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 4, 2008
COMSTOCK
RESOURCES, INC.
(Exact
Name of Registrant as Specified in Charter)
|
STATE
OF NEVADA
|
001-03262
|
94-1667468
|
|
(State
or other
jurisdiction
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 August
4, 2008, Comstock Resources, Inc. ("Comstock") announced financial results for
the three and six months ended June 30, 2008. A copy of the press
release announcing Comstock's earnings and operating results for the three and
six months ended June 30, 2008 and other matters 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 4, 2008.
|
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 4, 2008
|
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 2008 FINANCIAL AND OPERATING RESULTS
FRISCO, TEXAS, August 4, 2008
– Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today
reported financial and operating results for the quarter and six months ended
June 30, 2008. In the second quarter of 2008, Comstock began
reflecting its offshore operations, which are held by Bois d'Arc Energy, Inc.
("Bois d'Arc Energy") (NYSE: BDE) as discontinued operations due to the expected
closing of the merger between Bois d'Arc Energy and Stone Energy
Corporation ("Stone") (NYSE: SGY) in the third quarter of 2008. The
Company's financial results for prior periods have also been adjusted to present
the offshore properties of Bois d'Arc Energy as discontinued
operations.
Financial
Results for the Three Months and Six Months Ended June 30, 2008
Comstock
reported record high net income of $82.6 million or $1.81 per diluted share for
the three months ended June 30, 2008 as compared to 2007's second quarter net
income of $18.2 million or $0.41 per diluted share. Comstock's income
from continuing operations was $70.4 million or $1.55 per diluted share as
compared to income from continuing operations of $13.0 million or $0.29 per
diluted share for the second quarter of last year.
Second
quarter operating results reflect strong market prices for oil and natural gas
combined with strong production growth from Comstock's onshore
operations. Comstock's production from its continuing onshore
operations in the second quarter of 2008 increased 42% to 15.3 billion cubic
feet equivalent of natural gas ("Bcfe") as compared to production of 10.7 Bcfe
in the second quarter of 2007. The second quarter average daily
production rate of 168 million cubic feet of natural gas equivalent ("Mmcfe")
also increased 5% from the first quarter 2008 production rate of 160 Mmcfe per
day. Comstock's realized oil prices in the second quarter of 2008
averaged $105.16 per barrel, 87% higher than the $56.10 per barrel in 2007's
second quarter. Oil prices in the second quarter of 2008 also
improved from the $81.49 per barrel realized during the first quarter of
2008. Natural gas prices realized in the second quarter of 2008
averaged $10.51 per Mcf, 41% higher than the $7.47 per Mcf for
2007. Natural gas prices in the second quarter of 2008 were also 28%
higher than the $8.22 per Mcf realized during the first quarter of
2008. The 42% production increase and higher commodity prices caused
second quarter 2008's oil and gas sales to increase 107% to $172.0 million from
2007's second quarter sales of $83.2 million. Operating cash flow
from continuing operations (before changes in working capital accounts)
generated by Comstock in 2008's second quarter of $134.3 million increased 147%
over 2007's second quarter cash flow of $54.3 million. EBITDAX, or
earnings before interest, taxes, depreciation, depletion, amortization,
exploration expense and other noncash expenses from continuing operations,
increased 131% to $145.0 million in 2008's second quarter over 2007's second
quarter EBITDAX from continuing operations of $62.8 million.
Comstock
reported net income of $123.7 million or $2.72 per diluted share for the six
months ended June 30, 2008 as compared to 2007's net income of $30.8 million or
69¢ per diluted share. Income from continuing operations was $99.8
million or $2.21 per diluted share as compared to income from continuing
operations of $22.4 million or $0.51 per diluted share for the same period in
2007.
Financial
results for the first half of 2008 also reflect higher oil and natural gas
prices and the Company's strong production growth in 2008. Comstock's
continuing onshore production in the first six months of 2008 increased 43% to
29.9 Bcfe as compared to production of 20.9 Bcfe in the first six months of
2007. Realized oil prices in the first six months of 2008 averaged
$93.92 per barrel, 80% higher than the $52.10 per barrel realized in
2007. Natural gas prices in the first six months of 2008 averaged
$9.39 per Mcf, or 32% higher than the $7.09 per Mcf realized in
2007. Oil and gas sales of $299.7 million for the first six months of
2008 increased 96% from 2007's first six months sales of $153.0
million. Operating cash flow (before changes in working capital
accounts) generated by Comstock's continuing operations in 2008's first six
months of $225.8 million increased 126% from 2007's first six months cash flow
from continuing operations of $99.8 million. EBITDAX from continuing
operations was $248.2 million in 2008's first six months, a 115% increase over
2007's first six months EBITDAX from continuing operations of $115.2
million.
The
Company's income attributable to the discontinued offshore operations of Bois
d'Arc Energy of $12.2 million or 26¢ per diluted share increased in the second
quarter of 2008 as compared to $5.2 million (12¢ per diluted share) in the
second quarter of 2007. For the six months ended June 30, 2008, Bois
d'Arc Energy contributed $23.9 million or 51¢ per diluted share to net income as
compared to $8.4 million or 18¢ per diluted share for the same period in
2007.
The
offshore operations of Bois d'Arc Energy are reflected as discontinued
operations due to the pending merger of Bois d'Arc Energy pursuant to which
Stone will acquire Bois d'Arc Energy. Under the terms of the merger
agreement, the Bois d'Arc Energy shareholders, including Comstock, will receive
$13.65 in cash and 0.165 shares of Stone common stock for each share of Bois
d'Arc Energy. Comstock will receive $440 million in cash and
5,317,069 shares of the common stock of Stone for its stake in Bois d'Arc
Energy. Completion of the transaction is subject to approval by the
Bois d'Arc Energy and Stone stockholders at special meetings of their respective
stockholders to be held on August 27, 2008. Comstock has entered into
a stockholder agreement with Stone in which it has agreed to vote in favor of
the merger.
The 2008
second quarter and six months financial results also include a $21.4 million
gain ($13.9 million after tax or 31¢ per share) on the previously announced
sales of properties in East and South Texas for $122.0 million which closed in
June 2008. The estimated proved reserves attributable to the sold
properties is 44.3 Bcfe. Production in the first half of 2008
attributable to Comstock's interest in these properties averaged 8.4 MMcfe per
day.
Comstock
also announced today that it has accepted offers whereby it intends to sell
certain properties in its South Texas operating region for $16.4
million. The properties include Comstock's interests in the East
White Point and Markham fields in South Texas. The sales are expected
to close in August 2008. The estimated proved reserves attributable
to the properties being sold are 15.3 Bcfe. Production in the first
half of 2008 attributable to Comstock's interest in these properties was 0.9
MMcfe per day. Comstock expects to realize an after tax gain of $3.9
million on these sales.
Six
Months 2008 Onshore Drilling Results
Comstock
also announced the results of its 2008 onshore drilling program. In
the first six months of 2008 Comstock drilled 62 wells (37.0
net). Sixty-one (36.5 net) of the wells drilled were successful and
one (.5 net) was a dry hole.
Comstock
drilled 52 successful wells (30.5 net) in its East Texas and North Louisiana
region which have been tested at an average per well initial production rate of
2.6 Mmcfe per day. Wells drilled in the first half of 2008
include 19 wells (5.9 net) drilled in the Hico Knowles – Terryville area of
North Louisiana. Seventeen of these wells have been completed and had
initial production rates which have averaged 4.0 MMcfe per
day. Comstock has also drilled 20 wells (17.8 net) in its Logansport
field in North Louisiana. Sixteen of these wells have been completed
with initial production rates which averaged 1.2 MMcfe per
day. Comstock had ten wells in progress in this region at June 30,
2008.
Comstock
has also drilled two successful horizontal Cotton Valley wells in its Waskom
field in Harrison County, Texas in the second quarter. The Swift
#13-H well was drilled to a total vertical depth of 9,540 feet with a 2,947 foot
horizontal leg drilled in Taylor Cotton Valley sands. This well was
successfully completed with a seven stage frac and was tested at an initial
production rate of 8.0 million cubic feet of natural gas per day with flowing
casing pressure of 850 pounds per square inch. Comstock has a 49%
working interest in this well. The Bogue #A-4-H well was drilled to a
total vertical depth of 9,600 feet with a 2,850 foot horizontal leg drilled in
Taylor Cotton Valley sands. This well was successfully completed with
a seven stage frac and was tested at an initial production rate of 10.1 million
cubic feet of natural gas per day with flowing casing pressure of 1,150 pounds
per quarter inch. Comstock has a 94% working interest in this
well.
In South
Texas, Comstock drilled six successful development wells (5.3 net) and two (.9
net) exploratory wells, one (.4 net) of which was successful, during the first
six months of 2008. The successful wells had an average per well
initial production rate of 3.8 Mmcfe per day. Two of the successful
wells were in the Las Hermanitas field in Duval County, Texas, three were in the
Javelina Field in Hidalgo County, one was in the Ball Ranch field, and one was
in the Lorenz Ranch field. Comstock had two wells in progress in this
region on June 30, 2008.
Comstock
also had two (.3 net) successful wells drilled in the San Juan Basin in the
first half of this year.
Comstock
spent $145.9 million during the first six months of 2008 for its acquisition,
exploration and development activities related to its continuing onshore
operations, consisting of $21.5 million for lease acquisition, $121.7 million
for development drilling and other development activity and $2.7 million for
exploratory drilling.
Comstock
announced today that it plans to increase its 2008 budget for its onshore
drilling program to $410 million as compared to the Company's original budget
for 2008 of $278 million. The increase is primarily attributable to
increased spending in its East Texas and North Louisiana region on acreage
acquisitions and anticipated drilling related to the Company's Haynesville shale
program. Comstock's 2008 onshore drilling program now includes 133
(78.6 net) wells. Capital spending in the Company's East Texas/North
Louisiana operating region is forecasted to be $292 million, which includes 101
total wells (60.8 net). Nine of these wells will be horizontal
wells. Comstock also expects to spend $111 million in its South Texas
operating region, to drill 24 wells (16.4 net). The remaining $7
million will be spent on Comstock's other onshore regions.
Comstock
also announced that it estimates that it now has 80,593 (65,802 net) acres that
are prospective for Haynesville shale development and commenced drilling its
first Haynesville shale horizontal well in its Toledo North
field. Comstock has an 88% working interest in the BSMC LA 7 HZ #1
well which is expected to be drilled to a vertical depth of 11,400 feet with a
completed lateral length of 4,000 feet.
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 and Louisiana. 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 June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Oil
and gas sales
|
$
|
172,022
|
$
|
83,160
|
$
|
299,743
|
$
|
153,007
|
||||||||
|
Gain
on sale of assets
|
21,444
|
—
|
21,204
|
—
|
||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Oil
and gas operating
|
23,362
|
17,624
|
44,564
|
31,679
|
||||||||||||
|
Exploration
|
—
|
1,878
|
2,238
|
2,276
|
||||||||||||
|
Depreciation,
depletion and amortization
|
44,422
|
30,248
|
85,927
|
57,608
|
||||||||||||
|
General
and administrative
|
6,922
|
5,588
|
13,086
|
11,838
|
||||||||||||
|
Total
operating expenses
|
74,706
|
55,338
|
145,815
|
103,401
|
||||||||||||
|
Operating
income from continuing operations
|
118,760
|
27,822
|
175,132
|
49,606
|
||||||||||||
|
Other
income (expenses):
|
||||||||||||||||
|
Other
income
|
205
|
197
|
366
|
388
|
||||||||||||
|
Interest
income
|
36
|
39
|
58
|
77
|
||||||||||||
|
Interest
expense
|
(8,546
|
)
|
(7,775
|
)
|
(18,497
|
)
|
(14,060
|
)
|
||||||||
|
Total
other income (expenses)
|
(8,305
|
)
|
(7,539
|
)
|
(18,073
|
)
|
(13,595
|
)
|
||||||||
|
Income
from continuing operations
before income taxes |
110,455
|
20,283
|
157,059
|
36,011
|
||||||||||||
|
Provision
for income taxes
|
(40,027
|
)
|
(7,312
|
)
|
(57,299
|
)
|
(13,641
|
)
|
||||||||
|
Income
from continuing operations
|
70,428
|
12,971
|
99,830
|
22,370
|
||||||||||||
|
Income
from discontinued operations after
income taxes and minority interest |
12,199
|
5,246
|
23,892
|
8,405
|
||||||||||||
|
Net
income
|
$
|
82,627
|
$
|
18,217
|
$
|
123,722
|
$
|
30,775
|
||||||||
|
Basic
net income per share:
|
||||||||||||||||
|
Continuing
operations
|
$
|
1.59
|
$
|
0.30
|
$
|
2.25
|
$
|
0.52
|
||||||||
|
Discontinued
operations
|
0.28
|
0.12
|
0.54
|
0.19
|
||||||||||||
|
$
|
1.87
|
$
|
0.42
|
$
|
2.79
|
$
|
0.71
|
|||||||||
|
Diluted
net income per share:
|
||||||||||||||||
|
Continuing
operations
|
$
|
1.55
|
$
|
0.29
|
$
|
2.21
|
$
|
0.51
|
||||||||
|
Discontinued
operations
|
0.26
|
0.12
|
0.51
|
0.18
|
||||||||||||
|
$
|
1.81
|
$
|
0.41
|
$
|
2.72
|
$
|
0.69
|
|||||||||
|
Weighted
average shares outstanding:
|
||||||||||||||||
|
Basic
|
44,287
|
43,374
|
44,296
|
43,369
|
||||||||||||
|
Diluted
|
45,373
|
44,361
|
45,246
|
44,300
|
||||||||||||
COMSTOCK
RESOURCES, INC.
OPERATING
RESULTS
(In
thousands)
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Cash
flow from continuing operations:
|
||||||||||||||||
|
Net
cash provided by continuing operating activities
|
$
|
146,373
|
$
|
69,782
|
$
|
200,730
|
$
|
117,071
|
||||||||
|
Excess
tax benefit from stock-based compensation
|
7,962
|
434
|
8,632
|
600
|
||||||||||||
|
Increase
in accounts receivable
|
9,651
|
6,379
|
25,316
|
10,839
|
||||||||||||
|
Increase
(decrease) in other current assets
|
1,017
|
860
|
1,175
|
(57
|
)
|
|||||||||||
|
Decrease
in accounts payable and accrued expenses
|
(30,725
|
)
|
(23,187
|
)
|
(10,078
|
)
|
(28,687
|
)
|
||||||||
|
Cash
flow from continuing operations
|
$
|
134,278
|
$
|
54,268
|
$
|
225,775
|
$
|
99,766
|
||||||||
|
EBITDAX:
|
||||||||||||||||
|
Income
from continuing operations
|
$
|
70,428
|
$
|
12,971
|
$
|
99,830
|
$
|
22,370
|
||||||||
|
Gain
on sale of assets
|
(21,444 | ) |
—
|
(21,204 | ) |
—
|
||||||||||
|
Interest
expense
|
8,546
|
7,775
|
18,497
|
14,060
|
||||||||||||
|
Income
tax expense
|
40,027
|
7,312
|
57,229
|
13,641
|
||||||||||||
|
Depreciation,
depletion and amortization
|
44,422
|
30,248
|
85,927
|
57,608
|
||||||||||||
|
Stock-based
compensation
|
3,038
|
2,607
|
5,716
|
5,261
|
||||||||||||
|
Exploration
expense
|
—
|
1,878
|
2,238
|
2,276
|
||||||||||||
|
EBITDAX
from continuing operations
|
$
|
145,017
|
$
|
62,791
|
$
|
248,233
|
$
|
115,216
|
||||||||
|
As
of June 30,
|
||||||||
|
2008
|
2007
|
|||||||
|
Balance
Sheet Data:
|
||||||||
|
Cash
and cash
equivalents
|
$
|
8,709
|
$
|
27,167
|
||||
|
Other
current
assets
|
89,266
|
51,596
|
||||||
|
Property
and equipment,
net
|
1,276,184
|
1,061,242
|
||||||
|
Assets
of discontinued operations
|
1,031,982
|
977,319
|
||||||
|
Other
|
3,554
|
4,317
|
||||||
|
Total
assets
|
$
|
2,409,695
|
$
|
2,121,641
|
||||
|
Accounts
payable and accrued expenses
|
$
|
96,608
|
$
|
108,476
|
||||
|
Deferred
unrealized hedging losses
|
40,080 |
—
|
||||||
|
Long-term
debt
|
495,000
|
469,000
|
||||||
|
Deferred
income taxes
|
132,198
|
85,178
|
||||||
|
Asset
retirement obligation
|
7,555
|
9,474
|
||||||
|
Liabilities
and minority interest of discontinued operations
|
746,081
|
730,176
|
||||||
|
Stockholders'
equity
|
892,173
|
719,337
|
||||||
|
Total
liabilities and stockholders' equity
|
$
|
2,409,695
|
$
|
2,121,641
|
||||
COMSTOCK
RESOURCES, INC.
REGIONAL
OPERATING RESULTS
(In
thousands, except per unit amounts)
|
For
the Three Months Ended June 30, 2008
|
For
the Three Months Ended June 30, 2007
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
North
|
South
|
|||||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Total
|
Louisiana
|
Texas
|
Other
|
Total
|
|||||||||||||||||||||||||
|
Oil
production (thousand
barrels) |
84
|
58
|
126
|
268
|
39
|
54
|
162
|
255
|
||||||||||||||||||||||||
|
Gas
production (million cubic
feet – Mmcf)
|
7,227
|
5,840
|
615
|
13,682
|
6,072
|
2,423
|
720
|
9,215
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
7,732
|
6,190
|
1,370
|
15,292
|
6,305
|
2,744
|
1,697
|
10,746
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
9,625
|
$
|
6,988
|
$
|
11,613
|
$
|
28,226
|
$
|
2,398
|
$
|
3,343
|
$
|
8,570
|
$
|
14,311
|
||||||||||||||||
|
Gas
sales
|
78,746
|
62,840
|
6,594
|
148,180
|
44,490
|
19,290
|
5,069
|
68,849
|
||||||||||||||||||||||||
|
Gas
hedging losses
|
—
|
(4,384
|
)
|
—
|
(4,384
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
|
Total
gas sales
|
78,746
|
58,456
|
6,594
|
143,796
|
44,490
|
19,290
|
5,069
|
68,849
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
88,371
|
$
|
65,444
|
$
|
18,207
|
$
|
172,022
|
$
|
46,888
|
$
|
22,633
|
$
|
13,639
|
$
|
83,160
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
114.58
|
$
|
120.48
|
$
|
92.17
|
$
|
105.16
|
$
|
61.49
|
$
|
61.91
|
$
|
52.90
|
$
|
56.10
|
||||||||||||||||
|
Average
gas price (per
thousand cubic feet – Mcf) |
$
|
10.90
|
$
|
10.76
|
$
|
10.72
|
$
|
10.83
|
$
|
7.33
|
$
|
7.96
|
$
|
7.04
|
$
|
7.47
|
||||||||||||||||
|
Average
gas price including hedging (per Mcf)
|
$ |
10.90
|
$ |
10.01
|
$ |
10.72
|
$ |
10.51
|
$ |
7.33
|
$ |
7.96
|
$ |
7.04
|
$ |
7.47
|
||||||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
11.43
|
$
|
11.28
|
$
|
13.29
|
$
|
11.54
|
$
|
7.44
|
$
|
8.25
|
$
|
8.04
|
$
|
7.74
|
||||||||||||||||
|
Average
price including hedging (per Mcf equivalent)
|
$ |
11.43
|
$ |
10.57
|
$ |
13.29
|
$ |
11.25
|
$ |
7.44
|
$ |
8.25
|
$ |
8.04
|
$ |
7.74
|
||||||||||||||||
|
Lifting cost(1)
|
$
|
9,879
|
$
|
8,032
|
$
|
5,451
|
$
|
23,362
|
(1)
|
$
|
8,311
|
$
|
4,462
|
$
|
4,851
|
$
|
17,624
|
(1)
|
||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.28
|
$
|
1.30
|
$
|
3.98
|
$
|
1.53
|
$
|
1.32
|
$
|
1.63
|
$
|
2.86
|
$
|
1.64
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
31,892
|
$
|
—
|
$
|
31,892
|
||||||||||||||||
|
Leasehold costs
|
17,146
|
282
|
12
|
17,440
|
137
|
621
|
442
|
1,200
|
||||||||||||||||||||||||
|
Exploratory drilling
|
—
|
1
|
228
|
229
|
—
|
3,133
|
1,759
|
4,892
|
||||||||||||||||||||||||
|
Development drilling
|
43,186
|
14,861
|
157
|
58,204
|
56,387
|
15,810
|
5,932
|
78,129
|
||||||||||||||||||||||||
|
Other development
|
355
|
6,319
|
1,265
|
7,939
|
772
|
503
|
496
|
1,771
|
||||||||||||||||||||||||
|
Total
|
$
|
60,687
|
$
|
21,463
|
$
|
1,662
|
$
|
83,812
|
$
|
57,296
|
$
|
51,959
|
$
|
8,629
|
$
|
117,884
|
||||||||||||||||
|
(1) Includes
production taxes of $6,545 and $3,943 for the three months ended June 30,
2008 and 2007, respectively.
|
||||||||||||||||||||||||||||||||
COMSTOCK
RESOURCES, INC.
REGIONAL
OPERATING RESULTS
(In
thousands, except per unit amounts)
|
For
the Six Months Ended June 30, 2008
|
For
the Six Months Ended June 30, 2007
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
North
|
South
|
|||||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Total
|
Louisiana
|
Texas
|
Other
|
Total
|
|||||||||||||||||||||||||
|
Oil
production (thousand
barrels) |
131
|
104
|
276
|
511
|
85
|
107
|
314
|
506
|
||||||||||||||||||||||||
|
Gas
production (million cubic
feet – Mmcf)
|
13,954
|
11,470
|
1,388
|
26,812
|
11,453
|
5,000
|
1,397
|
17,850
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
14,740
|
12,097
|
3,041
|
29,878
|
11,962
|
5,640
|
3,284
|
20,886
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
14,049
|
$
|
11,508
|
$
|
22,441
|
$
|
47,998
|
$
|
4,890
|
$
|
6,301
|
$
|
15,174
|
$
|
26,365
|
||||||||||||||||
|
Gas
sales
|
134,477
|
108,975
|
12,921
|
256,373
|
79,991
|
37,391
|
9,260
|
126,642
|
||||||||||||||||||||||||
|
Gas
hedging losses
|
—
|
(4,628
|
)
|
—
|
(4,628
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
|
Total
gas sales
|
134,477
|
104,347
|
12,921
|
251,745
|
79,991
|
37,391
|
9,260
|
126,642
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
148,526
|
$
|
115,855
|
$
|
35,362
|
$
|
299,743
|
$
|
84,881
|
$
|
43,692
|
$
|
24,434
|
$
|
153,007
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
107.24
|
$
|
110.65
|
$
|
81.31
|
$
|
93.92
|
$
|
57.53
|
$
|
58.89
|
$
|
48.32
|
$
|
52.10
|
||||||||||||||||
|
Average
gas price (per
thousand cubic feet – Mcf) |
$
|
9.64
|
$
|
9.50
|
$
|
9.31
|
$
|
9.56
|
$
|
6.98
|
$
|
7.48
|
$
|
6.63
|
$
|
7.09
|
||||||||||||||||
|
Average
gas price including hedging (per Mcf)
|
$ |
9.64
|
$ |
9.10
|
$ |
9.31
|
$ |
9.39
|
$ |
6.98
|
$ |
7.48
|
$ |
6.63
|
$ |
7.09
|
||||||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
10.08
|
$
|
9.96
|
$
|
11.63
|
$
|
10.19
|
$
|
7.10
|
$
|
7.75
|
$
|
7.44
|
$
|
7.33
|
||||||||||||||||
|
Average
price including hedging (per Mcf equivalent)
|
$ |
10.08
|
$ |
9.58
|
$ |
11.63
|
$ |
10.03
|
$ |
7.10
|
$ |
7.75
|
$ |
7.44
|
$ |
7.33
|
||||||||||||||||
|
Lifting cost(2)
|
$
|
18,648
|
$
|
15,088
|
$
|
10,828
|
$
|
44,564
|
(2)
|
$
|
14,995
|
$
|
7,784
|
$
|
8,900
|
$
|
31,679
|
(2)
|
||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.27
|
$
|
1.25
|
$
|
3.56
|
$
|
1.49
|
$
|
1.25
|
$
|
1.38
|
$
|
2.71
|
$
|
1.52
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
31,965
|
$
|
—
|
$
|
31,965
|
||||||||||||||||
|
Leasehold costs
|
20,007
|
1,406
|
61
|
21,474
|
535
|
1,364
|
2,842
|
4,741
|
||||||||||||||||||||||||
|
Exploratory drilling
|
—
|
2,357
|
351
|
2,708
|
—
|
5,388
|
2,201
|
7,589
|
||||||||||||||||||||||||
|
Development drilling
|
82,559
|
26,264
|
1,546
|
110,369
|
111,094
|
27,487
|
15,941
|
154,522
|
||||||||||||||||||||||||
|
Other development
|
1,285
|
7,036
|
2,981
|
11,302
|
1,014
|
986
|
1,318
|
3,318
|
||||||||||||||||||||||||
|
Total
|
$
|
103,851
|
$
|
37,063
|
$
|
4,939
|
$
|
145,853
|
$
|
112,643
|
$
|
67,190
|
$
|
22,302
|
$
|
202,135
|
||||||||||||||||
|
(2) Includes
production taxes of $12,779 and $6,502 for the six months ended June 30,
2008 and 2007, respectively.
|
||||||||||||||||||||||||||||||||