
) |
|
— |
|
|
(37,961 |
) |
|
Non-cash interest expense, net |
|
|
904 |
|
|
|
816 |
|
|
|
2,064 |
|
|
|
2,787 |
|
|
Other, net |
|
|
1,226 |
|
|
|
(2,864 |
) |
|
|
2,342 |
|
|
|
5,384 |
|
|
Changes
in components of working capital and other assets and
liabilities- |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
673 |
|
|
|
(2,785 |
) |
|
|
(1,392 |
) |
|
|
3,732 |
|
|
Accounts payable |
|
|
(489 |
) |
|
|
(2,767 |
) |
|
|
(19,200 |
) |
|
|
(16,437 |
) |
|
Accrued liabilities |
|
|
(7,109 |
) |
|
|
(4,614 |
) |
|
|
(8,776 |
) |
|
|
(6,605 |
) |
|
Other assets and liabilities, net |
|
|
(371 |
) |
|
|
(2,336 |
) |
|
|
(1,063 |
) |
|
|
(3,286 |
) |
|
Net cash provided by operating activities from continuing
operations |
|
|
72,171 |
|
|
|
92,185 |
|
|
|
126,039 |
|
|
|
165,652 |
|
|
Net cash used in operating activities from discontinued
operations |
|
— |
|
|
(1,019 |
) |
|
— |
|
|
(1,220 |
) |
|
Net cash provided by operating
activities |
|
|
72,171 |
|
|
|
91,166 |
|
|
|
126,039 |
|
|
|
164,432 |
|
|
Cash Flows From
Investing Activities |
|
|
|
|
|
|
|
|
|
Capital
expenditures - oil and gas properties |
|
|
(113,872 |
) |
|
|
(168,448 |
) |
|
|
(239,861 |
) |
|
|
(377,995 |
) |
|
Proceeds
from sales of oil and gas properties, net |
|
|
12,852 |
|
|
— |
|
|
14,637 |
|
|
|
285 |
|
|
Other,
net |
|
|
(256 |
) |
|
|
(2,258 |
) |
|
|
(873 |
) |
|
|
(4,857 |
) |
|
Net cash used in investing activities from continuing
operations |
|
|
(101,276 |
) |
|
|
(170,706 |
) |
|
|
(226,097 |
) |
|
|
(382,567 |
) |
|
Net cash used in investing activities from discontinued
operations |
|
— |
|
|
(834 |
) |
|
— |
|
|
(937 |
) |
|
Net cash used in investing
activities |
|
|
(101,276 |
) |
|
|
(171,540 |
) |
|
|
(226,097 |
) |
|
|
(383,504 |
) |
|
Cash Flows From
Financing Activities |
|
|
|
|
|
|
|
|
|
Issuance
of senior notes |
|
— |
|
|
650,000 |
|
|
— |
|
|
650,000 |
|
|
Tender
and redemption of senior notes |
|
— |
|
|
(626,681 |
) |
|
— |
|
|
(626,681 |
) |
|
Payment
of deferred purchase payment |
|
— |
|
— |
|
— |
|
|
(150,000 |
) |
|
Borrowings under credit agreement |
|
|
217,005 |
|
|
|
356,939 |
|
|
|
290,652 |
|
|
|
800,939 |
|
|
Repayments of borrowings under credit agreement |
|
|
(186,555 |
) |
|
|
(288,939 |
) |
|
|
(229,652 |
) |
|
|
(683,939 |
) |
|
Payments
of debt issuance costs |
|
|
(1,100 |
) |
|
|
(11,214 |
) |
|
|
(1,150 |
) |
|
|
(11,443 |
) |
|
Sale of
common stock, net of offering costs |
|
— |
|
|
(265 |
) |
|
— |
|
|
231,316 |
|
|
Proceeds
from stock options exercised |
|
— |
|
— |
|
— |
|
|
46 |
|
|
Other,
net |
|
|
(245 |
) |
|
— |
|
|
(552 |
) |
|
— |
|
Net cash provided by financing activities from continuing
operations |
|
|
29,105 |
|
|
|
79,840 |
|
|
|
59,298 |
|
|
|
210,238 |
|
|
Net cash provided by financing activities from discontinued
operations |
|
— |
|
— |
|
— |
|
— |
|
Net cash provided by financing
activities |
|
|
29,105 |
|
|
|
79,840 |
|
|
|
59,298 |
|
|
|
210,238 |
|
|
Net Decrease in
Cash and Cash Equivalents |
|
— |
|
|
(534 |
) |
|
|
(40,760 |
) |
|
|
(8,834 |
) |
|
Cash and Cash
Equivalents, Beginning of Period |
|
|
2,158 |
|
|
|
2,538 |
|
|
|
42,918 |
|
|
|
10,838 |
|
|
Cash and Cash
Equivalents, End of Period |
|
$ |
2,158 |
|
|
$ |
2,004 |
|
|
$ |
2,158 |
|
|
$ |
2,004 |
|
|
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. |
NON-GAAP FINANCIAL MEASURES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF LOSS FROM CONTINUING
OPERATIONS (GAAP) |
TO ADJUSTED NET INCOME
(NON-GAAP) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
Adjusted net income is a non-GAAP financial measure which
excludes certain items that are included in loss from continuing
operations, the most directly comparable GAAP financial measure.
Items excluded are those that the Company believes affect the
comparability of operating results and include items whose timing
and/or amount cannot be reasonably estimated or items that are
non-recurring. The non-GAAP financial measure of adjusted net
income is presented because management believes it provides useful
additional information to investors for analysis of the Company's
fundamental business on a recurring basis. In addition, management
believes that adjusted net income is widely used by professional
research analysts and others in the valuation, comparison, and
investment recommendations of companies in the oil and gas
exploration and production industry. Adjusted net income should not
be considered in isolation or as a substitute for loss from
continuing operations or any other measure of a company's financial
performance or profitability presented in accordance with
GAAP. A reconciliation of the differences between loss from
continuing operations and adjusted net income is presented
below. Because adjusted net income excludes some, but not
all, items that affect loss from continuing operations and may vary
among companies, our calculation of adjusted net income may not be
comparable to similarly titled measures of other companies. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
(in thousands, except per share
data) |
Loss From Continuing Operations (GAAP) |
|
($ |
262,126 |
) |
|
($ |
46,970 |
) |
|
($ |
573,521 |
) |
|
($ |
68,446 |
) |
Income tax
(expense) benefit |
|
|
(192 |
) |
|
|
26,103 |
|
|
|
(313 |
) |
|
|
37,541 |
|
Loss From
Continuing Operations Before Income Taxes |
|
|
(261,934 |
) |
|
|
(73,073 |
) |
|
|
(573,208 |
) |
|
|
(105,987 |
) |
(Gain) loss on
derivatives, net |
|
|
52,235 |
|
|
|
12,595 |
|
|
|
41,682 |
|
|
|
(13,844 |
) |
Cash received for
derivative settlements, net |
|
|
27,300 |
|
|
|
45,129 |
|
|
|
78,463 |
|
|
|
94,193 |
|
Non-cash general and
administrative expense, net |
|
|
10,825 |
|
|
|
8,147 |
|
|
|
22,583 |
|
|
|
21,224 |
|
Impairment of proved
oil and gas properties |
|
|
197,070 |
|
|
— |
|
|
471,483 |
|
|
— |
Loss on extinguishment
of debt |
|
— |
|
|
38,137 |
|
|
— |
|
|
38,137 |
|
Other (income) expense,
net |
|
|
1,162 |
|
|
|
281 |
|
|
|
(109 |
) |
|
|
7,273 |
|
Adjusted
income before income taxes |
|
|
26,658 |
|
|
|
31,216 |
|
|
|
40,894 |
|
|
|
40,996 |
|
Adjusted
income tax expense (1) |
|
|
(9,517 |
) |
|
|
(10,832 |
) |
|
|
(14,599 |
) |
|
|
(14,226 |
) |
Adjusted Net Income (Non-GAAP) |
|
$ |
17,141 |
|
|
$ |
20,384 |
|
|
$ |
26,295 |
|
|
$ |
26,770 |
|
Adjusted
Net Income Per Common Share - Basic |
|
$ |
0.29 |
|
|
$ |
0.40 |
|
|
$ |
0.45 |
|
|
$ |
0.55 |
|
Adjusted
Net Income Per Common Share - Diluted |
|
$ |
0.29 |
|
|
$ |
0.39 |
|
|
$ |
0.44 |
|
|
$ |
0.54 |
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
58,806 |
|
|
|
51,225 |
|
|
|
58,583 |
|
|
|
48,827 |
|
Diluted |
|
|
59,469 |
|
|
|
51,887 |
|
|
|
59,226 |
|
|
|
49,564 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Adjusted income tax expense is calculated by
applying the Company's estimated annual effective income tax rates
to the year-to-date adjusted income before income taxes. The
Company's estimated annual effective income tax rates were 35.7%
and 34.7% for the three months ended June 30, 2016 and 2015,
respectively, and 35.7% and 34.7% for the six months ended June 30,
2016 and 2015, respectively. |
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET CASH PROVIDED BY
OPERATING ACTIVITIES FROM CONTINUING |
OPERATIONS (GAAP) TO DISCRETIONARY CASH FLOWS
(NON-GAAP) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Discretionary cash flows is a non-GAAP financial measure which
excludes certain items that are included in net cash provided by
operating activities from continuing operations, the most directly
comparable GAAP financial measure. Items excluded are changes
in components of working capital and other items that the Company
believes affect the comparability of operating cash flows such as
items whose timing and/or amount cannot be reasonably estimated or
items that are non-recurring. The non-GAAP financial measure of
discretionary cash flows is presented because management believes
it provides useful additional information to investors for analysis
of the Company's ability to generate cash to internally fund
exploration and development. In addition, management believes that
discretionary cash flows is widely used by professional research
analysts and others in the valuation, comparison, and investment
recommendations of companies in the oil and gas exploration and
production industry. Discretionary cash flows should not be
considered in isolation or as a substitute for net cash provided by
operating activities from continuing operations or any other
measure of a company's cash flows or liquidity presented in
accordance with GAAP. A reconciliation of the differences between
net cash provided by operating activities from continuing
operations and discretionary cash flows is presented below. Because
discretionary cash flows excludes some, but not all, items that
affect net cash provided by operating activities from continuing
operations and may vary among companies, our calculation of
discretionary cash flows may not be comparable to similarly titled
measures of other companies. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
(in thousands) |
Net Cash
Provided By Operating Activities From Continuing Operations
(GAAP) |
|
$ |
72,171 |
|
|
$ |
92,185 |
|
|
$ |
126,039 |
|
|
$ |
165,652 |
|
Changes in
components of working capital and other |
|
|
8,022 |
|
|
|
16,891 |
|
|
|
29,979 |
|
|
|
26,985 |
|
Discretionary
Cash Flows (Non-GAAP) |
|
$ |
80,193 |
|
|
$ |
109,076 |
|
|
$ |
156,018 |
|
|
$ |
192,637 |
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF LOSS FROM CONTINUING
OPERATIONS (GAAP) |
TO ADJUSTED EBITDA (NON-GAAP) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA is a non-GAAP financial measure which excludes
certain items that are included in loss from continuing operations,
the most directly comparable GAAP financial measure. Items excluded
are interest expense, depreciation, depletion and amortization and
items that the Company believes affect the comparability of
operating results such as items whose timing and/or amount cannot
be reasonably estimated or items that are non-recurring. The
non-GAAP financial measure of adjusted EBITDA is presented because
management believes it provides useful additional information to
investors for analysis of the Company's financial and operating
performance on a recurring basis. In addition, management believes
that adjusted EBITDA is widely used by professional research
analysts and others in the valuation, comparison, and investment
recommendations of companies in the oil and gas exploration and
production industry. Adjusted EBITDA should not be considered in
isolation or as a substitute for loss from continuing operations or
any other measure of a company's financial performance or
profitability presented in accordance with GAAP. A reconciliation
of the differences between loss from continuing operations and
adjusted EBITDA is presented below. Because adjusted EBITDA
excludes some, but not all, items that affect loss from continuing
operations and may vary among companies, our calculation of
adjusted EBITDA may not be comparable to similarly titled measures
of other companies. |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
(in thousands) |
Loss From
Continuing Operations (GAAP) |
|
($ |
262,126 |
) |
|
($ |
46,970 |
) |
|
($ |
573,521 |
) |
|
($ |
68,446 |
) |
Income tax (expense)
benefit |
|
|
(192 |
) |
|
|
26,103 |
|
|
|
(313 |
) |
|
|
37,541 |
|
Loss From Continuing
Operations Before Income Taxes |
|
|
(261,934 |
) |
|
|
(73,073 |
) |
|
|
(573,208 |
) |
|
|
(105,987 |
) |
Depreciation,
depletion and amortization |
|
|
51,966 |
|
|
|
79,331 |
|
|
|
111,543 |
|
|
|
153,202 |
|
Interest
expense, net |
|
|
19,010 |
|
|
|
16,999 |
|
|
|
37,723 |
|
|
|
35,195 |
|
(Gain) loss on
derivatives, net |
|
|
52,235 |
|
|
|
12,595 |
|
|
|
41,682 |
|
|
|
(13,844 |
) |
Cash received
for derivative settlements, net |
|
|
27,300 |
|
|
|
45,129 |
|
|
|
78,463 |
|
|
|
94,193 |
|
Non-cash general
and administrative expense, net |
|
|
10,825 |
|
|
|
8,147 |
|
|
|
22,583 |
|
|
|
21,224 |
|
Impairment of
proved oil and gas properties |
|
|
197,070 |
|
|
— |
|
|
471,483 |
|
|
— |
Loss on
extinguishment of debt |
|
— |
|
|
38,137 |
|
|
— |
|
|
38,137 |
|
Other (income)
expense, net |
|
|
1,162 |
|
|
|
281 |
|
|
|
(109 |
) |
|
|
7,273 |
|
Adjusted EBITDA
(Non-GAAP) |
|
$ |
97,634 |
|
|
$ |
127,546 |
|
|
$ |
190,160 |
|
|
$ |
229,393 |
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. |
PRODUCTION VOLUMES AND REALIZED
PRICES |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
Six Months
Ended |
|
|
June 30, |
|
June 30, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Total
production volumes - |
|
|
|
|
|
|
|
|
Crude oil
(MBbls) |
|
|
2,179 |
|
|
|
2,028 |
|
|
|
4,527 |
|
|
|
3,951 |
|
NGLs
(MBbls) |
|
|
475 |
|
|
|
318 |
|
|
|
889 |
|
|
|
636 |
|
Natural gas
(MMcf) |
|
|
6,757 |
|
|
|
5,646 |
|
|
|
13,130 |
|
|
|
10,880 |
|
Total barrels of oil equivalent (MBoe) |
|
|
3,780 |
|
|
|
3,287 |
|
|
|
7,604 |
|
|
|
6,400 |
|
|
|
|
|
|
|
|
|
|
Daily
production volumes by product - |
|
|
|
|
|
|
|
|
Crude oil
(Bbls/d) |
|
|
23,942 |
|
|
|
22,284 |
|
|
|
24,874 |
|
|
|
21,831 |
|
NGLs
(Bbls/d) |
|
|
5,217 |
|
|
|
3,494 |
|
|
|
4,882 |
|
|
|
3,512 |
|
Natural gas
(Mcf/d) |
|
|
74,248 |
|
|
|
62,042 |
|
|
|
72,141 |
|
|
|
60,111 |
|
Total barrels of oil equivalent (Boe/d) |
|
|
41,533 |
|
|
|
36,118 |
|
|
|
41,779 |
|
|
|
35,361 |
|
|
|
|
|
|
|
|
|
|
Daily
production volumes by region (Boe/d)
- |
|
|
|
|
|
|
|
|
Eagle Ford |
|
|
30,233 |
|
|
|
24,976 |
|
|
|
30,602 |
|
|
|
24,741 |
|
Niobrara |
|
|
2,775 |
|
|
|
3,428 |
|
|
|
2,980 |
|
|
|
3,230 |
|
Marcellus |
|
|
6,511 |
|
|
|
6,054 |
|
|
|
6,269 |
|
|
|
6,014 |
|
Utica |
|
|
1,491 |
|
|
|
1,480 |
|
|
|
1,357 |
|
|
|
1,105 |
|
Delaware Basin
and other |
|
|
523 |
|
|
|
180 |
|
|
|
571 |
|
|
|
271 |
|
Total barrels of oil equivalent (Boe/d) |
|
|
41,533 |
|
|
|
36,118 |
|
|
|
41,779 |
|
|
|
35,361 |
|
|
|
|
|
|
|
|
|
|
Realized prices
- |
|
|
|
|
|
|
|
|
Crude oil ($ per
Bbl) |
|
$ |
42.04 |
|
|
$ |
54.86 |
|
|
$ |
35.26 |
|
|
$ |
49.18 |
|
Crude oil ($ per Bbl) - including impact of derivative
settlements |
|
$ |
54.57 |
|
|
$ |
74.89 |
|
|
$ |
52.61 |
|
|
$ |
70.99 |
|
NGLs ($ per
Bbl) |
|
$ |
12.76 |
|
|
$ |
11.95 |
|
|
$ |
10.69 |
|
|
$ |
13.01 |
|
Natural gas ($
per Mcf) |
|
$ |
1.43 |
|
|
$ |
1.49 |
|
|
$ |
1.48 |
|
|
$ |
1.93 |
|
Natural gas ($ per Mcf) - including impact of derivative
settlements |
|
$ |
1.43 |
|
|
$ |
2.29 |
|
|
$ |
1.48 |
|
|
$ |
2.66 |
|
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. |
|
|
COMMODITY DERIVATIVE CONTRACTS - AS OF JULY
29, 2016 |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
CRUDE OIL DERIVATIVE CONTRACTS
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
Weighted Average |
|
|
|
|
|
|
Volume |
|
Floor Price |
|
Ceiling Price |
|
|
Period |
|
Type of Contract |
|
(in Bbls/d) |
|
($/Bbl) |
|
($/Bbl) |
|
|
Q3 2016 |
|
Fixed
Price Swaps |
|
9,750 |
|
$ |
60.03 |
|
|
|
|
|
|
|
Costless
Collars |
|
4,000 |
|
$ |
50.00 |
|
|
$ |
76.50 |
|
|
|
Q4 2016 |
|
Fixed
Price Swaps |
|
9,750 |
|
$ |
60.03 |
|
|
|
|
|
|
|
Costless
Collars |
|
4,000 |
|
$ |
50.00 |
|
|
$ |
76.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 - Q2 2017 |
|
Fixed
Price Swaps |
|
12,000 |
|
$ |
50.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2018 |
|
Sold
Call Options |
|
3,388 |
|
|
|
$ |
63.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2019 |
|
Sold
Call Options |
|
3,875 |
|
|
|
$ |
65.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2020 |
|
Sold
Call Options |
|
4,575 |
|
|
|
$ |
67.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL GAS DERIVATIVE CONTRACTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average |
|
|
|
|
|
|
|
|
Volume |
|
Ceiling Price |
|
|
|
|
Period |
|
Type of Contract |
|
(in MMBtu/d) |
|
($/MMBtu) |
|
|
|
|
FY
2017 |
|
Sold
Call Options |
|
|
33,000 |
|
|
$ |
3.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2018 |
|
Sold
Call Options |
|
|
33,000 |
|
|
$ |
3.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2019 |
|
Sold
Call Options |
|
|
33,000 |
|
|
$ |
3.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY
2020 |
|
Sold
Call Options |
|
|
33,000 |
|
|
$ |
3.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 locking in $166.4 million of cash flows, of which
$9.3 million was received in the second quarter of 2016. Both the
existing crude oil derivative contracts as well as the offsetting
positions have been excluded from the table above. In the fourth
quarter of 2015 and the first quarter of 2016, Carrizo entered into
derivative transactions (volumes are included in the table above)
which included premiums to be paid in future periods. In addition
to the net cash to be paid or received from settlements of the
derivative contracts shown in the tables above, Carrizo will
receive net cash and will recognize Adjusted EBITDA related to the
transactions described in this footnote as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FIXED ADJUSTED EBITDA FROM
PRIOR HEDGE TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash from Derivative
Settlements |
|
|
|
|
Period |
|
|
|
(in thousands) |
|
|
|
|
Q3 2016 |
|
|
$ |
6,458 |
|
|
|
|
|
Q4 2016 |
|
|
$ |
7,912 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 - Q2 2017 |
|
|
$ |
1,766 |
|
|
CARRIZO OIL & GAS, INC. |
THIRD QUARTER AND FULL YEAR 2016 GUIDANCE
SUMMARY |
|
|
|
|
|
|
|
|
|
Third Quarter 2016 |
|
Full Year 2016 |
Daily Production Volumes - |
|
|
|
|
|
Crude oil (Bbls/d) |
|
24,000 - 24,400 |
|
25,150
- 25,400 |
|
NGLs (Bbls/d) |
|
4,100 - 4,300 |
|
4,600
- 4,700 |
|
Natural gas
(Mcf/d) |
|
56,000
- 60,000 |
|
64,000
- 66,000 |
|
Total (Boe/d) |
|
37,433
- 38,700 |
|
40,417
- 41,100 |
|
|
|
|
|
|
Unhedged Commodity Price Realizations
- |
|
|
|
|
|
Crude oil (% of NYMEX
oil) |
|
92.0%
- 94.0% |
|
N/A |
|
NGLs (% of NYMEX
oil) |
|
24.0%
- 27.0% |
|
N/A |
|
Natural gas (% of NYMEX
gas) |
|
50.0%
- 55.0% |
|
N/A |
|
|
|
|
|
|
Cash
received for derivative settlements, net (in millions) |
|
$20.0
- $23.0 |
|
N/A |
|
|
|
|
|
|
Costs and Expenses - |
|
|
|
|
|
Lease operating
($/Boe) |
|
$6.75
- $7.25 |
|
$6.25
- $6.75 |
|
Production taxes (% of
total revenues) |
|
4.25%
- 4.50% |
|
4.25%
- 4.50% |
|
Ad valorem taxes (in
millions) |
|
$1.5 -
$2.0 |
|
$5.5 -
$6.5 |
|
Cash general and
administrative, net (in millions) |
|
$10.0
- $10.5 |
|
$40.0
- $41.0 |
|
DD&A ($/Boe) |
|
$12.50
- $13.50 |
|
$13.50
- $14.50 |
|
Interest expense, net
(in millions) |
|
$21.0
- $22.0 |
|
N/A |
|
|
|
|
|
|
Capitalized Items - |
|
|
|
|
|
Drilling and completion
capital expenditures (in millions) |
|
N/A |
|
$370.0
- $380.0 |
|
Capitalized interest
(in millions) |
|
$2.5 -
$3.0 |
|
N/A |
Source: Carrizo Oil & Gas, Inc
Contact:
Jeffrey P. Hayden, CFA, VP - Investor Relations
(713) 328-1044
Kim Pinyopusarerk, Manager - Investor Relations
(713) 358-6430
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