Company Quick10K Filing
Carrizo Oil & Gas
Price8.91 EPS7
Shares93 P/E1
MCap827 P/FCF2
Net Debt1,753 EBIT456
TEV2,580 TEV/EBIT6
TTM 2019-09-30, in MM, except price, ratios
10-Q 2019-09-30 Filed 2019-11-05
10-Q 2019-06-30 Filed 2019-08-08
10-Q 2019-03-31 Filed 2019-05-09
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-07
10-Q 2018-06-30 Filed 2018-08-07
10-Q 2018-03-31 Filed 2018-05-09
10-K 2017-12-31 Filed 2018-02-28
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-10
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-02-27
10-Q 2016-09-30 Filed 2016-11-03
10-Q 2016-06-30 Filed 2016-08-05
10-Q 2016-03-31 Filed 2016-05-05
10-K 2015-12-31 Filed 2016-02-22
10-Q 2015-09-30 Filed 2015-11-04
10-Q 2015-06-30 Filed 2015-08-06
10-Q 2015-03-31 Filed 2015-05-07
10-K 2014-12-31 Filed 2015-02-25
10-Q 2014-09-30 Filed 2014-11-06
10-Q 2014-06-30 Filed 2014-08-05
10-Q 2014-03-31 Filed 2014-05-07
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-04
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-02-28
10-Q 2012-09-30 Filed 2012-11-08
10-Q 2012-06-30 Filed 2012-08-08
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-08
10-Q 2011-06-30 Filed 2011-08-09
10-Q 2011-03-31 Filed 2011-05-10
10-K 2010-12-31 Filed 2011-03-31
10-Q 2010-09-30 Filed 2010-11-09
10-Q 2010-06-30 Filed 2010-08-09
10-Q 2010-03-31 Filed 2010-05-07
10-K 2009-12-31 Filed 2010-03-16
8-K 2019-12-20 Leave Agreement, M&A, Shareholder Rights, Control, Officers, Other Events, Exhibits
8-K 2019-12-20 Shareholder Vote, Regulation FD, Exhibits
8-K 2019-11-14 Regulation FD, Other Events, Exhibits
8-K 2019-11-13 Enter Agreement, Regulation FD, Exhibits
8-K 2019-11-05 Other Events
8-K 2019-11-04 Earnings, Exhibits
8-K 2019-08-07 Earnings, Exhibits
8-K 2019-07-14 Enter Agreement, Earnings, Regulation FD, Exhibits
8-K 2019-05-16 Officers, Shareholder Vote, Exhibits
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-03-27 Enter Agreement, Exhibits
8-K 2019-02-25 Earnings, Exhibits
8-K 2019-02-13 Officers
8-K 2018-11-05 Earnings, Exhibits
8-K 2018-10-29 Enter Agreement, Other Events, Exhibits
8-K 2018-10-17 Regulation FD, Other Events, Exhibits
8-K 2018-08-14 Enter Agreement, Exhibits
8-K 2018-08-13 Regulation FD, Other Events, Exhibits
8-K 2018-08-06 Earnings, Exhibits
8-K 2018-05-22 Enter Agreement, Amend Bylaw, Shareholder Vote, Exhibits
8-K 2018-05-07 Earnings, Exhibits
8-K 2018-04-05 Other Events, Exhibits
8-K 2018-03-23 Officers, Exhibits
8-K 2018-02-26 Earnings, Exhibits
8-K 2018-01-31 Regulation FD, Other Events, Exhibits
8-K 2018-01-31 M&A, Other Events, Exhibits
8-K 2018-01-19 Regulation FD, Other Events, Exhibits

CRZO 10Q Quarterly Report

Part I. Financial Information
Item 1. Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 ex3113q19.htm
EX-31.2 ex3123q19.htm
EX-32.1 ex3213q19.htm
EX-32.2 ex3223q19.htm

Carrizo Oil & Gas Earnings 2019-09-30

Balance SheetIncome StatementCash Flow
3.72.92.11.30.5-0.32012201420172020
Assets, Equity
0.30.20.20.10.10.02018201820192020
Rev, G Profit, Net Income
0.70.40.1-0.2-0.5-0.82012201420172020
Ops, Inv, Fin

Document
P10Y000false--12-31Q32019000104059300.011800000001800000009162773892610669916277389261066900P3YP15YP3YP1YP1YP1Y0.010.01P3YP3YP3YP7Y1000000010000000200000200000200000200000 0001040593 2019-01-01 2019-09-30 0001040593 2019-10-31 0001040593 2019-09-30 0001040593 2018-12-31 0001040593 crzo:CarrizoMember 2019-09-30 0001040593 us-gaap:NaturalGasProductionMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2018-01-01 2018-09-30 0001040593 2019-07-01 2019-09-30 0001040593 2018-07-01 2018-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-09-30 0001040593 2018-01-01 2018-09-30 0001040593 us-gaap:NaturalGasProductionMember 2018-07-01 2018-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2018-07-01 2018-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2019-07-01 2019-09-30 0001040593 us-gaap:OilAndCondensateMember 2019-01-01 2019-09-30 0001040593 us-gaap:NaturalGasProductionMember 2018-01-01 2018-09-30 0001040593 us-gaap:OilAndCondensateMember 2018-07-01 2018-09-30 0001040593 us-gaap:OilAndCondensateMember 2018-01-01 2018-09-30 0001040593 us-gaap:NaturalGasProductionMember 2019-01-01 2019-09-30 0001040593 us-gaap:OilAndCondensateMember 2019-07-01 2019-09-30 0001040593 us-gaap:CommonStockMember 2019-06-30 0001040593 2018-06-30 0001040593 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0001040593 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0001040593 us-gaap:RetainedEarningsMember 2018-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001040593 us-gaap:CommonStockMember 2018-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0001040593 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001040593 2019-06-30 0001040593 2018-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001040593 us-gaap:RetainedEarningsMember 2018-06-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0001040593 us-gaap:CommonStockMember 2018-06-30 0001040593 us-gaap:RetainedEarningsMember 2019-06-30 0001040593 us-gaap:CommonStockMember 2019-09-30 0001040593 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0001040593 us-gaap:RetainedEarningsMember 2019-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001040593 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001040593 us-gaap:CommonStockMember 2017-12-31 0001040593 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001040593 us-gaap:RetainedEarningsMember 2017-12-31 0001040593 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001040593 us-gaap:CommonStockMember 2018-12-31 0001040593 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001040593 2017-12-31 0001040593 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001040593 us-gaap:RetainedEarningsMember 2018-12-31 0001040593 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001040593 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001040593 crzo:CallonMember us-gaap:SubsequentEventMember 2019-10-01 2019-12-31 0001040593 crzo:CarrizoMember 2017-08-10 0001040593 crzo:CarrizoMember us-gaap:ScenarioForecastMember 2019-10-01 2019-12-31 0001040593 crzo:CarrizoMember 2017-07-01 2017-09-30 0001040593 crzo:CallonMember us-gaap:ScenarioForecastMember 2019-10-01 2019-12-31 0001040593 crzo:CallonMember us-gaap:SubsequentEventMember 2019-12-31 0001040593 2019-01-01 0001040593 crzo:DevonAcquisitionMember 2018-10-17 0001040593 crzo:NiobraraDivestitureMember 2017-11-20 0001040593 crzo:NiobraraDivestitureMember 2017-10-01 2017-12-31 0001040593 crzo:NiobraraDivestitureMember 2018-01-01 2018-03-31 0001040593 crzo:EagleFordShaleDivestitureMember 2018-07-01 2018-09-30 0001040593 crzo:DevonAcquisitionMember 2018-07-01 2018-09-30 0001040593 crzo:EagleFordShaleDivestitureMember crzo:CashReceivedPostClosingMember 2018-02-01 2018-02-28 0001040593 crzo:DevonAcquisitionMember 2018-08-01 2019-03-31 0001040593 crzo:EagleFordShaleDivestitureMember 2017-12-01 2018-07-31 0001040593 crzo:NiobraraDivestitureMember 2018-07-01 2018-09-30 0001040593 crzo:NiobraraDivestitureMember 2017-10-01 2018-09-30 0001040593 crzo:EagleFordShaleDivestitureMember crzo:DepositReceivedPriorToClosingMember 2017-10-01 2017-12-31 0001040593 crzo:EagleFordShaleDivestitureMember 2017-12-11 0001040593 crzo:EagleFordShaleDivestitureMember crzo:CashReceivedAtClosingMember 2018-01-01 2018-01-31 0001040593 crzo:DevonAcquisitionMember 2019-01-01 2019-03-31 0001040593 crzo:DevonAcquisitionMember 2018-10-01 2018-12-31 0001040593 crzo:DevonAcquisitionMember 2019-01-01 2019-09-30 0001040593 crzo:DevonAcquisitionMember 2019-07-01 2019-09-30 0001040593 crzo:DrillingRigsMember 2019-01-01 2019-09-30 0001040593 crzo:DrillingRigsMember 2019-07-01 2019-09-30 0001040593 crzo:InvestingActivitiesMember 2019-01-01 2019-09-30 0001040593 crzo:OperatingActivitiesMember 2019-01-01 2019-09-30 0001040593 srt:MaximumMember us-gaap:SupportEquipmentAndFacilitiesMember 2019-09-30 0001040593 srt:MinimumMember us-gaap:SupportEquipmentAndFacilitiesMember 2019-09-30 0001040593 srt:MinimumMember crzo:DrillingRigsMember 2019-09-30 0001040593 srt:MaximumMember crzo:DrillingRigsMember 2019-09-30 0001040593 srt:MaximumMember srt:OfficeBuildingMember 2019-09-30 0001040593 srt:MinimumMember srt:OfficeBuildingMember 2019-09-30 0001040593 2019-01-01 2019-03-31 0001040593 2019-04-01 2019-06-30 0001040593 crzo:SixPointTwoFivePercentSeniorNotesMember 2019-09-30 0001040593 crzo:SixPointTwoFivePercentSeniorNotesMember 2018-12-31 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember 2018-12-31 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember 2019-09-30 0001040593 crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-09-30 0001040593 crzo:SeniorSecuredRevolvingCreditFacilityMember 2018-12-31 0001040593 crzo:Greaterthanorequalto90percentMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:Lessthan25percentMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:Greaterthanorequalto75percentbutlessthan90percentMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:Greaterthanorequalto50percentbutlessthan75percentMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:Greaterthanorequalto25percentbutlessthan50percentMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 2018-01-01 2018-03-31 0001040593 crzo:ConvertibleSeniorNotesMember 2018-07-01 2018-09-30 0001040593 crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:ConvertibleSeniorNotesMember 2018-09-30 0001040593 crzo:SevenPointFivePercentSeniorNotesMember 2018-03-31 0001040593 srt:MinimumMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-09-30 0001040593 srt:MaximumMember crzo:SeniorSecuredRevolvingCreditFacilityMember 2019-01-01 2019-09-30 0001040593 crzo:SevenPointFivePercentSeniorNotesMember 2019-09-30 0001040593 2017-08-10 0001040593 2018-01-24 0001040593 2017-07-01 2017-09-30 0001040593 crzo:PreferredStockDividendPaidinCommonStockThirdYearMember 2019-09-30 0001040593 us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001040593 us-gaap:PerformanceSharesMember 2018-01-01 2018-09-30 0001040593 srt:MinimumMember us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2019-01-01 2019-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2019-01-01 2019-09-30 0001040593 us-gaap:PerformanceSharesMember 2019-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2018-07-01 2018-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2019-09-30 0001040593 srt:MaximumMember us-gaap:PerformanceSharesMember 2019-01-01 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2018-09-30 0001040593 us-gaap:PerformanceSharesMember 2018-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2018-01-01 2018-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember us-gaap:OtherCurrentLiabilitiesMember 2018-01-01 2018-12-31 0001040593 crzo:A2017IncentivePlanMember 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember us-gaap:OtherCurrentLiabilitiesMember 2019-01-01 2019-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2018-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2019-07-01 2019-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2018-01-01 2018-09-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2018-12-31 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2017-12-31 0001040593 us-gaap:PerformanceSharesMember 2018-12-31 0001040593 us-gaap:PerformanceSharesMember 2017-12-31 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2019-06-30 0001040593 crzo:RestrictedStockAwardsAndUnitsMember 2018-06-30 0001040593 us-gaap:StockAppreciationRightsSARSMember 2018-07-01 2018-09-30 0001040593 us-gaap:PerformanceSharesMember 2018-07-01 2018-09-30 0001040593 us-gaap:StockAppreciationRightsSARSMember 2019-07-01 2019-09-30 0001040593 us-gaap:StockAppreciationRightsSARSMember 2018-01-01 2018-09-30 0001040593 us-gaap:PerformanceSharesMember 2019-07-01 2019-09-30 0001040593 us-gaap:StockAppreciationRightsSARSMember 2019-01-01 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2018-12-31 0001040593 us-gaap:CrudeOilMember 2019-01-01 2019-09-30 0001040593 crzo:ExLAcquisitionMember 2019-01-01 2019-09-30 0001040593 crzo:NiobraraDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 srt:NaturalGasReservesMember 2019-01-01 2019-09-30 0001040593 crzo:CashSettledStockAppreciationRightsPlanMember 2017-12-31 0001040593 srt:MaximumMember us-gaap:StockAppreciationRightsSARSMember 2019-01-01 2019-09-30 0001040593 srt:MaximumMember crzo:RestrictedStockAwardsAndUnitsMember 2019-01-01 2019-09-30 0001040593 crzo:RestrictedStockAndPerformanceSharesMember 2019-01-01 2019-09-30 0001040593 crzo:RestrictedStockAndPerformanceSharesMember 2018-01-01 2018-09-30 0001040593 crzo:RestrictedStockAndPerformanceSharesMember 2018-07-01 2018-09-30 0001040593 us-gaap:WarrantMember 2018-01-01 2018-09-30 0001040593 us-gaap:WarrantMember 2019-01-01 2019-09-30 0001040593 us-gaap:WarrantMember 2018-07-01 2018-09-30 0001040593 crzo:RestrictedStockAndPerformanceSharesMember 2019-07-01 2019-09-30 0001040593 us-gaap:WarrantMember 2019-07-01 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2018-09-30 0001040593 crzo:TwoThousandNineteenMember crzo:MarcellusShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandTwentyMember crzo:MarcellusShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandEighteenMember crzo:MarcellusShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember us-gaap:SwapMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member us-gaap:SwapMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember crzo:ThreewayCollarsMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member crzo:ThreewayCollarsMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member us-gaap:CallOptionMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember us-gaap:CallOptionMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositionsTwoThousandTwentyOneMember crzo:WTIMidlandWTICushingPriceDifferentialMember us-gaap:BasisSwapMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member crzo:WTIMidlandWTICushingPriceDifferentialMember us-gaap:BasisSwapMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositionsTwoThousandTwentyOneMember us-gaap:CallOptionMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember crzo:WTIMidlandWTICushingPriceDifferentialMember us-gaap:BasisSwapMember us-gaap:CrudeOilMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember 2018-09-30 0001040593 crzo:UticaShaleDivestitureMember 2019-09-30 0001040593 crzo:TwoThousandTwentyMember crzo:UticaShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandEighteenMember crzo:UticaShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandNineteenMember crzo:UticaShaleDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:ExLAcquisitionMember 2019-09-30 0001040593 crzo:TwoThousandNineteentoTwoThousandTwentyOneMember crzo:ExLAcquisitionMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandEighteenMember crzo:ExLAcquisitionMember 2019-01-01 2019-09-30 0001040593 us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0001040593 us-gaap:OtherCurrentLiabilitiesMember 2018-12-31 0001040593 crzo:NiobraraDivestitureMember us-gaap:OtherCurrentAssetsMember 2018-12-31 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001040593 us-gaap:OtherCurrentAssetsMember 2018-12-31 0001040593 crzo:NiobraraDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001040593 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001040593 crzo:UticaShaleDivestitureMember us-gaap:OtherCurrentAssetsMember 2018-12-31 0001040593 crzo:ExLAcquisitionMember us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0001040593 crzo:UticaShaleDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0001040593 crzo:ExLAcquisitionMember us-gaap:OtherCurrentLiabilitiesMember 2018-12-31 0001040593 srt:NaturalGasLiquidsReservesMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasReservesMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasReservesMember 2018-07-01 2018-09-30 0001040593 crzo:UticaShaleDivestitureMember 2019-07-01 2019-09-30 0001040593 us-gaap:CrudeOilMember 2018-01-01 2018-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2018-01-01 2018-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2018-07-01 2018-09-30 0001040593 crzo:ExLAcquisitionMember 2018-07-01 2018-09-30 0001040593 crzo:ExLAcquisitionMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasReservesMember 2018-01-01 2018-09-30 0001040593 crzo:NiobraraDivestitureMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2019-01-01 2019-09-30 0001040593 us-gaap:CrudeOilMember 2018-07-01 2018-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2018-01-01 2018-09-30 0001040593 crzo:UticaShaleDivestitureMember 2018-01-01 2018-09-30 0001040593 us-gaap:CrudeOilMember 2019-07-01 2019-09-30 0001040593 srt:NaturalGasLiquidsReservesMember 2018-07-01 2018-09-30 0001040593 crzo:ExLAcquisitionMember 2018-01-01 2018-09-30 0001040593 crzo:NiobraraDivestitureMember 2018-01-01 2018-09-30 0001040593 crzo:UticaShaleDivestitureMember 2018-07-01 2018-09-30 0001040593 crzo:MarcellusShaleDivestitureMember 2019-07-01 2019-09-30 0001040593 crzo:TwoThousandTwentyMember crzo:NiobraraDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandEighteenMember crzo:NiobraraDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:TwoThousandNineteenMember crzo:NiobraraDivestitureMember 2019-01-01 2019-09-30 0001040593 crzo:NiobraraDivestitureMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember 2018-09-30 0001040593 us-gaap:OtherNoncurrentLiabilitiesMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2019-09-30 0001040593 us-gaap:OtherCurrentLiabilitiesMember 2019-09-30 0001040593 us-gaap:OtherNoncurrentAssetsMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:OtherCurrentAssetsMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:OtherNoncurrentAssetsMember 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:OtherCurrentAssetsMember 2019-09-30 0001040593 crzo:ExLAcquisitionMember us-gaap:OtherNoncurrentLiabilitiesMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember us-gaap:OtherCurrentAssetsMember 2019-09-30 0001040593 us-gaap:OtherCurrentAssetsMember 2019-09-30 0001040593 crzo:ExLAcquisitionMember us-gaap:OtherCurrentLiabilitiesMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member us-gaap:CallOptionMember srt:NaturalGasReservesMember 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember us-gaap:BasisSwapMember srt:NaturalGasReservesMember 2019-09-30 0001040593 crzo:DerivativePositionsYearTwoThousandTwentyMember us-gaap:CallOptionMember srt:NaturalGasReservesMember 2019-09-30 0001040593 crzo:DerivativePositions4Q2019Member us-gaap:BasisSwapMember srt:NaturalGasReservesMember 2019-09-30 0001040593 crzo:DeferredPremiumsOnDerivativeInstrumentsMember 2018-07-01 2018-09-30 0001040593 crzo:DeferredPremiumsOnDerivativeInstrumentsMember 2018-01-01 2018-09-30 0001040593 crzo:DeferredPremiumsOnDerivativeInstrumentsMember 2019-07-01 2019-09-30 0001040593 crzo:DeferredPremiumsOnDerivativeInstrumentsMember 2019-01-01 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-12-31 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:MarcellusShaleDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:NiobraraDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:UticaShaleDivestitureMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:ExLAcquisitionMember us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2019-09-30 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001040593 crzo:A6.25SeniorNotesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-09-30 0001040593 crzo:A6.25SeniorNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-09-30 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001040593 crzo:A6.25SeniorNotesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001040593 crzo:EightPointTwoFivePercentSeniorNotesMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-12-31 0001040593 crzo:A6.25SeniorNotesMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-12-31 0001040593 crzo:DerivativePositionsJanuarytoMarchTwoThousandTwentyMember us-gaap:BasisSwapMember srt:NaturalGasReservesMember us-gaap:SubsequentEventMember 2019-10-30 0001040593 crzo:DerivativePositionsApriltoJuneTwoThousandTwentyMember us-gaap:BasisSwapMember srt:NaturalGasReservesMember us-gaap:SubsequentEventMember 2019-10-30 xbrli:pure utreg:Rate iso4217:USD iso4217:USD crzo:Boe iso4217:USD xbrli:shares xbrli:shares utreg:bbl utreg:D iso4217:USD crzo:bbls utreg:MMBTU utreg:D iso4217:USD utreg:MMBTU


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________________________________________
FORM 10-Q
____________________________________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2019
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to             
Commission File Number: 000-29187-87
carrizologojpgfullcolora02.jpg
CARRIZO OIL & GAS, INC.
(Exact name of registrant as specified in its charter)
____________________________________________________________________________
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)
(713) 328-1000
(Registrant’s telephone number)
____________________________________________________________________________
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act (Check one): 
Large Accelerated Filer
 
 
Accelerated Filer
 
 
Non-accelerated Filer
 
 
 
 
 
 
Smaller reporting company
 
 
Emerging growth company
 
 
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Securities registered pursuant to Section 12(b) of the Act:
Common Stock, $0.01 par value
CRZO
NASDAQ Global Select Market
(Title of class)
(Trading Symbol)
(Name of exchange on which registered)
The number of shares outstanding of the registrant’s common stock, par value $0.01 per share, as of October 31, 2019 was 92,610,357.






TABLE OF CONTENTS
 
PAGE
Part I. Financial Information
 
Item 1.
 
 
 
 
 
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



Part I. Financial Information
Item 1. Consolidated Financial Statements (Unaudited)
CARRIZO OIL & GAS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
 
 
September 30,
2019
 
December 31,
2018
Assets
 
 
 
 
Current assets
 
 
 
 
Cash and cash equivalents
 

$2,280

 

$2,282

Accounts receivable, net
 
98,161

 
99,723

Derivative assets
 
31,125

 
39,904

Other current assets
 
7,298

 
8,460

Total current assets
 
138,864

 
150,369

Property and equipment
 
 
 
 
Oil and gas properties, full cost method
 
 
 
 
Proved properties, net
 
2,648,601

 
2,333,470

Unproved properties, not being amortized
 
649,347

 
673,833

Other property and equipment, net
 
11,022

 
11,221

Total property and equipment, net
 
3,308,970

 
3,018,524

Deferred income taxes
 
172,632

 

Operating lease right-of-use assets
 
55,873

 

Other long-term assets
 
13,885

 
16,207

Total Assets
 

$3,690,224

 

$3,185,100

 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
Current liabilities
 
 
 
 
Accounts payable
 

$79,744

 

$98,811

Revenues and royalties payable
 
59,140

 
49,003

Accrued capital expenditures
 
33,757

 
60,004

Accrued interest
 
23,640

 
18,377

Derivative liabilities
 
56,233

 
55,205

Operating lease liabilities
 
30,301

 

Other current liabilities
 
48,912

 
40,609

Total current liabilities
 
331,727

 
322,009

Long-term debt
 
1,755,378

 
1,633,591

Asset retirement obligations
 
22,876

 
18,360

Operating lease liabilities
 
31,723

 

Deferred income taxes
 
8,845

 
8,017

Other long-term liabilities
 
13,946

 
47,797

Total liabilities
 
2,164,495

 
2,029,774

Commitments and contingencies
 
 
 
 
Preferred stock
 
 
 
 
Preferred stock, $0.01 par value, 10,000,000 shares authorized; 200,000 issued and outstanding as of September 30, 2019 and December 31, 2018
 
176,925

 
174,422

Shareholders’ equity
 
 
 
 
Common stock, $0.01 par value, 180,000,000 shares authorized; 92,610,669 issued and outstanding as of September 30, 2019 and 91,627,738 issued and outstanding as of December 31, 2018
 
926

 
916

Additional paid-in capital
 
2,132,276

 
2,131,535

Accumulated deficit
 
(784,398
)
 
(1,151,547
)
Total shareholders’ equity
 
1,348,804

 
980,904

Total Liabilities and Shareholders’ Equity
 

$3,690,224

 

$3,185,100

The accompanying notes are an integral part of these consolidated financial statements.

-2-


CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
 Three Months Ended September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Revenues
 
 
 
 
 
 
 
Crude oil

$236,153

 

$254,525

 

$684,109

 

$679,242

Natural gas liquids
12,824

 
33,798

 
43,820

 
71,969

Natural gas
8,017

 
15,052

 
27,072

 
41,417

Total revenues
256,994

 
303,375

 
755,001

 
792,628

 
 
 
 
 
 
 
 
Costs and Expenses
 
 
 
 
 
 
 
Lease operating
45,213

 
41,022

 
131,758

 
115,446

Production and ad valorem taxes
14,549

 
17,104

 
47,236

 
45,779

Depreciation, depletion and amortization
82,195

 
80,108

 
238,283

 
217,005

General and administrative, net
13,467

 
12,811

 
55,500

 
58,368

(Gain) loss on derivatives, net
(31,554
)
 
55,388

 
31,281

 
152,698

Interest expense, net
17,721

 
15,406

 
52,196

 
46,522

Loss on extinguishment of debt

 

 

 
8,676

Other (income) expense, net
1,125

 
(690
)
 
2,717

 
2,305

Total costs and expenses
142,716

 
221,149

 
558,971

 
646,799

 
 
 
 
 
 
 
 
Income Before Income Taxes
114,278

 
82,226

 
196,030

 
145,829

Income tax (expense) benefit
(5,977
)
 
(880
)
 
171,119

 
(1,682
)
Net Income

$108,301

 

$81,346

 

$367,149

 

$144,147

Dividends on preferred stock
(4,474
)
 
(4,457
)
 
(13,286
)
 
(13,794
)
Accretion on preferred stock
(869
)
 
(771
)
 
(2,503
)
 
(2,264
)
Loss on redemption of preferred stock

 

 

 
(7,133
)
Net Income Attributable to Common Shareholders

$102,958

 

$76,118

 

$351,360

 

$120,956

 
 
 
 
 
 
 
 
Net Income Attributable to Common Shareholders Per Common Share
 
 
 
 
 
 
 
Basic

$1.11

 

$0.88

 

$3.81

 

$1.45

Diluted

$1.11

 

$0.85

 

$3.79

 

$1.42

 
 
 
 
 
 
 
 
Weighted Average Common Shares Outstanding
 
 
 
 
 
 
 
Basic
92,561

 
86,727

 
92,269

 
83,461

Diluted
92,762

 
89,039

 
92,625

 
85,221

The accompanying notes are an integral part of these consolidated financial statements.

-3-


CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In thousands, except share amounts)
(Unaudited)
 
 
Three Months Ended September 30, 2019 and 2018
 
 
Common Stock
 
Additional
Paid-in
Capital
 

Accumulated Deficit
 
Total
Shareholders’
Equity
 
 
Shares
 
Amount
 
 
 
Balance as of June 30, 2019
 
92,552,930

 

$926

 

$2,132,131

 

($892,699
)
 

$1,240,358

Stock-based compensation expense
 

 

 
5,488

 

 
5,488

Issuance of common stock upon grants of restricted stock awards and vestings of restricted stock units and performance shares
 
57,739

 

 

 

 

Dividends on preferred stock
 

 

 
(4,474
)
 

 
(4,474
)
Accretion on preferred stock
 

 

 
(869
)
 

 
(869
)
Net income
 

 

 

 
108,301

 
108,301

Balance as of September 30, 2019
 
92,610,669

 

$926

 

$2,132,276

 

($784,398
)
 

$1,348,804

 
 
 
 
 
 
 
 
 
 
 
Balance as of June 30, 2018
 
82,107,544

 

$821

 

$1,918,820

 

($1,493,173
)
 

$426,468

Stock-based compensation expense
 

 

 
4,944

 

 
4,944

Issuance of common stock upon grants of restricted stock awards and vestings of restricted stock units and performance shares
 
12,189

 

 
(45
)
 

 
(45
)
Sale of common stock, net of offering costs
 
9,500,000

 
95

 
213,762

 

 
213,857

Dividends on preferred stock
 

 

 
(4,457
)
 

 
(4,457
)
Accretion on preferred stock
 

 

 
(771
)
 

 
(771
)
Net income
 

 

 

 
81,346

 
81,346

Balance as of September 30, 2018
 
91,619,733

 

$916

 

$2,132,253

 

($1,411,827
)
 

$721,342

 
 
Nine Months Ended September 30, 2019 and 2018
 
 
Common Stock
 
Additional
Paid-in
Capital
 

Accumulated Deficit
 
Total
Shareholders’
Equity
 
 
Shares
 
Amount
 
 
 
Balance as of December 31, 2018
 
91,627,738

 

$916

 

$2,131,535

 

($1,151,547
)
 

$980,904

Stock-based compensation expense
 

 

 
16,540

 

 
16,540

Issuance of common stock upon grants of restricted stock awards and vestings of restricted stock units and performance shares
 
982,931

 
10

 
(10
)
 

 

Dividends on preferred stock
 

 

 
(13,286
)
 

 
(13,286
)
Accretion on preferred stock
 

 

 
(2,503
)
 

 
(2,503
)
Net income
 

 

 

 
367,149

 
367,149

Balance as of September 30, 2019
 
92,610,669

 

$926

 

$2,132,276

 

($784,398
)
 

$1,348,804

 
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2017
 
81,454,621

 

$815

 

$1,926,056

 

($1,555,974
)
 

$370,897

Stock-based compensation expense
 

 

 
15,701

 

 
15,701

Issuance of common stock upon grants of restricted stock awards and vestings of restricted stock units and performance shares
 
665,112

 
6

 
(75
)
 

 
(69
)
Sale of common stock, net of offering costs
 
9,500,000

 
95

 
213,762

 

 
213,857

Dividends on preferred stock
 

 

 
(13,794
)
 

 
(13,794
)
Accretion on preferred stock
 

 

 
(2,264
)
 

 
(2,264
)
Loss on redemption of preferred stock
 

 

 
(7,133
)
 

 
(7,133
)
Net income
 

 

 

 
144,147

 
144,147

Balance as of September 30, 2018
 
91,619,733

 

$916

 

$2,132,253

 

($1,411,827
)
 

$721,342

The accompanying notes are an integral part of these consolidated financial statements.

-4-


CARRIZO OIL & GAS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
Nine Months Ended
September 30,
 
2019
 
2018
Cash Flows From Operating Activities
 
 
 
Net income

$367,149

 

$144,147

Adjustments to reconcile net income to net cash provided by operating activities
 
 
 
Depreciation, depletion and amortization
238,283

 
217,005

Loss on derivatives, net
31,281

 
152,698

Cash paid for commodity derivative settlements, net
(8,939
)
 
(64,710
)
Loss on extinguishment of debt

 
8,676

Stock-based compensation expense, net
11,692

 
13,786

Deferred income tax (benefit) expense
(171,803
)
 
1,063

Non-cash interest expense, net
1,950

 
1,878

Other, net
3,505

 
4,100

Changes in components of working capital and other assets and liabilities-
 
 
 
Accounts receivable
(7,432
)
 
(12,763
)
Accounts payable
(752
)
 
10,863

Accrued liabilities
16,310

 
(9,336
)
Other assets and liabilities, net
(3,197
)
 
(2,115
)
Net cash provided by operating activities
478,047

 
465,292

Cash Flows From Investing Activities
 
 
 
Capital expenditures
(557,304
)
 
(662,459
)
Acquisitions of oil and gas properties
8,222

 
(21,500
)
Proceeds from divestitures of oil and gas properties
6,351

 
377,693

Other, net
(284
)
 
(2,687
)
Net cash used in investing activities
(543,015
)
 
(308,953
)
Cash Flows From Financing Activities
 
 
 
Redemptions of senior notes

 
(330,435
)
Redemption of preferred stock

 
(50,030
)
Borrowings under credit agreement
1,280,780

 
2,415,208

Repayments of borrowings under credit agreement
(1,160,399
)
 
(2,396,671
)
Payments of credit facility amendment fees
(613
)
 
(627
)
Sale of common stock, net of offering costs

 
213,857

Payments of dividends on preferred stock
(13,286
)
 
(13,794
)
Cash paid for settlements of contingent consideration arrangements, net
(40,000
)
 

Other, net
(1,516
)
 
(972
)
Net cash provided by (used in) financing activities
64,966

 
(163,464
)
Net Decrease in Cash and Cash Equivalents
(2
)
 
(7,125
)
Cash and Cash Equivalents, Beginning of Period
2,282

 
9,540

Cash and Cash Equivalents, End of Period

$2,280

 

$2,415

The accompanying notes are an integral part of these consolidated financial statements.

-5-


CARRIZO OIL & GAS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Operations
Carrizo Oil & Gas, Inc. is a Houston-based energy company which, together with its subsidiaries (collectively, the “Company” or “Carrizo”), is actively engaged in the exploration, development, and production of crude oil, NGLs, and natural gas from resource plays located in the United States. The Company’s current operations are principally focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.
Proposed Merger of the Company with Callon
On July 14, 2019, the Company entered into an Agreement and Plan of Merger (as amended, the “Merger Agreement”) with Callon Petroleum Company, a Delaware corporation (“Callon”). Pursuant to the Merger Agreement, the Company will be merged with and into Callon, with Callon continuing as the surviving entity (the “Merger”). The Merger was structured as a direct merger with the closing expected to occur in the fourth quarter of 2019.
On and subject to the terms and conditions set forth in the Merger Agreement, upon closing of the Merger, each share of Carrizo’s common stock, par value $0.01 per share, issued and outstanding immediately prior to the effective time of the Merger will automatically be converted into the right to receive 2.05 shares of Callon’s common stock, par value $0.01 per share (the “Exchange Ratio”). Callon’s common stock is listed and traded on the New York Stock Exchange (the “NYSE”) under the ticker symbol CPE. Pursuant to the Merger Agreement, three members of the Company’s board of directors will become directors of Callon immediately after the effective time of the Merger.
Pursuant to the terms of the Merger Agreement, each issued and outstanding share of the Company’s 8.875% redeemable preferred stock, par value $0.01 per share (the “Preferred Stock”), will either be converted into the right to receive one share of 8.875% redeemable preferred stock, par value $0.01 per share, of Callon, which will have substantially the same terms as the Preferred Stock or will be redeemed for an amount in cash specified in the Merger Agreement (the “Preferred Redemption”). Callon is obligated to deposit the amount required to effect the Preferred Redemption (the “Preferred Deposit”) no later than the open of business on the date of the closing of the Merger, though the Company is permitted to fund such amount if Callon fails to do so.
In connection with the proposed Merger, restricted stock awards and units and performance shares that are outstanding immediately prior to closing will generally become vested and converted into shares of Callon common stock based on the Exchange Ratio. Stock appreciation rights that will be settled in cash (“Cash SARs”) that are outstanding immediately prior to the closing will be canceled and converted into a vested stock appreciation right covering shares of Callon common stock, with the calculation of such conversion described in the Merger Agreement.
The completion of the Merger is subject to certain customary closing conditions, including (i) the receipt of the required approvals from the common shareholders of the Company and Callon (for which special shareholder meetings are scheduled for November 14, 2019) (ii) either (a) the approval by the holders of Preferred Stock or (b) the Preferred Deposit having been deposited and the Preferred Redemption having occurred, (iii) the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”), which was terminated effective August 6, 2019, and (iv) the receipt by each party of a customary opinion that the Merger will qualify as a “reorganization” within the meaning of Section 368(a) of the Internal Revenue Code of 1986. The obligation of each party to complete the Merger is also conditioned upon the other party’s representations and warranties being true and correct, subject to certain materiality exceptions, and the other party having performed in all material respects its obligations under the Merger Agreement.
The Merger Agreement contains termination rights for each of the Company and Callon, including, among other things, (i) by either the Company or Callon if the other party’s board of directors changes its recommendation with respect to the transactions contemplated by the Merger Agreement or if the other party willfully breaches the covenant not to solicit alternative business combination proposals from third parties, (ii) by the Company, if its board of directors changes its recommendation with respect to the transactions contemplated by the Merger Agreement and substantially concurrently the Company enters into an acquisition agreement providing for a Company Superior Proposal, as defined in the Merger Agreement, (iii) by the Company or Callon, if the approvals of either their common shareholders shall not have been obtained, (iv) by the Company or Callon, if in certain circumstances, the other party breaches or fails to perform any of its representations, warranties or covenants in the Merger Agreement, and (v) by the Company or Callon, if the Merger shall not have been consummated by February 14, 2020, with a possible extension to April 14, 2020 in certain circumstances. Upon termination of the Merger Agreement under differing specified circumstances, (i) the Company would be required to pay Callon a termination fee of $47.4 million or to reimburse Callon up to $7.5 million in expenses or (ii) Callon would be required to pay the Company a termination fee of $57.0 million or to reimburse the Company up to $7.5 million in expenses.


-6-


On October 4, 2019, Callon filed an amendment to the registration statement on Form S-4 originally filed on August 20, 2019, which includes a joint proxy statement of the Company and Callon. The registration statement was declared effective by the Securities and Exchange Commission (the “SEC”) on October 9, 2019. The Company and Callon commenced mailing the definitive joint proxy statement to each company’s respective shareholders on or about October 11, 2019.
The capitalized terms that are not defined in this description of the proposed Merger shall have the meaning given to such terms in the Merger Agreement. Additional information on the proposed Merger is included in the Form S-4/A filed by Callon with the SEC on October 4, 2019, our Quarterly Report on Form 10-Q for the quarter ended June 30, 2019, the definitive proxy statement filed by the Company with the SEC on October 9, 2019, and this Quarterly Report on Form 10-Q, including “Part II. Other Information—Item 1A. Risk Factors.”
2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
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 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. 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.
Significant Accounting Policies
The Company’s significant accounting policies are described in “Note 2. Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Annual Report”) and are supplemented by the notes included in this Quarterly Report on Form 10-Q. The financial statements and related notes included in this report should be read in conjunction with the Company’s 2018 Annual Report.
Recently Adopted Accounting Standards
Leases. Effective January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842) (“ASC 842”), using the modified retrospective approach and did not have a cumulative-effect adjustment in retained earnings as a result of the adoption. ASC 842 significantly changes accounting for leases by requiring that lessees recognize a liability representing the obligation to make lease payments and a related right-of-use (“ROU”) asset for virtually all lease transactions. However, ASC 842 does not apply to leases of mineral rights to explore for or use crude oil and natural gas. Upon adoption, the Company implemented policy elections and practical expedients which include the following:
package of practical expedients which allows the Company to avoid reassessing contracts that commenced prior to adoption that were properly evaluated under legacy lease accounting guidance;
excluding ROU assets and lease liabilities for leases with terms that are less than one year;
combining lease and non-lease components and accounting for them as a single lease (elected by asset class);
excluding land easements that existed or expired prior to adoption; and
policy election that eliminates the need for adjusting prior period comparable financial statements prepared under legacy lease accounting guidance.
As a result of adopting ASC 842, the Company recorded lease liabilities of approximately $75.2 million and associated ROU assets of approximately $69.1 million on its consolidated balance sheets. The difference between the lease liabilities and ROU assets is due to a rent holiday and lease build-out incentives that were recorded as deferred lease liabilities under legacy lease accounting guidance. The adoption of ASC 842 did not materially change the Company’s consolidated statements of income or consolidated statements of cash flows. See “Note 6. Leases” for further discussion.
Subsequent Events
The Company evaluates subsequent events through the date the financial statements are issued.
3. Revenue Recognition
The Company’s revenues are comprised solely of revenues from customers and include the sale of crude oil, NGLs, and natural gas. The Company believes that the disaggregation of revenue into these three major product types appropriately depicts how the

-7-


nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors based on its single geographic location. Crude oil, NGL, and natural gas revenues are recognized at a point in time when production is sold to a purchaser at a fixed or determinable price, delivery has occurred, control has transferred and collectability of the revenue is probable.
The transaction price used to recognize revenue is a function of the contract billing terms. Revenue is invoiced by calendar month based on volumes at contractually based rates with payment typically required within 30 days of the end of the production month. At the end of each month when the performance obligation is satisfied, the variable consideration can be reasonably estimated and amounts due from customers are accrued in “Accounts receivable, net” in the consolidated balance sheets. As of September 30, 2019 and December 31, 2018, receivables from contracts with customers were $83.1 million and $77.1 million, respectively. Taxes assessed by governmental authorities on crude oil, NGL, and natural gas sales are presented separately from such revenues in the consolidated statements of operations.
Transaction Price Allocated to Remaining Performance Obligations. The Company applied the practical expedient in ASC 606 exempting the disclosure of the transaction price allocated to remaining performance obligations if the variable consideration is allocated entirely to a wholly unsatisfied performance obligation. Each unit of product typically represents a separate performance obligation, therefore, future volumes are wholly unsatisfied and disclosure of the transaction price allocated to remaining performance obligations is not required.
4. Acquisitions and Divestitures of Oil and Gas Properties
2019 Acquisitions and Divestitures
On July 14, 2019, the Company entered into the Merger Agreement with Callon. See “Note 1. Nature of Operations” for details of the proposed Merger.
2018 Acquisitions and Divestitures
Devon Acquisition. On August 13, 2018, the Company entered into a purchase and sale agreement with Devon Energy Production Company, L.P. (“Devon”), a subsidiary of Devon Energy Corporation, to acquire oil and gas properties in the Delaware Basin in Reeves and Ward counties, Texas (the “Devon Properties”) for an agreed upon price of $215.0 million, with an effective date of April 1, 2018, subject to customary purchase price adjustments (the “Devon Acquisition”). The Company paid $21.5 million as a deposit on August 13, 2018, paid $183.4 million upon initial closing on October 17, 2018, and received $8.3 million as a post-closing adjustment on March 28, 2019, for an aggregate purchase price of $196.6 million.
The Devon Acquisition was accounted for as a business combination, therefore, the purchase price was allocated to the assets acquired and the liabilities assumed based on their estimated acquisition date fair values based on then currently available information. A combination of a discounted cash flow model and market data was used by a third-party valuation specialist in determining the fair value of the oil and gas properties. Significant inputs into the calculation included future commodity prices, estimated volumes of oil and gas reserves, expectations for timing and amount of future development and operating costs, future plugging and abandonment costs and a risk adjusted discount rate. The following table presents the final allocation of the purchase price to the assets acquired and liabilities assumed as of the acquisition date.
 
 
Purchase Price Allocation
 
 
(In thousands)
Assets
 
 
Other current assets
 

$216

Oil and gas properties
 
 
Proved properties
 
47,118

Unproved properties
 
150,253

Total oil and gas properties
 

$197,371

Total assets acquired
 

$197,587

 
 
 
Liabilities
 
 
Revenues and royalties payable
 

$786

Asset retirement obligations
 
170

Total liabilities assumed
 

$956

Net Assets Acquired
 

$196,631



-8-


The results of operations for the Devon Acquisition have been included in the Company’s consolidated statements of income since the October 17, 2018 closing date, including total revenues and net income attributable to common shareholders for the three and nine months ended September 30, 2019 as shown in the table below:
 
 
Three Months Ended
September 30, 2019
 
Nine Months Ended
September 30, 2019
 
 
(In thousands)
Total revenues
 

$3,676

 

$12,394

 
 
 
 
 
Net Income Attributable to Common Shareholders
 

$1,962

 

$6,678


Eagle Ford Divestiture. On December 11, 2017, the Company entered into a purchase and sale agreement with EP Energy E&P Company, L.P. to sell a portion of its assets in the Eagle Ford Shale for an agreed upon price of $245.0 million, with an effective date of October 1, 2017, subject to adjustment and customary terms and conditions. The Company received $24.5 million as a deposit on December 11, 2017, $211.7 million upon closing on January 31, 2018, $10.0 million for leases that were not conveyed at closing on February 16, 2018, and paid $0.5 million as a post-closing adjustment on July 19, 2018, for aggregate net proceeds of $245.7 million.
Niobrara Divestiture. On November 20, 2017, the Company entered into a purchase and sale agreement to sell substantially all of its assets in the Niobrara Formation for an agreed upon price of $140.0 million, with an effective date of October 1, 2017, subject to customary purchase price adjustments. The Company received $14.0 million as a deposit on November 20, 2017, $122.6 million upon closing on January 19, 2018, and paid $1.0 million as a post-closing adjustment on August 14, 2018, for aggregate net proceeds of $135.6 million. As part of this divestiture, the Company agreed to a contingent consideration arrangement (the “Contingent Niobrara Consideration”), which was determined to be an embedded derivative. See “Note 13. Derivative Instruments” and “Note 14. Fair Value Measurements” for further discussion.
The aggregate net proceeds for each of the 2018 divestitures discussed above were recognized as a reduction of proved oil and gas properties with no gain or loss recognized.
5. Property and Equipment, Net
As of September 30, 2019 and December 31, 2018, total property and equipment, net consisted of the following:
 
 
September 30,
2019
 
December 31,
2018
 
 
(In thousands)
Oil and gas properties, full cost method
 
 
 
 
Proved properties
 

$6,827,578

 

$6,278,321

Accumulated depreciation, depletion and amortization and impairments
 
(4,178,977
)
 
(3,944,851
)
Proved properties, net
 
2,648,601

 
2,333,470

Unproved properties, not being amortized
 
 
 
 
Unevaluated leasehold and seismic costs
 
567,294

 
608,830

Capitalized interest
 
82,053

 
65,003

Total unproved properties, not being amortized
 
649,347

 
673,833

Other property and equipment
 
31,129

 
29,191

Accumulated depreciation
 
(20,107
)
 
(17,970
)
Other property and equipment, net
 
11,022

 
11,221

Total property and equipment, net
 

$3,308,970

 

$3,018,524


Average depreciation, depletion and amortization (“DD&A”) per Boe of proved properties was $12.55 and $13.29 for the three months ended September 30, 2019 and 2018, respectively, and $13.02 and $13.57 for the nine months ended September 30, 2019 and 2018, respectively.
The Company capitalized internal costs of employee compensation and benefits, including stock-based compensation, directly associated with acquisition, exploration, and development activities totaling $3.9 million and $2.9 million for the three months ended September 30, 2019 and 2018, respectively, and $16.8 million and $15.6 million for the nine months ended September 30, 2019 and 2018, respectively.
Unproved properties, not being amortized, include unevaluated leasehold and seismic costs associated with specific unevaluated properties and related capitalized interest. The Company capitalized interest costs associated with its unproved properties totaling

-9-


$8.2 million and $8.5 million for the three months ended September 30, 2019 and 2018, respectively, and $25.8 million and $27.6 million for the nine months ended September 30, 2019 and 2018, respectively.
6. Leases
The Company determines if an arrangement is a lease at inception of the contract and, if the contract is determined to be a lease, classifies the lease as an operating or financing lease. The Company recognizes an operating or financing lease on its consolidated balance sheets as a lease liability, which represents the present value of the Company’s obligation to make lease payments arising from the lease, with a related ROU asset, which represents the Company’s right to use the underlying asset for the lease term. The Company’s operating leases typically do not provide an implicit interest rate, therefore, the Company utilizes its incremental borrowing rate to calculate the present value of the lease payments based on information available at inception of the contract.
Lease expense for operating leases is recognized on a straight-line basis over the lease term. Lease expense for financing leases is comprised of interest expense on the financing lease liability and the amortization of the associated ROU asset, which is recognized on a straight-line basis over the lease term. Variable lease expense that is not dependent on an index or rate is not included in the operating or financing lease liability or ROU asset and is recognized in the period in which the obligation for those payments is incurred.
Types of Leases
The Company currently has leases associated with contracts for drilling rigs, office space, and the use of well equipment, vehicles, information technology infrastructure, and other office equipment, with the significant lease types described in more detail below.
Drilling Rigs. The Company enters into contracts for drilling rigs with third parties to support its development plan. These contracts are typically for one to three years and can be extended upon mutual agreement with the third party by providing written notice at least thirty days prior to the end of the primary contractual term. The Company exercises its discretion in choosing whether or not to extend these contracts on a drilling rig by drilling rig basis as a result of evaluating the conditions that exist at the time the contract expires, such as availability of drilling rigs and the Company’s development plan. The Company has determined that it cannot conclude with reasonable certainty that it will choose to extend the contract past its primary term. As such, the Company uses the primary term in its calculation of the lease liability and ROU asset. The Company classifies its drilling rigs as operating leases and capitalizes the costs of the drilling rigs to oil and gas properties.
Office Space. The Company leases office space from third parties for its corporate office and certain field locations. These leases have non-cancelable terms between one to fifteen years. The Company has determined that it cannot conclude with reasonable certainty that it will exercise any option to extend the contract past the non-cancelable term. As such, the Company uses the non-cancelable term in its calculation of the lease liability and ROU asset. The Company classifies its leases for office space as operating leases with the costs recognized as “General and administrative, net” in its consolidated statements of income.
Well Equipment. The Company rents compressors from third parties to facilitate the flow of production from its drilling operations to market. These contracts range from less than one year to three years for the primary term and continue thereafter on a month to month basis subject to cancellation by either party with thirty days notice. The Company classifies the compressors as operating leases with a lease term equal to the primary term for those contracts that have a primary term greater than one year. After the primary term, each party has a substantive right to terminate the lease, therefore, enforceable rights and obligations do not exist subsequent to the primary term. For those contracts that are less than one year, the Company has concluded that they represent short-term operating leases and therefore, an operating lease liability and ROU asset is not recorded in the consolidated balance sheets. These lease payments are recognized as “Lease operating expense” in the Company’s statements of income.
The tables below, which present the components of lease costs, supplemental balance sheet information, and supplemental cash flow information, are presented on a gross basis. Other joint owners in the properties operated by the Company generally pay for their working interest share of costs associated with drilling rigs and well equipment.

-10-


The table below presents the components of the Company’s lease costs for the three and nine months ended September 30, 2019.
 
 
Three Months Ended September 30, 2019
 
Nine Months Ended September 30, 2019
 
 
(In thousands)
Components of Lease Costs
 
 
 
 
Finance lease costs
 
 
 
 
Amortization of right-of-use assets (1)
 

$410

 

$1,194

Interest on lease liabilities (2)
 
110

 
386

Operating lease costs (3)
 
9,406

 
32,186

Short-term lease costs (4)
 
363

 
826

Variable lease costs (5)
 
104

 
256

Total lease costs
 

$10,393

 

$34,848


 
(1)
Included as a component of “Depletion, depreciation and amortization” in the consolidated statements of income.
(2)
Included as a component of “Interest expense, net” in the consolidated statements of income.
(3)
For the three and nine months ended September 30, 2019, approximately $6.5 million and $24.1 million are costs associated with drilling rigs and are capitalized to “Oil and gas properties” in the consolidated balance sheets and the other remaining operating lease costs are components of “General and administrative, net” and “Lease operating expense” in the consolidated statements of income.
(4)
Short-term lease costs are primarily associated with certain well equipment that have lease terms for less than one year and are components of “Lease operating expense” in the consolidated statements of income.
(5)
Variable lease costs include additional payments that were not included in the initial measurement of the lease liability and related ROU asset for lease agreements with terms greater than 12 months. Variable lease costs primarily consist of incremental usage associated with drilling rigs.
The table below presents supplemental balance sheet information for the Company’s leases as of September 30, 2019.
 
 
September 30, 2019
 
 
(In thousands)
Leases
 
 
Operating leases:
 
 
Operating lease ROU assets
 

$55,873

 
 
 
Current operating lease liabilities
 

$30,301

Long-term operating lease liabilities
 
31,723

Total operating lease liabilities
 

$62,024

 
 
 
Financing leases:
 
 
Other property and equipment, at cost
 

$7,810

Accumulated depreciation
 
(5,580
)
Other property and equipment, net
 

$2,230

 
 
 
Current financing lease liabilities (1)
 

$1,709

Long-term financing lease liabilities (2)
 
797

Total financing lease liabilities
 

$2,506


 
(1)
Included in “Other current liabilities” in the consolidated balance sheets.
(2)
Included in “Other long-term liabilities” in the consolidated balance sheets.

-11-


The table below presents supplemental cash flow information for the Company’s leases for the nine months ended September 30, 2019.
 
 
Nine Months Ended September 30, 2019
 
 
(In thousands)
Supplemental Cash Flow Information
 
 
Cash paid for amounts included in the measurement of lease liabilities:
 
 
Operating cash flows from operating leases
 

$7,782

Investing cash flows from operating leases
 

$29,460

Operating cash flows from financing leases
 

$386

Financing cash flows from financing leases
 

$1,324

 
 
 
ROU assets obtained in exchange for lease liabilities
 
 
Operating leases
 

$17,226

Financing leases
 

$1,082


The table below presents the weighted average remaining lease terms and weighted average discount rates for the Company’s leases as of September 30, 2019.
 
 
September 30, 2019
Weighted Average Remaining Lease Term (In years)
 
 
Operating leases
 
4.7 years

Financing leases
 
2.2 years

 
 
 
Weighted Average Discount Rate
 
 
Operating leases
 
8.0
%
Financing leases
 
11.7
%

The table below presents the maturity of the Company’s lease liabilities as of September 30, 2019.
 
 
Operating Leases
 
Financing Leases
 
 
(In thousands)
October - December 2019
 

$11,076

 

$556

2020
 
27,595

 
1,475

2021
 
7,933

 
275

2022
 
3,750

 
234

2023
 
3,680

 
233

2024 and Thereafter
 
21,590

 
39

Total lease payments
 
75,624

 
2,812

Less: Imputed interest
 
(13,600
)
 
(306
)
Total lease liabilities