UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of
Report (Date of Earliest Event Reported): August 6,
2007
COMSTOCK
RESOURCES, INC.
(Exact
Name of Registrant as Specified in Charter)
|
STATE
OF NEVADA
|
000-16741
|
94-1667468
|
|
(State
or other
jurisdiction
of incorporation)
|
(Commission
File Number)
|
(I.R.S.
Employer
Identification
Number)
|
5300
Town And Country Boulevard
Suite
500
Frisco,
Texas 75034
(Address
of principal executive offices)
(972)
668-8800
(Registrant's
Telephone No.)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
¨
|
Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
|
|
¨
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
¨
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
|
|
¨
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c))
|
Item
2.02. Results of Operations
and Financial Condition
The
information in this Form 8-K and the Exhibit attached hereto shall not be deemed
"filed" for purposes of Section 18 of the Securities Exchange Act of 1934,
nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933, except as shall be expressly set forth by specific reference in
such filing.
On
May 7,
2007, Comstock Resources, Inc. ("Comstock") announced financial results for
the
three months and six months ended June 30, 2007. A copy of the press
release announcing Comstock's earnings and operating results for the three
months and six months ended June 30, 2007 is attached hereto as Exhibit
99.1.
The
earnings press release contains financial measures that are not in accordance
with generally accepted accounting principles in the United States
("GAAP"). Comstock has provided reconciliations within the earnings
release of the non-GAAP financial measures to the most directly comparable
GAAP
financial measures. Operating cash flow is presented in the earnings release
because management believes it to be useful to investors as a common alternative
measure of cash flows. EBITDAX is presented in the earnings release because
management believes that EBITDAX, which represents Comstock's results from
operations before interest, income taxes, and certain non-cash items, including
depreciation, depletion and amortization and exploration expense, is a common
alternative measure of operating performance used by certain investors and
financial analysts. The non-GAAP financial measures described above should
be
considered in addition to, but not as a substitute for, measures of financial
performance prepared in accordance with GAAP that are presented in the earnings
release.
Item
9.01. Financial Statements
and Exhibits
|
Exhibit
99.1
|
Press
Release dated August 6, 2007.
|
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
|
COMSTOCK
RESOURCES, INC.
|
||
|
Dated:
August 6, 2007
|
By:
|
/s/
M. JAY ALLISON
|
|
M.
Jay Allison
|
||
|
President
and Chief Executive Officer
|
Exhibit
99.1
 |
|
|
5300
Town and Country Blvd., Suite 500
Frisco,
Texas
75034
Telephone:
(972)
668-8800
Contact:
Roland O. Burns
Sr.
Vice President
and Chief Financial Officer
Web
Site:
www.comstockresources.com
|
|
|
|
NEWS
RELEASE
For
Immediate Release
COMSTOCK
RESOURCES, INC. REPORTS
SECOND
QUARTER 2007 FINANCIAL AND OPERATING RESULTS
FRISCO,
TEXAS, August 6, 2007– Comstock Resources, Inc. ("Comstock" or the
"Company") (NYSE: CRK) today reported financial and operating results for the
quarter and six months ended June 30, 2007.
Financial
Results for the Three Months and Six Months Ended June 30,
2007
Comstock
reported net income of $18.2 million or 41¢ per diluted share for the three
months ended June 30, 2007 as compared to 2006's second quarter net income
of
$15.6 million or 35¢ per diluted share. The 2006 results include a
$1.3 million gain on derivative financial instruments. Without this
gain Comstock would have had net income of $14.7 million or 34¢ per diluted
share. The second quarter results continue to reflect the success
that the Company's onshore drilling program and offshore activities have
had in
growing production. Comstock's production in the second quarter of
2007 increased 32% to 21.4 billion cubic feet equivalent of natural gas ("Bcfe")
as compared to production of 16.3 Bcfe in the second quarter of
2006. Onshore production has increased 20% and offshore production
was up 47% from the second quarter of 2006. The second quarter
average daily production rate of 236 million cubic feet of natural gas
equivalent ("Mmcfe") also has increased 6% from the first quarter 2007
production rate of 223 Mmcfe per day. Natural gas prices also
improved from the second quarter of 2006. The Company's realized
natural gas price averaged $7.60 per Mcf in 2007's second quarter, 12% higher
than the $6.77 per Mcf in 2006's second quarter. Realized oil prices
in the second quarter of 2007 averaged $62.42 per barrel, 4% lower than the
$64.90 per barrel for 2006. The substantial production gains caused
second quarter 2007's oil and gas sales to increase 40% to $174.2 million
from
2006's second quarter sales of $124.2 million. Operating cash flow
(before changes in working capital accounts) generated by Comstock in 2007's
second quarter of $127.2 million was 46% higher than 2006's second quarter
cash
flow of $87.0 million. EBITDAX or earnings before interest, taxes,
depreciation, depletion, amortization, exploration expense and other noncash
expenses also increased 47% to $140.7 million in 2007's second quarter, from
2006's second quarter EBITDAX of $95.9 million.
Comstock
reported net income of $30.8 million or 69¢ per diluted share for the six months
ended June 30, 2007 as compared to 2006's net income of $45.2 million or
$1.03
per diluted share. The 2006 results include a $10.1 million
unrealized gain on derivative financial instruments. Without this
gain, Comstock would have had net income of $38.6 million or 88¢ per diluted
share.
Financial
results for the first six months of 2007 also reflect the Company's strong
production growth. Comstock's production in the first six months of
2007 increased 30% to 41.5 Bcfe as compared to production of 32.0 Bcfe in
the
first six months of 2006. Onshore production has increased 18% and
offshore production was up 45% from the first six months of 2006. The
production gains for the first half of 2007 were offset in part by lower
oil and
natural gas prices. The Company's realized natural gas price averaged
$7.25 per Mcf in 2007's first six months, 2% lower than the $7.40 per Mcf
in
2006's first six months. Realized oil prices in the first six months
of 2007 averaged $58.46 per barrel, 5% lower than the $61.52 per barrel for
2006. Oil and gas sales of $320.2 million for the first six months of
2007 increased 25% from 2006's first six months sales of $255.9
million. Operating cash flow (before changes in working capital
accounts) generated by Comstock in 2007's first six months of $227.7 million
increased 28% from 2006's first six months cash flow of $178.5
million. EBITDAX or earnings before interest, taxes, depreciation,
depletion, amortization, exploration expense and other noncash expenses was
$254.7 million in 2007's first six months, a 30% increase from 2006's first
six
months EBITDAX of $195.9 million.
Six
Months 2007 Drilling Results
Comstock
also announced the results to date of its 2007 drilling program. In
the first six months of 2007 Comstock drilled 97 wells (77.3
net). Eighty-five of the wells drilled were successful and twelve
were dry holes.
Onshore,
Comstock drilled 83 (66.5 net) development wells in the first six months
of 2007
with 81 (64.8 net) being successful. Only one (0.6 net) of the three
(2.6 net) exploratory wells were successful. Comstock drilled 66
successful wells (53.3 net) in its East Texas and North Louisiana region
which
have been tested at an average per well initial production rate of 1.3 Mmcfe
per
day. At June 30, 2007 Comstock had three additional wells in this
region that were being drilled which are part of Comstock's 120 well drilling
program planned in this region for 2007. Production in this region
has increased 34% in the first six months of 2007 as compared to the first
half
of 2006 as a result of this drilling program. Comstock plans to drill
its first horizontal Cotton Valley well in the third quarter. The
Bell #11A-H well will be drilled in the Waskom field in Harrison County,
Texas
and is expected to cost $6.3 million. Comstock will have a 69%
working interest in the well. If successful, Comstock plans to
incorporate additional horizontal wells in its development drilling activity
in
this region.
In
South
Texas, Comstock drilled nine successful wells (6.4 net) during the first
six
months of 2007, which had an average per well initial production rate of
6.5
Mmcfe per day. Three of the wells were in the Las Hermanitas field in
Duval County, Texas, three were in the Javelina Field in Hidalgo County,
two
were in the Company's Ball Ranch field and one was in the Tom East
field. Comstock's latest well drilled in its Las Hermanitas field in
Duval County in South Texas, the Shovlin-Vehle #2, is currently producing
7.5
Mmcfe per day from a lower sand completion. Comstock also drilled the
Reithmeyer #3 in the Javelina field in Hidalgo County in South Texas which
is
currently producing 7.4 Mmcfe from its two stage completion. Comstock
had three rigs drilling in this region on June 30, 2007.
Comstock
drilled eight wells (7.3 net) in its Laurel and Maxie fields in Mississippi
during the first six months of 2007, six of which were
successful. Five of these wells were tested at an average per well
initial production rate of 183 barrels of oil per day and one well tested
at 1.5
Mmcf of natural gas per day. Comstock had one rig drilling in the
Laurel field at the end of June. The first two exploratory wells
drilled to test the Company's Pine Hollow prospect in Mississippi were
unsuccessful.
Comstock's
offshore operations are conducted by its 49% owned subsidiary, Bois d'Arc
Energy, Inc. (NYSE: BDE) ("Bois d'Arc"). During the first six months
of 2007, Bois d'Arc has drilled six exploratory wells, 3.8 net to Bois d'Arc's
interest and five development wells (4.4 net). One of these
exploratory wells (0.8 net) and two development wells (2.0 net) were
successful. During the second quarter of 2007, Bois d'Arc
participated in three unsuccessful exploratory wells (two wells, net to its
interest). Bois d'Arc's OCS-G 27166 #1 well at South Pelto block 7 to
test the "Dog Bone" prospect was unsuccessful as was the OCS-G 23903 #1 well
at
Ship Shoal block 163. Bois d'Arc also participated in another
operator's deepwater exploratory prospect in the second quarter but has elected
not to participate in the well's completion. Bois d'Arc is currently
drilling the OCS-G-0063 #8ST1 at Ship Shoal block 93 to test its "Walleye"
prospect. Bois d'Arc plans to drill the well to a total depth of
15,000 feet and is currently setting protective pipe in the well below 13,000
feet. Five prospective reservoirs have been encountered so far and
the well looks to be successful. Bois d'Arc is also drilling its
ultra deep "Butch Cassidy" prospect, which is now drilling below 15,000
feet.
During
the second quarter Comstock completed an acquisition of additional working
interests in the Javelina field in Hildalgo County in South Texas for $32.0
million. Comstock estimates that the additional interests acquired
have proved reserves of approximately 10.6 billion cubic feet ("Bcf") of
natural
gas. In addition to the proved reserves, Comstock estimates that the
properties being acquired have additional probable and possible reserves
of 8.1
Bcf.
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 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.
CONSOLIDATED
OPERATING RESULTS
(In
thousands, except per share amounts)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Oil
and gas sales
|
$
|
174,206
|
$
|
124,178
|
$
|
320,235
|
$
|
255,902
|
||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Oil
and gas operating
|
30,180
|
25,021
|
57,263
|
51,316
|
||||||||||||
|
Exploration
|
19,866
|
3,718
|
30,999
|
8,593
|
||||||||||||
|
Depreciation,
depletion and amortization
|
59,760
|
33,063
|
116,467
|
63,748
|
||||||||||||
|
Impairment
|
—
|
8,780
|
—
|
8,780
|
||||||||||||
|
General
and administrative
|
8,162
|
7,233
|
17,864
|
15,368
|
||||||||||||
|
Total
operating expenses
|
117,968
|
77,815
|
222,593
|
147,805
|
||||||||||||
|
|
||||||||||||||||
|
Income
from operations
|
56,238
|
46,363
|
97,642
|
108,097
|
||||||||||||
|
Other
income (expenses):
|
||||||||||||||||
|
Interest
income
|
335
|
229
|
631
|
466
|
||||||||||||
|
Other
income
|
221
|
375
|
351
|
429
|
||||||||||||
|
Interest
expense
|
(10,206
|
)
|
(6,106
|
)
|
(18,655
|
)
|
(11,589
|
)
|
||||||||
|
Gain
on derivatives
|
—
|
1,303
|
—
|
9,428
|
||||||||||||
|
Total
other income (expenses)
|
(9,650
|
)
|
(4,199
|
)
|
(17,673
|
)
|
(1,266
|
)
|
||||||||
|
Income
before income taxes and minority interest
|
46,588
|
42,164
|
79,969
|
106,831
|
||||||||||||
|
Provision
for income taxes
|
(19,561
|
)
|
(18,886
|
)
|
(34,385
|
)
|
(45,185
|
)
|
||||||||
|
Minority
interest in earnings of Bois d'Arc Energy
|
(8,810
|
)
|
(7,695
|
)
|
(14,809
|
)
|
(16,429
|
)
|
||||||||
|
Net
income
|
$
|
18,217
|
$
|
15,583
|
$
|
30,775
|
$
|
45,217
|
||||||||
|
Net
income per share:
|
||||||||||||||||
|
Basic
|
$
|
0.42
|
$
|
0.37
|
$
|
0.71
|
$
|
1.07
|
||||||||
|
Diluted
|
$
|
0.41
|
$
|
0.35
|
$
|
0.69
|
$
|
1.03
|
||||||||
|
Weighted
average common and common stock
equivalent
shares outstanding:
|
||||||||||||||||
|
Basic
|
43,374
|
42,077
|
43,369
|
42,070
|
||||||||||||
|
Diluted
|
44,361
|
43,521
|
44,300
|
43,481
|
||||||||||||
COMSTOCK
RESOURCES, INC.
CONSOLIDATED
OPERATING RESULTS
(In
thousands)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2007
|
2006
|
2007
|
2006
|
|||||||||||||
|
Cash
flow from operations:
|
||||||||||||||||
|
Net
cash provided by operating activities
|
$
|
148,807
|
$
|
90,525
|
$
|
227,553
|
$
|
176,064
|
||||||||
|
Excess
tax benefit from stock-based compensation
|
434
|
725
|
600
|
922
|
||||||||||||
|
Increase
(decrease) in accounts receivable
|
10,539
|
545
|
15,413
|
(13,140
|
)
|
|||||||||||
|
Decrease
in other current assets
|
1,327
|
5,461
|
2,564
|
949
|
||||||||||||
|
Decrease
(increase) in accounts payable
|
||||||||||||||||
|
and
accrued expenses
|
(33,910
|
)
|
(10,287
|
)
|
(18,389
|
)
|
13,666
|
|||||||||
|
Cash
flow from operations
|
$
|
127,197
|
$
|
86,969
|
$
|
227,741
|
$
|
178,461
|
||||||||
|
EBITDAX:
|
||||||||||||||||
|
Net
income
|
$
|
18,217
|
$
|
15,583
|
$
|
30,775
|
$
|
45,217
|
||||||||
|
Interest
expense
|
10,206
|
6,106
|
18,655
|
11,589
|
||||||||||||
|
Income
tax expense
|
19,561
|
18,886
|
34,385
|
45,185
|
||||||||||||
|
Depreciation,
depletion and amortization
|
59,760
|
33,063
|
116,467
|
63,748
|
||||||||||||
|
Impairment
|
—
|
8,780
|
—
|
8,780
|
||||||||||||
|
Minority
interest in earnings of Bois d'Arc Energy
|
8,810
|
7,695
|
14,809
|
16,429
|
||||||||||||
|
Stock-based
compensation
|
4,318
|
3,348
|
8,630
|
6,492
|
||||||||||||
|
Exploration
expense
|
19,866
|
3,718
|
30,999
|
8,593
|
||||||||||||
|
Unrealized
gain on derivatives
|
—
|
(1,303
|
)
|
—
|
(10,131
|
)
|
||||||||||
|
EBITDAX
|
$
|
140,738
|
$
|
95,876
|
$
|
254,720
|
$
|
195,902
|
||||||||
|
As
of June 30,
|
||||||||
|
2007
|
2006
|
|||||||
|
Balance
Sheet Data:
|
||||||||
|
Cash
and cash equivalents
|
$
|
48,882
|
$
|
8,031
|
||||
|
Other
current assets
|
110,604
|
84,142
|
||||||
|
Property
and equipment, net
|
1,957,176
|
1,499,871
|
||||||
|
Other
|
4,979
|
5,043
|
||||||
|
Total
assets
|
$
|
2,121,641
|
$
|
1,597,087
|
||||
|
Current
liabilities
|
$
|
170,290
|
$
|
124,282
|
||||
|
Long-term
debt
|
594,000
|
333,000
|
||||||
|
Deferred
income taxes
|
339,554
|
277,727
|
||||||
|
Asset
retirement obligation
|
59,605
|
41,345
|
||||||
|
Minority
interest in Bois d'Arc Energy
|
238,855
|
186,520
|
||||||
|
Stockholders'
equity
|
719,337
|
634,213
|
||||||
|
Total
liabilities and stockholders' equity
|
$
|
2,121,641
|
$
|
1,597,087
|
||||
COMSTOCK
RESOURCES, INC.
CONSOLIDATED
OPERATING RESULTS
($
In
thousands, except per unit amounts)
|
For
the Three Months Ended June 30, 2007
|
For
the Three Months Ended June 30, 2006
|
|||||||||||||||||||||||
|
Onshore(1)
|
Bois
d'Arc Energy
|
Total
|
Onshore(1)
|
Bois
d'Arc Energy
|
Total
|
|||||||||||||||||||
|
Oil
production (thousand barrels)
|
255
|
417
|
672
|
237
|
345
|
582
|
||||||||||||||||||
|
Gas
production (million cubic
feet
– Mmcf)
|
9,215
|
8,194
|
17,409
|
7,549
|
5,218
|
12,767
|
||||||||||||||||||
|
Total
production (Mmcfe)
|
10,746
|
10,696
|
21,442
|
8,969
|
7,290
|
16,259
|
||||||||||||||||||
|
Oil
sales
|
$
|
14,311
|
$
|
27,638
|
$
|
41,949
|
$
|
13,847
|
$
|
23,943
|
$
|
37,790
|
||||||||||||
|
Gas
sales
|
68,849
|
63,408
|
132,257
|
50,724
|
35,664
|
86,388
|
||||||||||||||||||
|
Total
oil and gas sales
|
$
|
83,160
|
$
|
91,046
|
$
|
174,206
|
$
|
64,571
|
$
|
59,607
|
$
|
124,178
|
||||||||||||
|
Average
oil price (per barrel)
|
$
|
56.10
|
$
|
66.28
|
$
|
62.42
|
$
|
58.47
|
$
|
69.31
|
$
|
64.90
|
||||||||||||
|
Average
gas price (per thousand cubic feet – Mcf)
|
$
|
7.47
|
$
|
7.74
|
$
|
7.60
|
$
|
6.72
|
$
|
6.84
|
$
|
6.77
|
||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
7.74
|
$
|
8.51
|
$
|
8.12
|
$
|
7.20
|
$
|
8.18
|
$
|
7.64
|
||||||||||||
|
Lifting
cost
|
$
|
17,624
|
$
|
12,556
|
$
|
30,180
|
$
|
13,200
|
$
|
11,821
|
$
|
25,021
|
||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.64
|
$
|
1.17
|
$
|
1.41
|
$
|
1.47
|
$
|
1.62
|
$
|
1.54
|
||||||||||||
|
Oil
and Gas Capital Expenditures
|
$
|
117,884
|
$
|
59,411
|
$
|
177,295
|
$
|
43,125
|
$
|
67,841
|
$
|
110,966
|
||||||||||||
|
For
the Six Months Ended June 30, 2007
|
For
the Six Months Ended June 30, 2006
|
|||||||||||||||||||||||
|
Onshore(1)
|
Bois
d'Arc Energy
|
Total
|
Onshore(1)
|
Bois
d'Arc Energy
|
Total
|
|||||||||||||||||||
|
Oil
production (thousand barrels)
|
506
|
785
|
1,291
|
465
|
663
|
1,128
|
||||||||||||||||||
|
Gas
production (million cubic
feet
– Mmcf)
|
17,850
|
15,895
|
33,745
|
14,918
|
10,282
|
25,200
|
||||||||||||||||||
|
Total
production (Mmcfe)
|
20,886
|
20,605
|
41,491
|
17,709
|
14,259
|
31,968
|
||||||||||||||||||
|
Oil
sales
|
$
|
26,365
|
$
|
49,106
|
$
|
75,471
|
$
|
26,112
|
$
|
43,280
|
$
|
69,392
|
||||||||||||
|
Gas
sales
|
126,642
|
118,122
|
244,764
|
108,350
|
78,160
|
186,510
|
||||||||||||||||||
|
Total
oil and gas sales
|
$
|
153,007
|
$
|
167,228
|
$
|
320,235
|
$
|
134,462
|
$
|
121,440
|
$
|
255,902
|
||||||||||||
|
Average
oil price (per barrel)
|
$
|
52.10
|
$
|
62.55
|
$
|
58.46
|
$
|
56.12
|
$
|
65.31
|
$
|
61.52
|
||||||||||||
|
Average
gas price (per thousand cubic feet – Mcf)
|
$
|
7.09
|
$
|
7.43
|
$
|
7.25
|
$
|
7.26
|
$
|
7.60
|
$
|
7.40
|
||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
7.33
|
$
|
8.12
|
$
|
7.72
|
$
|
7.59
|
$
|
8.52
|
$
|
8.01
|
||||||||||||
|
Lifting
cost
|
$
|
31,679
|
$
|
25,584
|
$
|
57,263
|
$
|
27,055
|
$
|
24,261
|
$
|
51,316
|
||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.52
|
$
|
1.24
|
$
|
1.38
|
$
|
1.53
|
$
|
1.70
|
$
|
1.61
|
||||||||||||
|
Oil
and Gas Capital Expenditures
|
$
|
202,135
|
$
|
122,164
|
$
|
324,299
|
$
|
92,282
|
$
|
114,298
|
$
|
206,580
|
||||||||||||
|
(1) Includes
the onshore results of operations of Comstock Resources,
Inc.
|
||||||||||||||||||||||||
COMSTOCK
RESOURCES, INC.
REGIONAL
OPERATING RESULTS
($
In
thousands, except per unit amounts)
|
For
the Three Months Ended June 30, 2007
|
For
the Three Months Ended June 30, 2006
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
Total
|
North
|
South
|
Total
|
|||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Onshore
|
Louisiana
|
Texas
|
Other
|
Onshore
|
|||||||||||||||||||||||||
|
Oil
production (thousand barrels)
|
39
|
54
|
162
|
255
|
31
|
57
|
149
|
237
|
||||||||||||||||||||||||
|
Gas
production (million cubic
feet
–
Mmcf)
|
6,072
|
2,423
|
720
|
9,215
|
4,325
|
2,378
|
846
|
7,549
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
6,305
|
2,744
|
1,697
|
10,746
|
4,513
|
2,721
|
1,735
|
8,969
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
2,398
|
$
|
3,343
|
$
|
8,570
|
$
|
14,311
|
$
|
1,991
|
$
|
3,813
|
$
|
8,043
|
$
|
13,847
|
||||||||||||||||
|
Gas
sales
|
44,490
|
19,290
|
5,069
|
68,849
|
28,299
|
17,592
|
4,833
|
50,724
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
46,888
|
$
|
22,633
|
$
|
13,639
|
$
|
83,160
|
$
|
30,290
|
$
|
21,405
|
$
|
12,876
|
$
|
64,571
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
61.49
|
$
|
61.91
|
$
|
52.90
|
$
|
56.10
|
$
|
64.23
|
$
|
66.89
|
$
|
53.98
|
$
|
58.47
|
||||||||||||||||
|
Average
gas price (per thousand
cubic
feet – Mcf)
|
$
|
7.33
|
$
|
7.96
|
$
|
7.04
|
$
|
7.47
|
$
|
6.54
|
$
|
7.40
|
$
|
5.71
|
$
|
6.72
|
||||||||||||||||
|
Average
price (per Mcf
equivalent)
|
$
|
7.44
|
$
|
8.25
|
$
|
8.04
|
$
|
7.74
|
$
|
6.71
|
$
|
7.87
|
$
|
7.42
|
$
|
7.20
|
||||||||||||||||
|
Lifting
cost(1)
|
$
|
8,311
|
$
|
4,462
|
$
|
4,851
|
$
|
17,624
|
(1)
|
$
|
5,735
|
$
|
3,684
|
$
|
3,781
|
$
|
13,200
|
(1)
|
||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.32
|
$
|
1.63
|
$
|
2.86
|
$
|
1.64
|
$
|
1.27
|
$
|
1.35
|
$
|
2.18
|
$
|
1.47
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
31,892
|
$
|
—
|
$
|
31,892
|
$
|
912
|
$
|
—
|
$
|
—
|
$
|
912
|
||||||||||||||||
|
Leasehold
costs
|
137
|
621
|
442
|
1,200
|
47
|
95
|
467
|
609
|
||||||||||||||||||||||||
|
Exploratory
drilling
|
—
|
3,133
|
1,759
|
4,892
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
|
Development
drilling
|
56,387
|
15,810
|
5,932
|
78,129
|
30,296
|
2,541
|
5,471
|
38,308
|
||||||||||||||||||||||||
|
Other
development
|
772
|
503
|
496
|
1,771
|
1,530
|
532
|
1,234
|
3,296
|
||||||||||||||||||||||||
|
Total
|
$
|
57,296
|
$
|
51,959
|
$
|
8,629
|
$
|
117,884
|
$
|
32,785
|
$
|
3,168
|
$
|
7,172
|
$
|
43,125
|
||||||||||||||||
|
(1) Includes
production taxes of $3,943 and $2,847 for the three months ended
June 30,
2007 and 2006, respectively.
|
||||||||||||||||||||||||||||||||
|
For
the Six Months Ended June 30, 2007
|
For
the Six Months Ended June 30, 2006
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
Total
|
North
|
South
|
Total
|
|||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Onshore
|
Louisiana
|
Texas
|
Other
|
Onshore
|
|||||||||||||||||||||||||
|
Oil
production (thousand barrels)
|
85
|
107
|
314
|
506
|
60
|
113
|
292
|
465
|
||||||||||||||||||||||||
|
Gas
production (million cubic
feet
–
Mmcf)
|
11,453
|
5,000
|
1,397
|
17,850
|
8,568
|
4,663
|
1,687
|
14,918
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
11,962
|
5,640
|
3,284
|
20,886
|
8,930
|
5,344
|
3,435
|
17,709
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
4,890
|
$
|
6,301
|
$
|
15,174
|
$
|
26,365
|
$
|
3,731
|
$
|
7,287
|
$
|
15,094
|
$
|
26,112
|
||||||||||||||||
|
Gas
sales
|
79,991
|
37,391
|
9,260
|
126,642
|
61,065
|
35,790
|
11,495
|
108,350
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
84,881
|
$
|
43,692
|
$
|
24,434
|
$
|
153,007
|
$
|
64,796
|
$
|
43,077
|
$
|
26,589
|
$
|
134,462
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
57.53
|
$
|
58.89
|
$
|
48.32
|
$
|
52.10
|
$
|
62.18
|
$
|
64.49
|
$
|
51.69
|
$
|
56.12
|
||||||||||||||||
|
Average
gas price (per thousand
cubic
feet –
Mcf)
|
$
|
6.98
|
$
|
7.48
|
$
|
6.63
|
$
|
7.09
|
$
|
7.13
|
$
|
7.68
|
$
|
6.81
|
$
|
7.26
|
||||||||||||||||
|
Average
price (per Mcf
equivalent)
|
$
|
7.10
|
$
|
7.75
|
$
|
7.44
|
$
|
7.33
|
$
|
7.26
|
$
|
8.06
|
$
|
7.74
|
$
|
7.59
|
||||||||||||||||
|
Lifting
cost(2)
|
$
|
14,995
|
$
|
7,784
|
$
|
8,900
|
$
|
31,679
|
(2)
|
$
|
11,661
|
7,333
|
$
|
8,061
|
$
|
27,055
|
(2)
|
|||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.25
|
$
|
1.38
|
$
|
2.71
|
$
|
1.52
|
$
|
1.31
|
$
|
1.37
|
$
|
2.35
|
$
|
1.53
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
31,965
|
$
|
—
|
$
|
31,965
|
$
|
912
|
$
|
—
|
$
|
—
|
$
|
912
|
||||||||||||||||
|
Leasehold
costs
|
535
|
1,364
|
2,842
|
4,741
|
234
|
185
|
1,134
|
1,553
|
||||||||||||||||||||||||
|
Exploratory
drilling
|
—
|
5,388
|
2,201
|
7,589
|
—
|
75
|
—
|
75
|
||||||||||||||||||||||||
|
Development
drilling
|
111,094
|
27,487
|
15,941
|
154,522
|
52,459
|
5,607
|
19,756
|
77,822
|
||||||||||||||||||||||||
|
Other
development
|
1,014
|
986
|
1,318
|
3,318
|
8,171
|
643
|
3,106
|
11,920
|
||||||||||||||||||||||||
|
Total
|
$
|
112,643
|
$
|
67,190
|
$
|
22,302
|
$
|
202,135
|
$
|
61,776
|
$
|
6,510
|
$
|
23,996
|
$
|
92,282
|
||||||||||||||||
|
(2) Includes
production taxes of $6,502 and $6,306 for the six months ended June
30,
2007 and 2006, respectively.
|
||||||||||||||||||||||||||||||||