Carrizo O&G reported the Company's financial results for the second quarter of 2010, which included the following highlights:

Results for the Second Quarter 2010 --

•Record production of 9.3 Bcfe, or 102,145 Mcfe/d •Revenue of $32.9 million or Adjusted Revenue of $43.5 million, including the impact of realized hedges •Net Income of $1.8 million, or Adjusted Net Income of $11.7 million before the net non-cash items noted below •EBITDA, as defined below, of $31.6 million Production volumes during the three months ended June 30, 2010 were a record 9.3 Bcfe, an increase of 1.4 Bcfe, or 18%, from second quarter 2009 production of 7.9 Bcfe and an increase of 1.0 Bcfe, or 12%, from the first quarter 2010 production of 8.3 Bcfe. The increases in production were primarily due to new Barnett Shale wells partially offset by normal production decline. Adjusted revenues from the sale of oil and gas production were $43.5 million for the second quarter of 2010, which includes oil and gas revenues of $32.9 million and realized hedge gains of $10.6 million, compared to $53.1 million for the second quarter of 2009, which includes oil and gas revenues of $25.9 million and realized hedge gains of $27.2 million. The decrease in adjusted revenues was primarily driven by lower realized gas prices partially offset by increased production. The Company's average natural gas sales price decreased 33% to $4.47 per Mcf for the second quarter of 2010 compared to $6.64 per Mcf for the second quarter of 2009 and the average oil sales price increased 33% to $75.71 per barrel for the second quarter of 2010 compared to $56.95 per barrel for the second quarter of 2009. The above prices include the impact of realized hedges. Results excluding the impact of realized hedges are presented in the table below.

For the quarter ended June 30, 2010, the Company reported adjusted net income of $11.7 million, or $0.34 per basic and diluted share, excluding an aggregate net $9.9 million non-cash, after-tax charge, comprised of (1) an unrealized loss of $4.8 million on derivatives, (2) stock-based compensation expense of $2.0 million, (3) an impairment of oil and gas properties of $1.8 million, (4) non-cash interest expense of $1.2 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs, and (5) bad debt expense of $0.1 million. For the quarter ended June 30, 2009, the Company reported adjusted net income of $15.8 million, or $0.51 per basic and diluted share, excluding an aggregate net $21.8 million non-cash, after-tax charge, comprised of (1) an unrealized loss of $19.2 million on derivatives, (2) stock-based compensation expense of $1.5 million and (3) non-cash interest expense of $1.1 million associated with the amortization of the equity premium on the Company's convertible notes and deferred financing costs. The Company reported net income of $1.8 million, or $0.05 per basic and diluted share, for the quarter ended June 30, 2010, as compared to net loss of $6.0 million, or $0.19 per basic and diluted share, for the same quarter during 2009.

Earnings before interest, income tax, depreciation, depletion and amortization expenses, impairment of oil and natural gas properties and certain other items described in the table below ("EBITDA") was $31.6 million, or $0.95 and $0.94 per basic and diluted share, respectively, during the second quarter of 2010 as compared to $39.5 million, or $1.27 and $1.26 per basic and diluted share, respectively, during the second quarter of 2009.

Tags: Carrizo Oil & Gas