CARRIZO OIL & GAS, INC. 
By Results for the First Quarter 2009 --
-- Record Production of 8.26 Bcfe, or 91,761 Mcfe/d
-- Revenue of $30.7 million, before the benefit from settled hedges
-- Net Loss of $148.3 million, or Adjusted Net Income of $13.1 million
before non-cash net charges noted below
-- EBITDA, as defined below, of $41.0 million
(Logo: http://www.newscom.com/cgi-bin/prnh/20030523/CRZOLOGO)
Production volumes during the three months ended
For the quarter ended
EBITDA (earnings before interest, income tax, depreciation, amortization expenses, impairment of oil and natural gas properties and certain other items) during the first quarter of 2009 was
Lease operating expenses (excluding production taxes and transportation costs) were
Transportation costs were
Production taxes were a net benefit of
Depreciation, depletion and amortization expenses ("DD&A") were
General and administrative expenses ("G&A") decreased to
Non-cash, stock-based compensation expense was
The significant decline in oil and natural gas prices, indicated by average prices of
A
Interest expense and capitalized interest for the three months ended
S.P. "Chip" Johnson IV, Carrizo's President and Chief Executive Officer, commented, "Production and operating results for the first quarter were in-line with our expectations as we are maintaining tight spending controls on all of our activities in this low commodity price environment. Although the significant financial impact of the current, low commodity prices are reflected in our results, we are pleased to be able to maintain profitability and look forward to the market returning to healthier pricing levels in the future. With a very high percentage of our 2009 production hedged at prices well above the current market, Carrizo should be able to generate sufficient cash flow to maintain our announced capital spending program. The highlights for this quarter included the increase in our borrowing base to
The company will host a conference call to discuss 2009 first quarter financial results on
A simultaneous webcast of the call may be accessed over the internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=144877 or by visiting our website at http://www.crzo.net clicking on "Links" and then clicking on "2009 First 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
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, future pricing levels, cash flows and maintenance of announced capital spending program 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, 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
(Financial Highlights to Follow)
CARRIZO OIL & GAS, INC.
STATEMENTS OF OPERATIONS
(unaudited)
THREE MONTHS ENDED
MARCH 31,
---------
2009 2008
---- ----
(Restated)
Oil and natural gas revenues 30,653,785 $53,560,406
---------------------------- ---------- -----------
Costs and expenses:
Lease operating expenses 6,080,306 4,894,718
Transportation expenses 3,279,400 2,305,561
Production tax expense (benefit) (1,322,444) 1,191,962
Depreciation, depletion
and amortization 16,543,104 14,086,621
General and administrative expenses 4,252,132 5,108,676
Accretion expense related to asset
retirement obligations 71,413 57,938
Bad debt expense 221,682 (70,401)
Stock-based compensation expense 3,425,964 1,479,996
Impairment of oil and natural
gas properties (1) 252,194,923 -
-------------------------------- ----------- ---
Total costs and expenses 284,746,480 29,055,071
------------------------ ----------- ----------
Operating income (loss) (254,092,695) 24,505,335
----------------------- ------------ ----------
Mark-to-market gain (loss) on
derivatives, net 7,488,827 (28,071,685)
Realized gain (loss) on
derivatives, net 22,600,701 (1,743,892)
Other income and expenses, net 45,464 67,493
Interest income 5,191 148,287
Interest expense cash (5,599,871) (5,876,813)
Interest expense non-cash (3,460,362) (578,066)
Capitalized Interest 4,951,781 3,718,446
--------------------- --------- ---------
Loss before income taxes (228,060,964) (7,830,895)
------------------------ ------------ ----------
Income tax benefit (79,778,697) (2,535,293)
------------------ ----------- ----------
Net loss (148,282,267) $(5,295,602)
======== ============ ===========
ADJUSTED net income (2) (3) 13,147,665 $13,867,230
=========================== ========== ===========
EBITDA (see table below) 41,010,556 $38,383,090
======================== ========== ===========
Basic and Diluted net loss per
common share (4) (4.80) $(0.18)
============================== ===== ======
ADJUSTED basic net income per
common share (2) (3) (4) 0.43 $0.48
============================= ==== =====
ADJUSTED diluted net income per
common share (2) (3) (4) 0.42 $0.47
=============================== ==== =====
Basic weighted average common
shares outstanding (4) 30,882,571 29,151,833
----------------------------- ---------- ----------
Diluted weighted average common
shares outstanding (4) 31,176,452 29,627,665
------------------------------- ---------- ----------
(1) Based on subsequent pricing on May 6, 2009 as permitted under current
SEC guidelines. This option will no longer be permitted effective
December 31, 2009 upon adoption of new oil and gas reporting requirements.
(2) Adjusted net income of $13.1 million ($0.43 and $0.42 per basic and
diluted share) for the quarter ended March 31, 2009 excludes the $161.4
million of non-cash, after-tax expenses, comprised of (1) a non-cash
impairment of oil and natural gas properties of $163.9 million and (2)
stock-based compensation expense of $2.2 million and (3) $0.1 million of
bad debt expense, partially offset by (4) a marked-to-market unrealized
gain of $4.8 million on derivatives.
(3) Adjusted net income of $13.9 million ($0.48 and $0.47 per basic and
diluted share ) for the quarter ended March 31, 2008 excludes the $19.1
million of non-cash, after-tax expenses, comprised of a marked-to-market
unrealized loss of $18.2 million on derivatives and stock-based
compensation expense of $0.9 million.
(4) In January 2009, the Company adopted Financial Accounting Standards
Board's Staff Position Emerging Issues Task Force 03-6-1, "Determining
Whether Instruments Granted in Share-Based Payment Transactions Are
Participating Securities." It required retrospective presentation of all
periods presented in financial statements. See the Company's Form 10-Q
for the quarter ended March 31, 2009 for further explanation.
CARRIZO OIL & GAS, INC.
CONDENSED BALANCE SHEETS
-------- ----------
03/31/09 12/31/2008
-------- ----------
(unaudited) (Restated) (1)
ASSETS:
Cash and cash equivalents $3,111,460 $5,183,466
Fair value of derivative financial
instruments 45,466,666 22,790,505
Other current assets 31,708,759 28,346,777
Property and equipment, net 816,175,697 1,026,508,059
Deferred income taxes 38,006,199 -
Other assets 9,818,879 25,478,104
Investments 3,181,607 3,273,910
------------ ------------ --------------
TOTAL ASSETS $947,469,267 $1,111,580,821
============ ============ ==============
LIABILITIES AND EQUITY:
Accounts payable and accrued liabilities $101,925,159 $101,664,523
Current maturities of long-term debt 172,694 172,694
Other current liabilities 15,913,334 12,085,425
Long-term debt, net of current
maturities 499,786,995 475,788,267
Deferred income taxes - 48,735,603
Other liabilities 10,187,914 7,128,050
Equity 319,483,171 466,006,259
---------------------------- ------------ --------------
TOTAL LIABILITIES AND EQUITY $947,469,267 $1,111,580,821
============================ ============ ==============
(1) In January 2009, the Company adopted Financial Accounting
Standard Board's Staff Position, APB 14-1, "Accounting for Certain
Convertible Debt Instruments That May Be Settled in Cash Upon
Conversion (Including Partial Cash Settlement)". This pronouncement
required retrospective application for all periods in financial
statement presentations. See the Company's Form 10-Q for the quarter
ended March 31, 2009 for further explanation.
Income tax benefit for the three months ended March 31, 2009 and 2008
includes a $79,844,297 and $2,740,813, respectively, provision for
deferred income taxes and a $65,600 and $200,539, respectively,
provision for currently payable franchise taxes.
CARRIZO OIL & GAS, INC.
NON-GAAP DISCLOSURES
(unaudited)
THREE MONTHS ENDED
Reconciliation of Net Loss to EBITDA MARCH 31,
------------------------------------ ---------
2009 2008
---- ----
(Restated)
Net loss $(148,282,267) $(5,295,602)
-------- ------------- -----------
Adjustments:
Depreciation, depletion and
amortization 16,543,104 14,086,621
Unrealized mark-to-market (gain)
loss on derivatives (7,488,827) 28,071,685
Interest expense cash 5,599,871 5,876,813
Interest expense non-cash 3,460,362 578,066
Capitalized Interest (4,951,781) (3,718,446)
Interest income (5,191) (148,287)
Income tax benefit (79,778,697) (2,535,293)
Stock-based compensation expense 3,425,964 1,479,996
Bad debt expense 221,682 (70,401)
Accretion expense related to asset
retirement obligations 71,413 57,938
Impairment of oil and natural gas
properties 252,194,923 -
EBITDA, as defined $41,010,556 $38,383,090
================== =========== ===========
EBITDA per basic common share $1.33 $1.32
============================= ===== =====
EBITDA per diluted common share $1.32 $1.30
=============================== ===== =====
CARRIZO OIL & GAS, INC.
PRODUCTION VOLUMES AND PRICES
(unaudited)
Production volumes-
Oil and condensate (Bbls) 44,049 53,020
Natural gas (Mcf) 7,994,231 6,014,465
Natural gas equivalent (Mcfe) 8,258,525 6,332,585
90 90
91,761 70,362
Average sales prices-
Oil and condensate (per Bbl) $39.38 $96.10
Oil and condensate (per Bbl) - with hedge impact $102.42 $88.63
Natural gas (per Mcf) $3.63 $8.06
Natural gas (per Mcf) - with hedge impact $6.11 $8.05
Natural gas equivalent (per Mcfe) $3.72 $8.46
Contact: Carrizo Oil & Gas, Inc.
Richard Hunter, Vice President of Investor Relations
Paul F. Boling, Chief Financial Officer
(713) 328-1000
SOURCE Carrizo Oil & Gas, Inc.
