Carrizo Oil & Gas, Inc. Announces Third Quarter Financial Results - CNNMoney.com (press release)

Production volumes during the third quarter of 2009 were 8.21 Bcfe, 37 percent higher compared to 5.98 Bcfe during the third quarter of 2008. The increase was largely due to new production contributions from Barnett Shale development. Adjusted revenues from the sale of oil and natural gas production, which includes oil and gas revenues of $27.3 million and realized hedge settlements of $18.7 million, for the third quarter of 2009 were $46.0 million, as compared to $56.9 million during the third quarter of 2008. The decrease in adjusted revenues was primarily driven by significantly lower realized oil and natural gas prices, partially offset by increased production. Carrizo’s average oil sales price decreased 42 percent to $66.25 per barrel compared to $114.16 per barrel for the third quarter of 2008 and the average natural gas sales price decreased 40 percent to $5.43 per Mcf compared to $9.05 per Mcf for the third quarter of 2008. The above prices include the impact of cash-settled hedges. Results excluding the impact from cash-settled hedges are presented in the table below.

For the third quarter of 2009, the Company reported adjusted net income of $11.7 million, or $0.38 and $0.37 per basic and diluted share, respectively, excluding a net $16.5 million non-cash, after-tax expense, comprised of (a) a marked-to-market unrealized loss of $13.2 million on derivatives (which is due in large part to the roll off of the third quarter hedges and to rising futures prices), (b) stock compensation expense of $1.8 million, (c) non-cash interest expense of $0.9 million associated with the amortization of a portion of the equity premium on the Company’s convertible notes and (d) a non-cash contribution expense of $0.6 million to the University of Texas at Arlington ("UTA"). The Company reported a net loss of $4.8 million, or $0.15 per basic and diluted share, for the third quarter of 2009, as compared to a net income of $65.7 million, or $2.15 and $2.12 per basic and diluted share, respectively for the same quarter during 2008.

EBITDA (earnings before interest, income tax, depreciation, amortization expenses, and certain other items) during the third quarter of 2009 was $33.1 million, or $1.07 and $1.05 per basic and diluted share, respectively, as compared to $42.2 million, or $1.38 and $1.36 per basic and diluted share, respectively, during the third quarter of 2008.

Lease operating expenses (excluding production taxes and transportation costs) were $5.3 million (or $0.64 per Mcfe) during the third quarter of 2009 as compared to $6.2 million (or $1.04 per Mcfe) for the third quarter of 2008. The decrease in costs was largely attributable to decreases in saltwater disposal and repairs and maintenance expenses. The decline in cost per Mcfe was driven primarily by the 37% increase in production volumes from 6.0 Bcfe to 8.2 Bcfe.

Full Story: Carrizo Oil & Gas, Inc. Announces Third Quarter Financial Results - CNNMoney.com (press release)