Carrizo Oil & Gas Announces Closing of Devon Acquisition and Conditional Full Redemption of 7.50% Senior Notes Due 2020
October 18 2018 - 6:00PM
Business Wire
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today
announced that it has closed the previously-announced acquisition
of Delaware Basin assets from Devon Energy Production Company, L.P.
(“Devon”), a subsidiary of Devon Energy Corporation.
Separately, on October 18, 2018, Carrizo delivered a notice to
the trustee for its 7.50% Senior Notes due 2020 (CUSIP No. 144577
AF0) (the “notes”) under which it called for redemption on November
19, 2018 (the “Redemption Date”), $130.0 million aggregate
principal amount of the notes. The $130.0 million of notes called
for redemption represents 100% of the aggregate principal amount of
this series of outstanding notes.
The notes will be redeemed at a price of 100.000% of the
principal amount thereof plus accrued and unpaid interest on the
notes to be redeemed to the redemption date.
The Company’s obligation to redeem the Notes on the Redemption
Date and pay the redemption price plus accrued and unpaid interest
thereon will be conditioned upon and subject to there being made
available to the Company under its revolving credit facility a
commitment amount of at least $1.1 billion at the Redemption Date
(the “Condition”). Satisfaction of the Condition may be waived by
the Company in its sole discretion. If the Condition has not been
satisfied or waived on or before December 17, 2018, the notice of
redemption shall be automatically revoked and of no further
effect.
This news release shall not constitute a notice of redemption
with respect to or an offer to purchase or sell (or the
solicitation of an offer to purchase or sell) any securities.
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 news release, including but not limited to
those relating to the Company’s ability to realize integration or
any other expected benefits or effects of any acquisition,
including the number of acres of the acquired properties that are
retained, capital requirements, the proposed redemption, proceeds
to be used for the redemption, increase in borrowing base, interest
savings, use of additional liquidity, 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 the failure to
realize the anticipated benefits of the acquisition, whether the
banks under the Company’s revolving credit facility increase the
aggregate commitment in an amount sufficient to allow for the
satisfaction of the Condition, the Company’s decision to waive
satisfaction of the Condition, borrowing base determinations by the
Company’s lenders, market conditions, integration and other
acquisition risks, exercise of third party purchase rights under
area of mutual interest provisions under joint operating agreement,
midstream agreement provisions, transportation issues, well costs,
estimated recoveries, results of wells and testing, failure of
actual production to meet expectations, results of infrastructure
program, performance of rig operators, spacing test results,
availability of gathering systems, costs and availability of
oilfield services, actions by governmental authorities, joint
venture partners, industry partners, lenders and other third
parties, actions by purchasers or sellers of properties, risks and
effects of acquisitions and dispositions, market and other
conditions, capital needs, 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, the terms of the redemption,
other sources and uses of funds for the Company, actions by
purchasers and debt holders, post-closing adjustment and other
payments, title and other defects and limitation of indemnification
and other remedies, results of operations, market conditions,
capital needs and uses and other risks and uncertainties that 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.
The information regarding the acquisition described in this
press release assumes that the party to a joint operating agreement
with the Company covering acreage in the vicinity of the acquired
properties, does not exercise its right to purchase 20% of the
acreage covered by an area of mutual interest provision under that
agreement after the Company delivers a post-closing notice of the
acquisition to that party.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181018005981/en/
Carrizo Oil & Gas, Inc.Jeffrey P. Hayden,
CFAVP - Investor Relations(713)
328-1044orKim PinyopusarerkManager - Investor
Relations(713) 358-6430
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From Jun 2024 to Jul 2024
Carrizo Oil and Gas (NASDAQ:CRZO)
Historical Stock Chart
From Jul 2023 to Jul 2024