Posted by OilVoice Press - OilVoice
HOUSTON --(BUSINESS WIRE)-- Carrizo Oil & Gas, Inc. (Nasdaq: CRZO) has announced the Company's financial results for the fourth quarter and full-year 2017 and provided an operational update, which includes the following highlights:
Carrizo reported fourth quarter of 2017 net loss attributable to common shareholders of $23.4 million , or $0.29 per basic and diluted share, compared to a net loss attributable to common shareholders of $0.8 million , or $0.01 per basic and diluted share in the fourth quarter of 2016. The net loss attributable to common shareholders for the fourth quarter of 2017 and the fourth quarter of 2016 include certain items typically excluded from published estimates by the investment community. Adjusted net income attributable to common shareholders, which excludes the impact of these items as described in the non-GAAP reconciliation tables included below, for the fourth quarter of 2017 was $47.9 million , or $0.58 per diluted share, compared to $28.4 million , or $0.44 per diluted share, in the fourth quarter of 2016.
For the fourth quarter of 2017, Adjusted EBITDA was $184.1 million , an increase of 56% from the prior-year quarter primarily due to higher production volumes and commodity prices. This represents the highest level of quarterly Adjusted EBITDA that the Company has reported. Adjusted EBITDA and the reconciliation to net income (loss) attributable to common shareholders are presented in the non-GAAP reconciliation tables included below.
Production volumes during the fourth quarter of 2017 were 5,742 MBoe, or 62,417 Boe/d, an increase of 39% versus the fourth quarter of 2016. The year-over-year production growth was driven by drilling activity in the Eagle Ford Shale and Delaware Basin plus the addition of production from the Sanchez property acquisition in late 2016 and the ExL property acquisition during the third quarter, partially offset by the divestiture of the Company's Appalachian operations during the quarter. Crude oil production during the fourth quarter of 2017 averaged 40,206 Bbls/d, an increase of 40% versus the fourth quarter of 2016; natural gas and NGL production were 78,182 Mcf/d and 9,181 Bbls/d, respectively, during the fourth quarter of 2017. Fourth quarter of 2017 production exceeded the high end of the Company's guidance range of 60,933-62,200 Boe/d.
Drilling, completion, and infrastructure capital expenditures for the fourth quarter of 2017 were $210.4 million . Approximately 49% of the fourth quarter drilling, completion, and infrastructure spending was in the Delaware Basin , while approximately 48% was in the Eagle Ford Shale . Land and seismic expenditures during the quarter were $4.5 million , and were primarily focused in the Delaware Basin .
2017 Proved Reserves
The Company's proved reserves as of December 31, 2017 were 261.7 MMBoe, a 31% increase over year-end 2016, including 167.4 MMBbls of crude oil, a 30% increase over year-end 2016. This represents the highest level of crude oil reserves Carrizo has reported. The Company's PV-10 value was $2.6 billion as of December 31, 2017 .
The table below summarizes the Company's year-end 2017 proved reserves and PV-10 by region as determined by the Company's independent reservoir engineers, Ryder Scott Company, L.P. , in accordance with Securities and Exchange Commission guidelines, using pricing for the twelve months ended December 31, 2017 based on the West Texas Intermediate benchmark crude oil price of $51.34 /Bbl and the Henry Hub benchmark natural gas price of $2.98 /MMBtu, before adjustment for differentials.
|Crude Oil||NGLs||Natural Gas||Total||PV-10|
The table below summarizes the changes in the Company's proved reserves during 2017.
|Crude Oil||NGLs||Natural Gas||Total|
|Proved reserves - December 31, 2016||128.4||23.9||287.5||200.2|
|Revisions of previous estimates||(19.9||)||(0.9||)||27.7||(16.1||)|
|Extensions and discoveries||50.5||13.8||99.0||80.7|
|Purchases of reserves in place||21.6||8.6||95.0||46.0|
|Divestitures of reserves in place||(0.6||)||(0.5||)||(170.2||)||(29.5||)|
|Proved reserves - December 31, 2017||167.4||42.6||310.5||261.7|
|Proved developed - December 31, 2017||69.6||17.5||131.4||109.0|
The following table summarizes the Company's costs incurred in oil and gas property acquisition, exploration, and development activities for the year ended December 31, 2017 .
|Property acquisition costs|
|Total property acquisition costs||828.3|
|Total costs incurred (1)||$||1,489.4|
(1) Total costs incurred includes capitalized general and administrative expense and asset retirement obligations and excludes capitalized interest.
2017 highlights include:
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