Carrizo Oil & Gas: Expanding Into The Permian
Carrizo Oil & Gas: Solid Execution, Growing Asset Base
Richard Zeits • 13 Comments
Richard Zeits • 13 Comments
Carrizo Oil & Gas: Increasing Footprint In The Eagle Ford
Richard Zeits • 10 Comments
Richard Zeits • 10 Comments
Mon, Jul. 18, 3:58 PM
- Pioneer Natural Resources (PXD +0.1%), EP Energy (EPE +0.9%), Carrizo Oil & Gas (CRZO +2.8%), Sanchez Energy (SN +2.5%) and Synergy Resources (SYRG -0.1%) are all upgraded to Buy at KLR Group in advance of Q2 earnings reports.
- At the same time, the firm downgrades Devon Energy (DVN -0.4%), Consol Energy (CNX -1.3%) and Continental Resources (CLR +0.4%) to Accumulate from Buy on valuation given their substantial share price appreciation over the past four months.
- KLR expects the U.S. E&P industry's cost intensity to decline another 10% this year as capital spending is rationalized another 45%, but it anticipates spending ultimately will increase ~70% "assuming a substantive recovery in commodity prices."
- The firm's new stock price targets are $218 for PXD, $6.50 for EPE, $49 for CRZO, $9 for SN, $9 for SYRG, $44 for DVN, $20 for CNX and $54 for CLR.
Fri, Jun. 17, 2:58 PM
- Carrizo Oil & Gas (CRZO +8.2%) is sharply higher after Stifel initiates coverage with a Buy rating and $48 price target, believing CRZO holds significant optionality and flexibility should it decide to ramp drilling and/or completion operations in H2 201616 and/or 2017.
- Stifel notes that 90% of CRZO's 2016 budget focused on the company's largely contiguous 88K net Eagle Ford acres, much of which has existing infrastructure, as well as CRZO's planned 30-plus well DUC inventory at year-end 2016.
- The firm also likes CRZO's 22K net acre position in the highly desired and hotly contested Delaware Basin, where economics rival core Eagle Ford returns, and management's intentions to build scale in the emerging play.
Fri, Jun. 10, 7:05 PM
- Western Colorado has 40x more natural gas than previously thought, potentially making it the second-largest formation in the U.S., according to a new estimate from the U.S. Geological Survey.
- The Mancos Shale formation in Colorado’s Piceance Basin holds ~66.3T cf of gas, up from just 1.6T estimated in 2003, the USGS says, and the revision puts the basin second only to the Marcellus Shale in terms of the largest total gas reserves in the U.S.
- Current prices of ~$2/MMBtu are considered too low for companies to begin drilling to any large extent; companies likely would begin drilling if prices reached $3.50/MMBtu, says David Ludlam of the West Slope Colorado Oil and Gas Association.
- Among Colorado's top current oil and gas producers: APC, NBL, ECA, XOM, CVX, OXY, WLL, BBG, SYRG, PDCE, BCEI, CRZO
Tue, Jun. 7, 3:44 PM
- Seaport Global Securities upgrades a half-dozen energy E&P stocks - and downgrades two others - even after the group has rallied YTD, saying it is "willing to overlook higher leverage as long as the operational trajectory is notably improving."
- Noble Energy (NBL +4.2%) and Eclipse Resources (ECR +5.5%) are upgraded to Buy from Neutral, as NBL boasts "strong growth and cheap valuation relative to peers" and ERC is "among the cheapest NE gas names while offering good compression in out-year multiples."
- Seaport hikes Synergy Resources (SYRG +2.4%) to Buy from Accumulate thanks to "top-tier growth potential at >$50 oil."
- Upgraded to Accumulate from Neutral are Carrizo Oil & Gas (CRZO +4.3%), as “strong Eagle Ford returns justify return to growth,” and Concho Resources (CXO +4.6%), with “high-quality exposure to the Delaware Basin poised to garner further credit."
- The firm raises WPX Energy (WPX +0.2%) to Neutral from Sell, citing “leverage burden eased with equity, higher commodity price deck assumptions, recent operational progress."
- However, Oasis Petroleum (OAS +0.7%) is downgraded to Neutral from Buy as “NAV valuation gap has closed after a 54% move since our March 30 report," and Petroquest Energy (PQ +1.3%) is cut to Accumulate from Buy as “risk/reward upside has tempered" following a 67% move since March 30.
Fri, May 13, 12:57 PM
- Carrizo Oil & Gas (CRZO -1.2%) and Energen (EGN -1.3%) are upgraded to Overweight from Neutral at J.P. Morgan, which says the small-to-midcap E&P sector delivered a generally positive Q1 from an operational standpoint and “several updates driving NAV accretion.”
- JPM likes CRZO as it expects lower completed well costs in the Eagle Ford and thinks the company is well-positioned entering 2017 from an operational standpoint; the firm raises its stock price target to $40 from $35.
- EGN enjoys a robust balance sheet, which may be further strengthened by an anticipated $400M in asset sales, the firm says, raising the stock price target to $51 from $43.
- The firm upgrades Laredo Petroleum (LPI -0.8%) to Neutral from Underweight with a $12 price target, raised from $9.
Wed, May 4, 6:35 AM
Tue, May 3, 5:30 PM
- AFAM, ARCC, ARCO, ARQL, ASC, ATRO, AVA, AYR, BDC, BUD, CDW, CHH, CLH, CPK, CRK, CRL, CRTO, CRZO, CSTE, D, DLPH, DNOW, ECYT, EE, ENR, FUN, GEL, GNRC, GTE, HAIN, HE, HFC, HSC, HSNI, HTWR, HYH, ICE, INXN, IONS, IRT, KATE, KLIC, LGND, MEMP, MFA, MMP, MOS, MPW, MTOR, NBL, NGS, NJR, NRZ, NVMI, NXTM, OMF, ONCE, ORBK, PCG, PCLN, RDC, RDS.A, SBGI, SCMP, SE, SERV, SHOP, SMP, SPAR, SR, SRE, SSTK, STRA, TGH, TGI, TMHC, TREE, TWX, VIRT, VOYA, VSI, WD, WIX, ZTS
Mon, May 2, 6:39 PM
- The Colorado Supreme Court ruled today that municipalities cannot bar fracking and the storage of fracking waste, striking down measures passed by the cities of Fort Collins and Longmont.
- A local ban "could ultimately lead to a patchwork of regulation that would inhibit the efficient development of oil and gas resources" if left in place, according to one of two rulings today.
- The decisions uphold lower court rulings and come amid a long-running battle over fracking across northeastern Colorado, which sits atop the Denver-Julesburg Basin.
- Among Colorado's top oil and gas operators: APC, NBL, ECA, WLL, BBG, BCEI, CRZO, PDCE, SYRG
Sun, May 1, 1:08 PM
- A new study finds that fracking of U.S. shale fields is causing a global surge in ethane emissions. Ethane is known to contribute to global warming and dangerous air pollution.
- Global ethane levels had been falling since the 1980s, but in 2010 a sensor in Europe picked up a surprise increase. U.S. shale fracking was thought to be the culprit. More recently, a single field in the North Dakota and Montana Bakken Formation has been found to be emitting 2% of the worldwide total.
- "Two percent might not sound like a lot, but the emissions we observed in this single region are 10 to 100 times larger than reported in inventories. They directly impact air quality across North America. And they're sufficient to explain much of the global shift in ethane concentrations," said Eric Kort, the first author of the new study published in Geophysical Research Letters.
- Ethane emissions from other U.S. fields, especially the Texas Eagle Ford, likely contributed as well, the research team says. The findings illustrate the key role of shale oil and gas production in rising ethane levels.
- Baaken stocks include: CLR, ERF, EOG, HK, HES, MRO, OAS, QEP, SM, STO, TPLM, WLL
- Eagle Ford stocks include: APC, APA, COG, CRZO, CHK, COP, ECA, XOM, MUR, PXD
- See the full study here »
Sun, Apr. 24, 6:13 PM
- via Credit Suisse, in order of # of small-cap funds who own the stock. Following the stock is the number of funds who own it, and the change vs. previous quarter:
- IDTI - Integrated Device Tech 96 | 14
- MSCC - Microsemi 86 | 10
- MANH - Manhattan Associates 85 | 5
- CBM - Cambrex 80 | 4
- EEFT - Euronet Worldwide 80 | 8
- POR - Portland General Electric 79 | 0
- EME - Emcore 78 | 6
- LAD - Lithia Motors 78 | 6
- AMSG - Amsurg 78 | 0
- JCOM - J2 Global 77 | 4
- PFPT - Proofpoint 77 | 4
- AHS - AMN Healthcare 74 | 2
- EXPR - Express Inc. 74 | 3
- ICUI - ICU Medical 73 | 0
- LGND - Ligand Pharma 73 | 6
- PVTB - Privatebancorp 73 | -2
- PRXL - Parexel 72 | 5
- AEL - Americal Equity Investment Life 71 | 3
- TYL - Tyler Technologies 71 | 7
- CRZO - Carrizo Oil & Gas 69 | 3
- MENT - Mentor Graphics 69 | -9
- MNRO - Monro Muffler Brake 68 | 0
- WAL - Western Alliance Bancorp 68 | 8
- AEO - American Eagle Outfitters 67 | 0
- LOGM - Logmein 67 | -1
- OZRK - Bank of the Ozarks 67 | 5
- SHOO - Steven Madden 67 | -10
- STE - Steris 67 | 20
- WNC - Wabash National 67 | -1
- Credit Suisse recommends reducing exposure in small-cap "darlings" due to less opportunity for differentiation; historical underperformance; and outflows.
Wed, Mar. 30, 3:30 PM
- Analysts at Seaport Global upgrade seven oil and gas producers, advocating for increased exposure to select names they say should protect investors in the event of a move back toward $50/bbl, while downgrading 11 others.
- Seaport upgrades seven companies to Buy: Continental Resources (CLR +3.4%), Callon Petroleum (CPE +1.4%), Marathon Oil (MRO +1.9%), Oasis Petroleum (OAS +2.8%), Rice Energy (RICE +1.7%), Petroquest Energy (PQ +9.1%) and Lonestar Resources (OTCQX:LNREF +6.6%).
- Downgraded to Sell are Whiting Petroleum (WLL +4.1%), Southwestern Energy (SWN -2.5%), WPX Energy (WPX +0.6%), Laredo Petroleum (LPI -1.1%), Jones Energy (JONE +0.9%), Northern Oil & Gas (NOG +1%), Carrizo Oil & Gas (CRZO +1.6%), Memorial Resource (MRD +2.5%), Matador Resources (MTDR -0.3%), Sanchez Energy (SN +1.6%) and PDC Energy (PDCE -0.9%).
- The firm also favors gaining leverage to the Oklahoma STACK play, thus CLR and Newfield Exploration (NFX +1.9%) have "taken the pole position away" from Permian producers Parsley Energy (PE +1.3%) and Pioneer Natural Resources (PXD +1%).
Fri, Mar. 11, 3:53 PM
- EP Energy (EPE -3.1%) is a rare energy loser today as Goldman Sachs downgrades shares to Sell from Neutral with a $4.50 price target, based on a lack of differentiated growth relative to other oil levered companies and a weakening balance sheet, resulting from attractive hedges rolling off at year-end 2016.
- But Goldman, while it forecasts sharply lower U.S. oil prices over the coming weeks, also sees "a path emerging" for a recovery to $55-$60/bbl in 2017 to restart the U.S. shale machine, and raises its coverage outlook for the E&P sector to Attractive from Neutral while recommending investment in "secure shale productivity winners and the next rung stocks.”
- The firm upgrades Carrizo Oil & Gas (CRZO +10.4%) to Buy from Neutral with a $37 price target, expecting CRZO to exit 2017 at a manageable 3.6x net debt/EBITDA with the potential for non-core asset sales to aid in further deleveraging.
- RSP Permian (RSPP +7.9%) also is raised to Buy from Neutral, with a $34 target, as Goldman expects a re-acceleration of drilling activity in 2017 to drive improvement in the company’s leverage metrics and easing investor concerns.
- Oasis Petroleum (OAS +4.4%) is upped to Neutral from Sell with a $7.25 price target, as the firm believes that a cyclical recovery in oil prices would ease investor concerns over the company’s leverage.
- Earlier: Anadarko Petroleum upgraded to Buy at Goldman Sachs
Tue, Feb. 23, 3:57 PM
- Carrizo Oil & Gas (CRZO -4.9%) is sharply lower in choppy trading despite reporting better than expected Q4 earnings.
- CRZO says Q4 revenue fell 13% Y/Y to $151.8M but still narrowly edged analyst expectations, and it produced 40,159 boe/day during the quarter, up 7% over the prior-year period and exceeding the high end of company guidance.
- CRZO says it has hedges in place for ~60% of its expected 2016 production, covering 9,315 bbl/day of swaps at an average price of $60.03/bbl and another 5,492 bbl/day of collars with weighted prices of $50.97-$74.73/bbl.
- The company sets a 2016 drilling and completion cap spending plan of $270M-$290M.
Mon, Feb. 22, 4:35 PM
Sun, Feb. 21, 5:35 PM
Wed, Jan. 6, 3:47 PM
- Stone Energy (SGY -15.9%) is slammed after FBR Capital downgrades shares to Market Perform from Outperform and Imperial Capital slashes its price target to $6 from $8.
- Imperial says that while it believes SGY will have a much improved liquidity profile and the ability to operate close to cash flow through 2017, concerns over the maturing unsecured 1.75% 2017 notes are placing too much pressure on the stock; the firm maintains its Outperform rating on the stock.
- FBR recommends building positions in E&P equities with staying power, margin stability and strong management, naming Carrizo Oil & Gas (CRZO -12.6%), Callon Petroleum (CPE -6.2%) and Sanchez Energy (SN -7.9%) its favorite ideas in the sector.
Carrizo Oil & Gas, Inc. operates as an energy company which is engaged in the exploration, development and production of natural gas and oil in the Eagle Ford Shale in South Texas, the Marcellus Shale in Pennsylvania, the Niobrara Formation in Colorado and the Utica Shale in Eastern Ohio. The... More
Sector: Basic Materials
Industry: Independent Oil & Gas
Country: United States
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