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0001040593-05-000085.txt : 20051104
0001040593-05-000085.hdr.sgml : 20051104
20051104093526
ACCESSION NUMBER: 0001040593-05-000085
CONFORMED SUBMISSION TYPE: 8-K
PUBLIC DOCUMENT COUNT: 3
CONFORMED PERIOD OF REPORT: 20051104
ITEM INFORMATION: Results of Operations and Financial Condition
ITEM INFORMATION: Financial Statements and Exhibits
FILED AS OF DATE: 20051104
DATE AS OF CHANGE: 20051104
FILER:
COMPANY DATA:
COMPANY CONFORMED NAME: CARRIZO OIL & GAS INC
CENTRAL INDEX KEY: 0001040593
STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311]
IRS NUMBER: 760415919
STATE OF INCORPORATION: TX
FISCAL YEAR END: 1231
FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-29187-87
FILM NUMBER: 051178711
BUSINESS ADDRESS:
STREET 1: 1000 LOUISIANA STREET
STREET 2: SUITE 1500
CITY: HOUSTON
STATE: TX
ZIP: 77002
BUSINESS PHONE: 7133281000
MAIL ADDRESS:
STREET 1: 1000 LOUISIANA STREET
STREET 2: SUITE 1500
CITY: HOUSTON
STATE: TX
ZIP: 77002
8-K
1
form8k110405.htm
FORM 8-K 11.04.05
Form 8-K 11.04.05
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date
of Report (date of earliest event reported): November
4, 2005
CARRIZO
OIL & GAS, INC.
(Exact
name of registrant as specified in its charter)
Texas
|
000-29187-87
|
76-0415919
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number) Identification No.)
|
(I.R.S.
Employer
|
1000
Louisiana Street
Suite
1500
Houston,
Texas
|
77002
|
(Address
of principal executive offices)
|
(Zip
code)
|
|
|
Registrant’s
telephone number, including area code: (713)
328-1000
Not
applicable
(Former
name or former address, if changed since last report.)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR
240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Item
2.02 Results
of Operations and Financial Condition.
The
press release by Carrizo Oil & Gas, Inc. (the “Company” or “we”) dated
November 4, 2005 concerning financial results for the quarter ended September
30, 2005, furnished as Exhibit 99.1 to this report, is incorporated by reference
herein. The press release contains measures which may be deemed “non-GAAP
financial measures” as defined in Item 10 of Regulation S-K of the Securities
Exchange Act of 1934, as amended. We discuss EBITDA, as defined in the press
release, on a total and a per share basis for the quarters ended September
30,
2004 and 2005 and the nine months ended September 30, 2004 and 2005.
We
believe that EBITDA, as defined, may provide additional information about
our
ability to meet our future requirements for debt service, capital expenditures
and working capital. EBITDA, as defined, is a financial measure commonly
used in
the oil and natural gas industry and should not be considered in isolation
or as
a substitute for net income, operating income, cash flows from operating
activities or any other measure of financial performance presented in accordance
with generally accepted accounting principles or as a measure of a company’s
profitability or liquidity. Because EBITDA, as defined, excludes some, but
not
all, items that affect net income, the EBITDA presented in the press release
may
not be comparable to similarly titled measures of other companies. We also
discuss net income excluding the non-cash after-tax items stock option
compensation expense, loss on early extinguishment of long-term debt and
equity
in the loss of Pinnacle Gas Resources, Inc. on a total and a per share basis
for
the quarter and nine months ended September 30, 2005. We believe that
this
information will help investors compare results between periods and identify
operating trends that would otherwise be masked by the non-cash after-tax
items.
The most comparable GAAP financial measure, net income, and information
reconciling the GAAP and non-GAAP measures were also included in the press
release.
None
of the information furnished in Item 2.02 and the accompanying exhibit will
be
deemed “filed” for purposes of Section 18 of the Securities Exchange Act of
1934, as amended, nor will it be incorporated by reference into any registration
statement filed by the Company under the Securities Act of 1933, as amended,
unless specifically identified therein as being incorporated therein by
reference. The furnishing of the information in this report is not intended
to,
and does not, constitute a determination or admission by the Company, that
the
information in this report is material or complete, or that investors should
consider this information before making an investment decision with respect
to
any security of the Company.
Item
9.01. Financial
Statements and Exhibits.
(c) Exhibits.
Exhibit
Number
|
|
Description
|
99.1
|
|
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
CARRIZO
OIL & GAS, INC.
By:
/s/ Paul F. Boling
Name: Paul
F. Boling
Title: Vice
President and Chief Financial Officer
Date: November
4, 2005
EXHIBIT
INDEX
The
following exhibit is furnished pursuant to Item 2.02:
EX-99.1 CHARTER
2
press_release.htm
PRESS RELEASE 11.04.05
Press Release 11.04.05
PRESS
RELEASE Contact:
Carrizo
Oil & Gas, Inc.
B.
Allen Connell,
Director of Investor Relations
Paul
F. Boling, Chief
Financial Officer
(713)
328-1000
CARRIZO
OIL & GAS, INC. ANNOUNCES THIRD QUARTER 2005 FINANCIAL
RESULTS INCLUDING RECORD REVENUES AND EBITDA
HOUSTON,
November 4, 2005 — Carrizo Oil & Gas, Inc. (Nasdaq: CRZO)
today
reported the Company’s financial results for the third quarter of 2005, which
included the following highlights:
Third
Quarter 2005 Results --
The
third quarter 2005 results included the following
highlights:
|
·
|
Production
of 2.18 Bcfe.
|
|
·
|
Record
quarterly revenue of $17.6
million.
|
|
·
|
Net
Income of $0.6 million, or $4.7 million before non-cash charges,
noted
below.
|
|
·
|
Record
EBITDA, as defined below, of $13.3
million.
|
Revenues
for the three months ended September 30, 2005 increased 43 percent to $17.6
million as compared to $12.3 million during the quarter ended September 30,
2004. The increase in revenues was driven by higher natural gas production
and
higher prevailing oil and natural gas prices. Production volumes during the
three months ended September 30, 2005 increased seven percent to 2.18 Bcfe
as
compared to 2.04 Bcfe during the third quarter of 2004. Carrizo’s average oil
sales price increased 44 percent to $62.84 per barrel from $43.57 per barrel
during the third quarter of 2004, while the average natural gas sales price
increased 35 percent to $7.65 per Mcf from $5.69 per Mcf in the third quarter
of
2004. The above prices include the effect of hedging activities.
After
dividends and accretion of discount on preferred stock, and before
exclusion of certain non-cash after-tax charges, the Company reported net
income
available to common shares (“Net Income”) of $0.6 million, or $0.02 and $0.02
per basic and diluted share, respectively, for the three months ended September
30, 2005, as compared to $3.4 million, or $0.15 and $0.15 per basic and diluted
share, respectively, for the same quarter during 2004. For the quarter ended
September 30, 2005, Net Income was $4.7 million, or $0.19 and $0.19 per basic
and diluted share, respectively, excluding $4.1 million for the non-cash
after-tax charges attributable to (1) stock option compensation expense ($1.2
million - related to employee stock options repriced in 2000), (2) loss on
the
early extinguishment of long-term debt ($2.4 million - related to unamortized
debt issuance cost and discount on debt retired in the Company’s July 2005 debt
refinancing) and (3) equity in the loss of Pinnacle Gas Resources, Inc.
(“Pinnacle”) ($0.4 million - comprised of $0.1 million net income from
operations offset by $0.5 million for dividends on preferred
stock).
EBITDA
(earnings before interest, income tax, depreciation and amortization expenses,
and certain other non-cash items) during
the third quarter of 2005 was $13.3 million, or $0.55 and $0.53 per basic
and
diluted share, respectively, as compared to $9.4 million, or $0.43 and $0.41
per
basic and diluted share, respectively, during the third quarter of 2004.
Oil
and gas operating expenses, excluding production taxes, decreased to $1.3
million during the three months ended September 30, 2005 as compared to $1.4
million for the third quarter of 2004.
Production
taxes increased to $0.9 million during the three months ended September 30,
2005
as compared to $0.8 million for the third quarter of 2004 due to higher oil
and
natural gas sales.
Depreciation,
depletion and amortization expenses (“DD&A”) were $4.7 million during the
three months ended September 30, 2005 as compared to $3.7 million during
the
third quarter of 2004. The increase in DD&A expense was due to (1) an
increase in the DD&A rate primarily due to additions to the proved property
cost base and (2) an increase in the production volumes.
General
and administrative expenses (“G&A”) increased to $1.9 million during the
three months ended September 30, 2005 from $1.3 million during the same quarter
of 2004. The increase in G&A was due primarily to higher salary (due to
salary raises and increased headcount) and incentive compensation
costs.
Non-cash
stock based compensation expense was $1.9 million for the three months ended
September 30, 2005 as compared to a $0.1 million benefit during the third
quarter of 2004. These amounts represent primarily the change in value of
employee stock options that were repriced in 2000.
Loss
on early extinguishment of long-term debt was a non-cash charge of $3.7 million
(or $2.4 million after tax) for the three months ended September 30, 2005,
primarily attributable to the unamortized debt issuance cost and discount
on the
long-term debt retired in the Company’s July 2005 debt refinancing.
Other
income and expense for the three months ended September 30, 2005 was a net
expense of $0.5 million attributable primarily to
the non-cash equity in the loss of Pinnacle of $0.4 million (both before
and
after tax). Other income and expense for the three months ended September
30,
2004 was a net benefit of $0.3 million, directly attributable to the non-cash
$0.2 million loss in the equity of Pinnacle (both before and after tax) and
(2)
the sale of our Enron claim for a gain of $0.5 million, which was fully reserved
for in prior years. Net losses are expected in this early phase of Pinnacle’s
development of its coalbed methane play, initiated in the second half of
2003.
Interest
income was $0.4 million for the three months ended September 30, 2005 as
compared to an inconsequential amount in the third quarter of 2004. The increase
is attributable to the significant increase in our cash balance following
the
recent debt refinancing.
Interest
expense, net of amounts capitalized, was $1.8 million for the three months
ended
September 30, 2005 compared to $0.1 million for the three months ended September
30, 2004. The increase is attributable to the significant increase in our
long-term debt in connection with the Company’s July 2005 debt refinancing,
partially offset by higher capitalized interest. The interest expense, net
of
capitalized interest, had been inconsequential in periods prior to the fourth
quarter of 2004 because
the
interest expense that is capitalizable (“capitalizable interest”) under GAAP has
typically been equal to or greater than the gross interest expense (i.e.
interest expense before capitalization of interest expense) in each period.
Starting in the fourth quarter of 2004, the gross interest expense exceeded
the
capitalizable interest by an amount proportionate to the outstanding debt
in
excess of the Company’s unproved property balance.
Results
for the Nine Months Ended September 30, 2005 --
The
results for the nine months ended September 30, 2005 include the following
highlights:
|
·
|
Record
Production of 6.9 Bcfe.
|
|
·
|
Record
revenues of $49.4 million.
|
|
·
|
Net
income of $6.8 million, or $12.1 million before non-cash charges,
noted
below.
|
|
·
|
Record
EBITDA, as defined below, of $35.8
million.
|
Revenues
for the nine months ended September 30, 2005 increased 41 percent to $49.4
million from $35.1 million during the nine months ended September 30, 2004.
The
increase in revenues was driven by higher prevailing oil and natural gas
prices
and higher production. Production volumes during the nine months ended September
30, 2005 increased 17 percent to 6.9 Bcfe as compared to 5.9 Bcfe during
the
first nine months of 2004. Carrizo’s average oil sales price increased 50
percent to $55.79 per barrel from $37.14 per barrel during the first nine
months
of 2004, while the average natural gas sales price increased 15 percent to
$6.78
per Mcf from $5.89 per Mcf in the first nine months of 2004. The above prices
include the effect of hedging activities.
The
Company reported Net Income of $6.8 million, or $0.29 and $0.28 per basic
and
diluted share, respectively, for the nine months ended September 30, 2005,
as
compared to $7.4 million, or $0.38 and $0.34 per basic and diluted share,
respectively, for the same period during 2004. For the nine months ended
September 30, 2005, Net Income was $12.1 million, or $0.52 and $0.50 per
basic
and diluted share, respectively, excluding $5.3 million for the non-cash
after-tax items of (1) stock option compensation expense ($1.9 million -
related
to employee stock options repriced in 2000) (2) loss on the early extinguishment
of long-term debt ($2.4 million - related to unamortized debt issuance cost
and
discount on debt retired in our recent debt refinancing) and (3) equity in
the
loss of Pinnacle ($1.0 million - comprised of $0.3 million net income from
operations offset by $1.3 million for dividends on preferred
stock).
EBITDA
(earnings before interest, income tax, depreciation and amortization expenses,
and certain other non-cash items) during
the first nine months of 2005 was $35.8 million, or $1.53 and $1.48 per basic
and diluted share, respectively, as compared to $24.7 million, or $1.28 and
$1.15 per basic and diluted share, respectively, during the first nine months
of
2004.
Oil
and gas operating expenses, excluding production taxes, increased to $4.2
million during the nine months ended September 30, 2005 as compared to $3.7
million in the first nine months of 2004. The increase was primarily the
result
of the addition of new wells (including a number of Barnett Shale
wells).
Production
taxes increased to $2.9 million during the nine months ended September 30,
2005
as compared to $2.2 million for the third quarter of 2004. The increase is
attributable to significantly higher oil and gas revenues.
Depreciation,
depletion and amortization expenses (“DD&A”) were $14.4 million during the
nine months ended September 30, 2005 as compared to $10.6 million during
the
first nine months of 2004. The increase in DD&A expense was due (1) to an
increase in the DD&A rate primarily due to additions to the proved property
cost base and (2) in part to increased production volumes.
General
and administrative expenses (“G&A”) increased to $6.2 million during the
nine months ended September 30, 2005 from $5.1 million during the same period
of
2004. The increase in G&A was due primarily to higher salary (due to
increased headcount and annual raises) and incentive compensation
costs.
Non-cash
stock based compensation expense was $2.9 million ($1.9 million after tax)
for
the nine months ended September 30, 2005 as compared to $0.6 million ($0.4
million after tax) for the first nine months of 2004.
Loss
on early extinguishment of long-term debt was a non-cash charge of $3.7 million
(or $2.4 million after tax) for the nine months ended September 30, 2005,
primarily attributable to the unamortized debt issuance cost and discount
on the
long-term debt retired in the Company’s July 2005 debt refinancing.
Other
income and expense for the nine months ended September 30, 2005 was a net
expense of $1.3 million primarily attributable to (1) the non-cash equity
in the
loss of Pinnacle of $1.0 million (both before and after tax) and (2) a $0.2
million loss in connection with excess plugging and abandonment costs. Other
income and expense for the first nine months of 2004 was a net expense of
$0.3
million, directly attributable to
the $0.8 million non-cash equity in the loss of Pinnacle (both before and
after
tax) and (2) the sale of our Enron claim for a gain of $0.5 million, which
was
fully reserved for in prior years.
Interest
income was $0.5 million for the nine months ended September 30, 2005 as compared
to an inconsequential amount in the first nine months of 2004. The increase
is
directly attributable to the significant increase in our cash balance following
the recent debt refinancing.
Interest
expense, net of amounts capitalized, was $2.9 million for the nine months
ended
September 30, 2005 compared to $0.2 million for the first nine months of
2004.
The increase is attributable to the significant increase in our long-term
debt
in connection with the
Company’s July 2005 debt
refinancing, partially offset by higher capitalized interest. The interest
expense, net of capitalized interest, had been inconsequential in periods
prior
to the fourth quarter of 2004 because the interest expense that is capitalizable
(“capitalizable interest”) under GAAP has typically been equal to or greater
than the gross interest expense (i.e. interest expense before capitalization
of
interest expense) in each period. Starting in the fourth quarter of 2004,
the
gross interest expense exceeded the capitalizable interest by an amount
proportionate to the outstanding debt in excess of the Company’s unproved
property balance.
“We
continue to set new performance records both in our quarter and year-to-date
results,” commented S.P. Johnson IV, Carrizo’s President and Chief Executive
Officer. “Record revenues and EBITDA are especially impressive considering that
two of our largest producers were shut-in for workovers from late April to
mid-July, later followed by a number of our wells temporarily shut-in until
September 30th for the Katrina and Rita hurricanes. Production should continue
to climb in the fourth quarter favorably impacted by the Company-operated
Galloway #1 (30% working
interest) in Liberty County, Texas, put on line in late September along with
several Barnett Shale wells to be put on line by the end of the quarter.
Year
to date, we have had apparent successes in drilling 14 out of 17 Gulf Coast
wells (82%) and all of the 31 Barnett Shale wells. With
our recent financings completed, we remain positioned to carry out our onshore
Gulf Coast drilling program (2 rigs running, including 1 operated) with higher
working interests and to accelerate our horizontal drilling program in the
Barnett Shale (3 rigs running, including 2 operated). We now have more than
75,000 net acres in the Barnett Shale play and continue to add high quality
acreage near successful wells.”
“We
are also pleased to announce that Jack L. Bayless, formerly with Unocal
Corporation, has joined our management team as Vice President of
Land.”
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 proven onshore trends along the Texas and Louisiana Gulf Coast
regions and the Barnett Shale area in North Texas. Carrizo controls significant
prospective acreage blocks and utilizes advanced 3-D seismic techniques to
identify potential oil and gas reserves and drilling opportunities.
Statements
in this news release, including but not limited to those relating to the
Company’s or management’s intentions, beliefs, expectations, hopes, projections,
assessment of risks, estimations, plans or predictions for the future including
potential effects or timing, cash flow, reserve growth and shareholder value,
the expected timing of drilling of additional wells, climb in production
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 the results and dependence on exploratory drilling activities, operating
risks, oil and gas price levels, land issues, availability of equipment,
weather
and other risks described in the Company’s Form 10-K for the year ended December
31, 2004 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
|
|
NINE MONTHS ENDED
|
|
|
|
SEPTEMBER 30,
|
|
SEPTEMBER 30,
|
|
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and natural gas revenues
|
|
$
|
17,574,489
|
|
$
|
12,273,980
|
|
$
|
49,353,139
|
|
$
|
35,106,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs
and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and natural gas operating expenses
|
|
|
1,298,426
|
|
|
1,369,169
|
|
|
4,153,773
|
|
|
3,659,489
|
|
Production
tax
|
|
|
941,848
|
|
|
757,066
|
|
|
2,915,202
|
|
|
2,189,284
|
|
Depreciation,
depletion and amortization
|
|
|
4,701,331
|
|
|
3,708,441
|
|
|
14,390,489
|
|
|
10,561,427
|
|
General
and administrative expenses
|
|
|
1,922,755
|
|
|
1,295,803
|
|
|
6,232,437
|
|
|
5,075,243
|
|
Accretion
expense related to asset retirement
obligations
|
|
|
17,530
|
|
|
8,008
|
|
|
52,591
|
|
|
20,892
|
|
Stock
based compensation expense
|
|
|
1,915,002
|
|
|
(138,704
|
)
|
|
2,945,104
|
|
|
617,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
costs and expenses
|
|
|
10,796,892
|
|
|
6,999,783
|
|
|
30,689,596
|
|
|
22,123,615
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
6,777,597
|
|
|
5,274,197
|
|
|
18,663,543
|
|
|
12,983,336
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
on early debt retirement
|
|
|
(3,721,021
|
)
|
|
-
|
|
|
(3,721,021
|
)
|
|
|
|
Other
income and (expenses), net
|
|
|
(484,731
|
)
|
|
268,885
|
|
|
(1,280,465
|
)
|
|
(313,896
|
)
|
Interest
income
|
|
|
445,093
|
|
|
21,790
|
|
|
520,664
|
|
|
44,717
|
|
Interest
expense, net of amounts capitalized (A)
|
|
|
(1,803,624
|
)
|
|
(95,672
|
)
|
|
(2,949,459
|
)
|
|
(181,917
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
|
|
1,213,314
|
|
|
5,469,200
|
|
|
11,233,262
|
|
|
12,532,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
|
(634,543
|
)
|
|
(2,078,796
|
)
|
|
(4,475,461
|
)
|
|
(4,820,360
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
|
|
578,771
|
|
|
3,390,404
|
|
|
6,757,801
|
|
|
7,711,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
and accretion of discount on preferred stock
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(350,720
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income available to common shares
|
|
$
|
578,771
|
|
$
|
3,390,404
|
|
$
|
6,757,801
|
|
$
|
7,361,160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
(see table below)
|
|
$
|
13,337,949
|
|
$
|
9,364,841
|
|
$
|
35,759,684
|
|
$
|
24,713,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
net income per common share
|
|
$
|
0.02
|
|
$
|
0.15
|
|
$
|
0.29
|
|
$
|
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
net income per common share
|
|
$
|
0.02
|
|
$
|
0.15
|
|
$
|
0.28
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average common shares outstanding
|
|
|
24,198,152
|
|
|
21,909,855
|
|
|
23,302,734
|
|
|
19,255,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average common shares outstanding
|
|
|
25,003,002
|
|
|
23,004,082
|
|
|
24,123,244
|
|
|
21,546,329
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
______________________________
|
|
|
|
|
|
|
|
|
|
(A)
Interest expense, net of amounts capitalized, consists of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
interest expense
|
|
$
|
(3,475,072
|
)
|
$
|
(864,620
|
)
|
$
|
(6,845,487
|
)
|
$
|
(2,273,746
|
)
|
Capitalized
interest
|
|
|
1,671,448
|
|
|
768,948
|
|
|
3,896,028
|
|
|
2,091,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(more)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARRIZO OIL & GAS,
INC.
|
|
CONDENSED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9/30/05
|
|
12/31/04
|
|
|
|
(unaudited)
|
|
|
|
ASSETS:
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
|
50,036,912
|
|
$
|
5,668,000
|
|
Other
current assets
|
|
|
27,057,405
|
|
|
15,965,885
|
|
Property
and equipment, net
|
|
|
278,146,362
|
|
|
205,482,585
|
|
Other
assets
|
|
|
6,218,479
|
|
|
1,689,447
|
|
Investment
in Pinnacle Gas Resources, Inc.
|
|
|
4,240,712
|
|
|
5,229,134
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
|
365,699,870
|
|
$
|
234,035,051
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY:
|
|
|
|
|
|
|
|
Accounts
payable and accrued liabilities
|
|
$
|
45,958,457
|
|
$
|
30,682,970
|
|
Current
maturities of long-term debt
|
|
|
1,555,465
|
|
|
89,653
|
|
Long-term
notes payable
|
|
|
147,867,540
|
|
|
18,032,002
|
|
Long-term
subordinated notes payable, net
|
|
|
-
|
|
|
44,852,384
|
|
Deferred
income taxes
|
|
|
20,513,943
|
|
|
18,112,950
|
|
Other
liabilities
|
|
|
3,606,214
|
|
|
1,406,567
|
|
Equity
|
|
|
146,198,251
|
|
|
120,858,525
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
|
$
|
365,699,870
|
|
$
|
234,035,051
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Income
tax expense for the three and nine months ended September 30,
2005
includes a $568,587 and $4,277,589 respectively, provision for
deferred
income taxes and a $65,956 and $197,872, respectively, provision
for
currently payable franchise taxes. Income tax expense for the
three and
nine months ended September 30, 2004 includes a $1,999,624 and
$4,651,188,
respectively, provision for deferred income taxes and a $79,172
and
$169,172 provision for currently payable franchise
taxes.
|
|
(2)
|
Long-term
subordinated notes payable are presented net of discounts of
$1,987,206 as
of December 31, 2004.
|
|
(3)
|
Stock
based compensation expense is a non-cash charge resulting primarily
from
the change in the price of the stock underlying employee stock
options
that were repriced in February
2000.
|
|
(4)
|
In
February 2002, the Company consummated the sale of $6.0 million
of
convertible participating preferred stock and warrants to purchase
shares
of the Company's common stock. All of the convertible participating
preferred stock was converted into 1,318,125 shares of common
stock during
2004.
|
|
(5)
|
During
the nine and twelve months ended September 30, 2005 and December
31, 2004,
334,210 and 2,928,611 warrants were converted into 304,669
and 2,159,627
shares of common stock,
respectively.
|
(more)
CARRIZO
OIL & GAS, INC.
|
|
NON-GAAP
DISCLOSURES
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
ENDED
|
|
NINE
MONTHS
ENDED
|
|
Reconciliation
of Net Income to EBITDA
|
|
SEPTEMBER
30,
|
|
SEPTEMBER
30,
|
|
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
|
578,771
|
|
$
|
3,390,404
|
|
$
|
6,757,801
|
|
$
|
7,711,880
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
|
4,701,331
|
|
|
3,708,441
|
|
|
14,390,489
|
|
|
10,561,427
|
|
Interest
expense, net of amounts capitalized and interest income
|
|
|
1,358,531
|
|
|
73,882
|
|
|
2,428,795
|
|
|
137,200
|
|
Income
tax
expense
|
|
|
634,543
|
|
|
2,078,796
|
|
|
4,475,461
|
|
|
4,820,360
|
|
Equity
in
Pinnacle Gas Resources, Inc.
|
|
|
411,220
|
|
|
244,014
|
|
|
988,422
|
|
|
844,658
|
|
Stock
based
compensation expense
|
|
|
1,915,002
|
|
|
(138,704
|
)
|
|
2,945,104
|
|
|
617,280
|
|
Loss
on early
debt retirement
|
|
|
3,721,021
|
|
|
-
|
|
|
3,721,021
|
|
|
-
|
|
Accretion
expense related to asset retirement obligations
|
|
|
17,530
|
|
|
8,008
|
|
|
52,591
|
|
|
20,892
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA,
as
defined
|
|
$
|
13,337,949
|
|
$
|
9,364,841
|
|
$
|
35,759,684
|
|
$
|
24,713,697
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
per
basic common share
|
|
$
|
0.55
|
|
$
|
0.43
|
|
$
|
1.53
|
|
$
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
per
diluted common share
|
|
$
|
0.53
|
|
$
|
0.41
|
|
$
|
1.48
|
|
$
|
1.15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CARRIZO
OIL & GAS, INC.
|
PRODUCTION
VOLUMES AND PRICES
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
volumes-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and
condensate (Bbls)
|
|
|
53,368
|
|
|
72,634
|
|
|
178,478
|
|
|
243,145
|
|
Natural
gas
(Mcf)
|
|
|
1,857,810
|
|
|
1,601,708
|
|
|
5,807,218
|
|
|
4,427,309
|
|
Natural
gas
equivalent (Mcfe)
|
|
|
2,178,018
|
|
|
2,037,512
|
|
|
6,878,086
|
|
|
5,886,179
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
sales
prices-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil
and
condensate (per Bbl)
|
|
$
|
62.84
|
|
$
|
43.57
|
|
$
|
55.79
|
|
$
|
37.14
|
|
Natural
gas
(per Mcf)
|
|
$
|
7.65
|
|
$
|
5.69
|
|
$
|
6.78
|
|
$
|
5.89
|
|
Natural
gas
equivalent (per Mcfe)
|
|
$
|
8.07
|
|
$
|
6.02
|
|
$
|
7.18
|
|
$
|
5.96
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
#
#
#
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GRAPHIC
3
carrizo_logo.jpg
begin 644 carrizo_logo.jpg
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end
-----END PRIVACY-ENHANCED MESSAGE-----