Jeffereis Updates Carrizo (CRZO) Estimates to Reflect Sale of Huntington Subsidiary

On Friday Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) announced it entered into a definitive agreement to sell its Carrizo UK Huntington subsidiary and all of its interest in the Huntington Field in the UK North Sea to a subsidiary of Iona Energy Inc. for a cash consideration of $184 million. Carrizo expects to net approximately $116 million, after payment of approximately $70 million to retire and close our UK credit facility, working capital adjustments and transaction related costs.

In response, analysts at Jefferies lowered 2013 EPS estimates to $1.66 from $3.68 to reflect removal of Huntington production. Q4 estimates were lowered to $0.36 from $0.43, reflecting an update of commodity prices.

Overall Carrizo Oil & Gas, Inc. continues to transition from Barnett gas production to oil production from Eagle Ford, Niobrara, and Utica and gas production from Marcellus. Its production mix is moving from 11 percent oil in 2011 to 30 percent in 2012 and 38 percent in 2013.

Jefferies maintained a Hold rating on Carrizo Oil & Gas and lowered its price target of $25.00 (from $28.00).

For an analyst ratings summary and ratings history on Carrizo Oil & Gas (NASDAQ: CRZO) click here. For more ratings news on Carrizo Oil & Gas click here.

Shares of Carrizo Oil & Gas closed at $20.64 yesterday.

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