x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 76-0415919 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
500 Dallas Street, Suite 2300, Houston, Texas | 77002 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
PAGE | ||
Part I. Financial Information | ||
Item 1. | Consolidated Financial Statements (Unaudited) | |
Notes to Consolidated Financial Statements | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Part II. Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
Signatures |
CARRIZO OIL & GAS, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share data) (Unaudited) | ||||||||
June 30, 2016 | December 31, 2015 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $2,158 | $42,918 | ||||||
Accounts receivable, net | 55,976 | 54,721 | ||||||
Derivative assets | 34,256 | 131,100 | ||||||
Other current assets | 6,484 | 3,443 | ||||||
Total current assets | 98,874 | 232,182 | ||||||
Property and equipment | ||||||||
Oil and gas properties, full cost method | ||||||||
Proved properties, net | 1,142,383 | 1,369,151 | ||||||
Unproved properties, not being amortized | 195,609 | 335,452 | ||||||
Other property and equipment, net | 11,475 | 12,258 | ||||||
Total property and equipment, net | 1,349,467 | 1,716,861 | ||||||
Deferred income taxes | — | 46,758 | ||||||
Derivative assets | — | 1,115 | ||||||
Other assets | 9,302 | 10,330 | ||||||
Total Assets | $1,457,643 | $2,007,246 | ||||||
Liabilities and Shareholders’ Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Accounts payable | $41,595 | $74,065 | ||||||
Revenues and royalties payable | 52,912 | 67,808 | ||||||
Accrued capital expenditures | 51,647 | 39,225 | ||||||
Accrued interest | 21,989 | 21,981 | ||||||
Deferred income taxes | — | 46,758 | ||||||
Other current liabilities | 34,504 | 35,647 | ||||||
Total current liabilities | 202,647 | 285,484 | ||||||
Long-term debt | 1,298,196 | 1,236,017 | ||||||
Asset retirement obligations | 16,955 | 16,183 | ||||||
Derivative liabilities | 34,850 | 12,648 | ||||||
Other liabilities | 15,412 | 12,860 | ||||||
Total liabilities | 1,568,060 | 1,563,192 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity (deficit) | ||||||||
Common stock, $0.01 par value, 90,000,000 shares authorized; 58,974,437 issued and outstanding as of June 30, 2016 and 58,332,993 issued and outstanding as of December 31, 2015 | 590 | 583 | ||||||
Additional paid-in capital | 1,430,124 | 1,411,081 | ||||||
Accumulated deficit | (1,541,131 | ) | (967,610 | ) | ||||
Total shareholders’ equity (deficit) | (110,417 | ) | 444,054 | |||||
Total Liabilities and Shareholders’ Equity (Deficit) | $1,457,643 | $2,007,246 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenues | |||||||||||||||
Crude oil | $91,608 | $111,257 | $159,604 | $194,315 | |||||||||||
Natural gas liquids | 6,063 | 3,799 | 9,503 | 8,272 | |||||||||||
Natural gas | 9,653 | 8,438 | 19,479 | 20,957 | |||||||||||
Total revenues | 107,324 | 123,494 | 188,586 | 223,544 | |||||||||||
Costs and Expenses | |||||||||||||||
Lease operating | 23,114 | 23,375 | 46,789 | 45,091 | |||||||||||
Production taxes | 4,623 | 5,031 | 8,054 | 9,049 | |||||||||||
Ad valorem taxes | 454 | 1,723 | 2,524 | 4,756 | |||||||||||
Depreciation, depletion and amortization | 51,966 | 79,331 | 111,543 | 153,202 | |||||||||||
General and administrative, net | 19,624 | 19,095 | 40,927 | 50,672 | |||||||||||
(Gain) loss on derivatives, net | 52,235 | 12,595 | 41,682 | (13,844 | ) | ||||||||||
Interest expense, net | 19,010 | 16,999 | 37,723 | 35,195 | |||||||||||
Impairment of proved oil and gas properties | 197,070 | — | 471,483 | — | |||||||||||
Loss on extinguishment of debt | — | 38,137 | — | 38,137 | |||||||||||
Other expense, net | 1,162 | 281 | 1,069 | 7,273 | |||||||||||
Total costs and expenses | 369,258 | 196,567 | 761,794 | 329,531 | |||||||||||
Loss From Continuing Operations Before Income Taxes | (261,934 | ) | (73,073 | ) | (573,208 | ) | (105,987 | ) | |||||||
Income tax (expense) benefit | (192 | ) | 26,103 | (313 | ) | 37,541 | |||||||||
Loss From Continuing Operations | (262,126 | ) | (46,970 | ) | (573,521 | ) | (68,446 | ) | |||||||
Income From Discontinued Operations, Net of Income Taxes | — | 838 | — | 1,104 | |||||||||||
Net Loss | ($262,126 | ) | ($46,132 | ) | ($573,521 | ) | ($67,342 | ) | |||||||
Net Loss Per Common Share - Basic | |||||||||||||||
Loss from continuing operations | ($4.46 | ) | ($0.92 | ) | ($9.79 | ) | ($1.40 | ) | |||||||
Income from discontinued operations, net of income taxes | — | 0.02 | — | 0.02 | |||||||||||
Net loss | ($4.46 | ) | ($0.90 | ) | ($9.79 | ) | ($1.38 | ) | |||||||
Net Loss Per Common Share - Diluted | |||||||||||||||
Loss from continuing operations | ($4.46 | ) | ($0.92 | ) | ($9.79 | ) | ($1.40 | ) | |||||||
Income from discontinued operations, net of income taxes | — | 0.02 | — | 0.02 | |||||||||||
Net loss | ($4.46 | ) | ($0.90 | ) | ($9.79 | ) | ($1.38 | ) | |||||||
Weighted Average Common Shares Outstanding | |||||||||||||||
Basic | 58,806 | 51,225 | 58,583 | 48,827 | |||||||||||
Diluted | 58,806 | 51,225 | 58,583 | 48,827 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
Cash Flows From Operating Activities | |||||||
Net loss | ($573,521 | ) | ($67,342 | ) | |||
Income from discontinued operations, net of income taxes | — | (1,104 | ) | ||||
Adjustments to reconcile loss from continuing operations to net cash provided by operating activities from continuing operations | |||||||
Depreciation, depletion and amortization | 111,543 | 153,202 | |||||
Impairment of proved oil and gas properties | 471,483 | — | |||||
(Gain) loss on derivatives, net | 41,682 | (13,844 | ) | ||||
Cash received for derivative settlements, net | 78,463 | 94,193 | |||||
Loss on extinguishment of debt | — | 38,137 | |||||
Stock-based compensation expense, net | 22,414 | 14,796 | |||||
Deferred income taxes | — | (37,961 | ) | ||||
Non-cash interest expense, net | 2,064 | 2,787 | |||||
Other, net | 2,342 | 5,384 | |||||
Changes in components of working capital and other assets and liabilities- | |||||||
Accounts receivable | (1,392 | ) | 3,732 | ||||
Accounts payable | (19,200 | ) | (16,437 | ) | |||
Accrued liabilities | (8,776 | ) | (6,605 | ) | |||
Other assets and liabilities, net | (1,063 | ) | (3,286 | ) | |||
Net cash provided by operating activities from continuing operations | 126,039 | 165,652 | |||||
Net cash used in operating activities from discontinued operations | — | (1,220 | ) | ||||
Net cash provided by operating activities | 126,039 | 164,432 | |||||
Cash Flows From Investing Activities | |||||||
Capital expenditures - oil and gas properties | (239,861 | ) | (377,995 | ) | |||
Proceeds from sales of oil and gas properties, net | 14,637 | 285 | |||||
Other, net | (873 | ) | (4,857 | ) | |||
Net cash used in investing activities from continuing operations | (226,097 | ) | (382,567 | ) | |||
Net cash used in investing activities from discontinued operations | — | (937 | ) | ||||
Net cash used in investing activities | (226,097 | ) | (383,504 | ) | |||
Cash Flows From Financing Activities | |||||||
Issuance of senior notes | — | 650,000 | |||||
Tender and redemption of senior notes | — | (626,681 | ) | ||||
Payment of deferred purchase payment | — | (150,000 | ) | ||||
Borrowings under credit agreement | 290,652 | 800,939 | |||||
Repayments of borrowings under credit agreement | (229,652 | ) | (683,939 | ) | |||
Payments of debt issuance costs | (1,150 | ) | (11,443 | ) | |||
Sale of common stock, net of offering costs | — | 231,316 | |||||
Proceeds from stock options exercised | — | 46 | |||||
Other, net | (552 | ) | — | ||||
Net cash provided by financing activities from continuing operations | 59,298 | 210,238 | |||||
Net cash provided by financing activities from discontinued operations | — | — | |||||
Net cash provided by financing activities | 59,298 | 210,238 | |||||
Net Decrease in Cash and Cash Equivalents | (40,760 | ) | (8,834 | ) | |||
Cash and Cash Equivalents, Beginning of Period | 42,918 | 10,838 | |||||
Cash and Cash Equivalents, End of Period | $2,158 | $2,004 |
June 30, 2016 | December 31, 2015 | |||||||
(In thousands) | ||||||||
Proved properties | $4,330,119 | $3,976,511 | ||||||
Accumulated depreciation, depletion and amortization and impairment | (3,187,736 | ) | (2,607,360 | ) | ||||
Proved properties, net | 1,142,383 | 1,369,151 | ||||||
Unproved properties, not being amortized | ||||||||
Unevaluated leasehold and seismic costs | 165,048 | 280,263 | ||||||
Exploratory wells in progress | 1,345 | 9,432 | ||||||
Capitalized interest | 29,216 | 45,757 | ||||||
Total unproved properties, not being amortized | 195,609 | 335,452 | ||||||
Other property and equipment | 23,231 | 22,677 | ||||||
Accumulated depreciation | (11,756 | ) | (10,419 | ) | ||||
Other property and equipment, net | 11,475 | 12,258 | ||||||
Total property and equipment, net | $1,349,467 | $1,716,861 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Loss from continuing operations before income taxes | ($261,934 | ) | ($73,073 | ) | ($573,208 | ) | ($105,987 | ) | ||||||||
Income tax benefit at the statutory rate | 91,677 | 25,575 | 200,623 | 37,095 | ||||||||||||
State income tax (expense) benefit, net of U.S. federal income taxes | 1,665 | (145 | ) | 3,284 | (221 | ) | ||||||||||
Deferred tax assets valuation allowance | (93,522 | ) | — | (204,201 | ) | — | ||||||||||
Texas Franchise Tax rate reduction, net of U.S. federal income taxes | — | 1,671 | — | 1,671 | ||||||||||||
Other | (12 | ) | (998 | ) | (19 | ) | (1,004 | ) | ||||||||
Income tax (expense) benefit from continuing operations | ($192 | ) | $26,103 | ($313 | ) | $37,541 |
June 30, 2016 | December 31, 2015 | |||||||
(In thousands) | ||||||||
Senior Secured Revolving Credit Facility due 2018 | $61,000 | $— | ||||||
7.50% Senior Notes due 2020 | 600,000 | 600,000 | ||||||
Unamortized premium for 7.50% Senior Notes | 1,138 | 1,251 | ||||||
Unamortized debt issuance costs for 7.50% Senior Notes | (8,320 | ) | (9,048 | ) | ||||
6.25% Senior Notes due 2023 | 650,000 | 650,000 | ||||||
Unamortized debt issuance costs for 6.25% Senior Notes | (10,047 | ) | (10,611 | ) | ||||
Other long-term debt due 2028 | 4,425 | 4,425 | ||||||
Long-term debt | $1,298,196 | $1,236,017 |
Ratio of Outstanding Borrowings and Letters of Credit to Lender Commitments | Applicable Margin for Base Rate Loans | Applicable Margin for Eurodollar Loans | Commitment Fee | |||
Less than 25% | 1.00% | 2.00% | 0.500% | |||
Greater than or equal to 25% but less than 50% | 1.25% | 2.25% | 0.500% | |||
Greater than or equal to 50% but less than 75% | 1.50% | 2.50% | 0.500% | |||
Greater than or equal to 75% but less than 90% | 1.75% | 2.75% | 0.500% | |||
Greater than or equal to 90% | 2.00% | 3.00% | 0.500% |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Restricted stock awards and units | $5,998 | $6,014 | $17,592 | $11,229 | ||||||||||||
Stock appreciation rights | 4,988 | (49 | ) | 6,220 | 5,891 | |||||||||||
Performance share awards | 714 | 496 | 1,330 | 765 | ||||||||||||
11,700 | 6,461 | 25,142 | 17,885 | |||||||||||||
Less: amounts capitalized to oil and gas properties | (808 | ) | (1,518 | ) | (2,728 | ) | (3,089 | ) | ||||||||
Total stock-based compensation expense, net | $10,892 | $4,943 | $22,414 | $14,796 | ||||||||||||
Income tax benefit | $3,812 | $1,731 | $7,845 | $5,179 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||
Loss from Continuing Operations | ($262,126 | ) | ($46,970 | ) | ($573,521 | ) | ($68,446 | ) | ||||||||
Basic weighted average common shares outstanding | 58,806 | 51,225 | 58,583 | 48,827 | ||||||||||||
Effect of dilutive instruments | — | — | — | — | ||||||||||||
Diluted weighted average common shares outstanding | 58,806 | 51,225 | 58,583 | 48,827 | ||||||||||||
Loss from Continuing Operations Per Common Share | ||||||||||||||||
Basic | ($4.46 | ) | ($0.92 | ) | ($9.79 | ) | ($1.40 | ) | ||||||||
Diluted | ($4.46 | ) | ($0.92 | ) | ($9.79 | ) | ($1.40 | ) |
Period | Type of Contract | Crude Oil Volumes (in Bbls/d) | Weighted Average Floor Price ($/Bbl) | Weighted Average Ceiling Price ($/Bbl) | |||||||||
July - December 2016 | Fixed Price Swaps | 9,750 | $60.03 | ||||||||||
July - December 2016 | Costless Collars | 4,000 | $50.00 | $76.50 | |||||||||
January - June 2017 | Fixed Price Swaps | 12,000 | $50.13 | ||||||||||
FY 2018 | Sold Call Options | 2,488 | $60.00 | ||||||||||
FY 2018 | Sold Call Options | 900 | $75.00 | ||||||||||
FY 2019 | Sold Call Options | 2,975 | $62.50 | ||||||||||
FY 2019 | Sold Call Options | 900 | $77.50 | ||||||||||
FY 2020 | Sold Call Options | 3,675 | $65.00 | ||||||||||
FY 2020 | Sold Call Options | 900 | $80.00 |
Period | Type of Contract | Natural Gas Volumes (in MMBtu/d) | Weighted Average Ceiling Price ($/MMBtu) | ||||||
FY 2017 | Sold Call Options | 33,000 | $3.00 | ||||||
FY 2018 | Sold Call Options | 33,000 | $3.25 | ||||||
FY 2019 | Sold Call Options | 33,000 | $3.25 | ||||||
FY 2020 | Sold Call Options | 33,000 | $3.50 |
Counterparty | June 30, 2016 | December 31, 2015 | ||||
Wells Fargo | 47 | % | 35 | % | ||
Regions | 31 | % | 9 | % | ||
Union Bank | 20 | % | 5 | % | ||
Capital One | 2 | % | 1 | % | ||
Societe Generale | — | % | 37 | % | ||
Citibank | — | % | 13 | % | ||
Total | 100 | % | 100 | % |
June 30, 2016 | ||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||
(In thousands) | ||||||||||||
Derivative assets | ||||||||||||
Derivative assets-current | $51,826 | ($17,570 | ) | $34,256 | ||||||||
Derivative assets-non current | 2,850 | (2,850 | ) | — | ||||||||
Derivative liabilities | ||||||||||||
Other current liabilities | (17,570 | ) | 17,570 | — | ||||||||
Derivative liabilities-non current | (37,700 | ) | 2,850 | (34,850 | ) | |||||||
Total | ($594 | ) | $— | ($594 | ) |
December 31, 2015 | ||||||||||||
Gross Amounts Recognized | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts Presented in the Consolidated Balance Sheets | ||||||||||
(In thousands) | ||||||||||||
Derivative assets | ||||||||||||
Derivative assets-current | $159,447 | ($28,347 | ) | $131,100 | ||||||||
Derivative assets-non current | 10,780 | (9,665 | ) | 1,115 | ||||||||
Derivative liabilities | ||||||||||||
Other current liabilities | (28,364 | ) | 28,347 | (17 | ) | |||||||
Derivative liabilities-non current | (22,313 | ) | 9,665 | (12,648 | ) | |||||||
Total | $119,550 | $— | $119,550 |
June 30, 2016 | December 31, 2015 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
(In thousands) | ||||||||||||||||
7.50% Senior Notes due 2020 | $592,818 | $607,500 | $592,203 | $528,000 | ||||||||||||
6.25% Senior Notes due 2023 | 639,953 | 632,125 | 639,389 | 533,000 | ||||||||||||
Other long-term debt due 2028 | 4,425 | 4,259 | 4,425 | 4,182 |
June 30, 2016 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Total current assets | $2,532,558 | $55,776 | $— | ($2,489,460 | ) | $98,874 | ||||||||||||||
Total property and equipment, net | 43,592 | 1,305,863 | 3,800 | (3,788 | ) | 1,349,467 | ||||||||||||||
Investment in subsidiaries | (1,265,076 | ) | — | — | 1,265,076 | — | ||||||||||||||
Other assets | 9,146 | 156 | — | — | 9,302 | |||||||||||||||
Total Assets | $1,320,220 | $1,361,795 | $3,800 | ($1,228,172 | ) | $1,457,643 | ||||||||||||||
Liabilities and Shareholders’ Equity (Deficit) | ||||||||||||||||||||
Current liabilities | $85,763 | $2,605,564 | $3,800 | ($2,492,480 | ) | $202,647 | ||||||||||||||
Long-term liabilities | 1,327,914 | 21,307 | — | 16,192 | 1,365,413 | |||||||||||||||
Total shareholders’ deficit | (93,457 | ) | (1,265,076 | ) | — | 1,248,116 | (110,417 | ) | ||||||||||||
Total Liabilities and Shareholders’ Equity (Deficit) | $1,320,220 | $1,361,795 | $3,800 | ($1,228,172 | ) | $1,457,643 |
December 31, 2015 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Total current assets | $2,578,034 | $52,067 | $— | ($2,397,919 | ) | $232,182 | ||||||||||||||
Total property and equipment, net | 44,499 | 1,671,774 | 3,059 | (2,471 | ) | 1,716,861 | ||||||||||||||
Investment in subsidiaries | (815,836 | ) | — | — | 815,836 | — | ||||||||||||||
Other assets | 74,679 | 156 | — | (16,632 | ) | 58,203 | ||||||||||||||
Total Assets | $1,881,376 | $1,723,997 | $3,059 | ($1,601,186 | ) | $2,007,246 | ||||||||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||||||
Current liabilities | $161,792 | $2,521,572 | $3,059 | ($2,400,939 | ) | $285,484 | ||||||||||||||
Long-term liabilities | 1,260,200 | 18,261 | — | (753 | ) | 1,277,708 | ||||||||||||||
Total shareholders’ equity | 459,384 | (815,836 | ) | — | 800,506 | 444,054 | ||||||||||||||
Total Liabilities and Shareholders’ Equity | $1,881,376 | $1,723,997 | $3,059 | ($1,601,186 | ) | $2,007,246 |
Three Months Ended June 30, 2016 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenues | $129 | $107,195 | $— | $— | $107,324 | |||||||||||||||
Total costs and expenses | 92,982 | 276,287 | — | (11 | ) | 369,258 | ||||||||||||||
Loss from continuing operations before income taxes | (92,853 | ) | (169,092 | ) | — | 11 | (261,934 | ) | ||||||||||||
Income tax expense | — | — | — | (192 | ) | (192 | ) | |||||||||||||
Equity in loss of subsidiaries | (169,092 | ) | — | — | 169,092 | — | ||||||||||||||
Loss from continuing operations | (261,945 | ) | (169,092 | ) | — | 168,911 | (262,126 | ) | ||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | |||||||||||||||
Net loss | ($261,945 | ) | ($169,092 | ) | $— | $168,911 | ($262,126 | ) |
Three Months Ended June 30, 2015 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenues | $660 | $122,891 | ($57 | ) | $— | $123,494 | ||||||||||||||
Total costs and expenses | 96,843 | 106,409 | (216 | ) | (6,469 | ) | 196,567 | |||||||||||||
Income (loss) from continuing operations before income taxes | (96,183 | ) | 16,482 | 159 | 6,469 | (73,073 | ) | |||||||||||||
Income tax (expense) benefit | 33,664 | (5,769 | ) | (55 | ) | (1,737 | ) | 26,103 | ||||||||||||
Equity in income of subsidiaries | 10,817 | — | — | (10,817 | ) | — | ||||||||||||||
Income (loss) from continuing operations | (51,702 | ) | 10,713 | 104 | (6,085 | ) | (46,970 | ) | ||||||||||||
Income from discontinued operations, net of income taxes | 838 | — | — | — | 838 | |||||||||||||||
Net income (loss) | ($50,864 | ) | $10,713 | $104 | ($6,085 | ) | ($46,132 | ) |
Six Months Ended June 30, 2016 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenues | $244 | $188,342 | $— | $— | $188,586 | |||||||||||||||
Total costs and expenses | 122,894 | 638,535 | — | 365 | 761,794 | |||||||||||||||
Loss from continuing operations before income taxes | (122,650 | ) | (450,193 | ) | — | (365 | ) | (573,208 | ) | |||||||||||
Income tax expense | — | — | — | (313 | ) | (313 | ) | |||||||||||||
Equity in loss of subsidiaries | (450,193 | ) | — | — | 450,193 | — | ||||||||||||||
Loss from continuing operations | (572,843 | ) | (450,193 | ) | — | 449,515 | (573,521 | ) | ||||||||||||
Income from discontinued operations, net of income taxes | — | — | — | — | — | |||||||||||||||
Net loss | ($572,843 | ) | ($450,193 | ) | $— | $449,515 | ($573,521 | ) |
Six Months Ended June 30, 2015 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Total revenues | $1,250 | $222,294 | $— | $— | $223,544 | |||||||||||||||
Total costs and expenses | 123,511 | 211,321 | — | (5,301 | ) | 329,531 | ||||||||||||||
Income (loss) from continuing operations before income taxes | (122,261 | ) | 10,973 | — | 5,301 | (105,987 | ) | |||||||||||||
Income tax (expense) benefit | 42,792 | (3,841 | ) | — | (1,410 | ) | 37,541 | |||||||||||||
Equity in income of subsidiaries | 7,132 | — | — | (7,132 | ) | — | ||||||||||||||
Income (loss) from continuing operations | (72,337 | ) | 7,132 | — | (3,241 | ) | (68,446 | ) | ||||||||||||
Income from discontinued operations, net of income taxes | 1,104 | — | — | — | 1,104 | |||||||||||||||
Net income (loss) | ($71,233 | ) | $7,132 | $— | ($3,241 | ) | ($67,342 | ) |
Six Months Ended June 30, 2016 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by operating activities from continuing operations | $609 | $125,430 | $— | $— | $126,039 | |||||||||||||||
Net cash used in investing activities from continuing operations | (100,667 | ) | (224,656 | ) | (740 | ) | 99,966 | (226,097 | ) | |||||||||||
Net cash provided by financing activities from continuing operations | 59,298 | 99,226 | 740 | (99,966 | ) | 59,298 | ||||||||||||||
Net cash used in discontinued operations | — | — | — | — | — | |||||||||||||||
Net decrease in cash and cash equivalents | (40,760 | ) | — | — | — | (40,760 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 42,918 | — | — | — | 42,918 | |||||||||||||||
Cash and cash equivalents, end of period | $2,158 | $— | $— | $— | $2,158 |
Six Months Ended June 30, 2015 | ||||||||||||||||||||
Parent Company | Combined Guarantor Subsidiaries | Combined Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities from continuing operations | ($29,397 | ) | $195,049 | $— | $— | $165,652 | ||||||||||||||
Net cash used in investing activities from continuing operations | (337,518 | ) | (342,695 | ) | — | 297,646 | (382,567 | ) | ||||||||||||
Net cash provided by financing activities from continuing operations | 360,238 | 147,646 | — | (297,646 | ) | 210,238 | ||||||||||||||
Net cash used in discontinued operations | (2,157 | ) | — | — | — | (2,157 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (8,834 | ) | — | — | — | (8,834 | ) | |||||||||||||
Cash and cash equivalents, beginning of period | 10,838 | — | — | — | 10,838 | |||||||||||||||
Cash and cash equivalents, end of period | $2,004 | $— | $— | $— | $2,004 |
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
Non-cash investing and financing activities: | ||||||||
Decrease in capital expenditure payables and accruals | ($23,198 | ) | ($48,112 | ) |
Three Months Ended June 30, 2016 | June 30, 2016 | ||||||||||||||||||||||||||
Drilled | Wells Brought on Production | Waiting on Completion | Producing | Rig count | |||||||||||||||||||||||
Region | Gross | Net | Gross | Net | Gross | Net | Gross | Net | |||||||||||||||||||
Eagle Ford | 19 | 18.3 | 19 | 18.0 | 33 | 32.1 | 292 | 257.2 | 2 | ||||||||||||||||||
Niobrara | — | — | — | — | 9 | 5.2 | 123 | 53.8 | — | ||||||||||||||||||
Marcellus | — | — | — | — | 11 | 4.3 | 81 | 26.0 | — | ||||||||||||||||||
Utica | — | — | — | — | — | — | 4 | 3.1 | — | ||||||||||||||||||
Delaware Basin | 1 | 1.0 | 1 | 1.0 | 2 | 1.9 | 4 | 3.7 | — | ||||||||||||||||||
Total | 20 | 19.3 | 20 | 19.0 | 55 | 43.5 | 504 | 343.8 | 2 |
Three Months Ended June 30, | 2016 Period Compared to 2015 Period | ||||||||||||||
2016 | 2015 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||
Total production volumes - | |||||||||||||||
Crude oil (MBbls) | 2,179 | 2,028 | 151 | 7 | % | ||||||||||
NGLs (MBbls) | 475 | 318 | 157 | 49 | % | ||||||||||
Natural gas (MMcf) | 6,757 | 5,646 | 1,111 | 20 | % | ||||||||||
Total barrels of oil equivalent (MBoe) | 3,780 | 3,287 | 493 | 15 | % | ||||||||||
Daily production volumes by product - | |||||||||||||||
Crude oil (Bbls/d) | 23,942 | 22,284 | 1,658 | 7 | % | ||||||||||
NGLs (Bbls/d) | 5,217 | 3,494 | 1,723 | 49 | % | ||||||||||
Natural gas (Mcf/d) | 74,248 | 62,042 | 12,206 | 20 | % | ||||||||||
Total barrels of oil equivalent (Boe/d) | 41,533 | 36,118 | 5,415 | 15 | % | ||||||||||
Daily production volumes by region (Boe/d) - | |||||||||||||||
Eagle Ford | 30,233 | 24,976 | 5,257 | 21 | % | ||||||||||
Niobrara | 2,775 | 3,428 | (653 | ) | (19 | %) | |||||||||
Marcellus | 6,511 | 6,054 | 457 | 8 | % | ||||||||||
Utica | 1,491 | 1,480 | 11 | 1 | % | ||||||||||
Delaware Basin and other | 523 | 180 | 343 | 191 | % | ||||||||||
Total barrels of oil equivalent (Boe/d) | 41,533 | 36,118 | 5,415 | 15 | % | ||||||||||
Average realized prices - | |||||||||||||||
Crude oil ($ per Bbl) | $42.04 | $54.86 | ($12.82 | ) | (23 | %) | |||||||||
NGLs ($ per Bbl) | 12.76 | 11.95 | 0.81 | 7 | % | ||||||||||
Natural gas ($ per Mcf) | 1.43 | 1.49 | (0.06 | ) | (4 | %) | |||||||||
Total average realized price ($ per Boe) | $28.39 | $37.57 | ($9.18 | ) | (24 | %) | |||||||||
Revenues (In thousands) - | |||||||||||||||
Crude oil | $91,608 | $111,257 | ($19,649 | ) | (18 | %) | |||||||||
NGLs | 6,063 | 3,799 | 2,264 | 60 | % | ||||||||||
Natural gas | 9,653 | 8,438 | 1,215 | 14 | % | ||||||||||
Total revenues | $107,324 | $123,494 | ($16,170 | ) | (13 | %) |
Three Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
DD&A of proved oil and gas properties | $50,690 | $78,262 | ||||||
Depreciation of other property and equipment | 665 | 364 | ||||||
Amortization of other assets | 268 | 435 | ||||||
Accretion of asset retirement obligations | 343 | 270 | ||||||
Total DD&A | $51,966 | $79,331 |
Three Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
Interest expense on Senior Notes | $21,455 | $23,737 | ||||||
Interest expense on revolving credit facility | 989 | 960 | ||||||
Amortization of debt issuance costs, premiums, and discounts | 1,134 | 1,225 | ||||||
Other interest expense | 260 | 1 | ||||||
Capitalized interest | (4,828 | ) | (8,924 | ) | ||||
Interest expense, net | $19,010 | $16,999 |
Six Months Ended June 30, | 2016 Period Compared to 2015 Period | ||||||||||||||
2016 | 2015 | Increase (Decrease) | % Increase (Decrease) | ||||||||||||
Total production volumes - | |||||||||||||||
Crude oil (MBbls) | 4,527 | 3,951 | 576 | 15 | % | ||||||||||
NGLs (MBbls) | 889 | 636 | 253 | 40 | % | ||||||||||
Natural gas (MMcf) | 13,130 | 10,880 | 2,250 | 21 | % | ||||||||||
Total barrels of oil equivalent (MBoe) | 7,604 | 6,400 | 1,204 | 19 | % | ||||||||||
Daily production volumes by product - | |||||||||||||||
Crude oil (Bbls/d) | 24,874 | 21,831 | 3,043 | 14 | % | ||||||||||
NGLs (Bbls/d) | 4,882 | 3,512 | 1,370 | 39 | % | ||||||||||
Natural gas (Mcf/d) | 72,141 | 60,111 | 12,030 | 20 | % | ||||||||||
Total barrels of oil equivalent (Boe/d) | 41,779 | 35,361 | 6,418 | 18 | % | ||||||||||
Daily production volumes by region (Boe/d) - | |||||||||||||||
Eagle Ford | 30,602 | 24,741 | 5,861 | 24 | % | ||||||||||
Niobrara | 2,980 | 3,230 | (250 | ) | (8 | %) | |||||||||
Marcellus | 6,269 | 6,014 | 255 | 4 | % | ||||||||||
Utica | 1,357 | 1,105 | 252 | 23 | % | ||||||||||
Delaware Basin and other | 571 | 271 | 300 | 111 | % | ||||||||||
Total barrels of oil equivalent (Boe/d) | 41,779 | 35,361 | 6,418 | 18 | % | ||||||||||
Average realized prices - | |||||||||||||||
Crude oil ($ per Bbl) | $35.26 | $49.18 | ($13.92 | ) | (28 | %) | |||||||||
NGLs ($ per Bbl) | 10.69 | 13.01 | (2.32 | ) | (18 | %) | |||||||||
Natural gas ($ per Mcf) | 1.48 | 1.93 | (0.45 | ) | (23 | %) | |||||||||
Total average realized price ($ per Boe) | $24.80 | $34.93 | ($10.13 | ) | (29 | %) | |||||||||
Revenues (In thousands) - | |||||||||||||||
Crude oil | $159,604 | $194,315 | ($34,711 | ) | (18 | %) | |||||||||
NGLs | 9,503 | 8,272 | 1,231 | 15 | % | ||||||||||
Natural gas | 19,479 | 20,957 | (1,478 | ) | (7 | %) | |||||||||
Total revenues | $188,586 | $223,544 | ($34,958 | ) | (16 | %) |
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
DD&A of proved oil and gas properties | $108,893 | $151,234 | ||||||
Depreciation of other property and equipment | 1,338 | 750 | ||||||
Amortization of other assets | 641 | 691 | ||||||
Accretion of asset retirement obligations | 671 | 527 | ||||||
Total DD&A | $111,543 | $153,202 |
Six Months Ended June 30, | ||||||||
2016 | 2015 | |||||||
(In thousands) | ||||||||
Interest expense on Senior Notes | $42,910 | $47,973 | ||||||
Interest expense on revolving credit facility | 1,666 | 2,165 | ||||||
Amortization of debt issuance costs, premiums, and discounts | 3,110 | 2,622 | ||||||
Other interest expense | 514 | 1,107 | ||||||
Capitalized interest | (10,477 | ) | (18,672 | ) | ||||
Interest expense, net | $37,723 | $35,195 |
Three Months Ended | Six Months Ended | ||||||||||
March 31, 2016 | June 30, 2016 | June 30, 2016 | |||||||||
(In thousands) | |||||||||||
Drilling and completion | |||||||||||
Eagle Ford | $72,417 | $82,451 | $154,868 | ||||||||
Other areas | 12,431 | 20,814 | 33,245 | ||||||||
Total drilling and completion | 84,848 | 103,265 | 188,113 | ||||||||
Leasehold and seismic | 5,911 | 6,427 | 12,338 | ||||||||
Total (1) | $90,759 | $109,692 | $200,451 |
(1) | Our capital expenditure plan and the capital expenditures included above exclude capitalized general and administrative expense, capitalized interest and capitalized asset retirement obligations. |
• | Cash provided by operations. Cash flows from operations are highly dependent on crude oil prices. As such, we hedge a portion of our forecasted production to reduce our exposure to commodity price volatility in order to achieve a more predictable level of cash flows. |
• | Borrowings under our revolving credit facility. As of July 29, 2016, our revolving credit facility had a borrowing base of $600.0 million, with $60.0 million of borrowings outstanding and $0.4 million in letters of credit issued, which reduce the amounts available under our revolving credit facility. The amount we are able to borrow is subject to |
• | Asset sales. In order to fund our capital expenditure plan, we may consider the sale of certain properties or assets that are not part of our core business or are no longer deemed essential to our future growth, provided we are able to sell such assets on terms that are acceptable to us. We continue to explore sales of non-core properties. |
• | Securities offerings. As situations or conditions arise, we may choose to issue debt, equity or other securities to supplement our cash flows. However, we may not be able to obtain such financing on terms that are acceptable to us, or at all. |
• | Joint ventures. Joint ventures with third parties through which such third parties fund a portion of our exploration activities to earn an interest in our exploration acreage or purchase a portion of interests, or both. |
• | Revolving credit facility. As of July 29, 2016, our revolving credit facility had a borrowing base of $600.0 million, with $60.0 million of borrowings outstanding and $0.4 million in letters of credit issued, which reduce the amounts available under our revolving credit facility. The borrowing base under our revolving credit facility is affected by assumptions with respect to, among other things, future crude oil and natural gas prices, which are determined by the administrative agent of our revolving credit facility. Our borrowing base may decrease if our administrative agent reduces its expectations with respect to future crude oil and natural gas prices from those used to determine our existing borrowing base. |
• | Hedging. To manage our exposure to commodity price risk and to provide a level of certainty in the cash flows to support our drilling and completion capital expenditure plan, we hedge a portion of our forecasted production. |
July - December 2016 | 2017 | 2018 | 2019 | 2020 | 2021 and Thereafter | Total | |||||||||||||||||||||
Long-term debt (1) | $— | $— | $61,000 | $— | $600,000 | $654,425 | $1,315,425 | ||||||||||||||||||||
Cash interest on senior notes and other long-term debt (2) | 42,909 | 85,819 | 85,819 | 85,819 | 85,819 | 102,998 | 489,183 | ||||||||||||||||||||
Cash interest and commitment fees on revolving credit facility (3) | 2,133 | 4,193 | 2,121 | — | — | — | 8,447 | ||||||||||||||||||||
Capital leases | 990 | 1,980 | 1,902 | 1,821 | 1,054 | — | 7,747 | ||||||||||||||||||||
Operating leases | 2,123 | 4,185 | 4,248 | 4,357 | 4,450 | 6,304 | 25,667 | ||||||||||||||||||||
Drilling rig contracts (4) | 11,481 | 20,513 | 3,957 | — | — | — | 35,951 | ||||||||||||||||||||
Pipeline volume commitments | 4,367 | 8,487 | 8,511 | 6,978 | 4,348 | 2,512 | 35,203 | ||||||||||||||||||||
Asset retirement obligations and other (5) | 1,458 | 1,692 | 356 | 199 | 339 | 16,067 | 20,111 | ||||||||||||||||||||
Total Contractual Obligations | $65,461 | $126,869 | $167,914 | $99,174 | $696,010 | $782,306 | $1,937,734 |
(1) | Long-term debt consists of the principal amounts of the 7.50% Senior Notes due 2020, the 6.25% Senior Notes due 2023, other long-term debt due 2028, and borrowings outstanding under our revolving credit facility which matures in 2018. |
(2) | Cash interest on senior notes and other long-term debt includes cash payments for interest on the 7.50% Senior Notes due 2020, the 6.25% Senior Notes due 2023 and other long-term debt due 2028. |
(3) | Cash payments for interest on our revolving credit facility were calculated using the weighted average interest rate of the outstanding borrowings under the revolving credit facility as of June 30, 2016 of 2.44%. Commitment fees on our revolving credit facility were calculated based on the unused portion of lender commitments as of June 30, 2016, at the commitment fee rate of 0.500%. |
(4) | Drilling rig contracts represent gross contractual obligations and accordingly, other joint owners in the properties operated by us will generally be billed for their working interest share of such costs. |
(5) | Asset retirement obligations and other are based on estimates and assumptions that affect the reported amounts as of June 30, 2016. Certain of such estimates and assumptions are inherently unpredictable and will differ from actual results. |
12-Month Average Realized Prices | Excess (deficit) of cost center ceiling over net capitalized costs (after-tax) | Increase (decrease) of cost center ceiling over net capitalized costs (after-tax) | ||||||
Full Cost Pool Scenarios | Crude Oil ($/Bbl) | Natural Gas ($/Mcf) | (In millions) | (In millions) | ||||
June 30, 2016 Actual | $39.84 | $1.62 | $— | |||||
Crude Oil and Natural Gas Price Sensitivity | ||||||||
Crude Oil and Natural Gas +10% | $44.14 | $1.85 | $192 | $192 | ||||
Crude Oil and Natural Gas -10% | $35.54 | $1.42 | ($192) | ($192) | ||||
Crude Oil Price Sensitivity | ||||||||
Crude Oil +10% | $44.14 | $1.62 | $173 | $173 | ||||
Crude Oil -10% | $35.54 | $1.62 | ($173) | ($173) | ||||
Natural Gas Price Sensitivity | ||||||||
Natural Gas +10% | $39.84 | $1.85 | $19 | $19 | ||||
Natural Gas -10% | $39.84 | $1.42 | ($19) | ($19) |
• | our growth strategies; |
• | our ability to explore for and develop oil and gas resources successfully and economically; |
• | our estimates and forecasts of the timing, number, profitability and other results of wells we expect to drill and other exploration activities; |
• | our estimates regarding timing and levels of production; |
• | changes in working capital requirements, reserves, and acreage; |
• | commodity hedging activities and the impact on our average realized prices; |
• | anticipated trends in our business; |
• | availability of pipeline connections and water disposal on economic terms; |
• | effects of competition on us; |
• | our future results of operations; |
• | profitability of drilling locations; |
• | our liquidity and our ability to finance our exploration and development activities, including accessibility of borrowings under our revolving credit facility, our borrowing base, and the result of any borrowing base redetermination; |
• | our planned expenditures, prospects and capital expenditure plan; |
• | future market conditions in the oil and gas industry; |
• | our ability to make, integrate and develop acquisitions and realize any expected benefits or effects of completed acquisitions; |
• | the benefits, effects, availability of and results of new and existing joint ventures and sales transactions; |
• | our ability to maintain a sound financial position; |
• | receipt of receivables and proceeds from sales; |
• | our ability to complete planned transactions on desirable terms; and |
• | the impact of governmental regulation, taxes, market changes and world events. |
Exhibit Number | Exhibit Description | |
*31.1 | – | CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
*31.2 | – | CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
*32.1 | – | CEO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
*32.2 | – | CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
*101 | – | Interactive Data Files |
Carrizo Oil & Gas, Inc. (Registrant) | ||||
Date: | August 4, 2016 | By: | /s/ David L. Pitts | |
Vice President and Chief Financial Officer (Principal Financial Officer) | ||||
Date: | August 4, 2016 | By: | /s/ Gregory F. Conaway | |
Vice President and Chief Accounting Officer (Principal Accounting Officer) |
1. | I have reviewed this Quarterly Report on Form 10-Q of Carrizo Oil & Gas, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 4, 2016 | /s/ S.P. Johnson, IV |
S.P. Johnson, IV President and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of Carrizo Oil & Gas, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect the registrant's internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | August 4, 2016 | /s/ David L. Pitts |
David L. Pitts Vice President and Chief Financial Officer |
1. | the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 4, 2016 | /s/ S.P. Johnson, IV |
S.P. Johnson, IV President and Chief Executive Officer |
1. | the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 4, 2016 | /s/ David L. Pitts |
David L. Pitts Vice President and Chief Financial Officer |
Document And Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 29, 2016 |
|
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | CARRIZO OIL & GAS INC | |
Entity Central Index Key | 0001040593 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 58,974,437 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 58,974,437 | 58,332,993 |
Common stock, shares outstanding (in shares) | 58,974,437 | 58,332,993 |
Nature Of Operations |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature Of Operations | 1. Basis of Presentation Nature of Operations Carrizo Oil & Gas, Inc. is a Houston-based energy company which, together with its subsidiaries (collectively, the “Company”), is actively engaged in the exploration, development, and production of oil and gas primarily from resource plays located in the United States. The Company’s current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, the Utica Shale in Ohio, and the Marcellus Shale in Pennsylvania. Consolidated Financial Statements The accompanying unaudited interim consolidated financial statements include the accounts of the Company after elimination of intercompany transactions and balances and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and therefore do not include all disclosures required for financial statements prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). In the opinion of management, these financial statements include all adjustments (consisting of normal recurring accruals and adjustments) necessary to present fairly, in all material respects, the Company’s interim financial position, results of operations and cash flows. However, the results of operations for the periods presented are not necessarily indicative of the results of operations that may be expected for the full year. These financial statements and related notes included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited Consolidated Financial Statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 (“2015 Annual Report”). Certain reclassifications have been made to prior period amounts to conform to the current period presentation. Such reclassifications had no material impact on prior period amounts. |
Summary Of Significant Accounting Policies |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies The Company has provided a discussion of significant accounting policies, estimates, and judgments in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its 2015 Annual Report. There have been no changes to the Company’s significant accounting policies since December 31, 2015, other than the recently adopted accounting pronouncements described below. Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 requires that all deferred tax liabilities and assets, as well as any related valuation allowance, be classified in the balance sheet as noncurrent. Effective January 1, 2016, the Company early adopted ASU 2015-17 which was applied prospectively and therefore the adoption had no impact on the consolidated balance sheet as of December 31, 2015. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 is to simplify the presentation of debt issuance costs in financial statements by presenting such costs in the balance sheet as a direct deduction from the related debt rather than as an asset. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30) (“ASU 2015-15”), which allows debt issuance costs associated with line-of-credit agreements to be deferred and presented as an asset in the balance sheet, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Effective January 1, 2016, the Company adopted ASU 2015-03 and ASU 2015-15 and reclassified $19.7 million of unamortized debt issuance costs related to the Company’s senior notes from long-term assets to long-term debt in the consolidated balance sheet as of December 31, 2015. Debt issuance costs associated with the Company’s revolving credit facility remain classified as a long-term asset in the consolidated balance sheets. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which amends certain aspects of accounting for share-based payment arrangements. ASU 2016-09 revises or provides alternative accounting for the tax impacts of share-based payment arrangements, forfeitures, minimum statutory tax withholdings, and prescribes certain disclosures to be made in the period of adoption. ASU 2016-09 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating ASU 2016-09 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which significantly changes accounting for leases by requiring that lessees recognize a right-of-use asset and a related lease liability representing the obligation to make lease payments, for virtually all lease transactions. Additional disclosures about an entity’s lease transactions will also be required. ASU 2016-02 defines a lease as “a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration.” ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented in the financial statements using a modified retrospective approach. The Company is evaluating ASU 2016-02 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU 2014-09”), which will require entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will supersede most current guidance related to revenue recognition when it becomes effective. The new standard also will require expanded disclosures regarding the nature, timing, amount and certainty of revenue and cash flows from contracts with customers. The FASB originally intended ASU 2014-09 to be effective for interim and annual reporting periods beginning after December 15, 2016, and permits adoption through the use of either the full retrospective approach or a modified retrospective approach. In July 2015, the FASB issued an update which delays by one year the effective date of ASU 2014-09 and allows for early adoption as of the original effective date. The Company does not intend to early-adopt ASU 2014-09 and has not determined which transition method it will use. The Company is evaluating ASU 2014-09 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. |
Property And Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property And Equipment, Net | 3. Property and Equipment, Net As of June 30, 2016 and December 31, 2015, total property and equipment, net consisted of the following:
Capitalized oil and gas property costs within a cost center are amortized on an equivalent unit-of-production method, converting natural gas to barrels of oil equivalent at the ratio of six thousand cubic feet of natural gas to one barrel of crude oil, which represents their approximate relative energy content. Average depreciation, depletion and amortization (“DD&A”) per Boe of proved properties was $13.41 and $23.81 for the three months ended June 30, 2016 and 2015, respectively, and $14.32 and $23.63 for the six months ended June 30, 2016 and 2015, respectively. The Company capitalized internal costs of employee compensation and benefits, including stock-based compensation, directly associated with acquisition, exploration and development activities totaling $1.4 million and $5.1 million for the three months ended June 30, 2016 and 2015, respectively, and $5.8 million and $10.9 million for the six months ended June 30, 2016 and 2015, respectively. Unproved properties, not being amortized, include unevaluated leasehold and seismic costs associated with specific unevaluated properties, the cost of exploratory wells in progress and related capitalized interest. The Company capitalized interest costs associated with its unevaluated leasehold and seismic costs and exploratory well costs totaling $4.9 million and $9.0 million for the three months ended June 30, 2016 and 2015, respectively, and $10.5 million and $18.7 million for the six months ended June 30, 2016 and 2015, respectively. Impairment of Proved Oil and Gas Properties Capitalized costs, less accumulated amortization and related deferred income taxes, are limited to the “cost center ceiling” equal to (i) the sum of (A) the present value of estimated future net revenues from proved oil and gas reserves, less estimated future expenditures to be incurred in developing and producing the proved reserves computed using a discount factor of 10%, (B) the costs of unproved properties not being amortized, and (C) the lower of cost or estimated fair value of unproved properties included in the costs being amortized; less (ii) related income tax effects. If the net capitalized costs exceed the cost center ceiling, the excess, on a pre-tax basis, is recognized as an impairment of proved oil and gas properties. An impairment recognized in one period may not be reversed in a subsequent period even if higher crude oil and natural gas prices in the future increase the cost center ceiling applicable to the subsequent period. The estimated future net revenues used in the cost center ceiling are calculated using the average realized prices for sales of crude oil and natural gas on the first calendar day of each month during the 12-month period prior to the end of the current reporting period (“12-Month Average Realized Price”). Prices are held constant indefinitely and are not changed except where different prices are fixed and determinable from applicable contracts for the remaining term of those contracts. Prices do not include the impact of derivative instruments as the Company elected not to meet the criteria to qualify our derivative instruments for hedge accounting treatment. In the second quarter of 2016, the Company recorded an after-tax impairment in the carrying value of proved oil and gas properties of $128.1 million ($197.1 million pre-tax). The impairment was due primarily to an 8% decrease in the 12-Month Average Realized Price of crude oil from $43.14 per barrel as of March 31, 2016 to $39.84 per barrel as of June 30, 2016. For the six months ended June 30, 2016, the Company recorded after-tax impairments in the carrying value of proved oil and gas properties of $306.5 million ($471.5 million pre-tax) due primarily to a 16% decrease in the 12-Month Average Realized Price of crude oil from $47.24 per barrel as of December 31, 2015 to $39.84 per barrel as of June 30, 2016. There were no impairments of proved oil and gas properties for the three and six months ended June 30, 2015. The Company expects to record an impairment in the carrying value of proved oil and gas properties in the third quarter of 2016. This estimated impairment is primarily due to a forecasted 4% decrease in the 12-Month Average Realized Price of crude oil from $39.84 per barrel as of June 30, 2016 to $38.28 per barrel as of September 30, 2016, which is based on the average realized price for sales of crude oil on the first calendar day of each month for the first 11 months and an estimate for the twelfth month based on a quoted forward price. Further declines in the 12-Month Average Realized Price of crude oil in subsequent quarters may result in additional impairments in the carrying value of proved oil and gas properties. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | 4. Income Taxes The Company’s estimated annual effective income tax rates are used to allocate expected annual income tax expense or benefit to interim periods. The rates are the ratio of estimated annual income tax expense or benefit to estimated annual income or loss before income taxes by taxing jurisdiction, except for discrete items, which are significant, unusual or infrequent items for which income taxes are computed and recorded in the interim period in which the discrete item occurs. The estimated annual effective income tax rates are applied to the year-to-date income or loss before income taxes by taxing jurisdiction to determine the income tax expense or benefit allocated to the interim period. The Company updates its estimated annual effective income tax rates on a quarterly basis considering the geographic mix of income or loss attributable to the tax jurisdictions in which the Company operates. The Company’s income tax (expense) benefit from continuing operations differs from the income tax (expense) benefit computed by applying the U.S. federal statutory corporate income tax rate of 35% to loss from continuing operations before income taxes as follows:
Deferred Tax Assets Valuation Allowance Deferred tax assets are recorded for net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those deferred tax assets would be deductible. The Company assesses the realizability of its deferred tax assets each period by considering whether it is more likely than not that all or a portion of the deferred tax assets will not be realized. The Company considers all available evidence (both positive and negative) when determining whether a valuation allowance is required. In making this assessment, the Company evaluated possible sources of taxable income that may be available to realize the deferred tax assets, including projected future taxable income, the reversal of existing temporary differences, taxable income in carryback years and available tax planning strategies. A significant item of objective negative evidence considered was the cumulative historical three year pre-tax loss and a net deferred tax asset position at June 30, 2016, driven primarily by the impairments of proved oil and gas properties recognized during the second half of 2015 and the first half of 2016, which limits the ability to consider other subjective evidence such as the Company’s potential for future growth. The Company has concluded that it is more likely than not the net deferred tax assets will not be realized and recorded an additional valuation allowance totaling $93.5 million against the net deferred tax assets as of June 30, 2016, reducing the net deferred tax assets to zero. The Company will continue to evaluate whether the valuation allowance is needed in future reporting periods. The valuation allowance will remain until the Company can conclude that the net deferred tax assets are more likely than not to be realized. Future events or new evidence which may lead the Company to conclude that it is more likely than not its net deferred tax assets will be realized include, but are not limited to, cumulative historical pre-tax earnings, improvements in crude oil prices, and taxable events that could result from one or more transactions. The valuation allowance does not preclude the Company from utilizing the tax attributes if the Company recognizes taxable income. As long as the Company concludes that the valuation allowance against net deferred tax assets is necessary, the Company likely will have no deferred income tax expense or benefit. |
Long-Term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | 5. Long-Term Debt Long-term debt consisted of the following as of June 30, 2016 and December 31, 2015:
Senior Secured Revolving Credit Facility The Company has a senior secured revolving credit facility with a syndicate of banks that, as of June 30, 2016, had a borrowing base of $600.0 million, with $61.0 million of borrowings outstanding with a weighted average interest rate of 2.44%. As of June 30, 2016, the Company also had $0.4 million in letters of credit outstanding, which reduce the amounts available under the revolving credit facility. The credit agreement governing the revolving credit facility provides for interest-only payments until July 2, 2018, when the credit agreement matures and any outstanding borrowings are due. The borrowing base under the credit agreement is subject to regular redeterminations in the Spring and Fall of each year, as well as special redeterminations described in the credit agreement, in each case which may reduce the amount of the borrowing base. The amount the Company is able to borrow with respect to the borrowing base is subject to compliance with the financial covenants and other provisions of the credit agreement. Each of the capitalized terms which are not defined in this note shall have the meaning given to such terms in the credit agreement. On May 3, 2016, the Company entered into an amendment to the credit agreement (the “Eighth Amendment”) to, among other things (i) replace the Total Debt to EBITDA ratio covenant with a Total Secured Debt to EBITDA ratio covenant that requires such ratio not to exceed 2.00 to 1.00, (ii) add a covenant requiring a minimum EBITDA to Interest Expense ratio of at least 2.50 to 1.00, (iii) reduce the Borrowing Base under the credit facility from $685.0 million to $600.0 million until the next redetermination thereof, (iv) increase the required mortgage coverage on the total value of the oil and gas properties included in the Company’s most recent reserve report from 80% to 90%, (v) require that the Company’s deposit accounts and securities accounts (subject to certain exclusions) become subject to control agreements, (vi) limit the amount of additional senior notes that can be issued by the Company to $400.0 million, (vii) restrict the Company from making borrowings under the credit facility if the Company has or, after giving effect to the borrowing, will have a Consolidated Cash Balance in excess of $50.0 million, (viii) require mandatory prepayment of borrowings to the extent the Consolidated Cash Balance exceeds $50.0 million if either (a) the Company’s ratio of Total Debt to EBITDA exceeds 3.50 to 1.00 or (b) the availability under the credit facility is equal to or less than 20% of the then effective Borrowing Base, (ix) increase the margin on all loans by 0.50%, and (x) increase the commitment fee from 0.375% to 0.50% when utilization of lender commitments is less than 50%. The obligations of the Company under the credit agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by liens on substantially all of the Company’s assets, including a mortgage lien on oil and gas properties having at least 90% of the proved reserve value of the oil and gas properties included in the determination of the borrowing base. Borrowings outstanding under the credit agreement bear interest at the Company’s option at either (i) a base rate for a base rate loan plus the margin set forth in the table below, where the base rate is defined as the greatest of the prime rate, the federal funds rate plus 0.50% and the adjusted LIBO rate plus 1.00%, or (ii) an adjusted LIBO rate for a Eurodollar loan plus the margin set forth in the table below. The Company also incurs commitment fees as set forth in the table below based on the unused portion of lender commitments, which are included in interest expense, net.
As discussed above, the Company is subject to certain covenants under the terms of the credit agreement, which include the maintenance of the following financial covenants determined as of the last day of each quarter: (1) a ratio of Total Secured Debt to EBITDA of not more than 2.00 to 1.00; (2) a Current Ratio of not less than 1.00 to 1.00; and (3) a ratio of EBITDA to Interest Expense of not less than 2.50 to 1.00. As defined in the credit agreement, Total Secured Debt excludes debt issuance costs, EBITDA includes the last four quarters after giving pro forma effect to EBITDA for material acquisitions and dispositions of oil and gas properties, Interest Expense is comprised of the aggregate interest expense paid in cash for the last four quarters, and the Current Ratio includes an add back of the unused portion of lender commitments. As of June 30, 2016, the ratio of Total Secured Debt to EBITDA was 0.15 to 1.00, the Current Ratio was 3.23 to 1.00 and the ratio of EBITDA to Interest Expense was 4.60 to 1.00. Because the financial covenants are determined as of the last day of each quarter, the ratios can fluctuate significantly period to period as the level of borrowings outstanding under the credit agreement are impacted by the timing of cash flows from operations, capital expenditures, acquisitions and dispositions of oil and gas properties and securities offerings. The credit agreement also places restrictions on the Company and certain of its subsidiaries with respect to additional indebtedness, liens, dividends and other payments to shareholders, repurchases or redemptions of the Company’s common stock, redemptions of senior notes, investments, acquisitions, mergers, asset dispositions, transactions with affiliates, hedging transactions and other matters. Further, the credit agreement restricts the Company from making borrowings under the credit facility if the Company has or, after giving effect to the borrowing, will have a cash balance that exceeds $50.0 million and requires mandatory prepayment of borrowings to the extent the cash balance is in excess of $50.0 million under certain circumstances as described above. The credit agreement is subject to customary events of default, including in connection with a change in control. If an event of default occurs and is continuing, the lenders may elect to accelerate amounts due under the credit agreement (except in the case of a bankruptcy event of default, in which case such amounts will automatically become due and payable). |
Commitments And Contingencies |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | 6. Commitments and Contingencies From time to time, the Company is party to certain legal actions and claims arising in the ordinary course of business. While the outcome of these events cannot be predicted with certainty, management does not currently expect these matters to have a materially adverse effect on the financial position or results of operations of the Company. The results of operations and financial position of the Company continue to be affected from time to time in varying degrees by domestic and foreign political developments as well as legislation and regulations pertaining to restrictions on crude oil and natural gas production, imports and exports, natural gas regulation, tax increases, environmental regulations and cancellation of contract rights. Both the likelihood and overall effect of such occurrences on the Company vary greatly and are not predictable. |
Shareholders' Equity |
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Shareholders' Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity and Share-based Payments | 7. Shareholders’ Equity Stock-Based Compensation Expense, Net The Company recognized the following stock-based compensation expense, net for the periods indicated which is reflected as “General and administrative, net” in the consolidated statements of operations:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | 8. Earnings Per Share Basic loss from continuing operations per common share is based on the weighted average number of shares of common stock outstanding during the period. Diluted loss from continuing operations per common share is based on the weighted average number of common shares and all potentially dilutive common shares outstanding during the period which include restricted stock awards and units, performance share awards, stock options and warrants. The Company includes the number of restricted stock awards and units, stock options and warrants in the calculation of diluted weighted average shares outstanding when the grant date or exercise prices are less than the average market prices of the Company’s common stock for the period. The Company includes the number of performance share awards in the calculation of diluted weighted average common shares outstanding based on the number of shares, if any, that would be issuable as if the end of the period was the end of the performance period. When a loss from continuing operations exists, all potentially dilutive common shares outstanding are anti-dilutive and therefore excluded from the calculation of diluted weighted average shares outstanding. Supplemental loss from continuing operations per common share information is provided below:
For the three and six months ended June 30, 2016 and 2015, the Company reported a loss from continuing operations. As a result, the calculation of diluted weighted average common shares outstanding excluded the anti-dilutive effect of 0.7 million potentially dilutive common shares outstanding for the three months ended June 30, 2016 and 2015 and 0.6 million and 0.7 million potentially dilutive common shares outstanding for the six months ended June 30, 2016 and 2015, respectively. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | 9. Derivative Instruments The Company uses commodity derivative instruments to reduce its exposure to commodity price volatility for a substantial, but varying, portion of its forecasted crude oil and natural gas production and thereby achieve a more predictable level of cash flows to support the Company’s drilling and completion capital expenditure program. The Company does not enter into derivative instruments for speculative or trading purposes. As of June 30, 2016, the Company’s commodity derivative instruments consisted of fixed price swaps, costless collars, and purchased and sold call options, which are described below. Fixed Price Swaps: The Company receives a fixed price and pays a variable market price to the counterparties over specified periods for contracted volumes. Costless Collars: A collar is a combination of options including a purchased put option (fixed floor price) and a sold call option (fixed ceiling price) and allows the Company to benefit from increases in commodity prices up to the fixed ceiling price and protect the Company from decreases in commodity prices below the fixed floor price. At settlement, if the market price is below the fixed floor price or is above the fixed ceiling price, the Company receives the fixed price and pays the market price. If the market price is between the fixed floor price and fixed ceiling price, no payments are due from either party. These contracts were executed contemporaneously with the same counterparties and were premium neutral such that no premiums were paid to or received from the counterparties. Sold Call Options: These contracts give the counterparties the right, but not the obligation, to buy contracted volumes from the Company over specified periods and prices in the future. At settlement, if the market price exceeds the fixed price of the call option, the Company pays the counterparty the excess. If the market price settles below the fixed price of the call option, no payment is due from either party. Purchased Call Options: These contracts give the Company the right, but not the obligation, to buy contracted volumes from the counterparties over specified periods and prices in the future. At settlement, if the market price exceeds the fixed price of the call option, the counterparties pay the Company the excess. If the market price settles below the fixed price of the call option, no payment is due from either party. The Company nets its purchased call options with its sold call options for the years 2018 through 2020 in the open crude oil derivative positions table below. The following sets forth a summary of the Company’s open crude oil derivative positions at average NYMEX prices as of June 30, 2016:
The following sets forth a summary of the Company’s open natural gas derivative positions at average NYMEX prices as of June 30, 2016:
In February 2015, the Company entered into derivative transactions offsetting its then existing crude oil derivative positions covering the periods from March 2015 through December 2016. As a result of the offsetting derivative transactions, the Company locked in $166.4 million of cash flows, of which $9.3 million and $40.0 million were received due to contract settlements during the three months ended June 30, 2016 and 2015, respectively, and $27.6 million and $40.0 million were received due to contract settlements during the six months ended June 30, 2016 and 2015, respectively. These cash flows are included in the “(Gain) loss on derivatives, net” in the consolidated statements of operations. As of June 30, 2016, the fair value of the remaining locked in cash flows is $19.9 million, all of which is a current asset and is classified as “Derivative assets” in the consolidated balance sheets. The derivative assets associated with the offsetting derivative transactions are not subject to price risk and the locked in cash flows will be received as the applicable contracts settle. The offsetting derivative transactions are not included in the table above. In February 2016, the Company sold out-of-the-money natural gas call options for the years 2017 through 2020 and used the associated premium value to obtain a higher weighted average fixed price of $50.27 per Bbl on 6,000 Bbls/d of newly executed crude oil fixed price swaps for the first half of 2017. These out-of-the-money natural gas call options and in-the-money crude oil fixed price swaps were executed contemporaneously with the same counterparty, therefore, no cash premiums were paid to or received from the counterparty as the premium value associated with the natural gas call options was immediately applied to the crude oil fixed price swaps. In March 2016, the Company sold 6,000 Bbls/d of in-the-money crude oil fixed price swaps for the first half of the year 2017 at a weighted average fixed price of $50.00 per Bbl. In order to obtain this higher weighted average fixed price, the Company incurred net premiums of approximately $5.6 million, of which approximately $2.8 million was paid during the second quarter of 2016 with the remaining $2.8 million to be paid during the third quarter of 2016. For the three months ended June 30, 2016 and 2015, the Company recorded in the consolidated statements of operations a loss on derivatives, net of $52.2 million and $12.6 million, respectively. For the six months ended June 30, 2016 and 2015, the Company recorded in the consolidated statements of operations a loss on derivatives, net of $41.7 million and a gain on derivatives, net of $13.8 million, respectively. The Company typically has numerous hedge positions that span several time periods and often result in both fair value asset and liability positions held with that counterparty, which positions are all offset to a single fair value asset or liability at the end of each reporting period, including the deferred premiums associated with its hedge positions. The Company nets its derivative instrument fair values executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The fair value of derivative instruments where the Company is in a net asset position with its counterparties as of June 30, 2016 and December 31, 2015 totaled $15.1 million and $119.6 million, respectively, and is summarized by counterparty in the table below:
The counterparties to the Company’s derivative instruments are also lenders under the Company’s credit agreement which allows the Company to satisfy any need for margin obligations associated with derivative instruments where the Company is in a net liability position with its counterparties with the collateral securing the credit agreement, thus eliminating the need for independent collateral posting. Because each of the counterparties have investment grade credit ratings, the Company believes it does not have significant credit risk and accordingly does not currently require its counterparties to post collateral to support the net asset positions of its derivative instruments. As such, the Company is exposed to credit risk to the extent of nonperformance by the counterparties to its derivative instruments. Although the Company does not currently anticipate such nonperformance, it continues to monitor the credit ratings of its counterparties. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | 10. Fair Value Measurements Accounting guidelines for measuring fair value establish a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy categorizes assets and liabilities measured at fair value into one of three different levels depending on the observability of the inputs employed in the measurement. The three levels are defined as follows: Level 1 – Observable inputs such as quoted prices in active markets at the measurement date for identical, unrestricted assets or liabilities. Level 2 – Other inputs that are observable directly or indirectly such as quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 – Unobservable inputs for which there is little or no market data and which the Company makes its own assumptions about how market participants would price the assets and liabilities. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize the location and amounts of the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the consolidated balance sheets as of June 30, 2016 and December 31, 2015. All items included in the tables below are Level 2 inputs within the fair value hierarchy:
The fair values of the Company’s derivative assets and liabilities are based on a third-party industry-standard pricing model that uses market data obtained from third-party sources, including quoted forward prices for crude oil and natural gas, discount rates and volatility factors. The fair values are also compared to the values provided by the counterparties for reasonableness and are adjusted for the counterparties’ credit quality for derivative assets and the Company’s credit quality for derivative liabilities. The derivative asset and liability fair values reported in the consolidated balance sheets that pertain to the Company’s derivative instruments are as of a particular point in time and subsequently change as these estimates are revised to reflect actual results, changes in market conditions and other factors. However, the fair value of the net derivative asset attributable to the offsetting crude oil derivative transactions are not subject to price risk as changes in the fair value of the original positions are offset by changes in the fair value of the offsetting positions. The Company typically has numerous hedge positions that span several time periods and often result in both derivative assets and liabilities with the same counterparty, which positions are all offset to a single derivative asset or liability in the consolidated balance sheets, including the deferred premiums associated with its hedge positions. The Company nets the fair values of its derivative assets and liabilities associated with derivative instruments executed with the same counterparty pursuant to ISDA master agreements, which provide for net settlement over the term of the contract and in the event of default or termination of the contract. The Company had no transfers into Level 1 and no transfers into or out of Level 2 for the six months ended June 30, 2016 and 2015. Fair Value of Other Financial Instruments The Company’s other financial instruments consist of cash and cash equivalents, receivables, payables and long-term debt, which are classified as Level 1 under the fair value hierarchy. The carrying amounts of cash and cash equivalents, receivables, and payables approximate fair value due to the highly liquid or short-term nature of these instruments. The carrying amount of long-term debt under the Company’s revolving credit facility approximates fair value as borrowings bear interest at variable rates. The following table presents the carrying amounts of the Company’s senior notes and other long-term debt, net of debt premiums and debt issuance costs, with the fair values of each based on quoted market prices.
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Condensed Consolidating Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | 11. Condensed Consolidating Financial Information The rules of the SEC require that condensed consolidating financial information be provided for a subsidiary that has guaranteed the debt of a registrant issued in a public offering, where the guarantee is full, unconditional and joint and several and where the voting interest of the subsidiary is 100% owned by the registrant. The Company is, therefore, presenting condensed consolidating financial information on a parent company, combined guarantor subsidiaries, combined non-guarantor subsidiaries and consolidated basis and should be read in conjunction with the consolidated financial statements. The financial information may not necessarily be indicative of results of operations, cash flows, or financial position had such guarantor subsidiaries operated as independent entities. CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (In thousands) (Unaudited)
CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (In thousands) (Unaudited)
CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (In thousands) (Unaudited)
CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
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Supplemental Cash Flow Information |
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Cash Flow, Supplemental Disclosures [Text Block] | 12. Supplemental Cash Flow Information Supplemental disclosures to the consolidated statements of cash flows are presented below:
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Summary Of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |
New Accounting Pronouncements | Recently Adopted Accounting Pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-17, Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”). ASU 2015-17 requires that all deferred tax liabilities and assets, as well as any related valuation allowance, be classified in the balance sheet as noncurrent. Effective January 1, 2016, the Company early adopted ASU 2015-17 which was applied prospectively and therefore the adoption had no impact on the consolidated balance sheet as of December 31, 2015. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 is to simplify the presentation of debt issuance costs in financial statements by presenting such costs in the balance sheet as a direct deduction from the related debt rather than as an asset. In August 2015, the FASB issued ASU 2015-15, Interest-Imputation of Interest (Subtopic 835-30) (“ASU 2015-15”), which allows debt issuance costs associated with line-of-credit agreements to be deferred and presented as an asset in the balance sheet, subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings. Effective January 1, 2016, the Company adopted ASU 2015-03 and ASU 2015-15 and reclassified $19.7 million of unamortized debt issuance costs related to the Company’s senior notes from long-term assets to long-term debt in the consolidated balance sheet as of December 31, 2015. Debt issuance costs associated with the Company’s revolving credit facility remain classified as a long-term asset in the consolidated balance sheets. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which amends certain aspects of accounting for share-based payment arrangements. ASU 2016-09 revises or provides alternative accounting for the tax impacts of share-based payment arrangements, forfeitures, minimum statutory tax withholdings, and prescribes certain disclosures to be made in the period of adoption. ASU 2016-09 is effective for interim and annual periods beginning after December 15, 2016, with early adoption permitted. The Company is evaluating ASU 2016-09 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which significantly changes accounting for leases by requiring that lessees recognize a right-of-use asset and a related lease liability representing the obligation to make lease payments, for virtually all lease transactions. Additional disclosures about an entity’s lease transactions will also be required. ASU 2016-02 defines a lease as “a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment (an identified asset) for a period of time in exchange for consideration.” ASU 2016-02 is effective for interim and annual periods beginning after December 15, 2018 with early adoption permitted. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented in the financial statements using a modified retrospective approach. The Company is evaluating ASU 2016-02 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) (“ASU 2014-09”), which will require entities to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will supersede most current guidance related to revenue recognition when it becomes effective. The new standard also will require expanded disclosures regarding the nature, timing, amount and certainty of revenue and cash flows from contracts with customers. The FASB originally intended ASU 2014-09 to be effective for interim and annual reporting periods beginning after December 15, 2016, and permits adoption through the use of either the full retrospective approach or a modified retrospective approach. In July 2015, the FASB issued an update which delays by one year the effective date of ASU 2014-09 and allows for early adoption as of the original effective date. The Company does not intend to early-adopt ASU 2014-09 and has not determined which transition method it will use. The Company is evaluating ASU 2014-09 to determine what impact the new standard will have on its consolidated financial statements and related disclosures. |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Property And Equipment | As of June 30, 2016 and December 31, 2015, total property and equipment, net consisted of the following:
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Effective Income Tax Rate Reconciliation | The Company’s income tax (expense) benefit from continuing operations differs from the income tax (expense) benefit computed by applying the U.S. federal statutory corporate income tax rate of 35% to loss from continuing operations before income taxes as follows:
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Long-Term Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consisted of the following as of June 30, 2016 and December 31, 2015:
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Interest and Commitment Fee Rates | The Company also incurs commitment fees as set forth in the table below based on the unused portion of lender commitments, which are included in interest expense, net.
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Shareholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-Based Compensation Expense [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The Company recognized the following stock-based compensation expense, net for the periods indicated which is reflected as “General and administrative, net” in the consolidated statements of operations:
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Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Supplemental Net Income Per Common Share | Supplemental loss from continuing operations per common share information is provided below:
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Derivative Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following sets forth a summary of the Company’s open crude oil derivative positions at average NYMEX prices as of June 30, 2016:
The following sets forth a summary of the Company’s open natural gas derivative positions at average NYMEX prices as of June 30, 2016:
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Schedule of Concentration of Risk |
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Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Offsetting Assets | The following tables summarize the location and amounts of the Company’s assets and liabilities measured at fair value on a recurring basis as presented in the consolidated balance sheets as of June 30, 2016 and December 31, 2015. All items included in the tables below are Level 2 inputs within the fair value hierarchy:
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Schedule of Carrying Value and Estimated Fair Value of Debt Instruments | The following table presents the carrying amounts of the Company’s senior notes and other long-term debt, net of debt premiums and debt issuance costs, with the fair values of each based on quoted market prices.
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Condensed Consolidating Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Condensed Consolidating Balance Sheets | CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (In thousands) (Unaudited)
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Schedule Of Condensed Consolidating Statements Of Operations | CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (In thousands) (Unaudited)
CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (In thousands) (Unaudited)
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Schedule Of Condensed Consolidating Statements Of Cash Flows | CARRIZO OIL & GAS, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
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Supplemental Cash Flow Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental disclosures to the consolidated statements of cash flows are presented below:
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Property And Equipment, Net (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Property, Plant and Equipment [Abstract] | ||
Proved properties | $ 4,330,119 | $ 3,976,511 |
Accumulated depreciation, depletion and amortization and impairment of proved oil and gas properties | (3,187,736) | (2,607,360) |
Proved properties, net | 1,142,383 | 1,369,151 |
Unproved properties, not being amortized | ||
Unevaluated leasehold and seismic costs | 165,048 | 280,263 |
Exploratory wells in progress | 1,345 | 9,432 |
Capitalized interest | 29,216 | 45,757 |
Total unproved properties, not being amortized | 195,609 | 335,452 |
Other property and equipment | 23,231 | 22,677 |
Accumulated depreciation | (11,756) | (10,419) |
Other property and equipment, net | 11,475 | 12,258 |
Total property and equipment, net | $ 1,349,467 | $ 1,716,861 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Income Taxes [Line Items] | ||||
U.S. federal statutory corporate pretax rate | 35.00% | |||
Deferred Tax Assets, Valuation Allowance | $ 93,522 | $ 0 | $ 204,201 | $ 0 |
Deferred Tax Assets, Net | $ 0 | $ 0 |
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Income Tax Disclosure [Abstract] | ||||
Loss from continuing operations before income taxes | $ (261,934) | $ (73,073) | $ (573,208) | $ (105,987) |
Income tax benefit at the statutory rate | 91,677 | 25,575 | 200,623 | 37,095 |
State income tax (expense) benefit, net of U.S. federal income taxes | 1,665 | (145) | 3,284 | (221) |
Deferred tax asset valuation allowance | (93,522) | 0 | (204,201) | 0 |
Texas Franchise Tax rate reduction, net of U.S. federal income taxes | 0 | 1,671 | 0 | 1,671 |
Other | (12) | (998) | (19) | (1,004) |
Income tax (expense) benefit from continuing operations | $ (192) | $ 26,103 | $ (313) | $ 37,541 |
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
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Debt Instrument [Line Items] | ||
Long-term debt | $ 1,298,196 | $ 1,236,017 |
Senior Secured Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility amount outstanding | 61,000 | 0 |
7.50% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 600,000 | 600,000 |
Debt instrument, unamortized premium | 1,138 | 1,251 |
Unamortized Debt Issuance Expense | (8,320) | (9,048) |
6.25% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 650,000 | 650,000 |
Unamortized Debt Issuance Expense | (10,047) | (10,611) |
Other Long Term Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 4,425 | $ 4,425 |
Earnings Per Share (Narrative) (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Earnings Per Share [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 663,256 | 661,959 | 642,664 | 736,703 |
Earnings Per Share (Schedule of Supplemental Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Earnings Per Share [Abstract] | ||||
Net income (loss) from continuing operations | $ (262,126) | $ (46,970) | $ (573,521) | $ (68,446) |
Basic weighted average common shares outstanding | 58,806 | 51,225 | 58,583 | 48,827 |
Effect of dilutive instruments | 0 | 0 | 0 | 0 |
Diluted weighted average common shares outstanding | 58,806 | 51,225 | 58,583 | 48,827 |
Income (Loss) from Continuing Operations Per Common Share | ||||
Income (loss) from continuing operations - basic (in dollars per share) | $ (4.46) | $ (0.92) | $ (9.79) | $ (1.40) |
Income (loss) from continuing operations - diluted (in dollars per share) | $ (4.46) | $ (0.92) | $ (9.79) | $ (1.40) |
Derivative Instruments (Schedule of Concentration Risk Percentage) (Details) - Derivative Credit Risk [Member] |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
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Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 100.00% | 100.00% |
Wells Fargo [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 47.00% | 35.00% |
Regions [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 31.00% | 9.00% |
Union Bank [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 20.00% | 5.00% |
Capital One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 2.00% | 1.00% |
Societe Generale [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 37.00% |
Citibank [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 0.00% | 13.00% |
Derivative Instruments (Schedule Of Natural Gas Derivative Positions) (Details) - Call Option [Member] - Natural Gas Derivative Positions [Member] |
Jun. 30, 2016
MMBTU / d
$ / MMBTU
|
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Derivative Positions, Year Two Thousand Seventeen [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MMBTU / d | 33,000 |
Weighted Average Ceiling Price ($/MMBtu) | $ / MMBTU | 3.00 |
Derivative Positions, Year Two Thousand Eighteen [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MMBTU / d | 33,000 |
Weighted Average Ceiling Price ($/MMBtu) | $ / MMBTU | 3.25 |
Derivative Positions, Year Two Thousand Nineteen [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MMBTU / d | 33,000 |
Weighted Average Ceiling Price ($/MMBtu) | $ / MMBTU | 3.25 |
Derivative Positions, Year Two Thousand Twenty [Member] | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MMBTU / d | 33,000 |
Weighted Average Ceiling Price ($/MMBtu) | $ / MMBTU | 3.50 |
Condensed Consolidating Financial Information (Narrative) (Details) |
Jun. 30, 2016 |
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Condensed Consolidating Financial Information [Abstract] | |
Voting interest of the subsidiary owned by the registrant | 100.00% |
Supplemental Cash Flow Information (Schedule of Cash Flow Supplemental Disclosures) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
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Supplemental Cash Flow Elements [Abstract] | ||
Change In Accrued Capital Expenditures And Capital Expenditure Payables | $ (23,198) | $ (48,112) |
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