- This topic has 8 replies, 4 voices, and was last updated 5 years, 1 month ago by
.
- Posts
Seems while production is up, hedges a tad late and now they are lowering but year on year they are higher production and stock back to 2009 range
I get the felling the are pressuring the shale names as far as they can for stops or simply reallocating – perhaps a mix of that.
Carrizo Oil & Gas Announces Closing of Delaware Basin Acquisition
HOUSTON, Aug. 11, 2017 (GLOBE NEWSWIRE) — Carrizo Oil & Gas, Inc. (Nasdaq:CRZO) today announced that it has completed the closing of the transactions contemplated by the purchase and sale agreement with ExL Petroleum Management, LLC and ExL Petroleum Operating Inc. (together, “ExL”). At closing, Carrizo purchased approximately 16,508 net acres located in the Delaware Basin in Reeves and Ward Counties, Texas. The previously-announced aggregate consideration for the transaction is approximately $648 million in cash, which includes the $75.0 million performance deposit previously paid by the Company, subject to customary purchase price adjustments. As previously disclosed, the Company has also agreed to pay an additional $50.0 million per year if the average daily closing spot West Texas Intermediate crude oil price as measured by the U.S. Energy Information Administration (the “EIA WTI average price”) is above $50/Bbl for any of the calendar years of 2018, 2019, 2020, and 2021, with such payments due on January 29, 2019, January 28, 2020, January 28, 2021, and January 28, 2022, respectively. This payment will be zero for the respective year if the EIA WTI average price is $50/Bbl or below for any of such years, and is capped at and will not exceed $125.0 million.
The assets are currently producing approximately 9,500 Boe/d (48% oil, 67% liquids) from 14 gross wells, including two that are still cleaning up. The frac crew returned to the assets this week and has begun completing the Christian 2 1H well. Of the five rigs currently operating on the ExL assets, four are expected to be released after their current well. Carrizo has contracted for two newer-vintage rigs to arrive at the acreage, with the first scheduled for later this month.
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, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, the Utica Shale in Ohio, and the Marcellus Shale in Pennsylvania.
$CRZO has agreed to divest a portion of its assets in the Eagle Ford Shale for $245MM in cash.
The divested assets include approx. 24,500 net acres, located primarily in the downdip area of the volatile oil window, and had associated net production during 3Q17 of approx. 3,400 Boe/d. The transaction is expected to close by the end of Jan. 2018.
Carrizo Oil & Gas $CRZO started as Neutral and assigned a price target of $26 at Citigroup.
Carrizo Oil & Gas Inc NASDAQ: CRZO · December 22, close $21.56 ▲ 0.030 (0.14%) – after being as high as $22.21 on the move.
RBC positive on Carrizo Oil & Gas Inc. $CRZO as looked to refocus core growth in 2018.
RBC note: “Carrizo has recently made a transition from a fairly diversified company with an Eagle Ford focus to a more simplified E&P with core assets exclusively in the Eagle Ford and the Delaware Basin. We think results in the Delaware are likely to surprise to the upside, and the company’s acquisition economics are already very well supported by historical well results. Carrizo multiple has yet to reflect its recent asset base transformation or its underlying growth potential (<6x 2018 EBITDA). We also believe they have the ability to grow within cash flow in 2019+, which could surprise to the upside."
RBC has a $24 price target. Shares closed Friday at $21.56.
- You must be logged in to reply to this topic.