Carrizo Oil & Gas 1Q earnings drop 96 pct

May 10, 2011 | Budget & Investment

Carrizo_Oil_GasCarrizo Oil & Gas Inc., said Tuesday that first-quarter earnings tumbled 96 percent after taking nearly $10 million in special charges including unrealized losses from derivative contracts.

The Houston petroleum company, which focuses on developing shale deposits in North America, reported earnings of $735,607, or 2 cents per share, for the three months ended March 31. That is down from $19.7 million, or 63 cents per share, a year earlier. Revenue increased 13 percent to $44.1 million from $39 million.

Excluding charges of $9.9 million, Carrizo said it would have earned $10.6 million, or 27 cents per share.

Analysts, who typically exclude special charges, were expecting earnings of 27 cents per share on revenue of $58.1 million.

Carrizo said that production increased 29 percent to 10.7 billion cubic feet during the quarter as it received contributions from new wells in the Barnett Shale, Eagle Ford Shale,   and Niobrara Formations.

However, the company said natural gas prices dropped 19 percent to $4.14 per 1,000 cubic feet. Oil prices increased 17 percent to $88.84 per barrel.