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Cash interest expense, net of amounts capitalized, increased to $43.7 million for the year ended December 31, 2012 compared to $26.1 million for the same period of 2011. The increase was primarily attributable to interest on the $200.0 million aggregate principal amount of our 8.625% Senior Notes issued in the fourth quarter of 2011 as well as interest on the $300.0 million aggregate principal amount of our 7.50% Senior Notes issued in the third quarter of 2012.

An unrealized loss on derivatives of $7.2 million was recorded for the year ended December 31, 2012 as compared to an unrealized gain on derivatives of $15.7 million for the same period of 2011 due to the change in fair value of our open derivative positions during those periods.

Non-cash, stock-based compensation expense of $11.7 million was recorded for the year ended December 31, 2012 as compared to $11.9 million for the same period of 2011. The decrease in stock-based compensation expense was primarily due to a decrease in the fair value of stock appreciation rights due to a decrease in stock price during 2012 as compared to an increase in stock price during 2011, partially offset by higher stock-based compensation expense due to a higher number of restricted stock awards outstanding during 2012 as compared to 2011.

The estimated annual effective income tax rates (which are used for purposes of computing Adjusted Net Income) for the years ended December 31, 2012 and 2011 were 38.1% and 36.6%, respectively. The actual effective income tax rate for the year ended December 31, 2012 was 31.8%, which was lower than the estimated annual effective income tax rate due to the foreign tax benefit of our U.K. Huntington field development project. The actual effective income tax rate for the year ended December 31, 2011 was 33.2%, which was lower than the estimated annual effective income tax rate due to revisions of prior period estimates of state income taxes as well as prior period adjustments related to the Company's state and U.K. income tax provisions recorded during the fourth quarter of 2011.

S.P. "Chip" Johnson, IV, President and CEO of Carrizo commented on the quarter's results, "Our fourth quarter performance once again sets new records on a number of fronts, capping off a transformational year for the Company. Thanks to our record oil production, we reported the highest quarterly revenue and EBITDA in the history of the Company. We have now reported sequential revenue growth for the last nine quarters and remain confident that this growth trend will continue. Executing on our approved development plans and using reasonable assumptions for commodity prices, our operations could show sequential quarterly growth in revenue and EBITDA in 2013. As I mentioned in our recent reserves press release, we are seeing dramatic benefits from our transformation to a more oily company. Our EBITDA margin per Boe expanded once again to $39.08 from $36.73 last quarter and from $24.55 for the fourth quarter of 2011. Our EBITDA margin came in at 80% this quarter, even higher than the 74% reported for the fourth quarter of 2011.

"Our staff has done a remarkable job of managing both our rapid growth and our changing production mix. This quarter we exceeded the high end of guidance for both oil and gas production. We grew our EBITDA to $93.0 million for the quarter, an increase of 90% from the fourth quarter of 2011, and to $319.0 million for the year, an increase of 85% from 2011. These exceptional results exclude any adjustment for the loss of approximately 7,572 Boe/d of production associated with the sale of 53.8 MMBoe of reserves during the year.