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COMSTOCK RESOURCES, INC. REPORTS FOURTH QUARTER 2019 FINANCIAL AND OPERATING RESULTS

FRISCO, TX, Feb. 26, 2020 (GLOBE NEWSWIRE) -- 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.com.  The web replay will be available for approximately one week. A replay of the conference call will be available beginning at 1:00 p.m. CTFebruary 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 132018
 
              (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  

                                                                                                                                               

  1. Included in gain from derivative financial instruments in operating results.
  2. Pro forma for an acquisition which completed on March 5, 2019.
     

 

Ron Mills
VP of Finance and Investor Relations
972-668-8834 (Direct)
rmills@comstockresources.com

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Source: Comstock Resources, Inc.


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