HOUSTON, TX -- (Marketwire) -- 08/05/10 -- Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today reported the Company's financial results for the second quarter of 2010, which included the following highlights:
Results for the Second Quarter 2010 --
- Record production of 9.3 Bcfe, or 102,145 Mcfe/d
- Revenue of $32.9 million or Adjusted Revenue of $43.5 million, including the impact of realized hedges
- Net Income of $1.8 million, or Adjusted Net Income of $11.7 million before the net non-cash items noted below
- EBITDA, as defined below, of $31.6 million
Production volumes during the three months ended June 30, 2010 were a record 9.3 Bcfe, an increase of 1.4 Bcfe, or 18%, from second quarter 2009 production of 7.9 Bcfe and an increase of 1.0 Bcfe, or 12%, from the first quarter 2010 production of 8.3 Bcfe. The increases in production were primarily due to new Barnett Shale wells partially offset by normal production decline. Adjusted revenues from the sale of oil and gas production were $43.5 million for the second quarter of 2010, which includes oil and gas revenues of $32.9 million and realized hedge gains of $10.6 million, compared to $53.1 million for the second quarter of 2009, which includes oil and gas revenues of $25.9 million and realized hedge gains of $27.2 million. The decrease in adjusted revenues was primarily driven by lower realized gas prices partially offset by increased production. The Company's average natural gas sales price decreased 33% to $4.47 per Mcf for the second quarter of 2010 compared to $6.64 per Mcf for the second quarter of 2009 and the average oil sales price increased 33% to $75.71 per barrel for the second quarter of 2010 compared to $56.95 per barrel for the second quarter of 2009. The above prices include the impact of realized hedges. Results excluding the impact of realized hedges are presented in the table below.
For the quarter ended June 30, 2010, the Company reported adjusted net income of $11.7 million, or $0.34 per basic and diluted share, excluding an aggregate net $9.9 million non-cash, after-tax charge, comprised of (1) an unrealized loss of $4.8 million on derivatives, (2) stock-based compensation expense of $2.0 million, (3) an impairment of oil and gas properties of $1.8 million, (4) non-cash interest expense of $1.2 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs, and (5) bad debt expense of $0.1 million. For the quarter ended June 30, 2009, the Company reported adjusted net income of $15.8 million, or $0.51 per basic and diluted share, excluding an aggregate net $21.8 million non-cash, after-tax charge, comprised of (1) an unrealized loss of $19.2 million on derivatives, (2) stock-based compensation expense of $1.5 million and (3) non-cash interest expense of $1.1 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs. The Company reported net income of $1.8 million, or $0.05 per basic and diluted share, for the quarter ended June 30, 2010, as compared to net loss of $6.0 million, or $0.19 per basic and diluted share, for the same quarter during 2009.
Earnings before interest, income tax, depreciation, depletion and amortization expenses, impairment of oil and natural gas properties and certain other items described in the table below ("EBITDA") was $31.6 million, or $0.95 and $0.94 per basic and diluted share, respectively, during the second quarter of 2010 as compared to $39.5 million, or $1.27 and $1.26 per basic and diluted share, respectively, during the second quarter of 2009.
Lease operating expenses (excluding production taxes, ad valorem taxes and transportation costs) were $4.7 million (or $0.51 per Mcfe) during the three months ended June 30, 2010 as compared to $4.8 million (or $0.61 per Mcfe) for the second quarter of 2009. Lease operating expenses remained essentially unchanged as a decrease in service costs was largely offset by increased operating expenses associated with higher production. The decline in service costs was primarily driven by a decrease in operating expenses related to the pipeline and gathering system that was sold during the fourth quarter of 2009 and the increase in production from our Tarrant County Barnett Shale area, which has comparatively less associated salt water production that must be disposed of than production from other areas.
Transportation costs were $1.5 million (or $0.16 per Mcfe) during the second quarter of 2010 as compared to $3.0 million (or $0.38 per Mcfe) during the second quarter of 2009. The decrease in transportation costs per Mcfe was largely due to a change in contractual pricing effective July 1, 2009 whereby natural gas production is now sold at the wellhead.
Production taxes were $0.9 million during the second quarter of 2010 as compared to $0.3 million during the second quarter of 2009. The increase is largely attributable to a severance tax refund of $0.2 million in the second quarter of 2009 and increased production and gas prices in 2010 as compared to 2009.
Ad valorem taxes decreased to $0.5 million during the second quarter of 2010 from $1.5 million for the same quarter in 2009 primarily due to lower estimated property valuations in 2010 as compared to 2009 and a true up of the first quarter 2010 estimate of ad valorem taxes.
Depreciation, depletion and amortization ("DD&A") expenses were $11.1 million during the second quarter of 2010 (or $1.19 per Mcfe) as compared to $12.2 million (or $1.55 per Mcfe) during the second quarter of 2009. The decrease in DD&A expenses was due primarily to a lower depletion rate resulting from an impairment charge that reduced the depletable full-cost pool in the fourth quarter of 2009 and lower overall finding costs of new reserves added primarily in the fourth quarter of 2009, partially offset by increased production.
In June 2010, we concluded that it was uneconomical to pursue development on the license covering the Monterey field in the U.K. North Sea and terminated further development efforts resulting in a full-cost ceiling test impairment of $2.7 million ($1.8 million after-tax) for the quarter ended June 30, 2010 with respect to our U.K. cost center.
General and administrative ("G&A") expenses were $4.3 million during the three months ended June 30, 2010 as compared to $4.0 million during the three months ended June 30, 2009. The increase was primarily attributable to higher legal, professional and audit fees partially offset by lower compensation expense as the 2008 annual bonus to executives was approved during the second quarter of 2009 and the 2009 annual bonus to executives was approved during the third quarter of 2010.
Non-cash, stock-based compensation expense increased to $3.2 million for the three months ended June 30, 2010 from $2.3 million for the same period in 2009. The increase was primarily due to 2009 annual bonuses to non-executive employees which were approved during the second quarter of 2010 while the 2008 annual bonuses to non-executive employees were approved during the first quarter of 2009.
A $3.1 million net gain on derivatives was recorded for the second quarter of 2010 compared to a net loss of $2.3 million for the second quarter of 2009. The second quarter 2010 gain consisted of (1) an unrealized loss on derivatives of $7.5 million and (2) a realized gain on derivatives of $10.6 million. The second quarter 2009 loss consisted of (1) an unrealized loss on derivatives of $29.5 million and (2) a realized gain on derivatives of $27.2 million.
Cash interest expense, net of amounts capitalized, remained essentially unchanged at $2.9 million for the second quarter of 2010 compared to $2.8 million for the second quarter of 2009.
Non-cash interest expense, net of amounts capitalized, increased to $1.9 million for the second quarter of 2010 from $1.7 million for the second quarter of 2009, primarily due to higher amortization of deferred financing costs during the second quarter of 2010.
Results for the Six Months Ended June 30, 2010 --
- Record production of 17.6 Bcfe, or 97,028 Mcfe/d
- Revenue of $71.9 million or Adjusted Revenue of $87.3 million, including the impact of realized hedges
- Net Income of $21.5 million, or Adjusted Net Income of $23.0 million before the net non-cash items noted below
- EBITDA, as defined below, of $63.9 million
Production volumes during the six months ended June 30, 2010 were a record 17.6 Bcfe, an increase of 1.4 Bcfe, or 9%, compared to production of 16.2 Bcfe during the same period in 2009. The increase in production was primarily due to new Barnett Shale wells partially offset by normal production decline. Adjusted revenues from the sale of oil and gas production were $87.3 million for the six months ended June 30, 2010, which includes oil and gas revenues of $71.9 million and realized hedge gains of $15.4 million, compared to $102.5 million for the same period of 2009, which includes oil and gas revenues of $56.5 million and realized hedge gains of $46.0 million. The decrease in adjusted revenues was primarily driven by lower realized oil and gas prices partially offset by increased production. The Company's average natural gas sales price decreased 22% to $4.77 per Mcf for the first six months of 2010 compared to $6.12 per Mcf for the first six months of 2009 and the average oil sales price decreased six percent to $75.92 per barrel for the first six months of 2010, compared to $80.52 per barrel for the first six months of 2009. The above prices include the impact of realized hedges. Results excluding the impact of realized hedges are presented in the table below.
For the six months ended June 30, 2010, the Company reported adjusted net income of $23.0 million, or $0.71 and $0.70 per basic and diluted share, respectively, excluding an aggregate net $1.5 million non-cash, after-tax charge, comprised of (1) an unrealized gain of $6.5 million on derivatives, (2) stock-based compensation expense of $3.4 million, (3) non-cash interest expense of $2.6 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs, (4) an impairment of oil and gas properties of $1.8 million, and (5) bad debt expense of $0.2 million. For the six months ended June 30, 2009, the Company reported adjusted net income of $28.4 million, or $0.92 and $0.91 per basic and diluted share, respectively, excluding an aggregate net $159.9 million non-cash, after-tax charge, comprised of (1) an impairment of oil and gas properties of $140.6 million, (2) an unrealized loss of $11.9 million on derivatives, (3) stock-based compensation expense of $3.7 million, (4) an impairment of investment of $1.3 million, (5) non-cash interest expense of $2.2 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs, and (6) bad debt expense of $0.2 million. The Company reported net income of $21.5 million, or $0.66 and $0.65 per basic and diluted share, respectively, for the six months ended June 30, 2010, as compared to net loss of $131.6 million, or $4.25 per basic and diluted share, for the same period during 2009.
EBITDA was $63.9 million, or $1.96 and $1.94 per basic and diluted share, respectively, during the six months ended June 30, 2010 as compared to $76.7 million, or $2.48 and $2.45 per basic and diluted share, respectively, during the six months ended June 30, 2009.
Lease operating expenses (excluding production taxes, ad valorem taxes and transportation costs) were $8.5 million (or $0.48 per Mcfe) during the six months ended June 30, 2010 as compared to $10.0 million (or $0.62 per Mcfe) for the six months ended June 30, 2009. The decrease in lease operating expenses was due to a decrease in service costs partially offset by increased operating expenses associated with higher production. The decline in service costs was driven primarily by a decrease in operating expenses related to the pipeline and gathering system that was sold during the fourth quarter of 2009 and the increase in production from our Tarrant County Barnett Shale area, which has comparatively less associated salt water production that must be disposed of than production from other areas.
Transportation costs were $2.8 million (or $0.16 per Mcfe) for the six months ended June 30, 2010 as compared to $6.3 million (or $0.39 per Mcfe) during the same period of 2009. The decrease was primarily a result of a change in contractual pricing effective July 1, 2009 whereby natural gas production is now sold at the wellhead.
Production taxes increased from a credit of $(1.0) million in the first six months of 2009 to $1.8 million for the same period in 2010 as a result of a severance tax refund of $2.0 million in 2009 and increased production and gas prices in 2010 as compared to 2009.
Ad valorem taxes decreased to $1.7 million for the six months ended June 30, 2010 from $2.4 million for the same period in 2009 primarily due to lower estimated property valuations in 2010 as compared to 2009.
DD&A expenses for the six months ended June 30, 2010 decreased to $20.9 million (or $1.19 per Mcfe) from $27.5 million (or $1.70 per Mcfe) for the same period in 2009. This decrease in DD&A was primarily due to a lower depletion rate resulting from impairment charges that reduced the depletable full-cost pool in the first and fourth quarters of 2009 and lower overall finding costs of new reserves added primarily in the fourth quarter of 2009, partially offset by increased production.
In June 2010, we concluded that it was uneconomical to pursue development on the license covering the Monterey field in the U.K. North Sea and terminated further development efforts resulting in a full cost ceiling test impairment of $2.7 million ($1.8 million after-tax) for the six months ended June 30, 2010 with respect to our U.K. cost center.
G&A expenses were $8.7 million during the six months ended June 30, 2010 as compared to $8.2 million during the six months ended June 30, 2009. The increase was due primarily to higher legal, professional and audit fees that were partially offset by lower compensation expenses as the 2008 annual bonuses to executives were approved during the second quarter of 2009 and the 2009 annual bonuses to executives were approved during the third quarter of 2010.
Non-cash, stock-based compensation expense was $5.3 million for the six months ended June 30, 2010 compared to $5.7 million for the same period in 2009. The decrease was primarily due to a higher level of amortization in 2009 associated with higher priced restricted stock awards granted in prior years.
A $25.7 million net gain on derivatives was recorded for the first six months of 2010 compared to a net gain of $27.8 million for the first six months of 2009. The 2010 gain consisted of (1) the unrealized gain on derivatives of $10.3 million and (2) the realized gain on derivatives of $15.4 million. The 2009 gain consisted of (1) the unrealized loss on derivatives of $18.2 million and (2) the realized gain on derivatives of $46.0 million.
Cash interest expense, net of amounts capitalized, was $6.1 million for the first six months of 2010 compared to $5.3 million for the first six months of 2009. The increase was primarily attributable to increased interest expense associated with the higher debt levels on the revolving credit facility and lower levels of capitalized interest.
Non-cash interest expense, net of amounts capitalized, increased to $4.1 million for the first six months of 2010 from $3.3 million for the first six months of 2009, primarily due to higher amortization of deferred financing costs during 2010.
Carrizo President and CEO S. P. "Chip" Johnson, IV, commented, "Our production for the quarter came in ahead of forecast due to the faster clean-up and better initial response of new Barnett wells completed during the quarter and the optimal management of the producing wells at our facility on the University of Texas at Arlington campus during completion activities. We are now in the final stages of completing the last 8 wells on this 22 well pad. We moved one of our Helmerich & Payne rigs out of the Barnett Shale to drill our initial three horizontal Eagle Ford Shale wells in LaSalle County. We have reached total depth on our first well and are finishing up the second, both with lateral legs of over 5,000'. The information generated during the course of drilling these wells is encouraging and we expect to move the rig to the third well following completion of drilling the second well. We plan to frac and complete these wells later this year. We have had some success in adding acreage in both the Eagle Ford and Niobrara plays recently. We currently own around 17,000 acres in the Eagle Ford and 58,000 acres in the northern D. J. Basin prospective for Niobrara oil. We expect that our first Niobrara well should spud in September and we hope to drill three horizontal wells in this play by the end of the year. We have contracted an additional rig to initiate our development drilling in Pennsylvania with our new partner Reliance Industries, and are on track for a September start date.
"We believe that even modest success in any of these new areas of activity will have a significant positive impact on 2011 production and cash flow."
The Company will host a conference call to discuss 2010 second quarter financial results on Thursday, August 5, 2010 at 10:00 A.M. Central Daylight Time. To participate in the call, please dial (800) 786-6596 ten minutes before the call is scheduled to begin. A replay of the call will be available through Thursday, August 12, 2010 at (800) 633-8284. The conference ID for the replay is 21477637.
A simultaneous webcast of the call may be accessed over the internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=160774 or by visiting our website at http://www.crzo.net/, clicking on "Investor Relations" and then clicking on "2010 Second Quarter Earnings Conference Call Webcast." To listen, please go to either website in time to register and install any necessary software. The webcast will be archived for replay on the Carrizo website for 15 days.
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, exploitation, and production of oil and natural gas primarily in the Barnett Shale in North Texas, the Marcellus Shale in Appalachia, the Eagle Ford Shale in South Texas, the Niobrara Formation in Colorado, and in proven onshore trends along the Texas and Louisiana Gulf Coast regions. Carrizo controls significant prospective acreage blocks and utilizes advanced drilling and completion technology along with sophisticated 3-D seismic techniques to identify potential oil and gas drilling opportunities and to optimize reserve recovery.
Statements in this news release, including but not limited to those relating to reserves, the Company's or management's intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future, including expected drilling, completion of wells, acreage acquisitions, fracture stimulating and production efficiencies, maintenance of staff and technical capabilities, exploitation of assets in the Barnett, Marcellus, Eagle Ford and Niobrara Shales, timing of completion, drilling and fracturing of wells, completion and pipeline connections, success of our joint venture with Reliance Industries 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 market and other conditions, capital needs and uses, commodity price changes, effects of the global financial crisis on exploration activity, availability of rigs and service crews, dependence on exploratory drilling activities, operating risks, land issues, compliance with covenants, future ceiling test write-downs, the availability of debt and other financing, availability of capital and equipment, weather and other risks described in the Company's Form 10-K for the year ended December 31, 2009 and its other filings with the Securities and Exchange Commission.
(Financial Highlights to Follow)
CARRIZO OIL & GAS, INC.
STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
-------------------------- ---------------------------
2010 2009 2010 2009 (A)
------------ ------------ ------------ -------------
Oil and gas
revenues 32,918,993 25,854,080 71,883,054 56,507,864
------------ ------------ ------------ -------------
Costs and expenses:
Lease operating
expenses 4,703,533 4,776,494 8,453,524 9,959,604
Transportation
expenses 1,460,597 3,020,481 2,794,009 6,299,881
Production tax
expense
(benefit) 885,548 300,097 1,790,328 (1,022,347)
Ad valorem taxes 467,831 1,490,173 1,672,160 2,387,370
Depreciation,
depletion and
amortization 11,079,037 12,249,074 20,920,437 27,524,721
Impairment of oil
and gas
properties (1) 2,730,882 - 2,730,882 216,391,139
General and
administrative
expenses 4,272,874 3,986,016 8,669,754 8,238,148
Accretion expense
related to asset
retirement
obligations 52,576 74,991 103,861 146,404
Bad debt expense 222,101 66,774 345,355 288,456
Stock-based
compensation
expense 3,156,324 2,307,772 5,320,331 5,733,736
------------ ------------ ------------ -------------
Total costs and
expenses 29,031,303 28,271,872 52,800,641 275,947,112
------------ ------------ ------------ -------------
Operating income
(loss) 3,887,691 (2,417,792) 19,082,413 (219,439,248)
------------ ------------ ------------ -------------
Unrealized
mark-to-market
gain (loss)
on derivatives,
net (7,419,784) (29,517,095) 10,207,491 (18,237,445)
Realized gain on
derivatives, net
(2), (3), (4) 10,534,986 27,214,917 15,457,307 46,024,795
Impairment of
investment - - - (2,090,805)
Other income and
expenses, net (51,806) (4,628) (22,240) 40,837
Interest income 483 6,059 1,458 11,249
Cash interest
expense, net of
amounts
capitalized (5) (2,910,441) (2,790,682) (6,128,021) (5,330,219)
Non-cash interest
expense, net of
amounts
capitalized (6) (1,942,590) (1,745,477) (4,065,982) (3,314,393)
------------ ------------ ------------ -------------
Income (Loss)
before income
taxes 2,098,538 (9,254,698) 34,532,426 (202,335,229)
------------ ------------ ------------ -------------
Income tax expense
(benefit) 313,796 (3,238,485) 13,011,845 (70,774,030)
------------ ------------ ------------ -------------
Net Income (Loss) $ 1,784,742 $ (6,016,213) $ 21,520,581 $(131,561,199)
============ ============ ============ =============
ADJUSTED net income
available to
common shares (7) $ 11,740,769 $ 15,847,914 $ 22,971,711 $ 28,375,184
============ ============ ============ =============
EBITDA $ 31,611,790 $ 39,491,107 $ 63,938,346 $ 76,710,839
============ ============ ============ =============
Basic net income
(loss) per common
share $ 0.05 $ (0.19) $ 0.66 $ (4.25)
============ ============ ============ =============
Diluted net income
(loss) per common
share $ 0.05 $ (0.19) $ 0.65 $ (4.25)
============ ============ ============ =============
ADJUSTED basic net
income per common
share (7) $ 0.34 $ 0.51 $ 0.71 $ 0.92
============ ============ ============ =============
ADJUSTED diluted
net income per
common share (7) $ 0.34 $ 0.51 $ 0.70 $ 0.91
============ ============ ============ =============
Basic weighted
average common
shares outstanding 34,060,228 31,001,888 32,573,905 30,943,133
------------ ------------ ------------ -------------
Diluted weighted
average common
shares outstanding 34,463,791 31,331,319 33,021,636 31,254,789
------------ ------------ ------------ -------------
(A) Results include the impact of a correction to the first quarter 2009
ceiling test impairment as described in the Company's 10-Q/A for the
quarter ended March 31, 2009. Also refer to Summary of Adjustment
Impact to First Quarter 2009 Statement of Operations on the last page
of this earning release.
(1) The 2010 impairment related to terminating further development of the
Monterey field in the U.K. North Sea. The 2009 impairment was based
on subsequent pricing on May 6, 2009 as permitted under SEC
guidelines in effect at the time. This option is no longer permitted
effective December 31, 2009 upon adoption of new oil and gas reserve
reporting requirements.
(2) Includes reclassification for the three months and six months ended
June 30, 2010 of approximately $0.1 and $0.4 million, respectively,
from general and administrative expenses to realized gain (loss) on
derivatives, net, for agency fees to enter into certain derivative
positions.
(3) Includes reclassification for the three months and six months ended
June 30, 2010 of approximately $1.8 and $2.1 million, respectively,
from unrealized mark-to-market gain (loss) on derivatives, net, to
realized gain (loss) on derivatives, net, for cash received from the
optimization of certain hedge positions that settle in future
periods, net of amortization.
(4) Includes reclassification for the three months and six months ended
June 30, 2009 of approximately $4.2 and $0.4 million, respectively,
from realized gain (loss) on derivatives, net, to mark-to-market gain
(loss) to match settled hedges to the production months in each
reporting period.
(5) Cash interest expense, net of amounts capitalized, consists of the
following:
Gross interest
expense $ (5,904,195) $ (5,939,318) $(11,815,516) $ (11,539,190)
Capitalized
interest 2,993,754 3,148,636 5,687,495 6,208,971
(6) Non-cash Interest expense, net of capitalized interest, which includes
amortization of the equity premium on Convertible Senior Notes and
deferred financing costs, consists of the following:
Gross interest
expense $ (3,940,789) $ (3,714,842) $ (7,839,671) $ (7,175,204)
Capitalized
interest 1,998,199 1,969,365 3,773,689 3,860,811
(7) Excludes the impact of the unrealized mark-to-market gain on
derivatives, stock-based compensation expense, non-cash interest
expense, bad debt expense, impairment of oil and natural gas
properties and impairment of investment.
CARRIZO OIL & GAS, INC.
CONDENSED BALANCE SHEETS
--------------- ---------------
6/30/2010 12/31/2009
--------------- ---------------
(unaudited) (unaudited)
ASSETS:
Cash and cash equivalents $ 2,751,927 $ 3,837,168
Fair value of derivative financial
instruments 17,617,215 8,403,769
Other current assets 34,421,030 23,159,647
Deferred income taxes 59,452,929 70,217,281
Property and equipment, net 873,997,368 733,700,166
Other assets 19,178,148 20,433,034
Investments 3,366,437 3,357,702
--------------- ---------------
TOTAL ASSETS $ 1,010,785,054 $ 863,108,767
=============== ===============
LIABILITIES AND EQUITY:
Accounts payable and accrued liabilities $ 68,720,147 $ 79,330,794
Current maturities of long-term debt 159,673 147,633
Other current liabilities 8,012,353 3,250,972
Long-term debt, net of current
maturities 576,875,646 520,187,931
Other liabilities 7,757,625 9,763,408
Fair value of derivative financial
instruments 1,953 2,818,446
Equity 349,257,657 247,609,583
--------------- ---------------
TOTAL LIABILITIES AND EQUITY $ 1,010,785,054 $ 863,108,767
=============== ===============
CARRIZO OIL & GAS, INC.
NON-GAAP DISCLOSURES
(unaudited)
Reconciliation of
Net Income to THREE MONTHS ENDED SIX MONTHS ENDED
EBITDA JUNE 30, JUNE 30,
-------------------------- ---------------------------
2010 2009 2010 2009
------------ ------------ ------------ -------------
Net Income $ 1,784,742 $ (6,016,213) $ 21,520,581 $(131,561,199)
------------ ------------ ------------ -------------
Adjustments:
Depreciation,
depletion and
amortization 11,079,037 12,249,074 20,920,437 27,524,721
Unrealized
mark-to-market
(gain) loss on
derivatives, net 7,419,784 29,517,095 (10,207,491) 18,237,445
Interest expense
(cash and non-
cash), net of
amounts
capitalized and
interest income 4,852,548 4,530,099 10,192,545 8,633,362
Income tax
expense
(benefit) (1) 313,796 (3,238,485) 13,011,845 (70,774,030)
Impairment of
investment - - - 2,090,805
Stock based
compensation
expense 3,156,324 2,307,772 5,320,331 5,733,736
Bad debt expense 222,101 66,774 345,355 288,456
Accretion expense
related to asset
retirement
obligations 52,576 74,991 103,861 146,404
Impairment of oil
and gas
properties 2,730,882 - 2,730,882 216,391,139
------------ ------------ ------------ -------------
EBITDA, as defined $ 31,611,790 $ 39,491,107 $ 63,938,346 $ 76,710,839
============ ============ ============ =============
EBITDA per basic
common share $ 0.93 $ 1.27 $ 1.96 $ 2.48
============ ============ ============ =============
EBITDA per diluted
common share $ 0.92 $ 1.26 $ 1.94 $ 2.45
============ ============ ============ =============
(1) - Includes approximately $16,000 and $65,000 for current income taxes
for the six months ended 2010 and 2009, respectively.
CARRIZO OIL & GAS, INC.
PRODUCTION VOLUMES AND PRICES
(unaudited)
Production volumes-
Oil and condensate
(Bbls) 38,089 40,926 75,841 84,974
Natural gas (Mcf) 9,066,639 7,647,737 17,107,057 15,641,968
Natural gas
equivalent (Mcfe) 9,295,173 7,893,293 17,562,103 16,151,812
Days in Period
(Do Not Print) 91 91 181 181
102,145 86,739 97,028 89,237
Average sales prices-
Oil and condensate
(per Bbl) $75.71 $56.95 $75.92 $47.84
Oil and condensate
(per Bbl) - with
hedge impact $75.71 $56.95 $75.92 $80.52
Natural gas (per Mcf) $3.31 $3.08 $3.87 $3.36
Natural gas (per Mcf)
- with hedge impact $4.47 $6.64(1) $4.77 $6.12
Natural gas equivalent
(per Mcfe) $3.54 $3.28 $4.09 $3.50
(1) - Previously reported prices for 2009 have been adjusted for the
reclassification made to mark-to-market gain (loss) on derivatives to match
settled hedges to the production months reported in each period.
CARRIZO OIL & GAS, INC.
Summary of Adjustment Impact to First Quarter 2009 Statement of
Operations (A)
(In Millions)
Three Months Ended
March 31, 2009
--------------------------
Original As Adjusted
------------ ------------
Impairment of oil
and natural gas
properties $ 252.2 $ 216.4
Depletion,
depreciation and
amortization $ 16.5 $ 15.3
Impairment of
investment $ - $ 2.1
Net loss $ 148.3 $ 125.5
(A) - Refer to the Company's Quarterly Report on Form 10-Q/A for the
quarter ended March 31, 2009 and the Company's Form 8-K filed with the SEC
on August 10, 2009 for more discussion on the correction to the ceiling
test impairment.