Comstock Resources, Inc. Restates Third Quarter 2004 Financial Results
FRISCO, Texas, Jan. 27 /PRNewswire-FirstCall/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today reported that it is restating its financial statements for the quarter and nine months ended September 30, 2004.
In January 2005, the Company determined that it had incorrectly accounted for its ownership interest in Bois d'Arc Energy during the three month period ended September 30, 2004. Upon formation of Bois d'Arc Energy, the Company started consolidating Bois d'Arc Energy. Pursuant to the terms of Bois d'Arc Energy's operating agreement, the Company jointly shares management of Bois d'Arc Energy with the principals of Bois d'Arc Resources. Upon further consideration of Bois d'Arc Energy's formation documents, the Company has concluded that consolidation is precluded due to its inability to control Bois d'Arc Energy pursuant to Bois d'Arc Energy's operating agreement. Consequently, the Company has restated the financial statements to account for the company's 59.9% interest in Bois d'Arc Energy under the proportionate consolidation method. The restatement did not have any impact on the Company's consolidated stockholders' equity, net income or earnings per share for any periods presented.
The effect of the restatement on the consolidated balance sheet as of
September 30, 2004, the consolidated statement of operations for the three
month and nine month periods ended September 30, 2004 and the consolidated
statement of cash flows for the nine month period ended September 30, 2004 is
as follows:
Balance Sheet Data:
As Previously
Reported Adjustments As Restated
(In thousands)
ASSETS:
Current assets $75,484 $(14,792) $60,692
Net Property and Equipment 862,645 (121,236) 741,409
Receivable from Bois d'Arc
Energy --- 60,657 60,657
Other Assets 12,600 579 13,179
$950,729 $(74,792) $875,937
LIABILITIES AND STOCKHOLDERS'
EQUITY:
Current liabilities $64,688 $(11,764) $52,924
Long-Term Debt, less current
portion 381,000 --- 381,000
Deferred Taxes Payable 91,911 --- 91,911
Reserve for Future Abandonment
Costs 28,406 (10,644) 17,762
Minority Interests 52,384 (52,384) ---
Total stockholders' equity 332,340 --- 332,340
$950,729 $(74,792) $875,937
Three Months Ended Nine Months Ended
September 30, 2004 September 30, 2004
Income As As
Statement Previously As Previously As
Data: Reported Adjustments Restated Reported Adjustments Restated
(In thousands)
Oil and gas
sales $78,353 (15,151) $63,202 $205,622 (15,151) $190,471
Operating
expenses:
Oil and gas
operating 15,409 (2,927) 12,482 40,515 (2,927) 37,588
Exploration 9,400 (2,672) 6,728 14,579 (2,672) 11,907
Depreciation,
depletion 20,503 (4,902) 15,601 52,040 (4,902) 47,138
General and
administrative,
net 3,665 (321) 3,344 9,637 (321) 9,316
Total operating
expenses 48,977 (10,822) 38,155 116,771 (10,822) 105,949
Income from
operations 29,376 (4,329) 25,047 88,851 (4,329) 84,522
Other income
(expenses):
Interest
income 46 449 495 80 449 529
Other income 43 --- 43 129 --- 129
Interest
expense (4,803) --- (4,803) (15,594) --- (15,594)
Loss on early
extinguishment
of debt --- --- --- (19,599) --- (19,599)
Loss on
derivatives (553) --- (553) (553) --- (553)
Formation
costs (1,641) 659 (982) (1,641) 659 (982)
Minority
interests
in net
income before
income taxes (3,221) 3,221 --- (3,221) 3,221 ---
Total other
income
(expenses) (10,129) 4,329 (5,800) (40,399) 4,329 (36,070)
Income before
income taxes 19,247 --- 19,247 48,452 --- 48,452
Provision for
income taxes (6,929) --- (6,929) (17,443) --- (17,443)
Net income $12,318 $--- $12,318 $31,009 $--- $31,009
Nine Months Ended
September 30, 2004
As
Statement of Cash Previously As
Flows Data: Reported Adjustments Restated
(In thousands)
Net cash flows
from operating
activities $124,460 $(5,707) $118,753
Net cash flows
used for
investing
activities (157,323) (2,067) (159,390)
Net cash flows
from financing 56,599 --- 56,599
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.
SOURCE Comstock Resources, Inc.
CONTACT:
Roland O. Burns
Sr. Vice President and Chief Financial Officer
Comstock Resources, Inc.
972-668-8800