Boston, MA 05/07/2014 (wallstreetpr) – After reporting a strong 1Q2014 earnings results that were widely supported by record production levels, Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) believes it can gain more and even compensate for the previous soft performances by increasing production in the balance of 2014.
As such, the company updated its 2014 production target and maintained that it will work on adjusting costs on expenses with the aim of significantly improving the bottom-line. That came at a time when the company announced the development of more and new oil and gas facilities to add up to capacity.
Production guidance
Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) expects full-year 2014 production between 17,500 and 18,200 barrels per day (b/d). It previously guided production target between 17,000 and 17,800 b/d. As the company looks forward to increased production, it banks on the strong performance of the Eagle Ford shale.
As the company seeks to improve production levels in 2014, it has earmarked between $665 and $685 million in capital expenditure for the year, signaling about $15 million improvement. The fund will primarily finance more drilling projects in Eagle Ford.
Increased production should lead to high revenue and the company expects to maintain the trend for the longest time possible as it seeks to grow and create value for the shareholders.
The latest quarter saw production up more than 61 percent to 15,022 b/d over the 9,211 b/d in 1Q2013. The high production levels supported record revenue with oil revenue hitting $130.4 million, thus accounting for about 83 percent of the total revenue realized in 1Q2014.
1Q2014 in summary
Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) saw 1Q production firsts, supporting record revenue and improved profits. Revenue was $157.2 million, 49 percent over the figure generated in 1Q2013. The quarter saw net income at $23.4 million or 51 cents per share. That was about 14 percent improvement above the $20.6 million net income realized in 1Q2013.
