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2015 Analyst Conference – Carrizo Oil & Gas Inc.

Carrizo Oil & Gas Inc. · Jan 27, 2015 · 189 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 1
    2015 ANALYST CONFERENCE Carrizo Oil & Gas, Inc. January 27, 2015
  2. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 2
    Agenda January 27, 2015 Company Overview Chip Johnson 8:00am-8:40am President and CEO Operations Brad Fisher 8:40am-9:10am COO Eagle Ford Shale Andy Agosto Brad Fisher 9:10am-10:10am VP Business Development Break…
  3. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 3
    Overview Chip Johnson
  4. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 4
    Carrizo Today Positioned for a Low Commodity Price Environment Acreage focused on high-quality, low-cost oil and condensate resource plays Eagle Ford Shale, Utica Shale, and Niobrara Formation Solid financial position / liquidity…
  5. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 5
    Success in Executing Oil Strategy 2011 2012 2013 2014 Q1: Announced plan to Q1: Divested portion of non-core Q1: Exercised option with Avista Q1: Announced annual oil reallocate drilling capital from Barnett assets to Atlas to…
  6. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 6
    Portfolio of Assets Niobrara 35,900 net acres Utica 5.4 MMBOE Proved 28,000 net acres 0.6 MMBOE Proved Marcellus 33,400 net acres 21.5 MMBOE Proved Delaware Basin 17,000 net acres 12/31/14 Proved NPV10 (MM) Eagle Ford…
  7. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 7
    Carrizo Acreage is Concentrated in Low Cost Basins 140 120 Break-even WTI (/Boe; 22.5:1 Oil / Gas Ratio) 100 80 60 40 20 0 Source: ITG Investment Research. 8 CRZO
  8. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 8
    2014 Year In Review Objectives Results Grow oil production by 50% Y-o-Y Grew oil production by 63% Y-o-Y Total Company Reduce and maintain leverage Net Debt-to-EBITDA of 2.3x at YE 2014 Grow balanced hedge position 55% of oil volumes…
  9. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 9
    Managing Leverage Remains a Priority Net Debt / LTM EBITDA (1) 4.5x 4.1x 4.0x 4.0x 3.6x Adjusted Net Debt / LTM EBITDA 3.4x 3.5x 3.0x 3.0x 2.7x 2.5x 2.4x 2.5x 2.3x 2.2x 2.0x 2.0x 1.9x 2.0x 1.5x (2)…
  10. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 10
    Financial Leverage is Below Peer-Average 10.0x 9.0x 8.0x 7.0x Adjusted Net Debt / LTM EBITDA 6.0x 5.0x 4.0x 3.0x 2.0x 1.0x 0.0x Note: Net debt is Q314 adjusted for Q414 capital market transactions and…
  11. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 11
    Oil-Focused Operator With Low Operating Costs (Q314) 28.00 Peer 8 24.00 Peer 10 20.00 Production Cost / Boe Peer 6 16.00 Peer 11 Peer 9 Peer 13 Peer 1 Peer 12 Peer 15 Peer 3 Peer 7 12.00 Peer 4 Peer 2 Peer…
  12. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 12
    2015 Strategy Manage capex to preserve balance sheet and liquidity 2015 Capital budget of 495 MM Manage leasehold obligations to preserve assets Keep Net Debt-to-EBITDA ratio below 3.0x Hold oil production flat with Q414 Grow…
  13. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 13
    2015 Capital Program Assumptions Commodity prices Oil: NYMEX 55/Bbl flat (sensitivities run down to 45/Bbl) Gas: NYMEX strip (avg. 3.12/MMBtu in 2015) Service costs 8% drilling cost reduction 18% completion cost reduction…
  14. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 14
    Price Assumptions Compared to Industry Oil Outlook: Carrizo vs Market 110 90 Carrizo 55 Base Case 70 /Bbl 50 30 Jan-15 Mar-15 May-15 Apr-15 Jun-14 Jul-14 Nov-14 Feb-15 Jun-15 Jul-15…
  15. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 15
    Price Assumptions Compared to Rig Count Oil Price vs U.S. Oil Rig Count 110 1,750 90 1,500 Carrizo Oil Rig Count 55 Base Case /Bbl 70 1,250 50 1,000 30 750 Jul-14 Jan-15 Jul-15 Jun-14 May-15…
  16. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 16
    Capital Program Comparison 2014E Capital Program 2015E Capital Program 150 142 16 35 35 40 37 515 42% 30 857 MM 95 Reduction 495 MM 108 518 55 377 48 Eagle Ford Utica Niobrara Marcellus/Other Land & Seismic 2015E…
  17. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 17
    2015 Capital Program Overview 2015E Capital by Type 2015E Drilling Activity Net Rigs 35 Wells 31 Eagle Ford Op 3 55 72 Other Op 495 MM…
  18. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 18
    Downshifting Production Growth in 2015 40.0 Oil plays have Net Daily Prod, (MBoepd) 35.0 driven growth 30.0 in recent years 25.0 20.0 Plan to hold 15.0 Q414 oil 10.0 production 5.0 roughly flat in - 2015 (equating…
  19. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 19
    Eagle Ford Production On Track 5-Rig Program Starting 2015 (Old Plan) 50,000 Actual CRZO PDP + Well Inventory Production Actual CRZO PDP + Well Inventory + EF New Well Production 40,000 EF Rig 5 30,000 EF Rig 4 Net BOPD…
  20. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 20
    Eagle Ford Acceleration In a Better Price Environment 5-Rig Program Starting 2016 50,000 Actual CRZO PDP + Well Inventory Production Actual CRZO PDP + Well Inventory + EF New Well Production 40,000 EF Rig 5 30,000 EF Rig 4 Net…
  21. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 21
    Maintenance Plan Program Maintenance Plan 3-Rig Eagle Ford 4-Rig Eagle Ford 5-Rig Eagle Ford 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 35,000 Q4 2014 Avg. Oil Production 28,000 (Bbls/d)…
  22. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 22
    3-Rig Eagle Ford Program Maintenance Plan 3-Rig Eagle Ford 4-Rig Eagle Ford 5-Rig Eagle Ford 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 35,000 Q4 2014 Avg. Oil Production 28,000 (Bbls/d)…
  23. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 23
    Accelerated Eagle Ford Program Maintenance Plan 3-Rig Eagle Ford 4-Rig Eagle Ford 5-Rig Eagle Ford 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 2014E 2015E 2016E 35,000 Q4 2014 Avg. Oil Production 28,000 (Bbls/d)…
  24. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 24
    2015E Cash Flow Sensitivity 3-Rig Eagle Ford Program Oil Price 45 55 65 75 85 - DC&I Cash Flow Outspend (MM) (20) (40) (60) (80) Shaded region reflects range of outspend based (100) on service cost reductions of 8% -…
  25. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 25
    Sustainable Growth Project Development Summary (1) Undrilled Well Details (PUD & Probable) Net Net Additional Total Effective Well Drillable Proved Proved Net Net Lateral Spacing Spacing Net Net Developed Undeveloped Probable…
  26. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 26
    Sustainable Growth Project Development Summary (1) Price Sensitivity NPV10 ( Million) 45 Oil 55 Oil 65 Oil 75 Oil Eagle Ford 863 1,958 3,162 4,380 Niobrara 22 86 304 579 Utica 8 145 390 635 Marcellus 90 90 90 90 Total…
  27. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 27
    Carrizo Equity Performance Relative to Peers FANG June '14 Market Cap Current Market Cap MTDR PDCE CRZO GPOR PVA EPE BCEI ROSE LPI SN OAS MHR HK REXX GDP Best Performing 28 Source: Bloomberg. Peak Oil market…
  28. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 28
    Valuation Remains at a Discount 12.0x 10.0x 8.0x 2015E EV/EBITDA 6.0x 4.0x 2.0x 0.0x Source: Bloomberg, Company reports. 29 Notes: Prices as of 1/21/2015 market close. Peer companies include BCEI,…
  29. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 29
    2015 Analyst Day Highlights Initiating 2015 crude oil production growth guidance of 17% Holds Q414 oil production roughly flat in 2015 Maintain balance sheet flexibility Manage spending to minimize revolver draws and maintain…
  30. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 30
    Operations Brad Fisher 31
  31. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 31
    Operations Review Review 2014 activity Experience is delivering results on time and on budget Continuous improvement across all operational areas Successfully applying learnings between basins Step changes by upgrading…
  32. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 32
    Operations Review Drilling Activity - 2014 Eagle Ford average rig count 3.22 3 rigs ran for the entire year. Picked up additional rig to drill 6 well pad to build inventory for Q1 2015 70 gross wells TDd 1.2 million ft. of hole…
  33. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 33
    Operations Review Drilling Activity - Historical Drilled over 700 HZ wells in 5 primary play Approaching 9,000,000 total feet of hole areas 1,704 miles in 5 primary play areas 34 CRZO
  34. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 34
    Operations Review Frack Activity - 2014 Eagle Ford frack crew Fracked 73 wells Completed 1,991 stages Avg. 27.3 stages per well Niobrara frack crew Fracked 38 wells Completed 599 stages Avg. 15.5 stages/well Marcellus frack…
  35. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 35
    Operations Review Frack Activity - Historical 36 CRZO
  36. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 36
    Operations Review Continuous Improvement Investment in rig technology is paying off Since 2010 rig performance in terms of wells TDd per rig has improved 160% Generation 3 rigs are performing as expected By mid-year, entire…
  37. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 37
    Operations Review Continuous Improvement Consistently delivering results over long periods of time Testament to staff staying engaged and embracing small victories Continuous improvement is paramount to being successful in…
  38. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 38
    Eagle Ford Shale Operational Excellence Well Capex Analysis Drilling Cost / Well Completion Cost / Well 3.5 7,000 8.0 27 3.0 6,650 7.0 6.6 26 Completion Cost / Well ( MM) Drilling Cost / Well ( MM) 5.9 Effective…
  39. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 39
    Eagle Ford Shale Operational Excellence Well Capex Analysis Eagle Ford Drilling Cost / Effective Lateral Foot 700 8,300 597 7,700 600 Effective Lateral Length (ft) 447 7,100 484 Drilling Cost / Foot () 500 466 430 423…
  40. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 40
    Operations Review Continuous Improvement Capable of operating at a high level concurrently across several basins. Lessons learned in other plays are successfully applied to generate significant year-over- year performance…
  41. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 41
    Niobrara Shale Capex Progression Analysis Drilling Cost / Well Completion Cost / Well 3.0 4,100 4.0 20.0 2.5 2.4 4,000 Completion Cost / Well ( MM) Effective Lateral Length (ft) Drilling Cost / Well ( MM) 3.0 2.9 18.0 2.0…
  42. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 42
    Niobrara Shale Capex Metrics Analysis Niobrara Drilling Cost / Effective Lateral Foot 300 11,250 252 250 236 11,000 Effective Lateral Length (ft) 200 Drilling Cost / Foot () 207 200 190 163 10,750 171 150 151 151 141…
  43. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 43
    Oilfield Service Cost Model Industry Downturn - 2008 Repeating Itself 44 CRZO
  44. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 44
    Oilfield Service Cost Model Methodology Past Performance is indicative of Future Results Using the major cost categories pulled in about 18,000 invoices from our Barnett program covering key services Normalized invoices to common…
  45. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 45
    Oilfield Service Cost Model Study Focus Evaluation focused on the major cost categories Frac Pumping Coil Tubing Cased hole wireline Frac Other Study covered 88% of cost components Targeted categories represent service…
  46. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 46
    Oilfield Service Cost Model Study Focus Evaluation focused on the major cost categories Rig Pipe Mud Directional Cement Categories comprise 64% of total drilling costs Targeted categories represent service models that can…
  47. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 47
    Oilfield Service Cost Model Model Application - Eagle Ford Drilling Cost Reduction The two biggest costs drivers on the drilling side are likely to be the least impacted in 2015 Rigs Casing Achieved Average cost reduction for…
  48. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 48
    Oilfield Service Cost Model Model Application - Eagle Ford Completion Cost Reduction Completion side cost reduction is heavily weighted to pumping services Pumping services are Achieved driven by rig activity which in turn…
  49. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 49
    Oilfield Service Cost Model Model Application - Eagle Ford Total Well Cost Reduction Total well cost reductions Q115: 12% Q415 :20% Avg. for 2015: 15% Achieved In prolonged downturn case, overall well costs could drop as…
  50. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 50
    Oilfield Service Cost Model Model Application Eagle Ford Well Cost Matrix Eagle Ford Predicted 2015 Well Cost Reductions 40 Stage Well 30 Stage Well 20 Stage Well Note: Drilling and completion costs only no…
  51. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 51
    Oilfield Service Cost Model Model Application Eagle Ford Type Well Cost 52 CRZO
  52. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 52
    Focus on the Margin Eagle Ford Targeting LOE Target biggest expenses Capital projects to pipe rather than truck salt water Trucking accounts for 75% of the total disposal cost (1.80-2.00/bbl of water) Optimizing chemical…
  53. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 53
    Focus on the Margin Eagle Ford Reducing Saltwater Disposal Costs 54 CRZO
  54. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 54
    Eagle Ford Shale Brad Fisher Andy Agosto 55
  55. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 55
    Eagle Ford Shale The Premier IndustAsset Carrizos Eagle Ford position was 81,000 net acres at year-end 2014 Acreage almost entirely in the volatile oil window in the west-central area of play Asset drives Companys growth in wide range…
  56. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 56
    Eagle Ford Shale The Premier Industry Asset Well established production across entire acreage position EFM acquisition closed in late October 2014 Continuing to pursue opportunities for acreage acquisitions Black Oil…
  57. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 57
    Eagle Ford Shale At a Glance Acreage 81,000 net acres at YE 2014 Added 18,800 net acres in 2014 Operated Activity Through YE 2014 221 gross / 191 net wells drilled 196 gross / 171 net wells fracked Remaining Locations Current:…
  58. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 58
    Eagle Ford Shale Capex Overview 2015E Capital Budget Base Plan Drill 55 net wells Complete 56 net wells 117 Well economics support balanced 2015E drilling program 402 MM across majority of project areas 240 25 20 Capex…
  59. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 59
    Eagle Ford Shale Project Areas NE LaSalle North LaSalle Arnold Pena Winfield RPG Irvin Brown Trust Mumme East Gardendale Mumme Pierce SE Cotulla 60 CRZO
  60. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 60
    Eagle Ford Shale PV-10 Break-Even Oil Price by Project Area 25% 60 22% 55.50 54.50 53.50 53.75 55 PV-10 Break-Even Oil Price (/Bbl) 20% 19% 50.75 % Of Total EF Locations 50 15% 13% % Of Total EF Locations 12%…
  61. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 61
    Eagle Ford Shale Logistical Advantages Mature midstream industry - abundant pipeline and processing options Natural gas - All gas production is currently gathered and processed by major industry companies: DCP Midstream,…
  62. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 62
    Eagle Ford Shale Geologic Overview Structure on Base of Eagle Ford Measured Depth 63 CRZO
  63. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 63
    Eagle Ford Shale Geologic Overview Lower Eagle Ford is primary target zone on Carrizo acreage brittle & highly organic with excellent hydrocarbon storage capacity Upper Eagle Ford is a low porosity carbonate across Carrizos…
  64. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 64
    Eagle Ford Shale Geologic Overview 65 CRZO
  65. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 65
    Eagle Ford Shale Upper vs. Lower Drilling results from industry targeting upper Eagle Ford have been variable to-date Operators beginning to target lower portion of upper Eagle Ford section where hydrocarbon storage exists based…
  66. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 66
    Eagle Ford Shale Lease Acquisitions 2014 goal: 10,000+ net acre growth 2014 results: Added 18,800 net acres EFM acquisition 6,900 net acres (4,900 undeveloped) Organic additions 11,900 net acres Continued focus on volatile oil…
  67. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 67
    Eagle Ford Shale Acreage Position 12/31/2013 Displays leases at year-end 2013 Black Oil Volatile Oil Gas CRZO YE 2013 68 CRZO
  68. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 68
    Eagle Ford Shale Acreage Position 12/31/2014 Displays leases acquired during 2014 in blue Highlights in purple the project areas where an additional 25% WI was acquired from EFM Black Oil Volatile Oil Gas CRZO YE 2013…
  69. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 69
    Eagle Ford Shale Lease Inventory 90,000 Undeveloped Developed 80,000 65,565 70,000 18,800 5,588 60,000 3,966 Net Acres 13,868 50,000 52,353 13,314 4,040 40,000 1,564 21,913 30,000 20,000 277 15,435 10,000…
  70. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 70
    Eagle Ford Shale Lease Status 12/31/14 Under Continuous Total Net Continuous Development Project Area Acreage HBP Development Undrilled Obligations Pena Arnold Winfield 12,670 9,650 1,170 1,850 11 wells by 3/2019 North LaSalle…
  71. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 71
    Eagle Ford Shale Benchmarking Update How do Carrizo wells compare to direct offsets Evaluated cumulative production from competitor wells near each Carrizo project area This ensured that competitor wells used in the study were…
  72. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 72
    Eagle Ford Shale Benchmarking Study Evaluation Areas 73 CRZO
  73. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 73
    Eagle Ford Shale Benchmarking Update Completion Design 3000 West 200-well Moving Average Proppant Concentration (/ft of perf'd lateral) 2500 2000 1500 1000 500 0 Oct-09 May-10 Nov-10 Jun-11 Dec-11 Jul-12…
  74. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 74
    Eagle Ford Shale Benchmarking Study Pena Arnold Winfield 75 CRZO
  75. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 75
    Eagle Ford Shale Benchmarking Study Pena Arnold Winfield Sum of NormOil PAW Normalized Cumulative Oil Production PAW Normalized Cumulative Oil Production 160,000 160,000 Cum Oil Production, bbls - Normalized to 5000' Lateral…
  76. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 76
    Eagle Ford Shale Benchmarking Study RPG 77 CRZO
  77. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 77
    Eagle Ford Shale Benchmarking Study RPG Sum of NormOil RPG Normalized Cumulative Oil Production RPG Area Normalized RPG Normalized Cumulative Cumulative Oil Production Oil Production 250,000 200,000 Cum Oil Production,…
  78. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 78
    Eagle Ford Shale Benchmarking Update How do Carrizo wells in the west-central Eagle Ford compare to wells in the other areas of the Eagle Ford Evaluated DrillingInfo monthly data for several months in 2014 looking at total…
  79. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 79
    Eagle Ford Shale Benchmarking Update Comparison - Activity By Operator Displays remaining EF completions not utilized in local offset study data set Over 10,000 wells as of year-end 2014 Black Oil Volatile Oil Gas 80 CRZO
  80. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 80
    Eagle Ford Shale Benchmarking Update Comparison - Activity By Operator Shows location of PVA producing wells SN for the operators used in EOG COP comparison DVN PXD Active wells as September 2014: EOG 1463 Anadarko 1109 EOG…
  81. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 81
    Eagle Ford Shale Benchmarking Update Operator Comparison 400 2400 13000 Sorted by BOPD per well 350 2100 12250 300 1800 11500 Eagle Ford Deth, Ft. 250 1500 10750 MCFD 200 1200 10000 BOPD 150 900 9250 100 600…
  82. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 82
    Eagle Ford Shale Benchmarking Update Break-Even Price Comparison 75th % tile Wtd Avg 25th % tile Source: ITG Investment Research. 83 CRZO
  83. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 83
    Eagle Ford Shale Benchmarking Update Oil EUR Comparison 75th % tile Wtd Avg Source: ITG Investment Research. 25th % tile 84 CRZO
  84. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 84
    Eagle Ford Shale Benchmarking Update Takeaways Demonstrates Carrizos overall geologic acreage quality Validates Carrizos completion strategy Demonstrates that Carrizo consistently ranks as best in area in terms of normalized…
  85. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 85
    Eagle Ford Shale Valuation Analysis Methodology Utilized type curve approach to forecast total reserves and NPV10 for Carrizos entire Eagle Ford project Developed type curves forecast for each project area based upon actual…
  86. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 86
    Eagle Ford Shale Valuation Analysis Assumptions Assumed 10 year development horizon and all areas developed at equal pace Average Drill & Case capital: 1.0 MM + 36M per frack stage (10% reduction) Average Completion capital:…
  87. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 87
    Eagle Ford Shale Project Areas NE LaSalle North LaSalle Arnold Pena Winfield RPG Irvin Brown Trust Mumme East Gardendale Mumme Pierce SE Cotulla 88 CRZO
  88. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 88
    Eagle Ford Shale Family of Type Curves All Project Areas Normalized 21 Stage Type Well Daily Oil Rate Oil vs. Time 700 Displays 21 stage 650 normalized type curves 600 by area 550 These 21 stage curves 500 are scaled up or down…
  89. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 89
    Eagle Ford Shale Family of Type Curves All Project Areas Normalized 21 Stage Type Well Daily Oil Rate Oil vs. Time 700 Displays 21 stage 650 normalized type curves 600 by area 550 These 21 stage curves 500 are scaled up or down…
  90. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 90
    Eagle Ford Shale Family of Type Curves All Project Areas Normalized 21 Stage Type Well Daily Oil Rate Oil vs. Time 175,000 Displays 21 stage normalized type curves 150,000 by area These 21 stage curves 125,000 are scaled up or…
  91. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 91
    Eagle Ford Shale IRR and NPV-10 by Project Area 150% 125% 235% 221% 212% 166% IRR 100% 75% IRR 50% 25% 0% 6.0 5.0 NPV-10 4.0 3.0 MM 2.0 1.0 0.0 45 WTI 55 WTI 65 WTI 75 WTI 92 Notes: Includes 10%…
  92. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 92
    Eagle Ford Shale Type Curve Economics Weighted Average Future Well Future Well Type Curve 700 210 Total Well Cost 5.8 MM 650 195 Frac Stages 25.5 600 180 Lateral Length 6,120 ft. 550 165 500 150 Gross 510 Mboe Daily…
  93. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 93
    Eagle Ford Shale High Returns Achievable at Low Prices 140% 120% 100% 80% IRR 60% 40% 20% 0% 45 55 65 75 85 95 NYMEX Oil Price (/Bbl) 2014 Cost Level 10% Cost Reduction 20% Cost Reduction 30% Cost…
  94. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 94
    Eagle Ford Shale Continuous Improvement Company will continue to pursue methods to maximize well inventory, EURs and improved profitability even more important in current price environment Downspacing Engineered completions…
  95. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 95
    Eagle Ford Shale Downspacing Displays project area with assumed 330 ft. well spacing Triangles indicate pads drilled at 330 ft. to-date Total of 20 gross wells at 330 ft. spacing producing at year end 2014 330 ft.…
  96. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 96
    Eagle Ford Shale 330 ft. Downspacing - Irvin 330 ft 500 ft Hybrid 500 ft 330 ft 1,000 ft 1,000 ft 97 CRZO
  97. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 97
    Eagle Ford Shale 330 ft. Downspacing -Irvin 181,000 10H (1000) 11H (1000) 12H (1000) 161,000 120H (750) 121H (750) 141,000 122H (1000) 90H (1000) 91H (1000) 121,000 92H (1000) Cumulative oil, Bbl 150H (500) 101,000…
  98. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 98
    Eagle Ford Shale 330 ft. Downspacing Pena Arnold Winfield 1,000 ft 1,000 ft 850 ft 850 ft 500 ft 1,000 ft 330 - 400 ft 600 ft 99 CRZO
  99. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 99
    Eagle Ford Shale 330 ft. Downspacing Pena Arnold Winfield 200000 Arnold 10H (750) Arnold 11H (750) Arnold 13H 180000 Winfield 50H (850) Winfield 51H (850) Winfield 52H (1000) 160000 Winfield 53H (1000) Arnold 30H (1000) 140000…
  100. 2015 Analyst Conference – Carrizo Oil & Gas Inc. – slide 100
    Continuous Improvement Engineered Completions Concept Improve on the geometric completion technique by utilizing reservoir characterization and rock mechanics data Theory Segmentation of the wellbore into like kind intervals…

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