Featured Company News - Carrizo Oil & Gas to Sell Marcellus Shale Assets for $84 Million Cash
LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Carrizo Oil & Gas, Inc. (NASDAQ: CRZO), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CRZO. The Company announced on October 06, 2017, that it signed an agreement to sell its assets in the Marcellus Shale to an affiliate of BKV Oil and Gas Capital Partners, L.P., the L.P. fund of Kalnin Ventures LLC, for $84 million in cash. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Details of the Transaction
- The transaction is valued at an aggregate price of $210 million. Reliance Industries Ltd has agreed to sell its assets in the Marcellus Shale to Kalnin for $126 million.
- Separate purchase and sale agreements were entered into with Carrizo (Marcellus) LLC and Reliance Marcellus II, LLC, to acquire their respective interests in the assets.
- As per the agreement terms, Carrizo could receive contingent payments of up to $7.5 million in aggregate, depending upon the natural gas prices over the next three years.
- The effective date of the transaction was April 01, 2017, and is likely to close by the end of November 2017.
- The transaction is subject to customary closing terms and conditions.
- The assets, which are predominantly located in Pennsylvania's Wyoming and Susquehanna Counties, will generate cash flows for the Fund immediately.
- Following the acquisition, the Fund has become one of the top 20 natural gas producers in Pennsylvania.
Carrizo Continued to Execute on its Divestiture Program with the Sale of Marcellus Package
Commenting on the agreement, S.P. Chip Johnson, IV, President and CEO of Carrizo, stated that with the announced sale of Marcellus package, the Company has continued to execute on the divestiture program it outlined earlier this year. He added that Carrizo is expecting to close the sale of both of its Appalachian packages during the fourth quarter and remain on track to reach its divestiture program goals.
Acquisition Enables Kalnin to Expand into an Operator Position
Christopher Kalnin, Managing Director and Co-Founder of Kalnin Ventures LLC, mentioned that this deal provides the Company the opportunity to naturally expand into an operator position while also acquiring additional midstream assets. Christopher further stated that the current acquisition is like prior deals in terms of acquiring profitable assets and enhancing them with technology and big data.
About Carrizo Oil & Gas, Inc.
Founded in 1993, Carrizo Oil & Gas is a Houston-based independent energy company engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. The Company's operations are focused in proven, producing oil and gas shales primarily in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, the Utica Shale in Ohio, and the Marcellus Shale in Pennsylvania.
About Kalnin Ventures LLC
Kalnin Ventures LLC operates as an energy investment company. The Company is backed by investors with equity fund commitments of $500 million within its oil and gas fund BKV Oil and Gas Capital Partners, L.P.
Last Close Stock Review
On Friday, October 06, 2017, the stock closed the trading session at $16.82, slipping 2.21% from its previous closing price of $17.20. A total volume of 4.18 million shares have exchanged hands, which was higher than the 3-month average volume of 3.94 million shares. Carrizo Oil & Gas' stock price soared 39.93% in the last one month and 7.61% in the past three months. The stock currently has a market cap of $1.32 billion.
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