News Releases Details

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 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

                                                                                                                                               

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

 

Source: Comstock Resources, Inc.