Exploration & Production | Quarterly / Earnings Reports | Third Quarter (3Q) Update | Forecast - Production
Carrizo Predicts 3Q Production Upswing at 3,090 MBOE
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Carrizo Oil & Gas, Inc. has announced an update to its third quarter guidance.
Additionally, the company announced a new Eagle Ford acquisition, which can be found here in our M&A Database.
Carrizo estimates production volumes during the third quarter of 2014 were 3,090 MBoe, or 33,587 Boe/d, an increase of 12% versus the third quarter of 2013 and 1% versus the prior quarter. The year-over-year production growth was driven by strong results in each of the Company's operating regions, which more than offset the sale of the Company's remaining natural-gas-weighted Barnett Shale properties during the fourth quarter of 2013. Oil production during the third quarter of 2014 averaged 20,000 Bbls/d, an increase of 64% versus the third quarter of 2013 and 8% versus the prior quarter; natural gas and NGL production averaged 81,500 Mcfe/d during the third quarter of 2014. Third quarter of 2014 production exceeded the high end of Company guidance due primarily to strong performance from the Company's Eagle Ford Shale assets and a lower-than-expected amount of voluntary production curtailments in its Marcellus Shale assets.
Carrizo is also updating its third quarter of 2014 guidance with regards to its lease operating expense and DD&A. For the third quarter, the Company now expects lease operating expense to range between $6.75-$6.85/Boe and DD&A to range between $27.00-$27.10/Boe. The higher lease operating expense range for the quarter is primarily due to higher actual lease operating expenses than previously estimated and accrued for in the second quarter of 2014. The Company currently expects to meet or beat third quarter guidance for its remaining expense items. Additionally, the Company's third quarter net cash from derivative settlements is now expected to be a loss of approximately $7.7 million.