Carrizo Oil Q1 Loss Balloons On Impairment Charges

HOUSTON (AP) — Independent crude oil and natural gas producer Carrizo Oil & Gas Inc. reported Monday a first-quarter loss of $148.3 million, mostly due to an impairment charge on oil and gas properties.

The company said it lost $4.80 in the quarter, compared with a loss of $5.3 million, or 18 cents a share for the same quarter in 2008.

Carrizo recorded an non-cash charge of $161.4 million, based on a $163.9 impairment of oil and gas properties, stock compensation expenses of $2.2 million and $100,000 in bad debt expense. The charges were partially offset by an unrealized market gain of $4.8 million on derivatives.

Shares of Carrizo fell 6.3 percent or 41.22 to $18.07 in early afternoon trading.

Without the charge, Carrizo earned $13.1 million or 42 cents a share in the quarter, compared with a profit of $13.9 million or 47 cents a share, for the same quarter a year ago.

Revenue fell 43 percent to $30.7 million, compared with $53.6 million a year ago. The company attributed the decrease to lower natural gas prices. Carrizo reported record production volumes in the first quarter due to its new Barnett Shale wells.