-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OjEAYQcNBevPRuK9qVNU7u7HjoUbYGRDdN9MwouzYIl/ZtPtNqgSAnuHUBFyVSFD sMShuLSnMNIWNQ14hpNkrg== 0001040593-10-000007.txt : 20100506 0001040593-10-000007.hdr.sgml : 20100506 20100506103311 ACCESSION NUMBER: 0001040593-10-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100506 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100506 DATE AS OF CHANGE: 20100506 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: 10804488 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 form8k_050610.htm FORM 8-K DATED MAY 6, 2010 form8k_050610.htm


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):  May 6, 2010
 

CARRIZO OIL & GAS, INC.
(Exact name of registrant as specified in its charter)
 
 Texas  000-29187-87    76-0415919
(State or other jurisdiction  (Commission  (I.R.S. Employer
  of incorporation)   File Number)     Identification No.)
     
 
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 dated May 6, 2010 concerning financial results of Carrizo Oil & Gas, Inc. (the “Company”) for the quarter ended March 31, 2010, 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 March 31, 2009 and 2010.  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 discuss adjusted net income excluding the non-cash after-tax items comprised of an unrealized mark-to-market gain on derivatives, stock-based compensation expense, non-cash interest expense and bad debt expense on a total and a per share basis for the quarter ended March 31, 2010.  We also discuss adjusted net income excluding the non-cash after-tax items comprised of the impairment of oil and natural gas properties, an unrealized mark-to-market gain on derivatives, stock-based compensation expense, an impairment of investment, non-cash interest expense and bad debt expense on a total and a per share basis for the quarter ended March 31, 2009.  We believe that this information will help investors compare results between periods and iden tify operating trends that would otherwise be masked by the non-cash after-tax items.  The most comparable GAAP financial measure, net income (loss), and information reconciling the GAAP and non-GAAP measures were also included in the press release.
 
We discuss adjusted revenues including the impact of realized hedge gains for the quarters ended March 31, 2009 and 2010.  We believe that this information will help investors understand our actual results, which are impacted by our natural gas and oil derivatives.  The most comparable GAAP financial measure, revenue, 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 Item 2.02 and the accompanying exhibit is not intended to, and does not, constitute a determination or admission by the Company, that the information in this Item 2.02 and the accompanying exhibit is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.
 
 
2

 
 
Item 9.01.                      Financial Statements and Exhibits.
 
(d)           Exhibits.
 
 
 
3

 
 
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:  May 6, 2010
 

 
 
 

 
EX-99.1 2 exh991.htm EXHIBIT 99.1 - PRESS RELEASE exh991.htm
EXHIBIT 99.1
 
 
 PRESS RELEASE    Contact:     Carrizo Oil & Gas, Inc.
     Richard Hunter, Vice President of Investor Relations
     Paul F. Boling, Chief Financial Officer
     (713) 328-1000
 
CARRIZO OIL & GAS, INC. ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND AN INCREASE IN THE BORROWING BASE TO $375 MILLION RAISING AVAILABLE LIQUIDITY TO $212 MILLION
 
 
HOUSTON, May 6, 2010 — Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) today reported the Company’s financial results for the first quarter of 2010, which included the following highlights:

Results for the First Quarter 2010 --

·  
Production of 8.3 Bcfe, or 91,855 Mcfe/d

·  
Revenue of $39.0 million or Adjusted Revenue of $43.9 million, including the impact of realized hedges

·  
Net Income of $19.7 million, or Adjusted Net Income of $11.2 million before the net non-cash items noted below

·  
EBITDA, as defined below, of $32.3 million

Production volumes during the three months ended March 31, 2010 were the same as in the first quarter of 2009 at 8.3 Bcfe and lower by 0.4 Bcfe from fourth quarter 2009 production of 8.7 Bcfe.  The change in production was primarily due to new Barnett Shale wells offset by a sale of an interest in a portion of Barnett Shale acreage to Sumitomo Corporation in December of 2009 and by normal production declines.  Adjusted revenues from the sale of oil and natural gas production were $43.9 million for the first quarter of 2010, which includes oil and gas revenues of $39.0 million and realized hedge gains of $4.9 million, compared to $49.5 million for the first quarter of 2009, which includes oil and gas revenues of $30.7 million and realized hedge gains of $18.8 million.  The decrease in adjusted revenues was primarily driven by lower realized oil and gas prices.  Carrizo’s average natural gas sales price decreased ten percent to $5.10 per Mcf for the first quarter of 2010 compared to $5.63 per Mcf for the first quarter of 2009 and the average oil sales price decreased 26% to $76.13 per barrel for the first quarter of 2010 compared to $102.42 per barrel for the first 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 March 31, 2010, the Company reported adjusted net income of $11.2 million, or $0.36 per basic and diluted share, excluding an aggregate net $8.5 million non-cash, after–tax gain, comprised of (1) an unrealized mark-to-market gain of $11.3 million on derivatives, (2) stock-based compensation expense of $1.4 million, (3) non-cash interest expense of $1.3 million
 
 
 

 
 
associated with the amortization of the equity premium on the Company’s convertible notes, and (4) bad debt expense of $0.1 million.  For the quarter ended December 31, 2009, the Company reported adjusted net income of $12.5 million, or $0.41 and $0.40 per basic and diluted share, respectively, excluding an aggregate net $138.0 million non-cash, after–tax charge, comprised of (1) the impairment of oil and natural gas properties of $140.7 million, (2) an unrealized mark-to-market gain of $7.3 million on derivatives, (3) stock-based compensation expense of $2.2 million, (4) an impairment of investment of $1.3 million, (5) non-cash interest expense of $1.0 million associated with the amortization of the equity premium on the Company’s convertible notes, and (6) bad debt expense of $0.1 million.  The C ompany reported net income of $19.7 million, or $0.64 and $0.63 per basic and diluted share, respectively, for the quarter ended March 31, 2010, as compared to net loss of $125.5 million, or $4.07 per basic and diluted share, for the same quarter during 2009.

EBITDA (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) during the first quarter of 2010 was $32.3 million, or $1.04 and $1.03 per basic and diluted share, respectively, as compared to $37.2 million, or $1.21 and $1.19 per basic and diluted share, respectively, during the first quarter of 2009.

Lease operating expenses (excluding production taxes, ad valorem taxes and transportation costs) were $3.7 million (or $0.45 per Mcfe) during the three months ended March 31, 2010 as compared to $5.2 million (or $0.63 per Mcfe) for the first quarter of 2009.  The decrease in lease operating expenses was due to a decrease in service costs.  The decline in service costs per Mcfe was driven primarily by 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 $1.3 million (or $0.16 per Mcfe) during the first quarter of 2010 as compared to $3.3 million (or $0.40 per Mcfe) during the first quarter of 2009. The decrease in transportation costs per Mcfe was largely due to a change in contracting strategy effective July 1, 2009 whereby natural gas production is now sold at the wellhead.

Production taxes were $0.9 million during the first quarter of 2010 as compared to a net benefit of $1.3 million during the first quarter of 2009.  The increase is largely attributable to a $1.9 million severance tax refund in the first quarter of 2009 on certain wells that qualified for a tight-gas sands tax credit for prior production periods.

Depreciation, depletion and amortization expenses (“DD&A”) were $9.8 million during the first quarter of 2010 ($1.19 per Mcfe) as compared to $15.3 million ($1.85 per Mcfe) during the first quarter of 2009.  The lower DD&A expenses were due primarily to a lower depletion rate resulting from the impairment charges in the first and fourth quarters 2009, and due to lower overall finding costs of new reserves added in the fourth quarter of 2009.

Low oil and gas prices during 2009 caused the discounted present value (discounted at 10 percent) of future net cash flows from proved oil and gas reserves to fall below the net book basis of the proved oil and gas properties. This resulted in a pre-tax non-cash ceiling test write-down of $216.4 million at the end of the first quarter of 2009.  There was no such write-down at the end of the first quarter of 2010.
 
 
 

 
 
General and administrative expenses (“G&A”) were $4.4 million during the three months ended March 31, 2010 as compared to $4.3 million during the three months ended March 31, 2009.

Non-cash, stock-based compensation expense was $2.2 million for the three months ended March 31, 2010 compared to $3.4 million for the same period in 2009. The decrease was primarily due to additional deferred compensation awards that vested in the first quarter of 2009 related to the payment of 2008 discretionary stock-based bonuses to non-executive employees.

A $22.5 million net gain on derivatives was recorded for the first quarter of 2010 compared to a net gain of $30.1 million for the first quarter of 2009. The first quarter 2010 gain consisted of (1) the unrealized mark-to-market gain on natural gas derivatives of $17.6 million and (2) the realized gain on natural gas derivatives of $4.9 million. The first quarter 2009 gain consisted of (1) the unrealized mark-to-market gain on natural gas derivatives of $11.3 million, and (2) the realized gain on natural gas derivatives of $18.8 million.

Cash interest expense, net of amounts capitalized, was $3.2 million for the first quarter of 2010 compared to $2.5 million for the first quarter of 2009. The increase was primarily attributable to lower levels of capitalized interest and increased interest expense associated with the higher debt levels on the revolving credit facility.

Interest expense (non-cash), net of amounts capitalized increased to $2.1 million for the first quarter of 2010 from $1.6 million for the first quarter of 2009, due to lower levels of capitalized interest.

Effective May 5, 2010, the Company’s banking syndicate, led by Wells Fargo as administrative agent, agreed to increase the borrowing base under the Company’s senior credit facility to $375 million from $350 million, representing an increase of $25 million. As of April 30, 2010, the outstanding balance under the senior credit facility was approximately $163 million (or 43% of the $375 million borrowing base), representing available liquidity of $212 million.

Carrizo President and CEO S.P. “Chip” Johnson IV commented, “Our Barnett Shale development continues to proceed according to plan, with new wells performing at or above our expectations. Our fracing and completion program at our project on the University of Texas at Arlington campus is ahead of schedule. Though we had to shut in the six producing wells for varying periods during the frac process, they are currently all back on line. Eight of the sixteen new wells on the pad were completed in April, recently began flowback, and are now selling gas at expected rates and flowing pressures while cleaning up. The remaining eight new wells will be completed beginning in late May.

“We are moving forward in the execution of our new strategy to increase our liquids production. We recently closed on the acquisition of the previously disclosed Niobrara acreage block, with the final lease position amounting to over 45,800 net acres, all in Weld County, CO. We expect to have a Niobrara rig contracted to begin drilling in the third quarter. We have acquired more than 9,000 net acres in the Eagleford Shale and have secured a rig to drill our initial well in LaSalle County, TX later this summer. We continue to add to our leasehold in both plays. In the Marcellus Shale, we are preparing to fracture stimulate our wells drilled in West Virginia and are acquiring 3-D seismic data over our leases in Susquehanna, PA. We plan to commence full scale horizontal development drilling in this area in the fall.”

 
 

 
 
The company will host a conference call to discuss 2010 first quarter financial results on Thursday, May 6, 2010 at 10:00 AM Central Daylight Time.  To participate in the call, please dial (800) 920-2776 ten minutes before the call is scheduled to begin. A replay of the call will be available through Thursday, May 13, 2010 at (800) 633-8284.  The conference ID for the replay is 21468337.

A simultaneous webcast of the call may be accessed over the internet at http://www.investorcalendar.com/IC/CEPage.asp?ID=158307 or by visiting our website at http://www.crzo.net/ clicking on "Investor Relations" and then clicking on "2010 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 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, 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, level of debt, exposure to risk associated with lenders and leverage, expected drilling, completion of wells, seismic acquisitions, fracture stimulating and production efficiencies, maintenance of staff and technical capabilities, exploitation of assets in the Barnett and Marcellus Shales, timing of completion and drilling of wells, completion and pipeline connections 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 r easonable 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
   
MARCH 31,
 
   
2010
      2009 (A)  
               
Oil and natural gas revenues
  $ 38,964,061     $ 30,653,785  
                 
Costs and expenses:
               
   Lease operating expenses
    3,749,991       5,183,109  
   Transportation expenses
    1,333,412       3,279,400  
   Production tax expense (benefit)
    904,780       (1,322,444 )
   Ad valorem taxes
    1,204,328       897,197  
   Depreciation, depletion and amortization
    9,841,400       15,275,647  
   Impairment of oil and natural gas properties (1)
    -       216,391,139  
   General and administrative expenses
    4,396,880       4,252,132  
   Accretion expense related to asset retirement obligations
    51,286       71,413  
   Bad debt expense
    123,254       221,682  
   Stock-based compensation expense
    2,164,007       3,425,964  
                 
Total costs and expenses
    23,769,338       247,675,239  
                 
Operating income (loss)
    15,194,723       (217,021,454 )
                 
Unrealized mark-to-market gain on derivatives, net
    17,627,275       11,279,650  
Realized gain on derivatives, net (2), (3), (4)
    4,922,321       18,809,878  
Impairment of investment
    -       (2,090,805 )
Other income and expenses, net
    29,565       45,464  
Interest income
    975       5,190  
Interest expense (cash), net of amounts capitalized (5)
    (3,218,302 )     (2,539,317 )
Interest expense (non-cash), net of amounts capitalized (6)
    (2,122,670 )     (1,569,135 )
                 
Income (Loss) before income taxes
    32,433,887       (193,080,529 )
                 
Income tax expense (benefit)
    12,698,048       (67,535,545 )
                 
Net Income (Loss)
  $ 19,735,839     $ (125,544,984 )
                 
ADJUSTED net income available to common shares (7)
  $ 11,230,478     $ 12,527,415  
                 
EBITDA
  $ 32,326,556     $ 37,219,732  
                 
Basic net income (loss) per common share
  $ 0.64     $ (4.07 )
                 
Diluted net income (loss) per common share
  $ 0.63     $ (4.07 )
                 
ADJUSTED basic net income per common share (7)
  $ 0.36     $ 0.41  
                 
ADJUSTED diluted net income per common share (7)
  $ 0.36     $ 0.40  
                 
Basic weighted average common shares outstanding
    31,071,067       30,882,571  
                 
Diluted weighted average common shares outstanding
    31,514,572       31,176,452  
                 
                 
______________________________
               
(A) Results include the impact of a correction to the 1Q09 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 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 in the 1st quarter of 2010 of approximately $0.3 million from general and administrative expenses to realized gain (loss) on derivatives, net, for agency fees to enter into certain derivative positions.
                 
                 
                 
(3) Includes reclassification in the 1st quarter of 2010 of approximately $0.2 million 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.
                 
                 
                 
(4) Includes reclassification in the 1st quarter of 2009 of approximately ($3.8) million 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) Interest expense (cash), net of amounts capitalized, consists of the following:
                 
     Gross interest expense
  $ (5,911,321 )   $ (5,599,871 )
     Capitalized interest
    2,693,019       3,060,554  
                 
(6) Non-cash Interest expense, comprising amortization of equity premium on Convertible Notes per adoption of new accounting guidelines related to convertible debt instruments that may be settled in cash (including partial cash payment) upon conversion and non cash amortization of all debt issuance costs, consists of:
                 
                 
                 
     Gross interest expense
  $ (3,898,882 )   $ (3,460,362 )
     Capitalized interest
    1,776,212       1,891,227  
                 
(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.
                 
                 
                 
                 
(more)
               
 
 
 
 

 
 
CARRIZO OIL & GAS, INC.
 
CONDENSED BALANCE SHEETS
 
             
             
             
             
   
3/31/2010
   
12/31/2009
 
   
(unaudited)
   
(unaudited)
 
ASSETS:
           
  Cash and cash equivalents
  $ 2,366,984     $ 3,837,168  
  Fair value of derivative financial instruments
    25,258,729       8,403,769  
  Other current assets
    30,148,239       23,159,647  
  Deferred income taxes
    65,050,967       70,217,281  
  Property and equipment, net
    783,373,432       733,700,166  
  Other assets
    19,902,105       20,433,034  
  Investments
    3,340,879       3,357,702  
                 
TOTAL ASSETS
  $ 929,441,335     $ 863,108,767  
                 
LIABILITIES AND EQUITY:
               
  Accounts payable and accrued liabilities
  $ 78,072,049     $ 79,330,794  
  Current maturities of long-term debt
    307,306       147,633  
  Other current liabilities
    12,567,933       3,250,972  
  Long-term debt, net of current maturities
    559,742,086       520,187,931  
  Other liabilities
    8,874,964       9,763,408  
  Fair value of derivative financial instruments
    194,688       2,818,446  
  Equity
    269,682,309       247,609,583  
                 
TOTAL LIABILITIES AND EQUITY
  $ 929,441,335     $ 863,108,767  
                 
                 
                 
(more)
               
 
 
 
 

 
 
CARRIZO OIL & GAS, INC.
NON-GAAP DISCLOSURES
(unaudited)
 
   
THREE MONTHS ENDED
   
Reconciliation of Net Income to EBITDA
 
MARCH 31,
         
   
2010
   
2009
   
               
               
               
Net Income
  $ 19,735,839     $ (125,544,984 )  
                   
Adjustments:
                 
  Depreciation, depletion and amortization
    9,841,400       15,275,647    
  Unrealized mark-to-market gain (loss) on derivatives
    (17,627,275 )     (11,279,650 )  
  Interest expense (cash and non-cash), net of amounts capitalized and interest income
    5,339,997       4,103,261    
  Income tax expense (benefit) (1)
    12,698,048       (67,535,545 )  
  Impairment of investment
    -       2,090,805    
  Stock based compensation expense
    2,164,007       3,425,964    
  Bad debt expense
    123,254       221,682    
  Accretion expense related to asset retirement obligations
    51,286       71,413    
  Impairment of oil and natural gas properties
    -       216,391,139    
                   
EBITDA, as defined
  $ 32,326,556     $ 37,219,732    
                   
EBITDA per basic common share
  $ 1.04     $ 1.21    
                   
EBITDA per diluted common share
  $ 1.03     $ 1.19    
                   
(1) - Includes approximately $16,000 and $120,000 for current income taxes in 2010 and 2009, respectively.
                   
                   
CARRIZO OIL & GAS, INC.
 
PRODUCTION VOLUMES AND PRICES
 
(unaudited)
 
                   
Production volumes-
                 
                   
    Oil and condensate (Bbls)
    37,752       44,049    
    Natural gas (Mcf)
    8,040,418       7,994,231    
    Natural gas equivalent (Mcfe)
    8,266,930       8,258,525    
Days in Period (Do Not Print)
    90       90    
      91,855       91,761    
                   
Average sales prices-
                 
                   
    Oil and condensate (per Bbl)
  $ 76.13     $ 39.38    
    Oil and condensate (per Bbl) - with hedge impact
  $ 76.13     $ 102.42    
    Natural gas (per Mcf)
  $ 4.49     $ 3.63    
    Natural gas (per Mcf) - with hedge impact
  $ 5.10     $ 5.63  
(1)
    Natural gas equivalent (per Mcfe)
  $ 4.71     $ 3.72    
                   
(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
   
Change
 
Impairment of oil and natural gas properties
  $ 252.2     $ 216.4     $ (35.8 )
Depletion, depreciation and amortization
  $ 16.5     $ 15.3     $ (1.2 )
Impairment of investment
  $ -     $ 2.1     $ 2.1  
Net loss
  $ 148.3     $ 125.5     $ (22.8 )
                         
(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.
 
                         
                         
 
 
 
 

 
 
 

 
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