Dallas, Texas 10/30/2013 (Financialstrend) – Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) is a small cap independent oil and gas producer with a market capitalization of $1.79 billion. In the past one month the stock has been on the move at the browsers. It has appreciated by close to 20% in the past 30 days and is trading at price points which are just 6.5% below its 52 week high pricing. The trigger for the bull rally of this stock was an October 9 announcement that Carrizo had managed to renegotiate terms for its revolving credit facility with its current lenders. The lenders of the oil firm are a consortium of banks led by Wells Fargo.
As per the new terms, the term for the revolving credit has been extended to July 2018 from current January 2016. It has also managed to negotiate a $250 million increase in its debt ceiling. The oil firm will now be able to lean on a $1 billion revolving credit mechanism in comparison to $750 million earlier. More importantly, Carrizo Oil has managed to negotiate revolving loan at lower interest rate in comparison to what it had obligated to pay previously.
At these more favorable terms of revolving loan, the oil and gas small cap would be able to concentrate on increasing its production in order to report more revenue. It has also published the dates for its 3Q results announcement. This is expected to now happen on November 5. Investors in the stock would be hoping that the oil firm is able to better its 2Q performance results. In the preceding quarter which ended on June 30, the oil firm had managed to post 60% increase in its quarter on quarter sales numbers. Its gross margins were also up by 86% during the trailing 12 months. On October 29 close of business, the stock was trading at $44.75 per share.