Carrizo Oil & Gas Responds to Kimmeridge 13D Filing
April 05 2018 - 6:00PM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today provided
the following statement in response to the public filing of a
schedule 13D by Kimmeridge Energy Management.
Carrizo welcomes open communications with its shareholders and
seriously considers all ideas that may lead to the creation of
shareholder value. While it is the Company’s policy not to comment
on specific discussions with shareholders, members of Carrizo’s
management team and Board of Directors have had ongoing discussions
with Kimmeridge since it acquired a material stake in the Company’s
stock during late 2017.
While we expect communication with Kimmeridge to continue, the
Company is focused on creating value for all of its shareholders by
continuing to execute on its corporate strategy of generating
prudent, high-return production growth while reducing leverage,
with the goal of being able to run a free cash flow positive
development program in the future. Over the past several quarters,
the Company has high-graded its portfolio by divesting its assets
in Appalachia and the DJ Basin, as well as its downdip assets in
the Eagle Ford Shale, and acquiring a core position in the Delaware
Basin. As a result, the Company believes it currently has a deep
inventory of core locations in two of the highest-return plays in
North America. The Company has also used the proceeds from its
divestiture program to help retire $520 million of its long-term
debt and preferred stock, which, combined with increased EBITDA,
has led to a significant reduction in the Company’s leverage ratio
since mid-2017.
Carrizo agrees with Kimmeridge’s assessment that its assets are
currently undervalued relative to peer companies with
similar-quality acreage, but believes that executing on its
development programs in the Eagle Ford Shale and Delaware Basin
while continuing to strengthen its balance sheet will reduce the
current discount valuation in its shares and create significant
value for shareholders. While the Company expects to continue to
supplement its development program by evaluating other
opportunities in the market, it will only pursue any of these if it
deems them to be accretive to, and in the best interest of, all
shareholders.
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 and
the Permian Basin in West Texas.
Statements in this news release, including but not limited to
those relating to the response to 13D filing, corporate strategy,
goals, effect of executing on and supplementing programs,
strengthening balance sheet, expectation of continuing
communication, focus on creating value, and other statements that
are not historical facts, are forward-looking statements that are
based on current expectations. Although Carrizo 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 actions and
responses by shareholders and potential transaction parties,
results of operations, market conditions, capital needs and uses,
well costs, results of wells and testing, failure of actual
production to meet expectations, performance of rig operators,
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, integration and other risks
and effects of acquisitions and dispositions, risks regarding
financing, 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 and uncertainties, some of which are beyond Carrizo's
control, including those described in Carrizo's Form 10-K for the
year ended December 31, 2017 and in its other filings with the
Securities and Exchange Commission. Any forward-looking statement
speaks only as of the date on which such statement is made, and
Carrizo undertakes no obligation to correct or update
forward-looking information.
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version on businesswire.com: https://www.businesswire.com/news/home/20180405006329/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor Relations(713)
328-1044orKim PinyopusarerkManager - Investor
Relations(713) 358-6430
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