Carrizo Oil & Gas Announces Delaware Basin Farm-Out and 2015 Drilling Plans
May 13 15
Carrizo Oil & Gas Inc. announced a farm-out agreement in the Delaware Basin and plans to begin an operated drilling program later this year. Delaware Basin Update: Carrizo recently signed a farm-out agreement with a larger operator providing it the right to earn approximately 2,800 net acres in eastern Culberson County. This brings the Company's acreage position in the play to more than 20,000 net acres. The new acreage offsets Carrizo's existing position in eastern Culberson County, allowing the Company to build a contiguous nine-section unit where it has the potential to drill approximately 30 long-lateral wells on 1,000 ft. spacing in the Upper Wolfcamp zone. Carrizo now plans to bring a rig into the play during the third quarter and drill three horizontal wells during 2015. Due to the timing of completion and hook-up for the wells, the Company does not currently expect material production from the play during 2015. Carrizo will be the operator of these wells and expects to have an average working interest of at least 80% in them. As part of the acreage acquisition cost, Carrizo will carry its partner on these wells. Capital Spending Plan Update: In order to fund the Delaware Basin activity, Carrizo has allocated approximately $30 million to its 2015 drilling and completion capital expenditure plan, increasing it to $470.0-$490.0 million from $440.0-$460.0 million. The company's 2015 land and seismic capital expenditure plan remains unchanged at $35.0 million.
Carrizo Oil & Gas Inc. Reports Unaudited Consolidated Earnings and Production Results for the First Quarter Ended March 31, 2015; Provides Production Guidance for the Second Quarter of 2015 and Full Year 2015 and Capital Expenditure for the Full Year 2015
May 6 15
Carrizo Oil & Gas Inc. reported unaudited consolidated earnings and production results for the first quarter ended March 31, 2015. For the quarter, the company reported total revenues of $100,050,000 compared to $157,212,000 a year ago. Adjusted total revenues were $149,114,000 compared to $150,537,000 a year ago. Adjusted EBITDA was $101,847,000 or $2.16 per diluted share compared to $114,313,000 or $2.49 per diluted share a year ago. Adjusted income before income taxes was $9,780,000 compared to $37,294,000 a year ago. Adjusted net income was $6,377,000 or $0.14 per basic and diluted share compared to $23,383,000 or $0.51 per diluted share a year ago. Loss from continuing operations before income taxes was $32,914,000 against income from continuing operations before income taxes of $10,554,000 a year ago. Loss from continuing operations was $21,476,000 or $0.46 per basic and diluted share against income from continuing operations of $6,621,000 $0.14 per diluted share a year ago. Net loss was $21,210,000 or $0.46 per basic and diluted share against net income of $5,976,000 or $0.13 per basic and diluted share a year ago. The loss from continuing operations for the first quarter of 2015 includes certain items typically excluded from published estimates by the investment community. Net cash provided by operating activities from continuing operations was $73,467,000 compared to $102,847,000 a year ago.
For the quarter, the company reported crude oil of 1,924 MBbls compared to 1,352 MBbls a year ago. NGLs were 318 MBbls compared to 166 MBbls a year ago. Natural gas was 5,234 MMcf compared to 5,218 MMcf a year ago. Total natural gas and NGLs was 7,140 MMcfe compared to 6,214 MMcfe a year ago. Total barrels of oil equivalent was 3,114 MBoe compared to 2,388 MBoe a year ago. Oil production for the quarter was 21,373 barrels per day. This exceeded the high end of its guidance due primarily to strong performance from its Eagle Ford assets. Gas and NGL production for the quarter was 79,333 Mcfe per day, which also exceeded the high end of the guidance due primarily to lower-than-expected levels of voluntary curtailments in the Marcellus, and higher-than-expected NGL production from non-operated wells in the Utica.
The company provided production guidance for the second quarter of 2015 and full year 2015 and capital expenditure for the full year 2015. For the second quarter of 2015, the company expects Crude oil of 21,400 Bbls/d to 21,800 Bbls/d and Natural gas and NGLs of 68,000 Mcfe/d to 74,000 Mcfe/d. Total productions expects to be 32,733 Boe/d to 34,133 Boe/d. For the second quarter 2015, the company expects to realize 91% to 93% of NYMEX for oil revenues and 72% to 80% of NYMEX for gas and NGL revenues.
For the full year 2015, the company expects crude oil of 22,100 Bbls/d to 22,500 Bbls/d. Using the midpoint of this range, the Company's 2015 oil production growth guidance increases to 18% from 17% previously. For natural gas and NGLs, Carrizo is increasing its 2015 guidance to 70 MMcfe/d -76 MMcfe/d from 65 MMcfe/d -75 MMcfe/d. Total productions expects to be 33,767 Boe/d to 35,167 Boe/d. Drilling and completion capital expenditures expects to be $440.0 million to $460.0 million, as a result of cost reductions and efficiencies. 2015 land CapEx remains unchanged at $35 million. At this total level of spending, the company expects to be able to generate mid-single-digit exit rate growth in 2015, maintain a strong backlog of wells to complete once commodity prices improve and keep its net debt-to-EBITDA ratio below 3x. This should position the company to be able to quickly accelerate its production growth as commodity prices improve.