Comstock Resources, Inc. Reports Second Quarter 2009 Financial and Operating Results
FRISCO,
Financial Results for the Three Months and Six Months Ended
Comstock reported a net loss of
Comstock's production in the second quarter of 2009 increased 6% to 15.3
billion cubic feet equivalent of natural gas ("Bcfe") as compared to pro forma
production of 14.5 Bcfe in the second quarter of 2008, which excludes
production from properties sold during 2008. The 2009 second quarter average
daily production rate of 169 million cubic feet of natural gas equivalent
("MMcfe") increased 8% from the 2009 first quarter production rate of 157
MMcfe per day. On
The low oil and natural gas prices caused the second quarter of 2009's oil
and gas sales to decrease 62% to
Comstock reported a net loss of
Oil and gas sales for the first half of 2009 decreased 56% to
2009 Drilling Results
Comstock reported on the results to date of its 2009 drilling program.
The Company spent
The Company's drilling program this year is primarily focused on
developing its Haynesville shale properties in
Since the Company's last operational update, it has completed three
Haynesville shale horizontal wells in its Blocker field in Harrison County,
Comstock completed its best Haynesville shale well to date in the second
quarter. In the Logansport field in
In its Toledo Bend North field in
In its
Comstock expects to spend
Comstock has planned a conference call for
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.
OPERATING RESULTS
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ---------------------
2009 2008 2009 2008
-------- ------- -------- --------
Revenues:
Oil and gas
sales $64,875 $172,022 $133,226 $299,743
Gain on sale of
assets - 21,444 - 21,204
Operating
expenses:
Oil and gas
operating 17,485 23,362 34,444 44,564
Exploration 131 - 144 2,238
Depreciation,
depletion and
amortization 50,796 44,422 98,068 85,927
General and
administrative 9,051 6,922 18,870 13,086
-------- ------- -------- --------
Total
operating
expenses 77,463 74,706 151,526 145,815
-------- ------- -------- --------
Operating income
(loss) from
continuing
operations (12,588) 118,760 (18,300) 175,132
Other income
(expenses):
Interest income 10 205 32 366
Other income 29 36 92 58
Interest expense (2,901) (8,546) (5,063) (18,497)
-------- ------- -------- --------
Total other
income
(expenses) (2,862) (8,305) (4,939) (18,073)
-------- ------- -------- --------
Income (loss)
from continuing
operations
before income
taxes (15,450) 110,455 (23,239) 157,059
Benefit from
(provision for)
income taxes 3,975 (40,027) 6,107 (57,229)
-------- ------- -------- --------
Income (loss)
from continuing
operations (11,475) 70,428 (17,132) 99,830
-------- ------- -------- --------
Income from
discontinued
operations after
income taxes and
minority
interest - 12,199 - 23,892
-------- ------- -------- --------
Net income (loss) $(11,475) $82,627 $(17,132) $123,722
======== ======= ======== ========
Basic net income
(loss) per
share:
Continuing
operations $(0.26) $1.55 $(0.38) $2.19
Discontinued
operations - 0.27 - 0.52
-------- ------- -------- --------
$(0.26) $1.82 $(0.38) $2.71
======== ======= ======== ========
Diluted net
income (loss)
per share:
Continuing
operations $(0.26) $1.53 $(0.38) $2.17
Discontinued
operations - 0.27 - 0.52
-------- ------- -------- --------
$(0.26) $1.80 $(0.38) $2.69
======== ======= ======== ========
Weighted average
shares outstanding:
Basic 45,000 44,287 44,971 44,296
======== ======= ======== ========
Diluted(1) 45,000 44,661 44,971 44,677
======== ======= ======== ========
(1) In 2009, basic and diluted shares are the same due to the net loss.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)
Three Months Ended Six Months Ended
June 30, June 30,
----------------- -------------------
2009 2008 2009 2008
------- -------- ------- --------
OPERATING CASH FLOW:
Net income (loss) from
continuing operations $(11,475) $70,428 $(17,132) $99,830
Reconciling items:
Deferred income taxes (1,263) 37,272 (1,984) 52,504
Dry hole costs and lease
impairments - - - 2,238
Depreciation, depletion
and amortization 50,796 44,422 98,068 85,927
Gain on sale of assets - (21,444) - (21,204)
Debt issuance cost
amortization 202 203 405 405
Stock-based compensation 3,820 3,038 7,487 5,716
Loss on derivatives - 359 - 359
------- ------- ------- --------
Operating cash flow 42,080 134,278 86,844 225,775
Excess tax benefit
from stock-based
compensation (245) (7,962) (924) (8,632)
(Increase) decrease in
accounts receivable 3,625 (9,651) 13,810 (25,316)
(Increase) decrease in
other current assets (889) (1,017) (654) (1,175)
Increase (decrease) in
accounts payable
and accrued expenses (15,588) 30,725 (29,631) 10,078
------- ------- ------- --------
Net cash provided
by operating
activities from
continuing
operations $28,983 $146,373 $69,445 $200,730
======= ======== ======= ========
EBITDAX:
Income (loss) from
continuing operations $(11,475) $70,428 $(17,132) $99,830
Gain on sale of assets - (21,444) - (21,204)
Interest expense 2,901 8,546 5,063 18,497
Income tax expense
(benefit) (3,975) 40,027 (6,107) 57,229
Depreciation, depletion
and amortization 50,796 44,422 98,068 85,927
Stock-based compensation 3,820 3,038 7,487 5,716
Exploration 131 - 144 2,238
------- ------- ------- --------
EBITDAX from
continuing
operations $42,198 $145,017 $87,523 $248,233
======== ======== ======= ========
As of June 30,
-------------------------
2009 2008
---------- ----------
Balance Sheet Data:
Cash and cash equivalents $3,970 $8,709
Derivative financial instruments 11,922 -
Other current assets 52,950 89,266
Marketable securities 36,099 -
Property and equipment, net 1,521,578 1,276,184
Assets of discontinued operations - 1,031,982
Other 2,748 3,554
---------- ----------
Total assets $1,629,267 $2,409,695
========== ==========
Accounts payable and accrued
expenses $80,280 $96,608
Derivative financial instruments - 40,080
Long-term debt 315,000 495,000
Deferred income taxes 182,975 132,198
Asset retirement obligation 5,830 7,555
Liabilities and minority interest
of discontinued operations - 746,081
Stockholders' equity 1,045,182 892,173
---------- ----------
Total liabilities and
stockholders' equity $1,629,267 $2,409,695
========== ==========
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months Ended
June 30, 2009
------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- ------- ------ -------
Oil production (thousand barrels) 65 38 102 205
Gas production (million cubic
feet - Mmcf) 8,613 4,823 672 14,108
Total production (Mmcfe) 9,008 5,052 1,277 15,337
Oil sales $3,408 $2,114 $4,560 $10,082
Gas sales 28,257 17,146 2,276 47,679
Gas hedging gains (losses) - 7,114 - 7,114
------- ------- ------ -------
Total gas sales 28,257 24,260 2,276 54,793
------- ------- ------ -------
Total oil and gas sales $31,665 $26,374 $6,836 $64,875
======= ======= ====== =======
Average oil price (per barrel)
Average gas price (per thousand
cubic feet -Mcf) $3.28 $3.56 $3.39 $3.38
Average gas price including
hedging (per Mcf) $3.28 $5.03 $3.39 $3.88
Average price (per Mcf equivalent)
Average price including hedging
(per Mcf equivalent) $3.52 $5.22 $5.35 $4.23
Lifting cost(1) $8,749 $5,278 $3,458 $17,485(1)
Lifting cost (per Mcf equivalent) $0.97 $1.04 $2.71 $1.14
Leasehold costs $3,767 $60 $103 $3,930
Exploratory drilling 30,034 81 - 30,115
Development drilling 36,195 4,834 111 41,140
Other development 1,814 312 (36) 2,090
------- ------- ------ -------
Total $71,810 $5,287 $178 $77,275
======= ======= ====== =======
For the Three Months Ended
June 30, 2008
Adjusted to Exclude 2008 Asset Sales
------------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- ------- ------- --------
Oil production (thousand
barrels) 79 45 126 250
Gas production (million cubic
feet -Mmcf) 6,797 5,542 615 12,954
Total production (Mmcfe) 7,267 5,817 1,370 14,454
Oil sales $8,958 $5,474 $11,613 $26,045
Gas sales 74,653 59,713 6,594 140,960
Gas hedging gains (losses) - (4,384) - (4,384)
------- ------- ------- --------
Total gas sales 74,653 55,329 6,594 136,576
------- ------- ------- --------
Total oil and gas sales $83,611 $60,803 $18,207 $162,621
======= ======= ======= ========
Average oil price (per
barrel) $113.39 $121.64 $92.17 $104.19
Average gas price (per
thousand cubic feet -Mcf)
Average gas price including
hedging (per Mcf) $10.98 $9.98 $10.72 $10.54
Average price (per Mcf
equivalent) $11.51 $11.21 $13.29 $11.55
Average price including
hedging (per Mcf equivalent)
Lifting cost(1) $9,214 $6,868 $5,451 $21,533(1)
Lifting cost (per Mcf
equivalent) $1.27 $1.18 $3.98 $1.49
Oil and Gas Capital
Expenditures:
Leasehold costs $17,146 $282 $12 $17,440
Exploratory drilling - 1 228 229
Development drilling 43,186 14,861 157 58,204
Other development 197 6,172 1,265 7,634
------- ------- ------- --------
Total $60,529 $21,316 $1,662 $83,507
======= ======= ======= ========
For the Six Months Ended
June 30, 2009
------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- ------- ------- --------
Oil production (thousand barrels) 128 89 204 421
Gas production (million cubic
feet - Mmcf) 15,792 9,734 1,375 26,901
Total production (Mmcfe) 16,563 10,270 2,592 29,425
Oil sales $5,683 $4,193 $7,767 $17,643
Gas sales 59,575 38,110 4,872 102,557
Gas hedging gains (losses) - 13,026 - 13,026
-------- ------- ------- --------
Total gas sales 59,575 51,136 4,872 115,583
-------- ------- ------- --------
Total oil and gas sales $65,258 $55,329 $12,639 $133,226
======== ======= ======= ========
Average oil price (per barrel)
Average gas price (per thousand
cubic feet - Mcf) $3.77 $3.92 $3.54 $3.81
Average gas price including
hedging (per Mcf) $3.77 $5.25 $3.54 $4.30
Average price (per Mcf equivalent)
Average price including hedging
(per Mcf equivalent) $3.94 $5.39 $4.88 $4.53
Lifting cost(2) $16,252 $10,780 $7,412 $34,444(2)
Lifting cost (per Mcf equivalent) $0.98 $1.05 $2.86 $1.17
Leasehold costs $7,168 $331 $103 $7,602
Exploratory drilling 66,501 1,893 - 68,394
Development drilling 67,852 23,786 111 91,749
Other development 3,212 3,278 296 6,786
-------- ------- ------- --------
Total $144,733 $29,288 $510 $174,531
======== ======= ======= ========
For the Six Months Ended
June 30, 2008
Adjusted to Exclude 2008 Asset Sales
-------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- ------- ------ --------
Oil production (thousand
barrels) 121 78 276 475
Gas production (million
cubic feet - Mmcf) 13,078 10,872 1,388 25,338
Total production (Mmcfe) 13,802 11,344 3,041 28,187
Oil sales $12,939 $8,709 $22,441 $44,089
Gas sales 127,310 103,512 12,921 243,743
Gas hedging gains (losses) - (4,628) - (4,628)
-------- ------- ------ --------
Total gas sales 127,310 98,884 12,921 239,115
-------- ------- ------ --------
Total oil and gas sales $140,249 $107,593 $35,362 $283,204
======== ======== ======= ========
Average oil price (per barrel)
Average gas price (per
thousand cubic feet - Mcf)
Average gas price including
hedging (per Mcf) $9.73 $9.10 $9.31 $9.44
Average price (per Mcf
equivalent) $10.16 $9.89 $11.63 $10.21
Average price including hedging
(per Mcf equivalent) $10.16 $9.48 $11.63 $10.05
Lifting cost(2) $17,047 $12,993 $10,828 $40,868(2)
Lifting cost (per Mcf
equivalent) $1.24 $1.15 $3.56 $1.45
Oil and Gas Capital
Expenditures:
Leasehold costs $20,007 $1,406 $61 $21,474
Exploratory drilling - 2,357 351 2,708
Development drilling 82,559 26,264 1,546 110,369
Other development 979 6,717 2,981 10,677
-------- ------- ------ --------
Total $103,545 $36,744 $4,939 $145,228
======== ======= ====== ========
(1) Includes production taxes of
months ended
(2) Includes production taxes of
endedJune 30, 2009 and 2008, respectively. COMSTOCK RESOURCES, INC. REGIONAL OPERATING RESULTS 2008 AS REPORTED (In thousands, except per unit amounts) For the Three Months Ended June 30, 2008 ----------------------------------- East Texas/ North South Louisiana Texas Other Total --------- ------- ------ -------
Oil production (thousand barrels) 84 58 126 268
Gas production (million cubic
feet - Mmcf) 7,227 5,840 615 13,682
Total production (Mmcfe) 7,732 6,190 1,370 15,292
Oil sales $9,625 $6,988 $11,613 $28,226
Gas sales 78,746 62,840 6,594 148,180
Gas hedging gains (losses) - (4,384) - (4,384)
------- ------- ------ -------
Total gas sales 78,746 58,456 6,594 143,796
------- ------- ------ -------
Total oil and gas sales $88,371 $65,444 $18,207 $172,022
======= ======= ======= ========
Average oil price (per barrel)
Average gas price (per thousand
cubic feet - Mcf) $10.90 $10.76 $10.72 $10.83
Average gas price including hedging
(per Mcf)
Average price (per Mcf equivalent)
Average price including hedging
(per Mcf equivalent) $11.43 $10.57 $13.29 $11.25
Lifting cost(1) $9,879 $8,032 $5,451 $23,362(1)
Lifting cost (per Mcf equivalent) $1.28 $1.30 $3.98 $1.53
Leasehold costs $17,146 $282 $12 $17,440
Exploratory drilling - 1 228 229
Development drilling 43,186 14,861 157 58,204
Other development 355 6,319 1,265 7,939
------- ------- ------ -------
Total $60,687 $21,463 $1,662 $83,812
======= ======= ====== =======
For the Six Months
Ended June 30, 2008
------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- -------- ------- --------
Oil production (thousand barrels) 131 104 276 511
Gas production (million cubic
feet - Mmcf) 13,954 11,470 1,388 26,812
Total production (Mmcfe) 14,740 12,097 3,041 29,878
Oil sales $14,049 $11,508 $22,441 $47,998
Gas sales 134,477 108,975 12,921 256,373
Gas hedging gains (losses) - (4,628) - (4,628)
-------- -------- ------- --------
Total gas sales 134,477 104,347 12,921 251,745
-------- -------- ------- --------
Total oil and gas sales $148,526 $115,855 $35,362 $299,743
======== ======== ======= ========
Average oil price (per barrel)
Average gas price (per thousand
cubic feet - Mcf) $9.64 $9.50 $9.31 $9.56
Average gas price including hedging
(per Mcf)
Average price (per Mcf equivalent)
Average price including hedging
(per Mcf equivalent) $10.08 $9.58 $11.63 $10.03
Lifting cost(2) $18,648 $15,088 $10,828 $44,564(2)
Lifting cost (per Mcf equivalent) $1.27 $1.25 $3.56 $1.49
Leasehold costs $20,007 $1,406 $61 $21,474
Exploratory drilling - 2,357 351 2,708
Development drilling 82,559 26,264 1,546 110,369
Other development 1,285 7,036 2,981 11,302
-------- -------- ------- --------
Total $103,851 $37,063 $4,939 $145,853
======== ======== ======= ========
(1) Includes production taxes of
(2) Includes production taxes of
June 30, 2008 .
SOURCE
CONTACT:
Roland O. Burns,
Sr. Vice President and Chief Financial Officer
of Comstock Resources, Inc.,
+1-972-668-8800
Web Site: http://www.comstockresources.com