Carrizo Oil & Gas, Inc. has reported the Company's financial results for the fourth quarter of 2009, which included the following highlights:
Results for the Fourth Quarter 2009
• Record Production of 8.7 Bcfe, or 94,390 Mcfe/d
• Revenue of $37.5 million or Adjusted Revenue of $50.6 million, including the impact of realized hedges
• Net Loss of $68.5 million, or Adjusted Net Income of $11.7 million before the net non-cash charges noted below
• EBITDA, as defined below, of $34.2 million
Production volumes during the three months ended December 31, 2009 were 8.7 Bcfe, 20 percent higher compared to 7.2 Bcfe during the fourth quarter of 2008. The increase was largely due to new production contributions from the Barnett Shale development. Adjusted revenues from the sale of oil and natural gas production were $50.6 million for the fourth quarter of 2009, which includes oil and gas revenues of $37.5 million and realized hedge gains of $13.1 million, compared to $44.1 million for the fourth quarter of 2008, which includes oil and gas revenues of $36.2 million and realized hedge gains of $7.9 million. The increase in adjusted revenues was primarily driven by increased production, partially offset by lower realized oil and natural gas prices. Carrizo's average natural gas sales price decreased four percent to $5.63 per Mcf for the fourth quarter of 2009 compared to $5.86 per Mcf for the fourth quarter of 2008 and the average oil sales price decreased five percent to $72.43 per barrel for the fourth quarter of 2009 compared to $76.44 per barrel for the fourth quarter of 2008. The above prices include the impact of realized hedges. Results excluding the impact of realized hedges are presented in the table below.
Results for the Year Ended 2009
• Record Production of 33.0 Bcfe, or 90,532 Mcfe/d
• Revenue of $121.3 million or Adjusted Revenue of $196.5 million, including the impact of realized hedges
• Net Loss of $204.8 million, or Adjusted Net Income of $46.7 million before the non-cash charges noted below
• EBITDA, as defined below, of $141.3 million
Production volumes for the year ended December 31, 2009 were a record 33.0 Bcfe, 29 percent higher than the 25.6 Bcfe produced in 2008. Adjusted revenues from the sale of oil and natural gas production were $196.5 million for the year ended December 31, 2009, which includes oil and gas revenues of $121.3 million and realized hedge gains of $75.2 million, compared to $207.1 million for the year ended December 31, 2008, which includes oil and gas revenues of $210.1 million and realized hedge losses of $3.0 million. The decrease in adjusted revenues was primarily driven by lower realized oil and natural gas prices, partially offset by increased production. Carrizo's average natural gas sales price for 2009 decreased 26% to $5.74 per Mcf compared to $7.74 per Mcf for 2008, and the average oil sales price for 2009 decreased 24% to $74.84 per barrel from $98.20 per barrel for 2008.
During the third quarter of 2009, Carrizo made the first $100,000 cash payment of a $1.0 million pledge to establish a Carrizo Oil & Gas, Inc. endowed scholarship fund at the University of Texas at Arlington, a university which is located within the area of the company's significant operations in the Barnett Shale play.
S.P. "Chip" Johnson IV, Carrizo's President and Chief Executive Officer, commented:
"Given the difficult industry and economic conditions throughout the year, 2009 exceeded our modest expectations for reserve and production growth. Despite low gas prices and our lower level of drilling and completions, it appears our 20% growth in proved reserves will place us high in the ranks of our industry peers. In the Barnett Shale, our improved drilling and completion efficiencies and the lack of material connection delays helped lead to a 43% increase in production for the year and a 39% increase in proved developed Barnett reserves, both above our expectations. We anticipate reporting one of the lowest reserve finding and development costs in the industry in 2009, which is a credit to our technical staff and reflects the quality of our asset portfolio.
"We are looking forward to the beginning of the development of our Marcellus acreage position with our partner, Avista Capital, as we move from the land acquisition phase to the drilling phase in 2010."
OilVoice Headlines
Receive OilVoice headlines in your inbox
every day
or once a week. 25,000 other Oil and Gas professionals do.
You may unsubscribe at any time.
|