Carrizo Oil & Gas, Inc. (CRZO) today provided an update on the Company’s operations for the third quarter.
Production volumes during the third quarter of 2019 are currently expected to be 69,500-69,600 Boe/d, an increase of approximately 6% from the second quarter. Crude oil production is expected to account for approximately 66% of the Company’s production during the quarter, while natural gas and NGLs are expected to account for approximately 18% and 16%, respectively.
During September, Carrizo took advantage of the rally in commodity prices to add to its 2020 hedge position. The Company added hedges covering 10,000 Bbls/d of crude oil for 2020, consisting of three-way collars with an average floor price of $55.00/Bbl, ceiling price of $64.10/Bbl, and sub-floor price of $45.00/Bbl. This brings the Company’s total hedge position for the year to 25,000 Bbls/d, consisting of swaps covering 3,000 Bbls/d of crude oil at an average fixed price of $55.06/Bbl and three-way collars covering 22,000 Bbls/d with an average floor price of $55.34/Bbl, ceiling price of $65.16/Bbl, and sub-floor price of $45.34/Bbl.
Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.
Cautionary Statement Regarding Forward-Looking Information
Statements in this release that are not historical facts, including but not limited to those related to third quarter results, production volumes, DC&I capital expenditures, well costs, infrastructure program, guidance, rig program, production, targeted ratios and other metrics, timing, levels of and potential production, expectations regarding growth, oil and gas prices, drilling and completion activities, drilling inventory, including timing thereof, well costs, production mix, hedging activity, the Company’s or management’s intentions, beliefs, expectations, hopes, projections, assessment of risks, estimations, plans or predictions for the future, results of the Company’s strategies and other statements that are not historical facts are forward-looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Important factors that could cause actual results to differ materially from those in the forward-looking statements include assumptions regarding well costs, Delaware Basin constraints, benefits of multi-pad drilling, results of the 2019 capital and development plan estimated recoveries, pricing, margins, and other factors affecting average well returns, timing of well completions and the results of production from such wells and testing, failure of actual production to meet expectations, results of infrastructure program, failure to reach significant growth, performance of rig operators, spacing test results, availability of gathering systems, pipeline and other transportation issues, costs and availability of oilfield services, actions by governmental authorities, joint venture partners, industry partners, lenders and other third parties, actions by purchasers or sellers of properties, the company’s pending merger transaction and actions by counterparty to such transaction, risks and effects of acquisitions and dispositions, market and other conditions, risks regarding financing, capital needs, availability of well connects, capital needs and uses, commodity price changes, effects of the global economy on exploration activity, results of and dependence on exploratory drilling activities, operating risks, right-of-way and other land issues, availability of capital and equipment, weather, and other risks described in the Company’s Form 10-K for the year ended December 31, 2018 and its other filings with the U.S. Securities and Exchange Commission. In addition, the results for the third quarter of 2019 are preliminary and are subject to change, including changes resulting from the Company’s obtaining additional information and completing its accounting closing procedures for the third quarter of 2019.
All forward-looking statements speak only as of the date they are made and are based on information available at that time. Carrizo does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by federal securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.