CRK

COMSTOCK RESOURCES INC

Energy | Mid Cap

-$0.16

EPS Forecast

$311.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-12-31
EX-99.1 2 crk-ex991_33.htm EX-99.1 crk-ex991_33.htm

Exhibit 99.1

5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8834

Contact: Ron Mills

VP of Finance and Investor Relations

Web Site:  www.comstockresources.com

 

NEWS RELEASE

 

For Immediate Release

 

COMSTOCK RESOURCES, INC. REPORTS

FOURTH QUARTER 2019 FINANCIAL AND OPERATING RESULTS

 

FRISCO, TEXAS, February 26, 2020 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and year ended December 31, 2019. On July 16, 2019, Comstock completed the acquisition of Covey Park Energy LLC ("Covey Park"). The Company's annual financial results include the results of operations of Covey Park beginning on July 16, 2019. On August 14, 2018, the Company completed transactions in which entities controlled by Dallas businessman Jerry Jones contributed Bakken Shale properties to the Company in exchange for a controlling interest in the Company (the "Jones Contribution"). The 2019 results and the period from August 14, 2018 through December 31, 2018 reflect the Jones Contribution, while results for the period from January 1, 2018 through August 13, 2018 reflect the historical results of Comstock for that period (the "Predecessor").

 

Financial Results for the Three Months Ended December 31, 2019

For the fourth quarter of 2019, Comstock reported net income available to common stockholders of $40.8 million or $0.19 per diluted share. Net income available to common stockholders as adjusted to exclude certain items not related to normal operating activities for the fourth quarter of 2019 was $49.1 million or $0.22 per diluted share. These items included $4.1 million in non-cash interest amortization resulting from adjusting debt assumed in the Covey Park acquisition to fair value; $4.6 million of non-cash accretion resulting from adjusting the preferred stock issued in connection with the Covey Park acquisition to fair value; and $0.4 million in unrealized hedging gains.  

Comstock produced 121.5 billion cubic feet ("Bcf") of natural gas and 576,665 barrels of oil or 125.0 billion cubic feet of natural gas equivalent ("Bcfe") in the fourth quarter of 2019. Natural gas production averaged 1,321 million cubic feet ("MMcf") per day, an increase of 293% over natural gas production in the fourth quarter of 2018. The growth in natural gas production was primarily attributable to the acquisition of Covey Park and the successful results from Comstock's Haynesville shale drilling activities in 2019. Oil production in the fourth quarter of 2019 decreased to 6,268 barrels of oil per day from 9,155 barrels per day produced in the fourth quarter of 2018 due primarily to expected production declines from the Bakken Shale properties acquired in the Jones Contribution.  

Comstock's average realized natural gas price in the fourth quarter of 2019, including hedging, decreased to $2.30 per Mcf as compared to $3.28 per Mcf realized in the fourth quarter of 2018.  The Company's average realized oil price in the fourth quarter of 2019, including hedging, decreased to $50.36 per barrel as compared to $54.96 per barrel in the fourth quarter of 2018.  Oil and gas sales were $308.6 million (including realized hedging gains) in the fourth quarter of 2019 as compared to sales of $147.7 million in


the fourth quarter of 2018. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $234.8 million in the fourth quarter of 2019 increased by 109% over EBITDAX of $112.5 million for the fourth quarter of 2018.  The Company's operating cash flow generated in the fourth quarter of 2019 of $187.9 million increased 97% over operating cash flow of $95.6 million in the fourth quarter of 2018.

Financial Results for the Year Ended December 31, 2019

For the year ended December 31, 2019, Comstock reported a net income available to common stockholders of $74.5 million or $0.52 per diluted share.  Net income available to common stockholders as adjusted to exclude certain items not related to normal operating activities primarily due to the closing of the Covey Park acquisition for the year ended December 31, 2019 was $122.3 million or $0.77 per diluted share. These items included $31.9 million of advisory and legal fees, severance costs and other change of control payments; $7.1 million in non-cash interest amortization resulting from adjusting debt assumed in the Covey Park acquisition to fair value; $3.5 million of hedging settlements related to July production that were received prior to closing the Covey Park acquisition; $4.6 million of non-cash accretion resulting from adjusting the preferred stock issued in connection with the Covey Park acquisition to fair value; and $0.7 million in unrealized hedging gains.  

Comstock produced 292.8 Bcf of natural gas and 2.7 million barrels of oil or 308.9 Bcfe for the year ended December 31, 2019. Natural gas production averaged 802 MMcf per day and oil production averaged 7,356 barrels of oil per day.  On a proforma basis, assuming the Covey Park acquisition had been completed on January 1, 2019, oil and natural gas production would have been 7,416 barrels per day and 1,190 MMcf per day, respectively. Comstock's average realized natural gas price after hedging was $2.35 per Mcf and realized oil price after hedging was $49.64 per barrel for the year. Oil and gas sales for 2019 were $821.4 million (including realized hedging gains and losses), EBITDAX was $613.6 million and operating cash flow generated was $468.3 million.

Drilling Results

 

Total expenditures in 2019 for drilling and development activities was $510.5 million.  Comstock spent $485.4 million to develop its Haynesville and Bossier shale properties, including $468.5 million on drilling and completing wells and an additional $16.9 million on other development activity.  Comstock drilled 82 (51.1 net) horizontal Haynesville or Bossier shale wells in 2019, which had an average lateral length of approximately 8,100 feet.  Comstock also completed 19 (7.3 net) wells that were drilled in 2018.  Fifty (36.0 net) of the wells drilled in 2019 were also completed in 2019.  The Company currently expects the remaining 32 (15.1 net) wells drilled in 2019 will be completed in 2020, of which 18 (12.6 net) are operated wells. Comstock also spent $25.1 million of development costs on its other properties primarily on completing four (2.2 net) Eagle Ford shale wells during the year.  

 

Since its last operational update, Comstock reported on an additional 20 Haynesville shale wells.  The average initial production rate of these wells was 24 MMcf per day. The wells had completed lateral lengths ranging from 4,337 feet to 10,191 feet, with an average completed lateral length of 6,926 feet.  Each well was tested at initial production rates of 15 to 45 MMcf per day.  Comstock currently has 15 (7.8 net) operated Haynesville shale wells that are in the process of being completed.

 

 

 

 

 

 


2019 Proved Oil & Gas Reserves

 

Comstock also announced that proved oil and natural gas reserves as of December 31, 2019 were estimated at 5.3 Tcfe of natural gas and 16.7 million barrels of oil, or 5.4 Tcfe as compared to total proved reserves of 2.4 Tcfe as of December 31, 2018. The reserve estimates were determined under the SEC guidelines and were audited by the Company's independent reserve engineering firms. The 5.4 Tcfe of proved reserves at December 31, 2019 were 36% proved developed and 92% were operated by Comstock. The present value, using a 10% discount rate, or the future net cash flows before income taxes of the proved reserves (the "PV-10 Value") was approximately $3.3 billion, using average first of month 2019 prices of $2.58 per Mcf of natural gas and $55.69 per barrel for oil. The PV-10 Value increased 85% from the PV-10 Value in 2018 of $1.8 billion. The natural gas and oil prices used in determining the December 31, 2019 proved reserves estimates were 11% lower for natural gas and 9% lower for oil as compared to prices used at December 31, 2018.

 

The following table reflects the changes in the proved reserve estimates since the end of 2018:

 

 

Oil

(MMBbls)

 

 

Natural

Gas

(Bcf)

 

 

Total

(Bcfe)

 

Proved Reserves:

 

 

 

 

 

 

 

 

 

 

 

 

Proved Reserves at December 31, 2018

 

 

23.6

 

 

 

2,282.8

 

 

 

2,424.4

 

Production

 

 

(2.7

)

 

 

(292.8

)

 

 

(308.9

)

Acquisitions

 

 

0.2

 

 

 

3,023.1

 

 

 

3,024.5

 

Extensions and discoveries

 

 

0.3

 

 

 

315.3

 

 

 

316.8

 

Divestitures

 

 

(0.1

)

 

 

(49.5

)

 

 

(49.9

)

Revisions:

 

 

 

 

 

 

 

 

 

 

 

 

Price

 

 

(0.5

)

 

 

(228.5

)

 

 

(231.5

)

Performance and Other

 

 

(4.1

)

 

 

291.1

 

 

 

266.6

 

Proved Reserves at December 31, 2019

 

 

16.7

 

 

 

5,341.5

 

 

 

5,442.0

 

 

The significant growth in proved reserves was primarily attributable to acquisitions, including the Covey Park acquisition, which added 3.0 Tcfe to proved reserves. The Company also added 583 Bcfe related to its 2019 drilling activities and to performance and other revisions. Lower oil and natural gas prices reduced proved reserves by 232 Bcfe. Based on the 2019 proved reserve additions, Comstock's "all-in" finding costs were approximately $0.72 per Mcfe excluding price-related revisions ($0.77 per Mcfe including price-related revisions).

 

2020 Drilling Budget

 

The Company also announced its current drilling plans for 2020.  Comstock's planned capital expenditures for 2020 total $421.0 million and exclusively focused on the Haynesville/Bossier shale. Comstock is currently planning to operate five drilling rigs in 2020 and will drill 46 (34.3 net) operated horizontal wells and complete the 18 (12.6 net) wells drilled in 2019.  

 

Other

 

Comstock has planned a conference call for 10:00 a.m. Central Time on February 27, 2020, to discuss the 2019 operational and financial results.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 844-776-7840 (international dial-in use 661-378-9538) and provide access code 4754719 when prompted.  If you are unable to participate in the original conference call, a web replay will be available approximately 24 hours following the completion of the call on Comstock's website at www.comstockresources.comThe web replay will be available for approximately one week. A replay of the conference call will be available beginning at 1:00


p.m. CT February 27, 2020 and will continue until 1:00 p.m. March 5, 2020.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 4754719.

 

 

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein.  Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

 

Comstock Resources, Inc. is an independent energy company based in Frisco, Texas engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota.  The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

 



COMSTOCK RESOURCES, INC.
OPERATING RESULTS

(In thousands, except per share amounts)

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Twelve Months Ended December 31,

 

 

 

2019

 

 

2018

 

 

2019

 

 

August 14, 2018

through

December 31, 2018

 

 

January 1, 2018

through

August 13, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Predecessor)

 

Natural gas sales

 

$

260,206

 

 

$

107,843

 

 

$

635,795

 

 

$

144,236

 

 

$

147,897

 

Oil sales

 

 

29,042

 

 

 

45,655

 

 

 

132,894

 

 

 

79,385

 

 

 

18,733

 

Total oil and gas sales

 

 

289,248

 

 

 

153,498

 

 

 

768,689

 

 

 

223,621

 

 

 

166,630

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

 

10,449

 

 

 

7,104

 

 

 

29,181

 

 

 

11,155

 

 

 

3,659

 

Gathering and transportation

 

 

29,957

 

 

 

7,061

 

 

 

71,303

 

 

 

10,511

 

 

 

11,841

 

Lease operating

 

 

28,835

 

 

 

13,720

 

 

 

87,283

 

 

 

20,736

 

 

 

21,139

 

Exploration

 

 

—

 

 

 

—

 

 

 

241

 

 

 

—

 

 

 

—

 

Depreciation, depletion and amortization

 

 

111,842

 

 

 

36,124

 

 

 

276,526

 

 

 

53,944

 

 

 

68,032

 

General and administrative, net

 

 

6,484

 

 

 

8,096

 

 

 

29,244

 

 

 

11,399

 

 

 

15,699

 

Loss (gain) on sale of oil and gas properties

 

 

—

 

 

 

(57

)

 

 

25

 

 

 

(155

)

 

 

35,438

 

Total operating expenses

 

 

187,567

 

 

 

72,048

 

 

 

493,803

 

 

 

107,590

 

 

 

155,808

 

Operating income

 

 

101,681

 

 

 

81,450

 

 

 

274,886

 

 

 

116,031

 

 

 

10,822

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain from derivative financial instruments

 

 

19,790

 

 

 

12,480

 

 

 

51,735

 

 

 

10,465

 

 

 

881

 

Other income

 

 

282

 

 

 

131

 

 

 

622

 

 

 

173

 

 

 

677

 

Transaction costs

 

 

90

 

 

 

—

 

 

 

(41,010

)

 

 

—

 

 

 

(2,866

)

Interest expense

 

 

(54,107

)

 

 

(28,758

)

 

 

(161,541

)

 

 

(43,603

)

 

 

(101,203

)

Total other income (expenses)

 

 

(33,945

)

 

 

(16,147

)

 

 

(150,194

)

 

 

(32,965

)

 

 

(102,511

)

Income (loss) before income taxes

 

 

67,736

 

 

 

65,303

 

 

 

124,692

 

 

 

83,066

 

 

 

(91,689

)

Provision for income taxes

 

 

(12,620

)

 

 

(15,004

)

 

 

(27,803

)

 

 

(18,944

)

 

 

(1,065

)

Net income (loss)

 

 

55,116

 

 

 

50,299

 

 

 

96,889

 

 

 

64,122

 

 

 

(92,754

)

Preferred stock dividends and accretion

 

 

(14,287

)

 

 

—

 

 

 

(22,415

)

 

 

—

 

 

 

—

 

Net income (loss) available to common stockholders

 

$

40,829

 

 

$

50,299

 

 

$

74,474

 

 

$

64,122

 

 

$

(92,754

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.22

 

 

$

0.48

 

 

$

0.52

 

 

$

0.61

 

 

$

(6.08

)

Diluted

 

$

0.19

 

 

$

0.48

 

 

$

0.52

 

 

$

0.61

 

 

$

(6.08

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

187,280

 

 

 

105,457

 

 

 

142,750

 

 

 

105,453

 

 

 

15,262

 

Diluted

 

 

284,100

 

 

 

105,457

 

 

 

187,378

 

 

 

105,459

 

 

 

15,262

 

 

 

 

 

 

 

 

 

 

 

 


COMSTOCK RESOURCES, INC.
OPERATING RESULTS

(In thousands)

 

 

Three Months Ended December 31,

 

Twelve Months Ended December 31,

 

OPERATING CASH FLOW:

 

2019

 

 

2018

 

2019

 

 

August 14, 2018

through

December 31, 2018

 

 

January 1, 2018

through

August 13,    2018

 

 

 

 

 

 

 

 

(Predecessor)

 

Net income (loss)

 

$

55,116

 

 

$

50,299

 

$

96,889

 

 

$

64,122

 

 

$

(92,754

)

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred and non-current income taxes

 

 

12,821

 

 

 

25,196

 

 

28,026

 

 

 

29,079

 

 

 

1,052

 

Depreciation, depletion and amortization

 

 

111,842

 

 

 

36,124

 

 

276,526

 

 

 

53,944

 

 

 

68,032

 

Unrealized loss (gain) from derivative financial instruments

 

 

(488

)

 

 

(18,250

)

 

949

 

 

 

(16,044

)

 

 

1,961

 

Amortization of debt discount, premium and issuance costs

 

 

7,068

 

 

 

1,582

 

 

16,274

 

 

 

2,404

 

 

 

29,457

 

Interest paid in-kind

 

 

—

 

 

 

—

 

 

—

 

 

 

—

 

 

 

25,004

 

Stock-based compensation

 

 

1,661

 

 

 

665

 

 

4,020

 

 

 

994

 

 

 

3,912

 

Transaction costs

 

 

(90

)

 

 

—

 

 

41,010

 

 

 

—

 

 

 

—

 

Covey Park July 2019 hedging settlements

 

 

—

 

 

 

—

 

 

4,574

 

 

 

—

 

 

 

—

 

Loss (gain) on sale of oil and gas properties

 

 

—

 

 

 

(57

)

 

25

 

 

 

(155

)

 

 

35,438

 

Operating cash flow

 

 

187,930

 

 

 

95,559

 

 

468,293

 

 

 

134,344

 

 

 

72,102

 

Transaction costs

 

 

90

 

 

 

—

 

 

(41,010

)

 

 

—

 

 

 

—

 

Covey Park July 2019 hedging settlements

 

 

—

 

 

 

—

 

 

(4,574

)

 

 

—

 

 

 

—

 

(Increase) decrease in accounts receivable

 

 

(45,184

)

 

 

(16,164

)

 

3,220

 

 

 

(61,048

)

 

 

2,834

 

(Increase) decrease in other current assets

 

 

2,686

 

 

 

(11,201

)

 

9,823

 

 

 

(12,527

)

 

 

337

 

Increase in accounts payable and accrued expenses

 

 

22,909

 

 

 

30,499

 

 

15,485

 

 

 

41,533

 

 

 

10,462

 

Net cash provided by operating activities

 

$

168,431

 

 

$

98,693

 

$

451,237

 

 

$

102,302

 

 

$

85,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

55,116

 

 

$

50,299

 

$

96,889

 

 

$

64,122

 

 

$

(92,754

)

Interest expense

 

 

54,107

 

 

 

28,758

 

 

161,541

 

 

 

43,603

 

 

 

101,203

 

Income taxes

 

 

12,620

 

 

 

15,004

 

 

27,803

 

 

 

18,944

 

 

 

1,065

 

Depreciation, depletion, and amortization

 

 

111,842

 

 

 

36,124

 

 

276,526

 

 

 

53,944

 

 

 

68,032

 

Exploration

 

 

—

 

 

 

—

 

 

241

 

 

 

—

 

 

 

—

 

Unrealized loss (gain) from derivative financial instruments

 

 

(488

)

 

 

(18,250

)

 

949

 

 

 

(16,044

)

 

 

1,961

 

Stock-based compensation

 

 

1,661

 

 

 

665

 

 

4,020

 

 

 

994

 

 

 

3,912

 

Transaction costs

 

 

(90

)

 

 

—

 

 

41,010

 

 

 

—

 

 

 

2,866

 

Covey Park July 2019 hedging settlements

 

 

—

 

 

 

—

 

 

4,574

 

 

 

—

 

 

 

—

 

Loss (gain) on sale of oil and gas properties

 

 

—

 

 

 

(57

)

 

25

 

 

 

(155

)

 

 

35,438

 

Total EBITDAX

 

$

234,768

 

 

$

112,543

 

$

613,578

 

 

$

165,408

 

 

$

121,723

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31,

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET:

 

2019

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

18,532

 

 

$

23,193

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

89,192

 

 

 

15,401

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

195,849

 

 

 

120,833

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

4,008,803

 

 

 

1,667,979

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

344,746

 

 

 

360,434

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,657,122

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

392,376

 

 

$

206,853

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

4,220

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

2,500,132

 

 

 

1,244,363

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

211,772

 

 

 

161,917

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligation

 

 

18,151

 

 

 

5,136

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current liabilities

 

 

7,866

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

379,583

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

1,143,022

 

 

 

569,571

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,657,122

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 

 

 


 

COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2019

 

 

 

Haynesville

 

 

Bakken

 

 

Eagle Ford       and Other

 

 

Total

 

Gas production (Mmcf)

 

 

115,332

 

 

 

1,529

 

 

 

4,660

 

 

 

121,521

 

Oil production (Mbbls)

 

 

3

 

 

 

478

 

 

 

96

 

 

 

577

 

Total Production (Mmcfe)

 

 

115,351

 

 

 

4,394

 

 

 

5,235

 

 

 

124,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

250,671

 

 

$

(881

)

 

$

10,416

 

 

$

260,206

 

Natural gas hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

19,302

 

Total natural gas including hedging

 

 

250,671

 

 

 

(881

)

 

 

10,416

 

 

 

279,508

 

Oil sales

 

 

164

 

 

 

23,419

 

 

 

5,459

 

 

 

29,042

 

Oil hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total oil including hedging

 

 

164

 

 

 

23,419

 

 

 

5,459

 

 

 

29,042

 

Total oil and gas sales including hedging

 

$

250,835

 

 

$

22,538

 

 

$

15,875

 

 

$

308,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.17

 

 

$

(0.58

)

 

$

2.24

 

 

$

2.14

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.30

 

Average oil price (per barrel)

 

$

53.12

 

 

$

49.03

 

 

$

56.86

 

 

$

50.36

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

50.36

 

Average price (per Mcfe)

 

$

2.17

 

 

$

5.13

 

 

$

3.03

 

 

$

2.31

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.47

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

7,165

 

 

$

2,650

 

 

$

634

 

 

$

10,449

 

Gathering and transportation

 

$

28,144

 

 

$

—

 

 

$

1,813

 

 

$

29,957

 

Lease operating

 

$

18,639

 

 

$

4,803

 

 

$

5,393

 

 

$

28,835

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.06

 

 

$

0.60

 

 

$

0.12

 

 

$

0.08

 

Gathering and transportation (per Mcfe)

 

$

0.24

 

 

$

—

 

 

$

0.35

 

 

$

0.24

 

Lease operating (per Mcfe)

 

$

0.17

 

 

$

1.10

 

 

$

1.03

 

 

$

0.23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

41,828

 

 

$

—

 

 

$

—

 

 

$

41,828

 

Development leasehold

 

 

888

 

 

 

—

 

 

 

2

 

 

 

890

 

Development drilling and completion

 

 

145,215

 

 

 

2,359

 

 

 

3,386

 

 

 

150,960

 

Other development

 

 

3,121

 

 

 

—

 

 

 

—

 

 

 

3,121

 

Total

 

$

191,052

 

 

$

2,359

 

 

$

3,388

 

 

$

196,799

 

 

 

(a)Included in gain from derivative financial instruments in operating results.

 

 



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

For the Three Months Ended December 31, 2018

 

 

 

Haynesville

 

 

Bakken

 

 

Eagle Ford            and Other

 

 

Total

 

Gas production (Mmcf)

 

 

27,176

 

 

 

2,583

 

 

 

1,174

 

 

 

30,933

 

Oil production (Mbbls)

 

 

—

 

 

 

828

 

 

 

15

 

 

 

843

 

Total Production (Mmcfe)

 

 

27,176

 

 

 

7,550

 

 

 

1,261

 

 

 

35,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

96,029

 

 

$

7,447

 

 

$

4,367

 

 

$

107,843

 

Natural gas hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,402

)

Total natural gas including hedging

 

 

96,029

 

 

 

7,447

 

 

 

4,367

 

 

 

101,441

 

Oil sales

 

 

—

 

 

 

44,810

 

 

 

845

 

 

 

45,655

 

Oil hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

632

 

Total oil including hedging

 

 

—

 

 

 

44,810

 

 

 

845

 

 

 

46,287

 

Total oil and gas sales including hedging

 

$

96,029

 

 

$

52,257

 

 

$

5,212

 

 

$

147,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

3.53

 

 

$

2.88

 

 

$

3.72

 

 

$

3.49

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.28

 

Average oil price (per barrel)

 

$

—

 

 

$

54.13

 

 

$

56.33

 

 

$

54.21

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54.96

 

Average price (per Mcfe)

 

$

3.53

 

 

$

6.92

 

 

$

4.13

 

 

$

4.27

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

1,976

 

 

$

5,001

 

 

$

127

 

 

$

7,104

 

Gathering and transportation

 

$

6,722

 

 

$

—

 

 

$

339

 

 

$

7,061

 

Lease operating

 

$

4,130

 

 

$

5,820

 

 

$

3,771

 

 

$

13,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.07

 

 

$

0.66

 

 

$

0.10

 

 

$

0.20

 

Gathering and transportation (per Mcfe)

 

$

0.25

 

 

$

—

 

 

$

0.27

 

 

$

0.20

 

Lease operating (per Mcfe)

 

$

0.15

 

 

$

0.77

 

 

$

2.99

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

3,108

 

 

$

—

 

 

$

—

 

 

$

3,108

 

Development leasehold

 

 

1,240

 

 

 

—

 

 

 

—

 

 

 

1,240

 

Development drilling and completion

 

 

72,962

 

 

 

26,764

 

 

 

—

 

 

 

99,726

 

Other development

 

 

5,802

 

 

 

—

 

 

 

—

 

 

 

5,802

 

Total

 

$

83,112

 

 

$

26,764

 

 

$

—

 

 

$

109,876

 

 

 

(a)Included in gain from derivative financial instruments in operating results.

 

 



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

For the Year Ended December 31, 2019

 

 

 

Haynesville

 

 

Bakken

 

 

Eagle Ford              and Other

 

 

Total

 

Gas production (Mmcf)

 

 

275,832

 

 

 

6,106

 

 

 

10,896

 

 

 

292,834

 

Oil production (Mbbls)

 

 

6

 

 

 

2,465

 

 

 

214

 

 

 

2,685

 

Total Production (Mmcfe)

 

 

275,869

 

 

 

20,896

 

 

 

12,179

 

 

 

308,944

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

609,680

 

 

$

1,958

 

 

$

24,157

 

 

$

635,795

 

Natural gas hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

52,297

 

Total natural gas including hedging

 

 

609,680

 

 

 

1,958

 

 

 

24,157

 

 

 

688,092

 

Oil sales

 

 

387

 

 

 

120,633

 

 

 

11,874

 

 

 

132,894

 

Oil hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

387

 

Total oil including hedging

 

 

387

 

 

 

120,633

 

 

 

11,874

 

 

 

133,281

 

Total oil and gas sales including hedging

 

$

610,067

 

 

$

122,591

 

 

$

36,031

 

 

$

821,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.21

 

 

$

0.32

 

 

$

2.22

 

 

$

2.17

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.35

 

Average oil price (per barrel)

 

$

62.38

 

 

$

48.94

 

 

$

55.49

 

 

$

49.49

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

49.64

 

Average price (per Mcfe)

 

$

2.21

 

 

$

5.87

 

 

$

2.96

 

 

$

2.49

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

14,594

 

 

$

13,176

 

 

$

1,411

 

 

$

29,181

 

Gathering and transportation

 

$

67,124

 

 

$

—

 

 

$

4,179

 

 

$

71,303

 

Lease operating

 

$

45,381

 

 

$

23,468

 

 

$

18,434

 

 

$

87,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

0.63

 

 

$

0.12

 

 

$

0.09

 

Gathering and transportation (per Mcfe)

 

$

0.24

 

 

$

—

 

 

$

0.34

 

 

$

0.23

 

Lease operating (per Mcfe)

 

$

0.17

 

 

$

1.12

 

 

$

1.51

 

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

2,097,451

 

 

$

—

 

 

$

—

 

 

$

2,097,451

 

Development leasehold

 

 

7,586

 

 

 

—

 

 

 

17

 

 

 

7,603

 

Development drilling and completion

 

 

468,513

 

 

 

5,480

 

 

 

19,632

 

 

 

493,625

 

Other development

 

 

9,339

 

 

 

—

 

 

 

—

 

 

 

9,339

 

Total

 

$

2,582,889

 

 

$

5,480

 

 

$

19,649

 

 

$

2,608,018

 

 

 

(a)Included in gain from derivative financial instruments in operating results.



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

For the Period August 14, 2018 through December 31, 2018

 

 

 

Haynesville

 

 

Bakken

 

 

Eagle Ford             and Other

 

 

Total

 

Gas production (Mmcf)

 

 

39,413

 

 

 

3,855

 

 

 

1,763

 

 

 

45,031

 

Oil production (Mbbls)

 

 

—

 

 

 

1,364

 

 

 

21

 

 

 

1,385

 

Total Production (Mmcfe)

 

 

39,413

 

 

 

12,037

 

 

 

1,888

 

 

 

53,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

129,024

 

 

$

8,913

 

 

$

6,299

 

 

$

144,236

 

Natural gas hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(6,211

)

Total natural gas including hedging

 

 

129,024

 

 

 

8,913

 

 

 

6,299

 

 

 

138,025

 

Oil sales

 

 

—

 

 

 

78,050

 

 

 

1,335

 

 

 

79,385

 

Oil hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

632

 

Total oil including hedging

 

 

—

 

 

 

78,050

 

 

 

1,335

 

 

 

80,017

 

Total oil and gas sales including hedging

 

$

129,024

 

 

$

86,963

 

 

$

7,634

 

 

$

218,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

3.27

 

 

$

2.31

 

 

$

3.57

 

 

$

3.20

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.07

 

Average oil price (per barrel)

 

$

—

 

 

$

57.24

 

 

$

63.57

 

 

$

57.34

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

57.80

 

Average price (per Mcfe)

 

$

3.27

 

 

$

7.22

 

 

$

4.04

 

 

$

4.19

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

2,752

 

 

$

8,215

 

 

$

188

 

 

$

11,155

 

Gathering and transportation

 

$

9,953

 

 

$

—

 

 

$

558

 

 

$

10,511

 

Lease operating

 

$

6,118

 

 

$

9,070

 

 

$

5,548

 

 

$

20,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.07

 

 

$

0.68

 

 

$

0.10

 

 

$

0.21

 

Gathering and transportation (per Mcfe)

 

$

0.25

 

 

$

—

 

 

$

0.30

 

 

$

0.20

 

Lease operating (per Mcfe)

 

$

0.16

 

 

$

0.76

 

 

$

2.94

 

 

$

0.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

21,013

 

 

$

—

 

 

$

—

 

 

$

21,013

 

Development leasehold

 

 

1,715

 

 

 

—

 

 

 

—

 

 

 

1,715

 

Development drilling and completion

 

 

106,366

 

 

 

42,379

 

 

 

—

 

 

 

148,745

 

Other development

 

 

13,612

 

 

 

—

 

 

 

—

 

 

 

13,612

 

Total

 

$

142,706

 

 

$

42,379

 

 

$

—

 

 

$

185,085

 

 

 

(a)Included in gain from derivative financial instruments in operating results.



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

For the Period January 1, 2018 through August 13, 2018 (Predecessor)

 

 

 

Haynesville

 

 

Bakken

 

 

Eagle Ford            and Other

 

 

Total

 

Gas production (Mmcf)

 

 

52,021

 

 

 

—

 

 

 

3,219

 

 

 

55,240

 

Oil production (Mbbls)

 

 

—

 

 

 

—

 

 

 

287

 

 

 

287

 

Total Production (Mmcfe)

 

 

52,021

 

 

 

—

 

 

 

4,942

 

 

 

56,963

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

138,391

 

 

$

—

 

 

$

9,506

 

 

$

147,897

 

Natural gas hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,842

 

Total natural gas including hedging

 

 

138,391

 

 

 

—

 

 

 

9,506

 

 

 

150,739

 

Oil sales

 

 

—

 

 

 

—

 

 

 

18,733

 

 

 

18,733

 

Oil hedging settlements (a)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total oil including hedging

 

 

—

 

 

 

—

 

 

 

18,733

 

 

 

18,733

 

Total oil and gas sales including hedging

 

$

138,391

 

 

$

—

 

 

$

28,239

 

 

$

169,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.66

 

 

$

—

 

 

$

2.95

 

 

$

2.68

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.73

 

Average oil price (per barrel)

 

$

—

 

 

$

—

 

 

$

65.23

 

 

$

65.23

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

65.23

 

Average price (per Mcfe)

 

$

2.66

 

 

$

—

 

 

$

5.71

 

 

$

2.93

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.98

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

2,556

 

 

$

—

 

 

$

1,103

 

 

$

3,659

 

Gathering and transportation

 

$

10,728

 

 

$

—

 

 

$

1,113

 

 

$

11,841

 

Lease operating

 

$

7,675

 

 

$

—

 

 

$

13,464

 

 

$

21,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

—

 

 

$

0.22

 

 

$

0.06

 

Gathering and transportation (per Mcfe)

 

$

0.21

 

 

$

—

 

 

$

0.23

 

 

$

0.21

 

Lease operating (per Mcfe)

 

$

0.15

 

 

$

—

 

 

$

2.72

 

 

$

0.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

39,323

 

 

$

—

 

 

$

—

 

 

$

39,323

 

Development leasehold

 

 

2,848

 

 

 

—

 

 

 

—

 

 

 

2,848

 

Development drilling and completion

 

 

90,840

 

 

 

—

 

 

 

—

 

 

 

90,840

 

Other development

 

 

13,205

 

 

 

—

 

 

 

666

 

 

 

13,871

 

Total

 

$

146,216

 

 

$

—

 

 

$

666

 

 

$

146,882

 

 

 

(a)Included in gain from derivative financial instruments in operating results.

 

 



COMSTOCK RESOURCES, INC.
PRO FORMA OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

For the Twelve Months Ended December 31, 2019

 

 

 

Comstock

 

 

Covey Park (b)

 

 

Pro Forma Combined

 

Gas production (Mmcf)

 

 

292,834

 

 

 

141,610

 

 

 

434,444

 

Oil production (Mbbls)

 

 

2,685

 

 

 

22

 

 

 

2,707

 

Total Production (Mmcfe)

 

 

308,944

 

 

 

141,742

 

 

 

450,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

635,795

 

 

$

377,368

 

 

$

1,013,163

 

Natural gas hedging settlements (a)

 

 

52,297

 

 

 

12,687

 

 

 

64,984

 

Total natural gas including hedging

 

 

688,092

 

 

 

390,055

 

 

 

1,078,147

 

Oil sales

 

 

132,894

 

 

 

1,233

 

 

 

134,127

 

Oil hedging settlements (a)

 

 

387

 

 

—

 

 

 

387

 

Total oil including hedging

 

 

133,281

 

 

 

1,233

 

 

 

134,514

 

Total oil and gas sales including hedging

 

$

821,373

 

 

$

391,288

 

 

$

1,212,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.17

 

 

$

2.66

 

 

$

2.33

 

Average gas price including hedging (per Mcf)

 

$

2.35

 

 

$

2.75

 

 

$

2.48

 

Average oil price (per barrel)

 

$

49.49

 

 

$

56.05

 

 

$

49.55

 

Average oil price including hedging (per barrel)

 

$

49.64

 

 

$

56.05

 

 

$

49.69

 

Average price (per Mcfe)

 

$

2.49

 

 

$

2.67

 

 

$

2.55

 

Average price including hedging (per Mcfe)

 

$

2.66

 

 

$

2.76

 

 

$

2.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

29,181

 

 

$

8,868

 

 

$

38,049

 

Gathering and transportation

 

$

71,303

 

 

$

35,188

 

 

$

106,491

 

Lease operating

 

$

87,283

 

 

$

37,043

 

 

$

124,326

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.09

 

 

$

0.06

 

 

$

0.08

 

Gathering and transportation (per Mcfe)

 

$

0.23

 

 

$

0.25

 

 

$

0.24

 

Lease operating (per Mcfe)

 

$

0.28

 

 

$

0.26

 

 

$

0.28

 

 

 

 

(a)

Included in gain from derivative financial instruments in operating results.

 

(b)

Pro forma for an acquisition which completed on March 5, 2019.