Caarizo Report

FREEMAN

Reports

April 18, 2016

CARRIZO OIL & GAS INC.

CRZO /NASDAQ

Initiating Coverage: Hold on to Eagle Ford, Watch Delaware.

Investment Rating: Market Perform

PRICE: $32.08

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S&P 500: 2,094.34

DJIA: 18,004.16

RUSSELL 2000: 1139.28

Significant Reduction of Capital Expenditure.

Outstanding Performance of the Eagle Ford Shale.

Prospective Growth Potentials of the Delaware Basin.

Strong Hedge Plan to Lock in Profits.

Our 12-month target price is $36.51.

Company Quick View:

Location: Houston, Texas

Industry: Oil & Gas Operations

Description: Carrizo oil & gas Inc. is an energy company that explores, develops, and produces oil and natural gas in

in Texas, Pennsylvania, Colorado, and Ohio.

Key Products & Services: Production of crude oil and natural gas.

Web Site: http://www.carrizo.com

Freeman Analysts

Yaqiu Deng

Peng Qiu

Xiyu Zhang

Huixian Zhou

Please Note: Freeman Reports are produced solely as part of an

educational program of Tulane University’s A.B. Freeman School

of Business. The reports are not investment advice and you should

not and may not rely on them for making any investment decisions.

You should consult an investment professional and/or conduct your

own primary research regarding any potential investment.

Carrizo Oil & Gas Inc. (CRZO)

FREEMAN

Reports

April 18, 2016

STOCK PRICE

PERFORMANCE

Figure 1:

5-year Stock Price

Performance

Source: Bloomberg April 18, 2016

INVESTMENT

SUMMARY

Our team gave Carrizo Oil & Gas Inc. (Carrizo) a MARKET

PERFORM rating and projected the 12-month target price to be $36.51,

which increases almost 13.8 percent over the stock price of $32.08 on

April 18, 2016. We weighted three different valuation methodologies to

calculate the target price. The three methods we chose were appraisal

method, enterprise value to earnings before interest, taxes, depreciation,

and amortization (EV/EBITDA) multiple method, and price to cash flows...