Carrizo Oil & Gas Announces First Quarter Results HOUSTON
Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today announced the
Company’s financial results for the first quarter of 2019 and provided
an operational update. Highlights include:
First Quarter 2019 Highlights
-
Total production of 61,960 Boe/d, 21% above the first quarter of 2018
-
Crude oil production of 40,727 Bbls/d, 19% above the first quarter of
2018
-
Net income attributable to common shareholders of $146.2 million, or
$1.58 per diluted share, and Net cash provided by operating activities
of $125.1 million
-
Adjusted net income attributable to common shareholders of $43.6
million, or $0.47 per diluted share, and Adjusted EBITDA of $152.9
million
Guidance and Operational Highlights
-
Production from multipads in the Eagle Ford Shale and Delaware Basin
expected to drive a 7%-9% increase in volumes during the second quarter
-
Early results from initial multi-layer, co-development test in the
Delaware Basin have been encouraging
-
Greater-than-expected efficiency gains have yielded further well cost
reductions across the asset portfolio
-
2019 DC&I capital expenditure guidance maintained at $525-$575 million
-
2019 production guidance reiterated at 66,800-67,800 Boe/d
Carrizo reported first quarter of 2019 net income attributable to common
shareholders of $146.2 million, or $1.59 and $1.58 per basic and diluted
share, respectively, compared to net income attributable to common
shareholders of $14.7 million, or $0.18 per basic and diluted share, in
the first quarter of 2018. The net income attributable to common
shareholders for the first quarter of 2019 and the first quarter of 2018
include certain items typically excluded from published estimates by the
investment community. Adjusted net income attributable to common
shareholders, which excludes the impact of these items as described in
the non-GAAP reconciliation tables below, for the first quarter of 2019
was $43.6 million, or $0.47 per diluted share, compared to $39.5
million, or $0.48 per diluted share, in the first quarter of 2018.
For the first quarter of 2019, Adjusted EBITDA was $152.9 million.
Adjusted EBITDA and the reconciliation to net income attributable to
common shareholders and net cash provided by operating activities are
presented in the non-GAAP reconciliation tables below.
Production volumes during the first quarter of 2019 were 5,576 MBoe, or
61,960 Boe/d, an increase of 21% versus the first quarter of 2018, and
near the high end of the Company’s guidance range of 61,100-62,100
Boe/d. The year-over-year growth was driven by strong production from
both of the Company’s core plays. Crude oil production during the first
quarter of 2019 averaged 40,727 Bbls/d, an increase of 19% versus the
first quarter of 2018 and above the high end of the Company’s guidance
range; natural gas and NGL production were 67,977 Mcf/d and 9,903
Bbls/d, respectively, during the first quarter of 2019.
Drilling, completion, and infrastructure (DC&I) capital expenditures for
the first quarter of 2019 were $214.7 million. Approximately 63% of the
first quarter DC&I spending was in the Eagle Ford Shale, with the
balance in the Delaware Basin. Land and seismic capital expenditures
during the quarter were $9.1 million, and were primarily focused in the
Delaware Basin.
For 2019, Carrizo is maintaining its DC&I capital expenditure guidance
of $525.0-$575.0 million. The Company’s 2019 development plan continues
to call for it to run an average of 3-4 rigs during the year between its
assets in the Eagle Ford Shale and Delaware Basin. Based on this level
of activity, Carrizo expects to drill 75-85 gross (65-75 net) operated
wells and complete 95-105 gross (85-95 net) operated wells during the
year.
Carrizo is reiterating its 2019 production guidance of 66,800-67,800
Boe/d. Crude oil production is expected to account for 63% of the
Company's production for the year, while total liquids are expected to
account for 80%. The 2019 guidance range equates to annual growth of
approximately 11% at the midpoint. For the second quarter of the year,
Carrizo expects production to be 66,500-67,500 Boe/d. This implies an
increase of 7%-9% versus the first quarter of the year as the Company’s
production benefits from its multipad projects in the Eagle Ford Shale
and Delaware Basin. For the quarter, crude oil is expected to account
for 64% of production, while total liquids are expected to account for
81%. 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, “During the first quarter, we executed on our plan in all areas
of our business. Our recent operational focus has been on the
development of several highly-efficient multipad projects, which we
completed on time and within budget. While these larger-scale projects
are expected to result in greater efficiencies, and thus, improved
project-level economics, they also result in a more uneven production
profile. We saw this impact in the first quarter, as the limited number
of wells that we turned to sales late in the fourth quarter and early in
the first quarter, combined with a higher level of planned downtime for
offsetting completion activity, led to a sequential decline in our
production. However, we are now reaping the rewards of this activity as
we began bringing on wells from our two large-scale multipad projects in
the Eagle Ford Shale during the first quarter and our initial multipad
project in the Delaware Basin during the second quarter. As a result, we
expect to see a significant increase in our production during the
current quarter.
“In the Delaware Basin, we are very pleased with the early results from
The Six, our initial four-layer, co-development test of the Wolfcamp A,
B, and C, as the project has already reached a rate of approximately
10,600 Boe/d with crude oil production of approximately 6,400 Bbls/d.
Included in The Six is an additional Wolfcamp C test, which has recently
been averaging more than 1,450 Boe/d. This provides us with another
encouraging data point from this upside target on our acreage position.
“One of our primary corporate initiatives in 2019 has been increasing
our capital efficiency through the optimization of all phases of our
drilling and completion programs. We set aggressive targets for cost
reductions and efficiency gains, and we are currently exceeding these
targets in both of our plays. As a result, we have been able to reduce
our well costs in the Eagle Ford Shale and Delaware Basin by an
additional 5%-10%. A key driver of these additional efficiency gains has
been reduced cycle times in our operations, especially in the Delaware
Basin, where we have been drilling wells faster than planned. Given
this, we may not need to add a third rig in the Delaware Basin as early
as previously forecast in order to execute on our planned drilling
activity for 2019.
“We remain committed to capital discipline and achieving our goals of
generating free cash flow and reducing debt. As a result, we have no
plans to adjust our planned 2019 budget in response to the recent
increase in crude oil prices. We remain on track to reach a
free-cash-flow-positive inflection point by the third quarter of this
year and currently plan to use incremental cash flow from
higher-than-budgeted commodity prices to accelerate debt reduction.”
Operational Update
In the Eagle Ford Shale, where the Company holds approximately 76,500
net acres, Carrizo drilled 27 gross (24 net) operated wells during the
first quarter and completed 32 gross (32 net) operated wells. Production
from the play was more than 39,500 Boe/d for the quarter, up 2% versus
the prior quarter as production from the multipads began coming online;
crude oil accounted for 79% of the Company’s production from the play.
At the end of the quarter, Carrizo had 41 gross (38 net) operated Eagle
Ford Shale wells in progress or waiting on completion. Carrizo currently
expects to drill 55-60 gross (45-50 net) operated wells and complete
75-80 gross (70-75 net) operated wells in the play during 2019.
Production from Carrizo’s two recent large-scale multipad projects in
the Eagle Ford Shale, located in its Pena and RPG project areas, began
during the first quarter of the year. Total production from the projects
has increased materially over the last several months as additional
wells have been turned to sales. The projects consist of a total of 33
wells on eight pads, with 12 wells located in the Pena project area and
21 wells located in the RPG project area. Production from the projects
has been consistent with the Company’s expectations, and has recently
been averaging more than 13,700 Boe/d net (90% oil) from restricted
chokes.
Carrizo continues to reduce cycle times and capture efficiency gains in
its Eagle Ford Shale program. Year-to-date, Carrizo has averaged
approximately 8 drilling days per well, down from 9-10 in 2018. The
Company has also been able to increase its completion cadence to
approximately 9 stages per day, versus 6-7 on average in 2018. The
improved cycle times, plus the other process improvements and service
cost reductions that the Company has previously discussed, resulted in a
10%-15% reduction in average drilling cost and completion cost per
effective lateral foot in the first quarter relative to the fourth
quarter of 2018. The efficiency gains achieved to date have exceeded the
Company’s prior expectations, and Carrizo now expects average well costs
in the Eagle Ford Shale to be $3.9-$4.1 million for a 6,600-ft. lateral
well, down from $4.3 million previously.
In the Delaware Basin, where it holds more than 46,000 net acres,
Carrizo drilled 8 gross (8 net) operated wells during the first quarter
and completed 11 gross (9 net) wells. Production from the play was more
than 22,400 Boe/d for the quarter, down versus the prior quarter due to
a limited number of wells coming online in late 2018 and early 2019 as
well as a higher level of downtime associated with offsetting completion
activity. Crude oil production during the first quarter was
approximately 9,400 Bbls/d, accounting for 42% of the Company’s
production from the play. At the end of the quarter, Carrizo had 9 gross
(8 net) operated Delaware Basin wells in progress or waiting on
completion. Carrizo currently expects to drill 20-25 gross (20-25 net)
operated wells and complete 20-25 gross (15-20 net) operated wells in
the play during 2019.
Carrizo’s primary operational focus in the Delaware Basin thus far in
2019 has been testing multi-layer, co-development concepts on its
acreage. The Company recently completed The Six, its first large-scale,
co-development test of the Wolfcamp A, B, and C, consisting of six wells
across four landing zones. The test spans more than 550 feet of vertical
reservoir thickness with the six wells spaced in a 330-ft. wine-rack
configuration. The wells began production in mid-April, and are
continuing to clean up. While early, Carrizo is pleased with the initial
performance from the project as it has already achieved a rate of
approximately 10,600 Boe/d (60% oil, 78% liquids).
Included in this co-development, or cube, test was an additional
Wolfcamp C well in the Phantom project area. The St. Clair 2827
Allocation A 12H, which was drilled approximately 250 feet below the two
Wolfcamp B Lower wells, recently recorded a 7-day rate of more than
1,450 Boe/d (51% oil, 73% liquids) from an approximate 10,000-ft.
lateral. The early results from this well continue to support the
Wolfcamp C as an additional potential target on the Company’s
Phantom-area acreage. Currently, Carrizo’s estimate of net de-risked
drilling locations in the Delaware Basin includes only those in the
Wolfcamp A and B.
Early processing results from the microseismic data collected during the
completion of The Six have yielded some notable insights. In particular,
the spatial distribution of the microseismic events showed the potential
for increased hydraulic fracture complexity and increased stimulated
rock in the Wolfcamp layers. This implies that multi-layer
co-development could result in improved frac geometries and positive
communication, a dynamic the Company previously saw when developing the
Barnett Shale. In addition to these preliminary conclusions, the
microseismic data indicates that carbonates of a certain thickness may
act as a barrier to control frac-height growth. Carrizo is planning
additional co-development tests in both the Ford West and Phantom areas,
and expects to provide updates on them once it has sufficient production
history.
Carrizo also remains focused on improving efficiencies and driving down
costs in its Delaware Basin operations. In 2019, the Company has
transitioned to a full-scale, multi-well pad development program in the
basin. During the first quarter of the year, Carrizo’s drilling activity
was primarily on its Ford West acreage, as it was completing The Six in
the Phantom area. The Company was able to materially reduce its drilling
cycle times in the play during the quarter, with wells on multi-well
pads being drilled 19% faster than their single-well counterparts during
2018. One recent three-well pad of 10,000-ft. lateral wells in the Ford
West area was drilled in approximately 20 days on average, a Company
record; this was more than 30% faster than the Company’s budgeted
drilling curve for the area. The reduced cycle times coupled with other
process improvements resulted in more than a 35% reduction in drilling
cost per effective lateral foot in the Ford West area during the first
quarter relative to the fourth quarter of 2018. Efficiency gains and
cost reductions have also helped Carrizo materially reduce its
completion costs in the Delaware Basin, with average completion cost per
effective lateral foot declining by approximately 25% in the first
quarter relative to the third quarter of 2018. As with the Eagle Ford
Shale, these efficiency gains have exceeded the Company’s prior
expectations, and Carrizo now expects average well costs in the Delaware
Basin to be $7.8-$8.2 million for a 7,000-ft. lateral well, down from
$8.5 million previously.
Hedging Activity
Hedging continues to be an important element of Carrizo’s strategy to
protect its balance sheet and provide predictable cash flows. As part of
this strategy, the Company maintains an active hedging program while
retaining the flexibility to benefit from commodity price increases.
Carrizo currently has hedges in place for more than 70% of estimated
crude oil production for the remainder of 2019 (based on the midpoint of
guidance), consisting of swaps covering 4,455 Bbls/d of crude oil at an
average fixed price of $64.80 and three-way collars covering 27,000
Bbls/d of crude oil with an average floor price of $50.96/Bbl, ceiling
price of $74.23/Bbl, and sub-floor price of $41.67/Bbl.
For 2020, the Company currently has swaps covering 3,000 Bbls/d of crude
oil at an average fixed price of $55.06/Bbl and three-way collars
covering 12,000 Bbls/d with an average floor price of $55.63/Bbl,
ceiling price of $66.04/Bbl, and sub-floor price of $45.63/Bbl.
Please refer to the attached tables for full details of the Company’s
commodity derivative contracts.
Conference Call Details
The Company will hold a conference call to discuss first quarter 2019
financial results on Wednesday, May 8, 2019 at 10:00 AM Central Daylight
Time. To participate in the call, please dial (800) 768-9481 (U.S. &
Canada) or +1 (303) 223-0120 (Intl.) ten minutes before the call is
scheduled to begin. A replay of the call will be available through
Wednesday, May 15, 2019 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 21922809 for U.S., Canadian, and
International callers.
A simultaneous webcast of the call may be accessed over the internet by
visiting the Carrizo website at http://www.carrizo.com,
clicking on “Upcoming Events”, and then clicking on “First Quarter 2019
Earnings Call”. 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 and the Permian Basin in West
Texas.
Statements in this release that are not historical facts, including
but not limited to those related to capital requirements, expectations
or projections, cost reductions, drilling, fracking and capital
efficiencies, cycle times, growth within cash flow and goal of free cash
flow generation, activity among basins, goals, leverage metrics, capital
expenditure, infrastructure program, resource potential, guidance,
results of tests, rig program, production, average well returns,
estimated production results and financial performance, effects of
transactions, targeted ratios and other metrics, timing, levels of and
potential production, expectations regarding growth, oil and gas prices,
drilling and completion activities and optimization, benefits of certain
well completion designs, well spacing, landing zone optimization,
drilling techniques, including multi-pad and multi-zone drilling,
completion and development techniques, drilling inventory, including
timing thereof, well costs, break-even prices, production mix,
development plans, 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, Delaware Basin constraints, estimated
recoveries, pricing and other factors affecting average well returns,
results of wells and testing, failure of actual production to meet
expectations, results of infrastructure program, failure to reach
significant growth, performance of rig operators, spacing test results,
availability of gathering systems, pipeline and other transportation
issues, 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, risks regarding financing, 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, and other risks described in the Company’s Form 10-K
for the year ended December 31, 2018 and its other filings with the U.S.
Securities and Exchange Commission.
(Financial Highlights to Follow)
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|
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CARRIZO OIL & GAS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
March 31, 2019
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|
|
December 31, 2018
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$2,173
|
|
|
|
$2,282
|
|
Accounts receivable, net
|
|
|
94,944
|
|
|
|
99,723
|
|
Derivative assets
|
|
|
10,858
|
|
|
|
39,904
|
|
Other current assets
|
|
|
9,669
|
|
|
|
8,460
|
|
Total current assets
|
|
|
117,644
|
|
|
|
150,369
|
|
Property and equipment
|
|
|
|
|
|
|
Oil and gas properties, full cost method
|
|
|
|
|
|
|
Proved properties, net
|
|
|
2,514,178
|
|
|
|
2,333,470
|
|
Unproved properties, not being amortized
|
|
|
665,957
|
|
|
|
673,833
|
|
Other property and equipment, net
|
|
|
11,880
|
|
|
|
11,221
|
|
Total property and equipment, net
|
|
|
3,192,015
|
|
|
|
3,018,524
|
|
Deferred income taxes
|
|
|
179,146
|
|
|
|
—
|
|
Operating lease right-of-use assets
|
|
|
71,965
|
|
|
|
—
|
|
Other long-term assets
|
|
|
13,222
|
|
|
|
16,207
|
|
Total Assets
|
|
|
$3,573,992
|
|
|
|
$3,185,100
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
|
$122,941
|
|
|
|
$98,811
|
|
Revenues and royalties payable
|
|
|
46,027
|
|
|
|
49,003
|
|
Accrued capital expenditures
|
|
|
99,597
|
|
|
|
60,004
|
|
Accrued interest
|
|
|
23,314
|
|
|
|
18,377
|
|
Derivative liabilities
|
|
|
75,994
|
|
|
|
55,205
|
|
Operating lease liabilities
|
|
|
35,543
|
|
|
|
—
|
|
Other current liabilities
|
|
|
46,508
|
|
|
|
40,609
|
|
Total current liabilities
|
|
|
449,924
|
|
|
|
322,009
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|
Long-term debt
|
|
|
1,714,764
|
|
|
|
1,633,591
|
|
Asset retirement obligations
|
|
|
21,521
|
|
|
|
18,360
|
|
Long-term operating lease liabilities
|
|
|
42,468
|
|
|
|
—
|
|
Deferred income taxes
|
|
|
7,945
|
|
|
|
8,017
|
|
Other long-term liabilities
|
|
|
30,417
|
|
|
|
47,797
|
|
Total liabilities
|
|
|
2,267,039
|
|
|
|
2,029,774
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|
Commitments and contingencies
|
|
|
|
|
|
|
Preferred stock
|
|
|
|
|
|
|
Preferred stock, $0.01 par value, 10,000,000 shares authorized;
200,000 issued and outstanding as of March 31, 2019 and December 31,
2018
|
|
|
175,223
|
|
|
|
174,422
|
|
Shareholders’ equity
|
|
|
|
|
|
|
Common stock, $0.01 par value, 180,000,000 shares authorized;
92,503,562 issued and outstanding as of March 31, 2019 and
91,627,738 issued and outstanding as of December 31, 2018
|
|
|
925
|
|
|
|
916
|
|
Additional paid-in capital
|
|
|
2,130,989
|
|
|
|
2,131,535
|
|
Accumulated deficit
|
|
|
(1,000,184
|
)
|
|
|
(1,151,547
|
)
|
Total shareholders’ equity
|
|
|
1,131,730
|
|
|
|
980,904
|
|
Total Liabilities and Shareholders’ Equity
|
|
|
$3,573,992
|
|
|
|
$3,185,100
|
|
|
|
|
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CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
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Three Months Ended March 31,
|
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2019
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2018
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Revenues
|
|
|
|
|
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Crude oil
|
|
|
$202,744
|
|
|
|
$194,919
|
|
Natural gas liquids
|
|
|
16,837
|
|
|
|
16,902
|
|
Natural gas
|
|
|
13,459
|
|
|
|
13,459
|
|
Total revenues
|
|
|
233,040
|
|
|
|
225,280
|
|
|
|
|
|
|
|
|
Costs and Expenses
|
|
|
|
|
|
|
Lease operating
|
|
|
42,031
|
|
|
|
39,273
|
|
Production and ad valorem taxes
|
|
|
14,894
|
|
|
|
12,548
|
|
Depreciation, depletion and amortization
|
|
|
75,322
|
|
|
|
64,467
|
|
General and administrative, net
|
|
|
24,732
|
|
|
|
27,292
|
|
Loss on derivatives, net
|
|
|
83,284
|
|
|
|
29,596
|
|
Interest expense, net
|
|
|
16,451
|
|
|
|
15,517
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
8,676
|
|
Other expense, net
|
|
|
4,358
|
|
|
|
100
|
|
Total costs and expenses
|
|
|
261,072
|
|
|
|
197,469
|
|
|
|
|
|
|
|
|
Income (Loss) Before Income Taxes
|
|
|
(28,032
|
)
|
|
|
27,811
|
|
Income tax (expense) benefit
|
|
|
179,395
|
|
|
|
(319
|
)
|
Net Income
|
|
|
$151,363
|
|
|
|
$27,492
|
|
Dividends on preferred stock
|
|
|
(4,360
|
)
|
|
|
(4,863
|
)
|
Accretion on preferred stock
|
|
|
(801
|
)
|
|
|
(753
|
)
|
Loss on redemption of preferred stock
|
|
|
—
|
|
|
|
(7,133
|
)
|
Net Income Attributable to Common Shareholders
|
|
|
$146,202
|
|
|
|
$14,743
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Shareholders Per Common Share
|
|
|
|
|
|
|
Basic
|
|
|
$1.59
|
|
|
|
$0.18
|
|
Diluted
|
|
|
$1.58
|
|
|
|
$0.18
|
|
|
|
|
|
|
|
|
Weighted Average Common Shares Outstanding
|
|
|
|
|
|
|
Basic
|
|
|
91,740
|
|
|
|
81,542
|
|
Diluted
|
|
|
92,292
|
|
|
|
82,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY
(In thousands, except share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Additional Paid-in Capital
|
|
|
Accumulated Deficit
|
|
|
Total Shareholders’ Equity
|
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
Balance as of December 31, 2018
|
|
|
91,627,738
|
|
|
|
$916
|
|
|
|
$2,131,535
|
|
|
|
($1,151,547
|
)
|
|
|
$980,904
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
4,624
|
|
|
|
—
|
|
|
|
4,624
|
|
Issuance of common stock upon grants of restricted stock awards and
vestings of restricted stock units and performance shares
|
|
|
875,824
|
|
|
|
9
|
|
|
|
(9
|
)
|
|
|
—
|
|
|
|
—
|
|
Dividends on preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,360
|
)
|
|
|
—
|
|
|
|
(4,360
|
)
|
Accretion on preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(801
|
)
|
|
|
—
|
|
|
|
(801
|
)
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
151,363
|
|
|
|
151,363
|
|
Balance as of March 31, 2019
|
|
|
92,503,562
|
|
|
|
$925
|
|
|
|
$2,130,989
|
|
|
|
($1,000,184
|
)
|
|
|
$1,131,730
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2017
|
|
|
81,454,621
|
|
|
|
$815
|
|
|
|
$1,926,056
|
|
|
|
($1,555,974
|
)
|
|
|
$370,897
|
|
Stock-based compensation expense
|
|
|
—
|
|
|
|
—
|
|
|
|
5,647
|
|
|
|
—
|
|
|
|
5,647
|
|
Issuance of common stock upon grants of restricted stock awards and
vestings of restricted stock units and performance shares
|
|
|
610,940
|
|
|
|
6
|
|
|
|
(12
|
)
|
|
|
—
|
|
|
|
(6
|
)
|
Dividends on preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(4,863
|
)
|
|
|
—
|
|
|
|
(4,863
|
)
|
Accretion on preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(753
|
)
|
|
|
—
|
|
|
|
(753
|
)
|
Loss on redemption of preferred stock
|
|
|
—
|
|
|
|
—
|
|
|
|
(7,133
|
)
|
|
|
—
|
|
|
|
(7,133
|
)
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
27,492
|
|
|
|
27,492
|
|
Balance as of March 31, 2018
|
|
|
82,065,561
|
|
|
|
$821
|
|
|
|
$1,918,942
|
|
|
|
($1,528,482
|
)
|
|
|
$391,281
|
|
|
|
|
|
CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
Net income
|
|
|
$151,363
|
|
|
|
$27,492
|
|
Adjustments to reconcile net income to net cash provided by
operating activities
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
75,322
|
|
|
|
64,467
|
|
Loss on derivatives, net
|
|
|
83,284
|
|
|
|
29,596
|
|
Cash paid for commodity derivative settlements, net
|
|
|
(2,638
|
)
|
|
|
(14,365
|
)
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
8,676
|
|
Stock-based compensation expense, net
|
|
|
4,115
|
|
|
|
3,518
|
|
Deferred income tax (benefit) expense
|
|
|
(179,218
|
)
|
|
|
193
|
|
Non-cash interest expense, net
|
|
|
603
|
|
|
|
662
|
|
Other, net
|
|
|
1,364
|
|
|
|
(2,689
|
)
|
Changes in components of working capital and other assets and
liabilities-
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(4,309
|
)
|
|
|
10,738
|
|
Accounts payable
|
|
|
(14,385
|
)
|
|
|
15,526
|
|
Accrued liabilities
|
|
|
10,568
|
|
|
|
(4,317
|
)
|
Other assets and liabilities, net
|
|
|
(966
|
)
|
|
|
(773
|
)
|
Net cash provided by operating activities
|
|
|
125,103
|
|
|
|
138,724
|
|
Cash Flows From Investing Activities
|
|
|
|
|
|
|
Capital expenditures
|
|
|
(171,042
|
)
|
|
|
(234,685
|
)
|
Acquisitions of oil and gas properties
|
|
|
8,222
|
|
|
|
—
|
|
Proceeds from divestitures of oil and gas properties
|
|
|
3,107
|
|
|
|
342,359
|
|
Other, net
|
|
|
(880
|
)
|
|
|
(87
|
)
|
Net cash provided by (used in) investing activities
|
|
|
(160,593
|
)
|
|
|
107,587
|
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
Redemptions of senior notes
|
|
|
—
|
|
|
|
(326,010
|
)
|
Redemption of preferred stock
|
|
|
—
|
|
|
|
(50,030
|
)
|
Borrowings under credit agreement
|
|
|
470,632
|
|
|
|
694,260
|
|
Repayments of borrowings under credit agreement
|
|
|
(389,920
|
)
|
|
|
(563,860
|
)
|
Payments of credit facility amendment fees
|
|
|
(613
|
)
|
|
|
(150
|
)
|
Payments of dividends on preferred stock
|
|
|
(4,360
|
)
|
|
|
(4,863
|
)
|
Cash paid for settlements of contingent consideration arrangements,
net
|
|
|
(40,000
|
)
|
|
|
—
|
|
Other, net
|
|
|
(358
|
)
|
|
|
(313
|
)
|
Net cash provided by (used in) financing activities
|
|
|
35,381
|
|
|
|
(250,966
|
)
|
Net Decrease in Cash and Cash Equivalents
|
|
|
(109
|
)
|
|
|
(4,655
|
)
|
Cash and Cash Equivalents, Beginning of Period
|
|
|
2,282
|
|
|
|
9,540
|
|
Cash and Cash Equivalents, End of Period
|
|
|
$2,173
|
|
|
|
$4,885
|
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC. NON-GAAP FINANCIAL MEASURES (Unaudited)
Reconciliation of Net Income Attributable to Common Shareholders
(GAAP) to Adjusted Net Income Attributable to Common Shareholders
(Non-GAAP)
Adjusted net income attributable to common shareholders is a non-GAAP
financial measure which excludes certain items that are included in net
income attributable to common shareholders, the most directly comparable
GAAP financial measure. Items excluded are those which the Company
believes affect the comparability of operating results and are typically
excluded from published estimates by the investment community, including
items whose timing and/or amount cannot be reasonably estimated or are
non-recurring.
Adjusted net income attributable to common shareholders 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 attributable to common shareholders 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 attributable to common shareholders should not be
considered in isolation or as a substitute for net income attributable
to common shareholders or any other measure of a company’s financial
performance or profitability presented in accordance with GAAP. A
reconciliation of the differences between net income attributable to
common shareholders and adjusted net income attributable to common
shareholders is presented below. Because adjusted net income
attributable to common shareholders excludes some, but not all, items
that affect net income attributable to common shareholders and may vary
among companies, our calculation of adjusted net income attributable to
common shareholders may not be comparable to similarly titled measures
of other companies.
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(In thousands, except per share amounts)
|
Net Income Attributable to Common Shareholders (GAAP)
|
|
|
$146,202
|
|
|
|
$14,743
|
|
Loss on redemption of preferred stock
|
|
|
—
|
|
|
|
7,133
|
|
Income tax expense (benefit)
|
|
|
(179,395
|
)
|
|
|
319
|
|
Loss on derivatives, net
|
|
|
83,284
|
|
|
|
29,596
|
|
Cash paid for commodity derivative settlements, net
|
|
|
(2,638
|
)
|
|
|
(14,365
|
)
|
Non-cash general and administrative, net
|
|
|
4,115
|
|
|
|
3,518
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
8,676
|
|
Non-recurring and other expense, net
|
|
|
4,358
|
|
|
|
1,193
|
|
Adjusted income before income taxes
|
|
|
55,926
|
|
|
|
50,813
|
|
Adjusted income tax expense (1)
|
|
|
(12,303
|
)
|
|
|
(11,265
|
)
|
Adjusted Net Income Attributable to Common Shareholders (Non-GAAP)
|
|
|
$43,623
|
|
|
|
$39,548
|
|
|
|
|
|
|
|
|
Net Income Attributable to Common Shareholders Per Diluted Common
Share (GAAP)
|
|
|
$1.58
|
|
|
|
$0.18
|
|
Loss on redemption of preferred stock
|
|
|
—
|
|
|
|
0.09
|
|
Income tax expense (benefit)
|
|
|
(1.94
|
)
|
|
|
—
|
|
Loss on derivatives, net
|
|
|
0.90
|
|
|
|
0.36
|
|
Cash paid for commodity derivative settlements, net
|
|
|
(0.03
|
)
|
|
|
(0.17
|
)
|
Non-cash general and administrative, net
|
|
|
0.05
|
|
|
|
0.04
|
|
Loss on extinguishment of debt
|
|
|
—
|
|
|
|
0.11
|
|
Non-recurring and other expense, net
|
|
|
0.05
|
|
|
|
0.01
|
|
Adjusted income before income taxes
|
|
|
0.61
|
|
|
|
0.62
|
|
Adjusted income tax expense
|
|
|
(0.14
|
)
|
|
|
(0.14
|
)
|
Adjusted Net Income Attributable to Common Shareholders Per
Diluted Common Share (Non-GAAP)
|
|
|
$0.47
|
|
|
|
$0.48
|
|
|
|
|
|
|
|
|
Diluted Weighted Average Shares Outstanding
|
|
|
92,292
|
|
|
|
82,578
|
|
__________
|
(1)
|
|
For the three months ended March 31, 2019 and 2018, adjusted income
tax expense was calculated using a rate of 22.0% and 22.2%,
respectively, which approximates the Company’s statutory tax rate
adjusted for ordinary permanent differences.
|
|
|
|
CARRIZO OIL & GAS, INC. NON-GAAP FINANCIAL MEASURES (Unaudited)
Reconciliation of Net Income Attributable to Common Shareholders
(GAAP) to Adjusted EBITDA (Non-GAAP) to Net Cash Provided by Operating
Activities (GAAP)
Adjusted EBITDA is a non-GAAP financial measure which excludes certain
items that are included in net income attributable to common
shareholders, the most directly comparable GAAP financial measure. Items
excluded are interest, income taxes, depreciation, depletion and
amortization, impairments, dividends and accretion on preferred stock
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 are non-recurring.
Adjusted EBITDA is presented because management believes it provides
useful additional information to investors and analysts, for analysis of
the Company’s financial and operating performance on a recurring basis
and the Company’s ability to internally generate funds for exploration
and development, and to service debt. 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 net income attributable to common shareholders, net cash provided by
operating activities, or any other measure of a company’s profitability
or liquidity presented in accordance with GAAP. A reconciliation of net
income attributable to common shareholders to adjusted EBITDA to net
cash provided by operating activities is presented below. Because
adjusted EBITDA excludes some, but not all, items that affect net income
attributable to common shareholders, our calculations of adjusted EBITDA
may not be comparable to similarly titled measures of other companies.
Reconciliation of Net Cash Provided by Operating Activities (GAAP) to
Discretionary Cash Flows (Non-GAAP)
Discretionary cash flows are a non-GAAP financial measure which excludes
certain items that are included in net cash provided by operating
activities, the most directly comparable GAAP financial measure. Items
excluded are changes in the components of working capital and other
items that the Company believes affect the comparability of operating
cash flows such as items that are non-recurring.
Discretionary cash flows are presented because management believes it
provides useful additional information to investors for analysis of the
Company’s ability to generate cash to fund exploration and development,
and to service debt. 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 or any other
measure of a company’s cash flows or liquidity presented in accordance
with GAAP. A reconciliation of net cash provided by operating activities
to discretionary cash flows is presented below. Because discretionary
cash flows excludes some, but not all, items that affect net cash
provided by operating activities 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 March 31,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
|
|
(In thousands, except per Boe amounts)
|
Net Income Attributable to Common Shareholders (GAAP)
|
|
|
|
$146,202
|
|
|
|
$14,743
|
|
Dividends on preferred stock
|
|
|
|
4,360
|
|
|
|
4,863
|
|
Accretion on preferred stock
|
|
|
|
801
|
|
|
|
753
|
|
Loss on redemption of preferred stock
|
|
|
|
—
|
|
|
|
7,133
|
|
Income tax expense (benefit)
|
|
|
|
(179,395
|
)
|
|
|
319
|
|
Depreciation, depletion and amortization
|
|
|
|
75,322
|
|
|
|
64,467
|
|
Interest expense, net
|
|
|
|
16,451
|
|
|
|
15,517
|
|
Loss on derivatives, net
|
|
|
|
83,284
|
|
|
|
29,596
|
|
Cash paid for commodity derivative settlements, net
|
|
|
|
(2,638
|
)
|
|
|
(14,365
|
)
|
Non-cash general and administrative, net
|
|
|
|
4,115
|
|
|
|
3,518
|
|
Loss on extinguishment of debt
|
|
|
|
—
|
|
|
|
8,676
|
|
Non-recurring and other expense, net
|
|
|
|
4,358
|
|
|
|
1,193
|
|
Adjusted EBITDA (Non-GAAP)
|
|
|
|
$152,860
|
|
|
|
$136,413
|
|
Cash interest expense, net
|
|
|
|
(15,848
|
)
|
|
|
(14,855
|
)
|
Dividends on preferred stock
|
|
|
|
(4,360
|
)
|
|
|
(4,863
|
)
|
Other cash and non-cash adjustments, net
|
|
|
|
1,238
|
|
|
|
738
|
|
Discretionary Cash Flows (Non-GAAP)
|
|
|
|
$133,890
|
|
|
|
$117,433
|
|
Changes in components of working capital and other
|
|
|
|
(8,787
|
)
|
|
|
21,291
|
|
Net Cash Provided By Operating Activities (GAAP)
|
|
|
|
$125,103
|
|
|
|
$138,724
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA (Non-GAAP)
|
|
|
|
$152,860
|
|
|
|
$136,413
|
|
Total barrels of oil equivalent
|
|
|
|
5,576
|
|
|
|
4,613
|
|
Adjusted EBITDA Margin ($ per Boe) (Non-GAAP)
|
|
|
|
$27.41
|
|
|
|
$29.57
|
|
|
CARRIZO OIL & GAS, INC.
PRODUCTION VOLUMES AND REALIZED PRICES
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2019
|
|
|
2018
|
Total production volumes -
|
|
|
|
|
|
|
Crude oil (MBbls)
|
|
|
|
3,665
|
|
|
|
|
3,072
|
NGLs (MBbls)
|
|
|
|
891
|
|
|
|
|
739
|
Natural gas (MMcf)
|
|
|
|
6,118
|
|
|
|
|
4,810
|
Total barrels of oil equivalent (MBoe)
|
|
|
|
5,576
|
|
|
|
|
4,613
|
|
|
|
|
|
|
|
Daily production volumes by product -
|
|
|
|
|
|
|
Crude oil (Bbls/d)
|
|
|
|
40,727
|
|
|
|
|
34,136
|
NGLs (Bbls/d)
|
|
|
|
9,903
|
|
|
|
|
8,213
|
Natural gas (Mcf/d)
|
|
|
|
67,977
|
|
|
|
|
53,446
|
Total barrels of oil equivalent (Boe/d)
|
|
|
|
61,960
|
|
|
|
|
51,257
|
|
|
|
|
|
|
|
Daily production volumes by region (Boe/d) -
|
|
|
|
|
|
|
Eagle Ford
|
|
|
|
39,533
|
|
|
|
|
35,623
|
Delaware Basin
|
|
|
|
22,427
|
|
|
|
|
15,235
|
Other
|
|
|
|
—
|
|
|
|
|
399
|
Total barrels of oil equivalent (Boe/d)
|
|
|
|
61,960
|
|
|
|
|
51,257
|
|
|
|
|
|
|
|
Realized prices -
|
|
|
|
|
|
|
Crude oil ($ per Bbl)
|
|
|
$
|
55.32
|
|
|
|
$
|
63.45
|
NGLs ($ per Bbl)
|
|
|
$
|
18.90
|
|
|
|
$
|
22.87
|
Natural gas ($ per Mcf)
|
|
|
$
|
2.20
|
|
|
|
$
|
2.80
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS, INC.
|
|
|
|
|
|
COMMODITY DERIVATIVE CONTRACTS - AS OF MAY 3, 2019
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
Sub-Floor
|
|
Floor
|
|
Ceiling
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
|
|
Price
|
|
Price
|
|
Price
|
|
Price
|
|
Differential
|
|
|
|
|
|
|
|
|
|
|
|
|
(Bbls
|
|
($ per
|
|
($ per
|
|
($ per
|
|
($ per
|
|
($ per
|
Commodity
|
|
|
Period
|
|
|
Type of Contract
|
|
|
Index
|
|
|
per day)
|
|
Bbl)
|
|
Bbl)
|
|
Bbl)
|
|
Bbl)
|
|
Bbl)
|
Crude oil
|
|
|
2Q19
|
|
|
Price Swaps
|
|
|
NYMEX WTI
|
|
|
3,352
|
|
|
$64.80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Crude oil
|
|
|
2Q19
|
|
|
Three-Way Collars
|
|
|
NYMEX WTI
|
|
|
27,000
|
|
|
—
|
|
|
$41.67
|
|
|
$50.96
|
|
|
$74.23
|
|
|
—
|
|
Crude oil
|
|
|
2Q19
|
|
|
Basis Swaps
|
|
|
LLS-WTI Cushing
|
|
|
6,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$5.16
|
|
Crude oil
|
|
|
2Q19
|
|
|
Basis Swaps
|
|
|
WTI Midland-WTI Cushing
|
|
|
7,609
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($4.38
|
)
|
Crude oil
|
|
|
2Q19
|
|
|
Sold Call Options
|
|
|
NYMEX WTI
|
|
|
3,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$81.07
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
3Q19
|
|
|
Price Swaps
|
|
|
NYMEX WTI
|
|
|
5,000
|
|
|
$64.80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Crude oil
|
|
|
3Q19
|
|
|
Three-Way Collars
|
|
|
NYMEX WTI
|
|
|
27,000
|
|
|
—
|
|
|
$41.67
|
|
|
$50.96
|
|
|
$74.23
|
|
|
—
|
|
Crude oil
|
|
|
3Q19
|
|
|
Basis Swaps
|
|
|
LLS-WTI Cushing
|
|
|
6,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$5.16
|
|
Crude oil
|
|
|
3Q19
|
|
|
Basis Swaps
|
|
|
WTI Midland-WTI Cushing
|
|
|
9,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($4.44
|
)
|
Crude oil
|
|
|
3Q19
|
|
|
Sold Call Options
|
|
|
NYMEX WTI
|
|
|
3,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$81.07
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
4Q19
|
|
|
Price Swaps
|
|
|
NYMEX WTI
|
|
|
5,000
|
|
|
$64.80
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Crude oil
|
|
|
4Q19
|
|
|
Three-Way Collars
|
|
|
NYMEX WTI
|
|
|
27,000
|
|
|
—
|
|
|
$41.67
|
|
|
$50.96
|
|
|
$74.23
|
|
|
—
|
|
Crude oil
|
|
|
4Q19
|
|
|
Basis Swaps
|
|
|
WTI Midland-WTI Cushing
|
|
|
9,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($4.64
|
)
|
Crude oil
|
|
|
4Q19
|
|
|
Sold Call Options
|
|
|
NYMEX WTI
|
|
|
3,875
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$81.07
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
2020
|
|
|
Price Swaps
|
|
|
NYMEX WTI
|
|
|
3,000
|
|
|
$55.06
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Crude oil
|
|
|
2020
|
|
|
Three-Way Collars
|
|
|
NYMEX WTI
|
|
|
12,000
|
|
|
—
|
|
|
$45.63
|
|
|
$55.63
|
|
|
$66.04
|
|
|
—
|
|
Crude oil
|
|
|
2020
|
|
|
Basis Swaps
|
|
|
WTI Midland-WTI Cushing
|
|
|
10,658
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($1.68
|
)
|
Crude oil
|
|
|
2020
|
|
|
Sold Call Options
|
|
|
NYMEX WTI
|
|
|
4,575
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$75.98
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil
|
|
|
2021
|
|
|
Basis Swaps
|
|
|
WTI Midland-WTI Cushing
|
|
|
8,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$0.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed
|
|
Sub-Floor
|
|
Floor
|
|
Ceiling
|
|
Price
|
|
|
|
|
|
|
|
|
|
|
|
|
Volumes
|
|
Price
|
|
Price
|
|
Price
|
|
Price
|
|
Differential
|
|
|
|
|
|
|
|
|
|
|
|
|
(MMBtu
|
|
($ per
|
|
($ per
|
|
($ per
|
|
($ per
|
|
($ per
|
Commodity
|
|
|
Period
|
|
|
Type of Contract
|
|
|
Index
|
|
|
per day)
|
|
MMBtu)
|
|
MMBtu)
|
|
MMBtu)
|
|
MMBtu)
|
|
MMBtu)
|
Natural gas
|
|
|
2Q19
|
|
|
Basis Swaps
|
|
|
Waha-NYMEX Henry Hub
|
|
|
14,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($2.12
|
)
|
Natural gas
|
|
|
2Q19
|
|
|
Sold Call Options
|
|
|
NYMEX Henry Hub
|
|
|
33,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$3.25
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
3Q19
|
|
|
Basis Swaps
|
|
|
Waha-NYMEX Henry Hub
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($1.60
|
)
|
Natural gas
|
|
|
3Q19
|
|
|
Sold Call Options
|
|
|
NYMEX Henry Hub
|
|
|
33,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$3.25
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
4Q19
|
|
|
Basis Swaps
|
|
|
Waha-NYMEX Henry Hub
|
|
|
15,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($1.05
|
)
|
Natural gas
|
|
|
4Q19
|
|
|
Sold Call Options
|
|
|
NYMEX Henry Hub
|
|
|
33,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$3.25
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
|
|
|
2020
|
|
|
Basis Swaps
|
|
|
Waha-NYMEX Henry Hub
|
|
|
29,541
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
($0.77
|
)
|
Natural gas
|
|
|
2020
|
|
|
Sold Call Options
|
|
|
NYMEX Henry Hub
|
|
|
33,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$3.50
|
|
|
—
|
|
|
CARRIZO OIL & GAS, INC.
|
SECOND QUARTER AND FULL YEAR 2019 GUIDANCE SUMMARY
|
|
|
|
|
|
|
|
|
|
|
Second Quarter 2019
|
|
|
Full Year 2019
|
Daily Production Volumes (Boe/d)
|
|
|
66,500 - 67,500
|
|
|
66,800 - 67,800
|
Crude oil
|
|
|
64%
|
|
|
63%
|
NGLs
|
|
|
17%
|
|
|
17%
|
Natural gas
|
|
|
19%
|
|
|
20%
|
|
|
|
|
|
|
|
Unhedged Commodity Price Realizations
|
|
|
|
|
|
|
Crude oil (% of NYMEX oil)
|
|
|
99% - 101%
|
|
|
N/A
|
NGLs (% of NYMEX oil)
|
|
|
27% - 29%
|
|
|
N/A
|
Natural gas (% of NYMEX gas)
|
|
|
33% - 35%
|
|
|
N/A
|
|
|
|
|
|
|
|
Cash paid for commodity derivative settlements, net ($MM)
|
|
|
$6.0 - $10.0
|
|
|
N/A
|
|
|
|
|
|
|
|
Costs and Expenses -
|
|
|
|
|
|
|
Lease operating ($/Boe)
|
|
|
$7.00 - $7.50
|
|
|
$6.75 - $7.50
|
Production and ad valorem taxes (% of total revenues)
|
|
|
6.25% - 6.75%
|
|
|
6.00% - 6.75%
|
Cash general and administrative, net ($MM)
|
|
|
$10.0 - $10.5
|
|
|
$50.5 - $52.0
|
Depreciation, depletion and amortization ($/Boe)
|
|
|
$13.00 - $14.00
|
|
|
$13.00 - $14.00
|
Interest expense, net ($MM)
|
|
|
$17.5 - $18.5
|
|
|
N/A
|
|
|
|
|
|
|
|
Capital Expenditures -
|
|
|
|
|
|
|
Drilling, completion, and infrastructure ($MM)
|
|
|
N/A
|
|
|
$525.0 - $575.0
|
Interest ($MM)
|
|
|
$8.3 - $8.8
|
|
|
N/A
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190507006005/en/ Copyright Business Wire 2019
Source: Business Wire
(May 7, 2019 - 4:05 PM EDT)
News by QuoteMedia
www.quotemedia.com
|