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): February 5,
2009
COMSTOCK
RESOURCES, INC.
(Exact
Name of Registrant as Specified in Charter)
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STATE
OF NEVADA
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001-03262
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94-1667468
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(State
or other
jurisdiction
incorporation)
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(Commission
File Number)
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(I.R.S.
Employer
Identification
Number)
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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:
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¨
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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¨
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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¨
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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¨
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
2.06 Material Impairment
On February 5, 2009 Comstock Resources, Inc. ("Comstock") issued a press
release, attached hereto as Exhibit 99.1 and incorporated herein by reference,
announcing a material impairment to its investment in marketable securities
which will be recognized in its financial and operating results for the quarter
and year ended December 31, 2008. The Company has just recently
completed its impairment reviews as part of its year end financial reporting
process.
Item
8.01 Other Events.
On
February 5, 2009 Comstock issued a press release, attached hereto as Exhibit
99.1 and incorporated herein by reference, announcing its estimated proved oil
and gas reserves as of December 31, 2008.
Item
9.01 Financial Statements and Exhibits
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Exhibit
99.1
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Press
Release, dated February 5, 2009.
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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.
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COMSTOCK
RESOURCES, INC.
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Dated: February
5, 2009
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By:
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/s/
M. JAY ALLISON
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M.
Jay Allison
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President
and Chief Executive Officer
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Exhibit 99.1
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5300 Town and Country Blvd.,
Suite 500
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Frisco, Texas
75034
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Telephone: (972)
668-8800
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Contact: Roland O.
Burns
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Sr. Vice President and Chief
Financial Officer
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Web Site:
www.comstockresources.com
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NEWS RELEASE
For Immediate
Release
COMSTOCK
RESOURCES, INC. ANNOUNCES
PROVED
OIL AND GAS RESERVES AS OF DECEMBER 31, 2008
AND
NON CASH IMPAIRMENT CHARGES
FRISCO, TEXAS, February 5,
2009 -- Comstock Resources, Inc. ("Comstock" or the
"Company")(NYSE:CRK) announced today that Comstock's proved oil and natural gas
reserves as of December 31, 2008 are estimated at 524 billion cubic feet ("Bcf")
of natural gas and 9.7 million barrels of crude oil or 582 Bcf equivalent of
natural gas ("Bcfe"), as compared to total proved reserves as of December 31,
2007 of 651 Bcfe, excluding the 398 Bcfe in proved reserves attributable to Bois
d'Arc Energy which was sold in August 2008 to Stone Energy
Corporation. Natural gas reserves account for 90% of total proved
reserves and 67% of the total proved reserves were classified as proved
developed at the end of 2008. Comstock operates 85% of the proved
reserve base. The present value, using a 10% discount rate, of the
future net cash flows before income taxes of the estimated proved oil and
natural gas reserves (the "PV 10 Value") at the end of 2008 is approximately
$820 million using year end December 31, 2008 oil and natural gas prices of
$34.49 per barrel for oil and $5.33 per Mcf for natural gas. The PV
10 Value is different than the standardized measure of discounted estimated
future net cash flows which is calculated after income taxes.
Comstock
produced 59.9 Bcfe in 2008 and divested of 58.8 Bcfe in 2008 of proved reserves
relating to certain non-core properties. The proved reserves at
December 31, 2008 were negatively impacted by downward revisions of 52.8
Bcfe. These revisions were primarily the result of the lower crude
oil and natural gas prices used at December 31, 2008 to determine whether the
production or development of future reserves would be economic. Using
twelve-month average prices as of the first day of each month for crude oil and
natural gas prices realized by the Company in 2008 of $78.09 per barrel and
$8.32 per Mcf, the Company's proved reserves would increase to 617
Bcfe with a PV 10 Value of $1.8 billion. For the three months ending
December 31, 2008, Comstock's average realized crude oil price was $52.16 per
barrel and average realized natural gas price (including hedging gains) was
$6.44 per Mcf, reflecting weaker differentials from NYMEX market prices than the
Company experienced in the first three quarters of 2008.
Comstock
spent approximately $426.1 million in 2008 on exploration and development
activities which added 102.4 Bcfe to its proved reserve base. Capital
expenditures of $116.0 million in 2008 relate to the acquisition of unevaluated
leases primarily in the emerging Haynesville Shale play in East Texas and North
Louisiana.
The
decrease in the proved reserve base in 2008 from the decline in crude oil and
natural gas prices has increased the Company's depletion, depreciation and
amortization ("DD&A") unit of production rate. The Company's
average per unit DD&A rate for the three months ended December 31, 2008 is
estimated to be $3.34 per Mcf equivalent ("Mcfe") as compared to the third
quarter average rate of $3.07 per Mcfe.
The
Company also announced that the recent declines in crude oil and natural gas
prices and the significant decline in the value of equity securities that began
during the latter part of 2008 and have continued into early 2009, will result
in the recognition of impairment charges during the fourth quarter of 2008 for
Comstock's investment in Stone Energy Corporation. The Company
currently expects to recognize an other than temporary impairment of its
investment in Stone Energy of approximately $162.6 million ($105.8 million after
income taxes). The Company will also have an impairment of $0.9
million ($0.6 after income taxes) attributable to certain producing oil and gas
properties. These non-cash charges will be reported in income from
continuing operations in the Company's financial and operating
results.
Comstock
Fourth Quarter and Full Year 2008 Earnings Conference Call
Comstock
has scheduled a conference call for Tuesday, February 10, 2009 at 9:30 a.m. CST
(10:30 a.m. EST) to discuss fourth quarter and full year 2008 financial and
operating results. To access, dial (800) 599-9795 before the call
begins. Please reference Passcode 13456712. International
callers may also participate by dialing (617) 786-2905. A replay of
the call will be available approximately two hours after the live broadcast ends
and will be accessible until Tuesday, February 17, 2009. To access
the replay, please dial (888) 286-8010 and reference Passcode
42281507. International callers may listen to a playback by dialing
(617) 801-6888. In addition, the call will be webcast live on
Comstock's website at http://www.comstockresources.com. A replay of
the call will also be available at that site.
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 Louisiana and Texas. The Company's stock is traded on
the New York Stock Exchange under the symbol CRK.