CRZO - Carrizo Oil & Gas: Set To Deliver Positive Cash Flow In 2019
As expected, Carrizo Oil & Gas (CRZO) is reducing its capital expenditure budget for 2019 in order to avoid significant cash burn with oil in the $50s. With oil prices recovering a bit and the Midland-Cushing oil differential narrowing, Carrizo now looks like it could deliver moderately positive cash flow during 2019 at strip prices, while keeping production around Q4 2018 levels.
With the narrower Midland-Cushing oil differential, Carrizo is also increasing its activity in the Delaware Basin again. Carrizo is reducing its Eagle Ford rig count from four rigs to one