3. Acquisitions and Divestitures of Oil and Gas Properties

Acquisitions

ExL Acquisition. On August 10, 2017, the Company closed on the acquisition of oil and gas properties located in the Delaware Basin in Reeves and Ward Counties, Texas (the “ExL Properties”) from ExL Petroleum Management, LLC and ExL Petroleum Operating Inc. (together “ExL”) for aggregate cash consideration of $679.8 million (the “ExL Acquisition”). See “Note 10. Derivative Instruments” for information regarding the contingent consideration arrangement associated with the ExL Acquisition.

The consolidated statements of income for the three and six months ended June 30, 2018 include total revenues and net income attributable to common shareholders from the ExL Acquisition, representing activity of the acquired properties as shown in the table below:



	Three Months Ended		Six Months Ended
	June 30, 2018
	(In thousands)
Total revenues		$52,771		$96,239

Net income attributable to common shareholders		$42,048		$76,851

Divestitures

Eagle Ford. On January 31, 2018, the Company sold a portion of its assets in the Eagle Ford Shale to EP Energy E&P Company, L.P. The Company received aggregate net proceeds of $245.7 million, which represents an agreed upon price of $245.0 million plus purchase price adjustments, which were primarily related to the net cash flows from the effective date to the closing date.

Niobrara. On January 19, 2018, the Company sold substantially all of its assets in the Niobrara Formation. Estimated aggregate net proceeds are $134.7 million, subject to post-closing adjustments. See “Note 10. Derivative Instruments” for information regarding the contingent consideration arrangement associated with this divestiture.

The aggregate net proceeds for each of the divestitures above were recognized as a reduction of proved oil and gas properties.

Marcellus. Effective August 2008, the Company’s wholly-owned subsidiary, Carrizo (Marcellus) LLC, entered into a joint venture with ACP II Marcellus LLC (“ACP II”), an affiliate of Avista Capital Partners, LP, a private equity fund (Avista Capital Partners, LP, together with its affiliates, “Avista”). As of June 30, 2018, the Avista Marcellus joint venture holds no material assets or obligations, has no interest in any wells or leases, and intends to divest all remaining immaterial assets. There have been no revenues, expenses, or operating cash flows in the Avista Marcellus joint venture during the years ended December 31, 2015, 2016 and 2017 or during the six months ended June 30, 2018. Concurrently with the sale of the remaining immaterial assets, the Avista Marcellus joint venture and associated joint venture agreements will terminate.

Steven A. Webster, Chairman of the Company’s Board of Directors, serves as Co-Managing Partner and President of Avista Capital Holdings, LP. ACP II’s Board of Managers has the sole authority for determining whether, when and to what extent any cash distributions will be declared and paid to members of ACP II. Mr. Webster is not a member of ACP II’s Board of Managers. The terms of the Avista Marcellus joint venture were approved by a special committee of the Company’s independent directors.