Out Fox The $treet

With the recent run-up in Carrizo Oil & Gas ( NASDAQ: CRZO     ), you are probably wondering if the stock has any room for future gains. Balancing long-term potential and the risk of losing 100% in gains can be a difficult task. The company is a small exploration firm focused on the production of oil in the Eagle Ford Shale, Niobrara Shale, and natural gas in the Marcellus Shale. In addition, it recently completed the first well in the Utica Shale. Read the full article here . Disclosure: Long CRZO. Please review the disclaimer page for more details. 

This stock was crushed today, down over 5% at the close. On top of that Carrizo Oil & Gas (CRZO) is down over 33% from last years high. The main issue is that the market still sees it as a natural gas play, but clearly the company has already moved to mainly oil. Per the interview below on Mad Money , the CEO reconfirms that the company is already 60% oil and will hit 80% oil by the end of the year. The most interesting part of the interview was the prediction that 2013 revenues could hit $750M with the current rig count. Incredible considering analysts forecast something in the $600M range and considering the company just sold a large chunk of Barnett Shale production. Also worth noting is that the company will be throwing off cash in 2013 though the CEO wants to add rigs once the company reaches that level. All in all very positive news about a stock I was becoming concerned about. Considering the oil focused stocks have recently hit new highs and especially trade above ...

Interesting article from the Financial Times about a subject I've wondered about as well. Will the surge in land prices for US shale oilfields last? Every time you read an article, one wonders why Chesapeake Energy (CHK) can't translate purchases of acres at $1,400 that is sold for $15,000 into huge stock price gains. Also, it amazes me that none of the major energy companies with vast cash hoards aren't able to beat CHK to the punch for cheap acres. Ultimately the issue with Chesapeake is that it requires a ton of debt to grab all this land and hold onto it until it is able to drill and recover oil or nat gas. The big surge in nat gas production from these shale plays have already led to a price collapse in the domestic market. The recent expansion into oil plays isn't likely to cause the same collapse in price as oil is an international market. If nat gas was an international market as well, prices wouldn't have collapsed. Asian and European users pay doubl...

Carrizo Oil & Gas (CRZO) achieved its oil production per day goal by reaching the objective of 5,000 net barrels by the end of 2011. In fact, production surpassed the goals by 20% with the oil production on December 26th reaching 6,040 barrels. CRZO has had a challenging time of meeting quarterly targets so this should be seen as significant news. Not only that, but it is already forecasting 7K barrels from the Eagle Ford alone by the end of 2012. This doesn't include anything from the Niobrara or any other fields. Amazingly the stock is flat for the day as the markets ignores the good news. Magnum Resources soared 17% yesterday on similar news. Not sure what else the market wanted, but this provides the new investor an opportunity to jump onto a proved fast growing producer at a cheap valuation. Details per PR: "It may have appeared optimistic when we announced our 5,000 bopd target in mid-2010 given that we were producing approximately 400 bopd at the time and...