Carrizo Oil & Gas Provides Update on Divestiture Program
November 27 2017 - 6:30AM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today announced
that it has closed on both of its previously-announced Appalachia
divestitures and has entered into an agreement to sell
substantially all of its assets in the DJ Basin.
Carrizo previously announced that it had entered into agreements
to sell substantially all of its assets in the Utica Shale and
Marcellus Shale for cash proceeds of $62 million and $84 million,
respectively, subject to customary closing terms and conditions,
plus contingent payments based on the level of commodity prices
over the next three years. Net production from these assets was 661
Boe/d (28% oil, 50% liquids) and 36,722 Mcf/d, respectively, during
the third quarter of 2017. The sale of the Company's Utica Shale
assets closed on November 15, 2017, while the sale of the Company’s
Marcellus Shale assets closed on November 21, 2017. The Company
received a combined total of approximately $128 million at the
closings of the two dispositions, which excludes the
previously-received deposit.
On November 20, 2017, Carrizo entered into an agreement to sell
substantially all of its assets in the DJ Basin for $140 million in
cash, subject to customary closing terms and conditions.
Additionally, Carrizo could receive contingent payments of up to
$15 million in the aggregate based on crude oil prices exceeding
certain thresholds over the next three years. Net production from
these assets was 2,427 Boe/d (69% oil, 84% liquids) during the
third quarter of 2017. The effective date of the transaction is
September 1, 2017, and the transaction is currently expected to
close in January, 2018.
S.P. “Chip” Johnson, IV, Carrizo’s President and CEO, commented,
“With the announced sale of our DJ Basin assets, we have now
executed on the non-core divestiture program that we announced to
the market earlier this year. The sale of the DJ Basin assets is
another step towards achieving our leverage reduction goals and
positioning Carrizo to be able to deliver strong, high-return
production growth within cash flow.”
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 on proven, producing oil
and gas plays in the Eagle Ford Shale in South Texas and the
Permian Basin in West Texas.
Statements in this release that are not historical facts,
including but not limited to those related to updates, closing date
and sale announcement timing, contingent payments, proceeds,
effects or timing of divestitures, leverage reduction, production
growth, the estimated production results and financial performance,
effects of transactions, timing, levels of and potential
production, oil and gas prices, including timing thereof,
development plans, growth, 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 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, 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 and failure of disposition to close, purchase
price adjustments, post-closing obligations, integration, commodity
price levels, and other risks and effects of acquisitions and
dispositions, market and other conditions, risks regarding
financing, 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, 2016 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.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171127005251/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor
Relations713-328-1044orKim
PinyopusarerkManager - Investor
Relations713-358-6430
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