Comstock Resources, Inc. Announces Record Results for First Quarter 2001
FRISCO, Texas, May 8 /PRNewswire/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today reported the highest revenues, net earnings and cash flow of any quarter in the Company's history. Comstock also reported year to date results of its 2001 drilling program where Comstock has drilled 19 successful wells out of 22 wells drilled so far this year.
First Quarter Financial Results
Comstock's net income soared to $23.6 million or 68 cents per share in 2001's first quarter, as compared to $4.1 million or 14 cents per share in the first quarter of 2000. Revenues for the first quarter of 2001 reached $67.5 million, an increase of 104% over first quarter 2000 revenues of $33.1 million. Comstock generated $49.2 million in operating cash flow (cash flow before changes in working capital accounts) in 2001's first quarter, an increase of 157% over 2000's first quarter cash flow of $19.1 million. Earnings before interest, taxes and depreciation, depletion and amortization ("EBITDA") of $57.2 million in 2001's first quarter was 126% higher than 2000's first quarter EBITDA of $25.3 million.
The record financial results were driven primarily by higher natural gas prices. Comstock's average natural gas price for the first quarter of 2001 was $7.47 per thousand cubic feet ("Mcf") as compared to $2.75 in 2000's first quarter. Oil and gas production also increased in the first quarter. Comstock produced 9.9 billion cubic feet equivalent ("Bcfe") (111 million cubic feet per day) of natural gas in the first quarter of 2001, an increase of 3% from 2000's first quarter daily production rate and an increase of 10% from 2000's fourth quarter daily production rate.
The cash flow generated in the first quarter of 2001 allowed the Company to significantly improve its balance sheet by paying down $35 million in debt. As a result of the debt reduction and profits generated, Comstock's total debt at March 31, 2001 has fallen to $199.0 million and book equity has grown to $205.7 million. Debt as a percentage of Comstock's capitalization on a book basis has fallen to 49% as compared to 65% at the end of 2000's first quarter.
East Texas / North Louisiana Region
To date in 2001, Comstock has drilled eight wells (5.4 net) in its East Texas and North Louisiana region. All of these wells were successful. Six of these wells have been tested at a per well average rate of 2.0 million cubic feet of natural gas equivalent ("Mmcfe") per day. The remaining two wells are in the process of being completed. Comstock is currently in the process of drilling three additional wells (2.0 net) in this region. Comstock has budgeted $26 million to drill a total of 26 wells in this region in 2001.
Southeast Texas Region
Comstock has drilled three successful wells (1.5 net) and one developmental dry hole (0.2 net) in its Southeast Texas region to date in 2001. Two of these wells have been tested at an average per well rate of 1.4 Mmcfe per day and the other is in the process of being completed. Comstock is currently drilling two additional development wells (1.2 net) in this region and plans to drill a total of 13 wells in this region in 2001 at a budgeted cost of $16 million.
Gulf of Mexico Region
Comstock's Gulf of Mexico drilling program is primarily focused on drilling offshore exploration wells which have been delineated by 3-D seismic data. Since the beginning of the year, Comstock has drilled nine wells (2.4 net) in federal and Louisiana state waters in the Gulf of Mexico and one (0.3 net) onshore well on the Texas Gulf Coast. Eight of the ten wells were successful. Five of the eight successful wells have been completed and were tested at an average per well of 8.2 Mmcfe per day. The other three wells are currently being completed. The successful offshore wells include the South Pelto Block 5 OCS-G 12027 #8 and OCS-G 12027 #9 wells which are currently flowing at a combined rate of 26 Mmcfe per day. Comstock has a 25% working interest in these two wells. The West Cameron Block 248 OCS-G 9408 #4 well, which Comstock owns a 45% working interest, is flowing at 8.5 Mmcfe per day. Comstock also announced today another significant discovery in its offshore exploration program. Drilling operations have recently been completed on the 15,640 foot OCS-G 12027 #18 exploratory well also at South Pelto Block 5. Open hole log analysis confirms that the well has penetrated approximately 200 feet of net productive pay sands. Based on the performance of similar completions at South Pelto Block 5, Comstock expects this well to produce at a rate of 25 Mmcfe per day. Comstock owns a 25% working interest and Bois d'Arc Offshore Ltd. is the operator of this new discovery. Comstock is currently drilling two offshore prospects (0.6 net) and in total plans to drill 30 wells in this region in 2001 at a budgeted cost of $58 million.
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 that 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 a growing independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas, Louisiana and the Gulf of Mexico. 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)
Quarter Ended March 31,
Income Statement Data: 2001 2000
Revenues:
Oil and gas sales $67,399 $33,071
Other income 147 72
67,546 33,143
Expenses:
Oil and gas operating 9,500 7,386
Exploration 2,831 ---
Depreciation, depletion and amortization 11,999 11,712
General and administrative, net 829 495
Interest 5,505 6,215
30,664 25,808
Net income before income taxes 36,882 7,335
Provision for income taxes (12,909) (2,567)
Net income 23,973 4,768
Preferred stock dividends (395) (683)
Net income attributable to common stock $23,578 $4,085
Net income per share:
Basic $0.81 $0.16
Diluted $0.68 $0.14
Weighted average common and common stock
equivalent shares outstanding:
Basic 29,001 25,375
Diluted 35,074 33,153
Cash flow from operations (A) $49,175 $19,104
Cash flow from operations per share (A):
Basic $1.70 $0.75
Diluted $1.40 $0.58
EBITDA $57,217 $25,262
As of March 31,
2001 2000
Balance Sheet Data:
Current Assets $45,554 $27,970
Property and Equipment, net 449,287 414,282
Other 5,591 6,669
Total Assets $500,432 $448,921
Current Liabilities $55,321 $36,459
Long-term Debt 199,000 260,000
Other 40,440 10,649
Stockholders' Equity 205,671 141,813
Total Liabilities and Stockholders'
Equity $500,432 $448,921
(A) Before changes in working capital accounts
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(in thousands, except per unit amounts)
For the Three Months ended March 31, 2001
East Texas/ Gulf of Southeast
North Louisiana Mexico Texas Total
Oil production
(thousand barrels) 12 275 128 415
Gas production
(million cubic feet) 2,153 2,253 3,045 7,451
Total production
(mmcfe) 2,225 3,903 3,813 9,942
Oil Sales $328 $7,704 $3,672 $11,704
Gas Sales 16,090 16,394 23,211 55,695
Total Oil & Gas Sales $16,418 $24,098 $26,883 $67,399
Average oil price
(per barrel) $27.33 $28.01 $28.68 $28.19
Average gas price
(per thousand cubic
feet - Mcf) $7.47 $7.28 $7.62 $7.47
Average price
(per Mcf equivalent) $7.38 $6.17 $7.05 $6.78
Lifting Costs $2,214 $2,953 $4,333 $9,500
Lifting Costs
(per Mcf equivalent) $0.99 $0.76 $1.14 $0.96
Capital Expenditures $8,132 $13,836 $5,964 $27,932
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SOURCE Comstock Resources, Inc.
CONTACT: Roland O. Burns, Sr. Vice President and Chief Financial Officer