Carrizo Oil & Gas Breakout Notes
S.P. “Chip” Johnson, CEO of Carrizo Oil & Gas Inc., (ticker: CRZO) presented today at EnerCom’s The Oil & Gas Conference® 22.
Carrizo Oil & Gas produces out of its Eagle Ford, Delaware, and Niobrara assets. The company acquired Delaware acreage in 2017, in which it is adding new wells. Carrizo is also developing its Eagle Ford assets further by evaluating optimal spacing and optimal infill drilling.
In its Q2, 2017 update earnings call and quarterly update, Carrizo indicated that it had a net income of $56.3 million. The company averaged 51,019 BOEPD of production, which was 23% higher than its Q2 production in 2016. The company’s drilling and completions capital expenditures totaled $148.4 million for Q2—85% of which was directed towards its Eagle Ford shale assets.
During the company’s breakout session, management was asked the following questions:
- On a per share bases, what would we end up as a share owner with this acquisition? With the current pricing?
- What do you plan to do with the gains from selling the assets?
- Do you have an estimated timing for the West Texas development?
- Do you have an estimated debt leverage target moving forward?
- What is the percentage hedge for 2018?
- How much does it cost to drill and complete a 10,000-ft. lateral? How much for seismic?
- On a tighter spacing, are you changing completion techniques?
- As you have seen it in drilling, have you seen efficiency gains in completion?
- What are you using for pounds of sand?
- Have you seen upper limits on proppant intensity?
- Have you tested the in-region Permian sand to see how it works?
- On the call you mention $50 million a day production capacity, is that for Eagle Ford?
- Could you talk about the hedge position and strategy?
- Do you have any service cost pressures you see coming, or any bottlenecks?
- Are there issues with getting men to work or equipment?
- When will we see the first operating well in the Delaware?
- What are the changes of GOR in the area?
- Is that what you are seeing with other operators in the Delaware?
- Do you have to make arrangement to implement secondary recovery, reinjection gas back? Would secondary recovery would be done in the future?
- Do you have to shut in to re-pressure?
- You said in your presentation that you have 11 wells to be completed in the Appalachian. What are you waiting for?
- Is there a lot of understanding of the reservoir in the legacy assets? Or you will start exploration and development immediately?
- Are there other opportunities that you are looking for in the area?
- Could you elaborate on water acquisition and disposal in the zone? Are you drilling some SWD?
- What is the plan with the legacy Permian asset?
- Any changes in HBP for the Permian in 2018?
- What would be some of the outspend for 2018?
- What is your lateral spacing? Are you groping your wells for efficiency?
- How built out is the gathering system in the Delaware?
Carrizo Oil & Gas presented at EnerCom’s 2017 The Oil & Gas Conference®.
You can listen to the company’s presentation by clicking here.
