Carrizo O&G Now Gone from Marcellus/Utica, Totally Focused on Texas

Carrizo Oil & Gas no longer owns any assets in either the Marcellus or Utica Shale. Carrizo, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the D-J Basin in Colorado (more on that in a moment), and until mid-year in 2015, they had an active drilling program in the Ohio Utica and Pennsylvania Marcellus. We told you back in May that Carrizo was shopping its Marcellus/Utica assets (see Carrizo O&G Puts Up ‘For Sale’ Sign on Marcellus/Utica Assets). In September Carrizo announced a deal to sell their Utica acreage for $62 million (see Carrizo Sells 26K Prime Utica Acres for $62M), and in October they announced a deal to sell their Marcellus acreage for $84 million–their portion of a joint venture with India’s Reliance Industries Limited (see India’s RIL, Carrizo Sell NEPA Marcellus Assets for $210M). Yesterday Carrizo announced both deals have closed. Carrizo, along with Elvis, has left the building. They also announced a new deal to sell off all of their assets in the Colorado D-J Basin. Carrizo will totally focus on oil drilling in the Eagle Ford Shale (South Texas) and the Permian Basin (West Texas)…
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India’s RIL, Carrizo Sell NEPA Marcellus Assets for $210M

Reliance Industries Limited (RIL) is the single largest company in India, and one of the largest energy companies in the world. RIL invested $3.5 billion in a Marcellus joint venture with Atlas Energy in 2010, and later battled Chevron to buy Atlas–but Chevron won, so RIL became a jv partner with Chevron. RIL currently has 3 U.S. shale joint ventures: the Chevron jv in the Marcellus (owns 40% of that acreage), a jv with Carrizo Oil & Gas in the northeast PA Marcellus (owns 60% of that acreage), and a jv with Pioneer Natural Resources in the Texas Eagle Ford (owns 45% of that acreage). Back in 2015, RIL signaled they are looking to dump all of their U.S. shale assets (see Indian Giant RIL Looking to Dump its Marcellus Joint Ventures). It took a few years, but earlier today Banpu, Thailand’s largest coal producer, announced that is has purchased all of the RIL/Carrizo jv (from both RIL and Carrizo) in northeastern PA–for $210 million. Does Banpu sound familiar? It should. This is the fifth investment Banpu, via its American subsidiary Kalnin Ventures, has made in the northeast Marcellus…
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Carrizo Sells 26K Prime Utica Acres for $62M

This morning Carrizo Oil & Gas announced it has sold “substantially all” of its Utica Shale assets, located primarily in Guernsey County, OH, for a grand total of $62 million. The Carrizo website says the company owns 25,900 acres in the Utica. Do the math, and if they sold all 25,900 acres for $62 million it works out to a relatively low $2,394 per acre–essentially a fire sale compared with lease prices in that area which are double that amount. Once upon a time Carrizo had big plans for the Utica. They (wisely) sold off their northern Utica acreage and retained their southern acreage in 2012 (see Carrizo Exits Northern Utica Shale, Retains Southern Acreage). The company has drilled four Utica wells–all of them in Guernsey County, with three of the four producing gas and oil. But the oily Eagle Ford play caught the company’s eye and in 2015 Carrizo quit drilling in the northeast (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015). Since that time, they have not drilled any new wells in the Marcellus/Utica. In May of this year, Carrizo put all of their Marcellus/Utica assets up for sale (see Carrizo O&G Puts Up ‘For Sale’ Sign on Marcellus/Utica Assets). So it should be no surprise they’ve found a buyer (unnamed) to pick up prime acreage in the Utica…
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Carrizo O&G 2Q17: Still Shopping M-U Assets, Choking Back M-U Prod

Carrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. During the earnings call for 1Q17, Carrizo CEO S.P. “Chip” Johnson announced Carrizo is putting up their Marcellus/Utica assets for sale–both wells and leases. Yesterday Carrizo issued its second quarter update, holding a conference call to discuss the past three months. What do we learn from it relative to the Marcellus/Utica? Essentially, the company continues on the path of trying to sell their Marcellus/Utica assets. One questioner asked about the company “choking back” production in the Marcellus/Utica–what would it be if they didn’t restrict production? Answer: 180-190 million cubic feet per day…
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Carrizo O&G Puts Up ‘For Sale’ Sign on Marcellus/Utica Assets

Carrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. During the company’s fourth quarter/full year 2016 earnings call, it seemed to us that Carrizo signaled a potential sale of their Marcellus/Utica assets (see Carrizo Actively Considering Sale of Marcellus/Utica Assets). Looks like we were right. Yesterday on an earnings call for 1Q17, Carrizo CEO S.P. “Chip” Johnson said, “[W]e have elected to test the market for our Appalachian assets, as they do not currently compete for capital with our three core oily plays. Monetization of these assets would leave Carrizo with a core position in three high-return, oil-weighted plays and should enhance our long-term production growth profile.” Translation: We’ve now put the “for sale” sign out on our Marcellus/Utica assets. What are those assets? We outline them below…
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Carrizo Actively Considering Sale of Marcellus/Utica Assets

Carrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. According to Carrizo’s latest quarterly update for 4Q16 (and full year 2016), the situation continues. However, there is new news: On an earnings call yesterday, Andy Agosto, vice president of business development for Carrizo, fielded a question about the company’s Marcellus/Utica acreage. He said they get offers to sell their acreage “all the time” and in fact have had discussions with their bankers about the value of their Appalachian assets and about whether or not they should sell. It sounds to us, from the exchange, like Carrizo is actively considering a sale of their Marcellus/Utica acreage–some of it, if not all of it…
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Carrizo O&G 3Q16: Continues to Ignore Marcellus/Utica

Carrizo logoCarrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. According to Carrizo’s latest quarterly update for 3Q16, that (sad) state of affairs continues…
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Carrizo Floats 6M New Shares of Stock to Buy More Eagle Ford

Carrizo logoCarrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. That trend continues. It seems other plays have lured Carrizo’s heart, and money. Yesterday the company announced it is floating 6 million new shares of stock, hoping to raise $225 million. The reason? To buy another 15,000 acres of leases–in the Eagle Ford oil play in Texas. Once again Carrizo ignores the Mighty Marcellus. Their loss. Here’s an update on new stock and a new land deal in the Lone Star State…
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Carrizo O&G 2Q16: No Marcellus/Utica Drilling, Again

Carrizo logoCarrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15. According to Carrizo’s latest quarterly update for 2Q16, that (sad) state of affairs continues…
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Carrizo O&G Top Management Dumps Another $646K in Company Stock

Carrizo logoCarrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15 (see Carrizo O&G 1Q16: Still Not Active in the Marcellus, Prod. Down). However, we expect at some point Carrizo will return to northeast drilling–so we keep track of the company. Last year we noted that Carrizo’s top mangement was engaged in dumping the company’s stock (see What’s Up with Carrizo Top Mgmt Continued Selling of Co. Stock?). They’re at it again. Three of Carrizo’s top managers, including the CEO, COO and a VP, along with a board member, have just sold off a collective 17,082 shares worth $646,280. Hey, we have absolutely no issue with those who help a company succeed, in profiting from that success. Top managers are often awarded stock bonuses and it’s not uncommon to cash them in. But we get nervous when we see the people running a company selling large tranches of stock, repeatedly. Makes us wonder what they know that we don’t!…
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Carrizo O&G 1Q16: Still Not Active in the Marcellus, Prod. Down

Carrizo logoCarrizo Oil & Gas, a Houston-based driller, actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15, and according to their 2015 year-in-review udpate, they won’t be drilling in the Marcellus/Utica in 2016 (see Carrizo O&G 2015: Loses $1.2B, Stops Drilling in Northeast). Not only that, they have curtained (shut-in) some of their Marcellus/Utica production. Last week Carrizo issued their first quarter 2016 update and it shows the company is doing what it said it would: no new drilling or completions in 2016, production even in the Utica where it gets better prices, and production is down in the Marcellus because they’re curtailing production where prices are poor…
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Carrizo O&G 2015: Loses $1.2B, Stops Drilling in Northeast

Carrizo Oil & Gas, a Houston-based driller, issued their fourth quarter and full year 2015 financial and operational update on Monday. Carrizo actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Niobrara Formation in Colorado, and until mid-year in 2015, they did have an active drilling program in the Ohio Utica and Pennsylvania Marcellus. No more. They haven’t drilled in Appalachia since 3Q15, and according to Monday’s update, they won’t be drilling here in 2016. Not only that, they have curtained (shut-in) some of their Marcellus/Utica production, and they may shut-in even more in the coming months, if prices don’t recover. According to Carrizo’s financials, the company made $226 million in 2014. But in 2015 the company lost $1.2 billion. Here’s a portion of Monday’s update, which says they plan to focus on the Eagle Ford for the time being…
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Top 20 Marcellus Drillers – Ranked by Environmental Impact

top 20Last Friday MDN brought you the news about a professor who devised a clever formula for evaluating the overall environmental impact of 20 Marcellus drillers (see Mirror Mirror on the Wall, Who’s the Best Driller of Them All?). At the time we only knew who the top and bottom companies are in the list. CONSOL Energy took top honors, while ExxonMobil was last or “least” environmentally friendly as compared with the others. We now have the entire list (below). Where does your favorite driller fall in the list?…
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What’s Up with Carrizo Top Mgmt Continued Selling of Co. Stock?

Carrizo Oil & Gas CEO Chip Johnson continues to sell off his company stock. On June 1, Johnson sold 24,661 shares of company stock for $1.2 million. A few days later, on June 5, he sold another 6,000 shares for $309,000. Then again on September 8, Johnson sold another 6,000 shares netting him $217,000. And on October 5, Johnson sold yet another tranche of 6,000 shares, this time for $227,040 (see Carrizo O&G CEO Chip Johnson Continues to Sell His Company Stock). In an “Oops, I did it again,” Johnson sold another tranche of 6,000 shares earlier this week–this time for $193,440. That makes the grand total of Johnson’s stock sales 48,661 shares since June for a grand total of $2.1 million. But Johnson isn’t the only Carrizo top dog to sell. Others have sold their shares, including board member Roger Ramsey who this week sold 1,000 shares for $33,310. This is the third time–that we know of–that Ramsey has sold stock in the company he helps oversee (see Carrizo CEO Chip Johnson Sells Another 6K Shares of Stock and Carrizo Oil & Gas “Insiders” Continue to Sell Company Stock). We have to ask, what in the world is going on at Carrizo that top management continues to sell off their stock?…
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Carrizo O&G 3Q15: No New Drilling in the Utica/Marcellus

Carrizo Oil & Gas, a Houston-based driller, issued their third quarter 2015 financial and operational update on Wednesday. Carrizo actively drills in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. Carrizo reports losing $708.8 million in 3Q15, but like other drillers, it was a paper loss–a requirement to reevaluate and write down the value of their holdings based on low oil and gas prices. According to the update, Carrizo didn’t drill or complete any new wells in the Utica or Marcellus during 3Q15, nor do they plan to any time soon. They’re concentrating their time and effort in oil plays like the Eagle Ford. Below are select portions of yesterday’s update applicable to the Utica/Marcellus…
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Carrizo Floats 6.3M Shares of New Stock, Hopes to Raise $212M

upsize meFor the past few months MDN has noted several large sales of Carrizo Oil & Gas stock by company CEO Chip Johnson, totaling nearly $2 million of stock sold since June (see Carrizo O&G CEO Chip Johnson Continues to Sell His Company Stock). Carrizo has drilling operations in both the Marcellus and Utica Shales. Yesterday Carrizo announced they are issuing up to 6.1 million new shares of company stock. Not long after the original announcement, Carrizo issued a second announcement “upsizing” the stock offering to 6.3 million shares. They hope to get $212 million, which works out to be an average of $33.49 per share. As of this morning shares of Carrizo on NASDAQ sold for $40.96. The company says they will use the proceeds to pay off debt. What we wonder is, will Chip Johnson be among the buyers of the new stock–selling high and buying low?…
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