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 9, 2009
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
February 9, 2009, Comstock Resources, Inc. ("Comstock") announced financial
results for the three months and year ended December 31, 2008. A copy
of the press release announcing Comstock's earnings and operating results for
the three months and year ended December 31, 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 February 9, 2009.
|
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:
February 9, 2009
|
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
FOURTH
QUARTER AND ANNUAL 2008
FINANCIAL
AND OPERATING RESULTS
FRISCO, TEXAS, February 9,
2009 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK)
today reported financial and operating results for the quarter and year ended
December 31, 2008.
Financial
Results for the Three Months and Year Ended December 31, 2008
Comstock
reported a net loss of $96.4 million or $2.15 per share for the three months
ended December 31, 2008 as compared to 2007's fourth quarter net income of $21.7
million or $0.48 per diluted share. Results for the fourth quarter of
2008 include impairment charges of $162.7 million ($105.8 million after income
taxes or $2.33 per share) related to the Company's investment in Stone Energy
Corporation ("Stone") and a $0.9 million ($0.6 million after tax or $.01 per
diluted share) related to its oil and gas properties. Excluding these
impairment charges, net income for the fourth quarter of 2008 would be $10.0
million or $0.22 per diluted share. Comstock's income from continuing
operations in the fourth quarter of 2007 was $13.2 million or $0.30 per diluted
share.
The
fourth quarter operating results were impacted by continued production
growth and declining market prices for crude oil and natural
gas. Comstock's production from its continuing onshore operations in
the fourth quarter of 2008 increased 23% to 15.1 billion cubic feet equivalent
of natural gas ("Bcfe") as compared to production of 12.2 Bcfe in the fourth
quarter of 2007. The fourth quarter average daily production rate of
164 million cubic feet of natural gas equivalent ("Mmcfe") was slightly higher
than the third quarter 2008 production rate of 163 Mmcfe per
day. Comstock's realized oil prices in the fourth quarter of 2008
declined to $52.16 per barrel, 31% lower than the $76.10 per barrel in 2007's
fourth quarter. Oil prices in the fourth quarter of 2008 were
substantially lower than the $105.15 per barrel realized during the third
quarter of 2008. Natural gas prices realized in the fourth quarter of
2008 averaged $6.44 per Mcf, 10% lower than the $7.15 per Mcf realized in
2007. Natural gas prices in the fourth quarter of 2008 were also
substantially less than the $10.16 per Mcf realized during the third quarter of
2008. Oil and gas sales in the fourth quarter of 2008 of $100.2
million increased 5% from 2007's fourth quarter sales of $95.5 million as the
23% production increase was largely offset by lower crude oil and natural gas
prices. Operating cash flow (before changes in working capital
accounts) generated by Comstock's continuing operations in 2008's fourth quarter
of $79.5 million increased 26% over 2007's fourth quarter operating cash flow of
$62.9 million. EBITDAX, or earnings before interest, taxes,
depreciation, depletion, amortization, exploration expense and other noncash
expenses from continuing operations, of $71.5 million in 2008's fourth quarter
was comparable to 2007's fourth quarter EBITDAX from continuing operations of
$72.3 million.
Comstock
reported net income of $252.0 million or $5.53 per diluted share for the year
ended December 31, 2008 as compared to 2007's net income of $68.9 million or
$1.54 per diluted share. Income from continuing operations for 2008
was $58.2 million or $1.28 per diluted share as compared to income from
continuing operations of $45.6 million or $1.03 per diluted share for
2007. Excluding the impairment charges related to the investment in
Stone and its oil and gas properties, and the $26.6 million gain recognized on
sale of certain onshore oil and gas properties ($17.3 million after income taxes
or $0.38 per diluted share), Comstock's income from continuing operations for
2008 was $147.6 million or $3.25 per diluted share.
The full
year 2008 financial results reflect overall higher oil and natural gas prices
combined with the Company's strong production growth in
2008. Comstock's continuing onshore production in 2008 increased 32%
to 59.9 Bcfe as compared to production of 45.3 Bcfe in 2007. Realized
oil prices in 2008 averaged $87.15 per barrel, 43% higher than the $60.96 per
barrel realized in 2007. Natural gas prices in 2008 averaged $8.83
per Mcf, 28% higher than the $6.89 per Mcf realized in 2007. Oil
and gas sales of $563.7 million during 2008 increased 70% from 2007's sales of
$331.6 million. Operating cash flow (before changes in working
capital accounts) generated by Comstock's continuing operations in 2008 of
$438.2 million increased 103% from 2007's cash flow from continuing operations
of $215.5 million. EBITDAX from continuing operations of $458.7
million in 2008 increased 83% over 2007's EBITDAX from continuing operations of
$250.8 million.
Comstock's
offshore operations represented by its ownership in Bois d'Arc Energy, Inc.
("Bois d'Arc") are reflected as discontinued operations in the 2008 financial
results due to the sale of Bois d'Arc to Stone in August 2008. For
the year ended December 31, 2008, Bois d'Arc contributed $35.6 million or 77¢
per diluted share to net income as compared to $23.3 million or 51¢ per diluted
share in 2007. Comstock recognized a gain of $158.1 million after tax
( $3.48 per diluted share) in the third quarter in connection with the
sale. Comstock received $439.9 million in cash and 5,317,069 shares
of Stone common stock for its stake in Bois d'Arc.
2008 Drilling
Results
Comstock
also announced the results of its 2008 onshore drilling program. In
2008 Comstock drilled 136 wells (75.7 net). 132 (74.2 net) of the
wells drilled were successful and four (1.5 net) were dry holes.
Comstock
drilled 114 successful wells (61.5 net) in its East Texas / North Louisiana
region which have been tested at an average per well initial production rate of
2.8 Mmcfe per day. One well (.3 net) was
unsuccessful. Wells drilled in this region in 2008 include 37 wells
(11.2 net) drilled in the Hico Knowles – Terryville area of North
Louisiana. All of these wells have been completed and had initial
production rates which averaged 3.5 Mmcfe per day. Comstock has also
drilled 45 wells (34.2 net) in its Logansport field in North
Louisiana. Forty-one of these wells have been completed with initial
production rates which averaged 2.1 Mmcfe per day. Comstock's 2008
drilling program in this region includes seven successful horizontal Cotton
Valley wells drilled in its Waskom and Blocker fields in Harrison County,
Texas. Five of these wells have been completed with a per well
average initial production rate of 7.1 Mmcfe per day. Comstock's
average working interest in these wells is 83%.
Other
activity in the East Texas / North Louisiana region relates to the Company's
emerging Haynesville shale play. Comstock has 86,032 (70,504 net)
acres that are prospective for Haynesville shale development in this
region. The Company has completed two horizontal wells and has an
additional eight wells in progress. The BSMC La 7 #1H well in the
Toledo Bend North field was successfully completed in December 2008 with an
initial production rate of approximately 9 Mmcfe per day. Comstock
has an 88% working interest in this well. Comstock has a 22% interest
in the successful R. F. Gamble 24 #1H, which was recently completed and with an
initial production rate of approximately 14 Mmcfe per day. Comstock
is currently completing three Haynesville horizontal
wells. Comstock's second operated horizontal Haynesville well is the
Collins La 15 #1H in the Logansport field. This well was drilled to a
total vertical depth of 11,350 feet with a 4,200 foot lateral. This
well's completion has been delayed due to mechanical problems. The
Company is completing the Bogue A #6H well in the Waskom field. This
well reached an 11,400 foot vertical depth with a 4,000 foot lateral
extension. The Company is also completing the Hart #1H in the
Logansport field which reached an 11,500 foot vertical depth with a 4,000 foot
horizontal extension. The Company is currently drilling five
Haynesville horizontal wells. The Green #13H in the Blocker field
reached an 11,650 foot vertical depth and the Company is currently drilling this
well's 3,700 foot lateral. The Headrick #1H in Bethany-Longstreet
field has reached a vertical depth of 11,850 feet and its 4,000 foot lateral is
currently being drilled. The Holmes A #1H in Logansport field is
currently drilling at a vertical depth of approximately 11,000
feet. Comstock is also drilling the Moneyham #7H in Longwood field
which is currently drilling at a vertical depth approaching 11,000
feet. Comstock has also finished drilling the 11,730 foot vertical
section of the BSMC La 12 #1H well in the Toledo Bend North field.
During
2008, in South Texas Comstock drilled 18 wells (13.4 net), 15 (12.2 net) of
which were successful. Fourteen of the successful wells had an
average per well initial production rate of 4.3 Mmcfe per day. Four
of the successful wells were in the Las Hermanitas field in Duval County, Texas,
six were in the Javelina Field in Hidalgo County, three were in the Ball Ranch
field, and one was in the Lorenz Ranch field. Comstock also had a
successful well in the Fandango field in Zapata County, Texas. The
Leyendecker #10 well was drilled to a total depth of 16,200 feet in the Fandango
field. The Company has a 100% interest and is currently finishing
this well's multiple stage completion. Subsequent to the success of
the Leyendecker #10, Comstock has two additional wells underway in the Fandango
field. Comstock has drilled the Muzza #13 to a 16,300 foot vertical
depth and is currently drilling the Trevino #3 to a planned vertical depth of
14,900 feet. Both of these wells appear to have encountered the
targeted Wilcox sands and will be completed.
Comstock
also had two (0.3 net) successful wells drilled in the San Juan Basin and one
(0.2 net) successful well drilled in the Anadarko Basin during the
year.
2009 Drilling
Budget
Comstock
also announced that it is reducing its 2009 drilling budget from $450
million to $366 million in response to weak natural gas prices. The
revised budget has Comstock drilling approximately 41 (34.8 net) wells in
2009. The 2009 drilling program will continue to be focused on the
Company's higher return opportunities, including its extensive acreage position
in the Haynesville Shale. Comstock's East Texas/North Louisiana
operating region accounts for the largest portion of the revised 2009 budget
with forecasted expenditures of $319 million. Comstock has budgeted to drill 36
(31.4 net) wells in this region in 2009, which includes thirty (25.8 net)
Haynesville Shale horizontal wells and two (1.6 net) Cotton Valley horizontal
wells. Comstock expects to spend $47 million in its South Texas
region to drill five (3.4 net) wells in 2009.
Comstock
Fourth Quarter and Annual 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 annual 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 on 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 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
December
31,
|
Year
Ended
December
31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
Revenues:
|
||||||||||||||||
|
Oil
and gas sales
|
$
|
100,154
|
$
|
95,519
|
$
|
563,749
|
$
|
331,613
|
||||||||
|
Gain
on sales of assets
|
—
|
—
|
26,560
|
—
|
||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Oil
and gas operating
|
20,610
|
16,082
|
86,730
|
64,791
|
||||||||||||
|
Exploration
|
—
|
3,388
|
5,032
|
7,039
|
||||||||||||
|
Depreciation,
depletion and amortization
|
50,309
|
34,328
|
182,179
|
125,349
|
||||||||||||
|
Oil
and gas property impairment
|
922
|
—
|
922
|
482
|
||||||||||||
|
General
and administrative, net
|
11,938
|
10,312
|
32,266
|
27,813
|
||||||||||||
|
Total
operating expenses
|
83,779
|
64,110
|
307,129
|
225,474
|
||||||||||||
|
Operating
income from continuing operations
|
16,375
|
31,409
|
283,180
|
106,139
|
||||||||||||
|
Other
income (expenses):
|
||||||||||||||||
|
Interest
income
|
584
|
233
|
1,537
|
877
|
||||||||||||
|
Other
income
|
32
|
28
|
119
|
144
|
||||||||||||
|
Interest
expense
|
(2,088
|
)
|
(9,461
|
)
|
(25,336
|
)
|
(32,293
|
)
|
||||||||
|
Marketable securities
impairment
|
(162,672
|
)
|
—
|
(162,672
|
)
|
—
|
||||||||||
|
Total
other income (expenses)
|
(164,144
|
)
|
(9,200
|
)
|
(186,352
|
)
|
(31,272
|
)
|
||||||||
|
Income
(loss) from continuing operations
before
income taxes
|
(147,769
|
)
|
22,209
|
96,828
|
74,867
|
|||||||||||
|
Benefit
from (provision for) income taxes
|
51,392
|
(9,043
|
)
|
(38,611
|
)
|
(29,223
|
)
|
|||||||||
|
Income
(loss) from continuing operations
|
(96,377
|
)
|
13,166
|
58,217
|
45,644
|
|||||||||||
|
Income
from discontinued operations after
income
taxes and minority interest
|
—
|
8,532
|
193,745
|
23,257
|
||||||||||||
|
Net
income (loss)
|
$
|
(96,377
|
)
|
$
|
21,698
|
$
|
251,962
|
$
|
68,901
|
|||||||
|
Basic
net income (loss) per share:
|
||||||||||||||||
|
Continuing
operations
|
$
|
(2.15
|
)
|
$
|
0.30
|
$
|
1.31
|
$
|
1.05
|
|||||||
|
Discontinued
operations
|
—
|
0.20
|
4.35
|
0.54
|
||||||||||||
|
$
|
(2.15
|
)
|
$
|
0.50
|
$
|
5.66
|
$
|
1.59
|
||||||||
|
Diluted
net income (loss) per share:
|
||||||||||||||||
|
Continuing
operations
|
$
|
(2.15
|
)
|
$
|
0.30
|
$
|
1.28
|
$
|
1.03
|
|||||||
|
Discontinued
operations
|
—
|
0.18
|
4.25
|
0.51
|
||||||||||||
|
$
|
(2.15
|
)
|
$
|
0.48
|
$
|
5.53
|
$
|
1.54
|
||||||||
|
Weighted
average shares outstanding:
|
||||||||||||||||
|
Basic
|
44,751
|
43,544
|
44,524
|
43,415
|
||||||||||||
|
Diluted
|
44,751
|
(1)
|
44,583
|
45,440
|
44,405
|
|||||||||||
|
(1)
Diluted shares outstanding are the same as basic due to the net
loss.
|
|
COMSTOCK
RESOURCES, INC.
OPERATING
RESULTS
(In
thousands)
|
Three
Months Ended December 31,
|
Year
Ended December 31,
|
|||||||||||||||
|
2008
|
2007
|
2008
|
2007
|
|||||||||||||
|
OPERATING
CASH FLOW:
|
||||||||||||||||
|
Income
(loss) from continuing operations
|
$
|
(96,377
|
)
|
$
|
13,166
|
$
|
58,217
|
$
|
45,644
|
|||||||
|
Reconciling
items:
|
||||||||||||||||
|
Deferred income
taxes
|
(41,551
|
)
|
8,903
|
43,620
|
25,543
|
|||||||||||
|
Dry
hole costs and lease impairments
|
—
|
3,388
|
4,113
|
6,846
|
||||||||||||
|
Depreciation,
depletion and amortization
|
50,309
|
34,328
|
182,179
|
125,349
|
||||||||||||
|
Gain on
sale of assets
|
—
|
—
|
(26,560
|
)
|
—
|
|||||||||||
|
Marketable
securities impairment
|
162,672
|
—
|
162,672
|
—
|
||||||||||||
|
Oil
and gas properties impairment
|
922
|
—
|
922
|
482
|
||||||||||||
|
Debt
issuance cost amortization
|
202
|
202
|
810
|
810
|
||||||||||||
|
Stock-based
compensation
|
3,295
|
2,884
|
12,263
|
10,789
|
||||||||||||
|
Operating
cash flow
|
79,472
|
62,871
|
438,236
|
215,463
|
||||||||||||
|
Excess
tax benefit from stock-based compensation
|
—
|
(5,920
|
)
|
(8,805
|
)
|
(6,522
|
)
|
|||||||||
|
Decrease
(increase) in accounts receivable
|
21,156
|
(5,856
|
)
|
6,418
|
(11,605
|
)
|
||||||||||
|
Decrease
(increase) in other current assets
|
(888
|
)
|
2,527
|
(9,646
|
)
|
(230
|
)
|
|||||||||
|
Increase
(decrease) in accounts payable and accrued expenses
|
19,757
|
(942
|
)
|
24,330
|
4,433
|
|||||||||||
|
Net
cash provided by operating activities from continuing
operations
|
$
|
119,497
|
$
|
52,680
|
$
|
450,533
|
$
|
201,539
|
||||||||
|
EBITDAX:
|
||||||||||||||||
|
Income
(loss) from continuing operations
|
$
|
(96,377
|
)
|
$
|
13,166
|
$
|
58,217
|
$
|
45,644
|
|||||||
|
Gain
on sales of assets
|
—
|
—
|
(26,560
|
)
|
—
|
|||||||||||
|
Interest
expense
|
2,088
|
9,461
|
25,336
|
32,293
|
||||||||||||
|
Income
tax expense
|
(51,392
|
)
|
9,043
|
38,611
|
29,223
|
|||||||||||
|
Depreciation,
depletion and amortization
|
50,309
|
34,328
|
182,179
|
125,349
|
||||||||||||
|
Marketable
securities impairment
|
162,672
|
—
|
162,672
|
—
|
||||||||||||
|
Oil
and gas properties impairment
|
922
|
—
|
922
|
482
|
||||||||||||
|
Stock-based
compensation
|
3,295
|
2,884
|
12,263
|
10,789
|
||||||||||||
|
Exploration
|
—
|
3,388
|
5,032
|
7,039
|
||||||||||||
|
EBITDAX
from continuing operations
|
$
|
71,517
|
$
|
72,270
|
$
|
458,672
|
$
|
250,819
|
||||||||
|
As
of December 31,
|
||||||||
|
2008
|
2007
|
|||||||
|
Balance
Sheet Data:
|
||||||||
|
Cash
and cash equivalents
|
$
|
6,281
|
$
|
5,565
|
||||
|
Other
current assets
|
74,879
|
52,638
|
||||||
|
Marketable
securities
|
48,868
|
—
|
||||||
|
Property
and equipment, net
|
1,444,715
|
1,310,559
|
||||||
|
Assets
of discontinued operations
|
—
|
981,682
|
||||||
|
Other
|
3,147
|
3,943
|
||||||
|
Total
assets
|
$
|
1,577,890
|
$
|
2,354,387
|
||||
|
Accounts
payable and accrued expenses
|
$
|
114,455
|
$
|
83,467
|
||||
|
Long-term
debt
|
210,000
|
680,000
|
||||||
|
Deferred
income taxes
|
185,870
|
92,088
|
||||||
|
Asset
retirement obligation
|
5,480
|
7,512
|
||||||
|
Liabilities
and minority interest of discontinued operations
|
—
|
719,676
|
||||||
|
Stockholders'
equity
|
1,062,085
|
771,644
|
||||||
|
Total
liabilities and stockholders' equity
|
$
|
1,577,890
|
$
|
2,354,387
|
||||
COMSTOCK
RESOURCES, INC.
REGIONAL
OPERATING RESULTS
(In
thousands, except per unit amounts)
|
For
the Three Months Ended December 31, 2008
|
For
the Three Months Ended December 31, 2007
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
North
|
South
|
|||||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Total
|
Louisiana
|
Texas
|
Other
|
Total
|
|||||||||||||||||||||||||
|
Oil
production (thousand barrels)
|
73
|
37
|
124
|
234
|
40
|
56
|
146
|
242
|
||||||||||||||||||||||||
|
Gas
production (million cubic feet
– Mmcf)
|
7,927
|
4,903
|
830
|
13,660
|
6,559
|
3,364
|
846
|
10,769
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
8,365
|
5,126
|
1,577
|
15,068
|
6,800
|
3,702
|
1,724
|
12,226
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
4,477
|
$
|
2,252
|
$
|
5,509
|
$
|
12,238
|
$
|
3,552
|
$
|
5,068
|
$
|
9,861
|
$
|
18,481
|
||||||||||||||||
|
Gas
sales
|
51,285
|
29,668
|
4,415
|
85,368
|
46,133
|
25,117
|
5,788
|
77,038
|
||||||||||||||||||||||||
|
Gas
hedging gains
|
—
|
2,548
|
—
|
2,548
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
|
Total gas
sales
|
51,285
|
32,216
|
4,415
|
87,916
|
46,133
|
25,117
|
5,788
|
77,038
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
55,762
|
$
|
34,468
|
$
|
9,924
|
$
|
100,154
|
$
|
49,685
|
$
|
30,185
|
$
|
15,649
|
$
|
95,519
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
61.30
|
$
|
60.68
|
$
|
44.26
|
$
|
52.16
|
$
|
88.80
|
$
|
90.50
|
$
|
67.54
|
$
|
76.10
|
||||||||||||||||
|
Average
gas price (per thousand cubic
feet – Mcf)
|
$
|
6.47
|
$
|
6.05
|
$
|
5.32
|
$
|
6.25
|
$
|
7.03
|
$
|
7.47
|
$
|
6.84
|
$
|
7.15
|
||||||||||||||||
|
Average
gas price including hedging (per Mcf)
|
$
|
6.47
|
$
|
6.57
|
$
|
5.32
|
$
|
6.44
|
$
|
7.03
|
$
|
7.47
|
$
|
6.84
|
$
|
7.15
|
||||||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
6.67
|
$
|
6.23
|
$
|
6.29
|
$
|
6.48
|
$
|
7.31
|
$
|
8.15
|
$
|
9.08
|
$
|
7.81
|
||||||||||||||||
|
Average
price including hedging (per Mcf equivalent)
|
$
|
6.67
|
$
|
6.72
|
$
|
6.29
|
$
|
6.65
|
$
|
7.31
|
$
|
8.15
|
$
|
9.08
|
$
|
7.81
|
||||||||||||||||
|
Lifting
cost(1)
|
$
|
10,888
|
$
|
5,366
|
$
|
4,356
|
$
|
20,610
|
(1)
|
$
|
6,710
|
$
|
4,772
|
$
|
4,600
|
$
|
16,082
|
(1)
|
||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.30
|
$
|
1.05
|
$
|
2.76
|
$
|
1.37
|
$
|
0.99
|
$
|
1.29
|
$
|
2.67
|
$
|
1.32
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
160,101
|
$
|
—
|
$
|
160,101
|
||||||||||||||||
|
Leasehold
costs
|
7,711
|
547
|
67
|
8,325
|
576
|
789
|
71
|
1,436
|
||||||||||||||||||||||||
|
Exploratory
drilling
|
43,544
|
12,170
|
2,221
|
57,935
|
—
|
3,916
|
(51
|
)
|
3,865
|
|||||||||||||||||||||||
|
Development
drilling
|
33,269
|
14,922
|
31
|
48,222
|
56,454
|
11,922
|
2,111
|
70,487
|
||||||||||||||||||||||||
|
Other
development
|
3
|
1,320
|
97
|
1,420
|
798
|
1,710
|
515
|
3,023
|
||||||||||||||||||||||||
|
Total
|
$
|
84,527
|
$
|
28,959
|
$
|
2,416
|
$
|
115,902
|
$
|
57,828
|
$
|
178,438
|
$
|
2,646
|
$
|
238,912
|
||||||||||||||||
|
(1) Includes
production taxes of $1,755 and $3,319 for the three months ended December
31, 2008 and 2007, respectively.
|
||||||||||||||||||||||||||||||||
|
For
the Year Ended December 31, 2008
|
For
the Year Ended December 31, 2007
|
|||||||||||||||||||||||||||||||
|
East
Texas/
|
East
Texas/
|
|||||||||||||||||||||||||||||||
|
North
|
South
|
North
|
South
|
|||||||||||||||||||||||||||||
|
Louisiana
|
Texas
|
Other
|
Total
|
Louisiana
|
Texas
|
Other
|
Total
|
|||||||||||||||||||||||||
|
Oil
production (thousand barrels)
|
299
|
179
|
531
|
1,009
|
162
|
214
|
632
|
1,008
|
||||||||||||||||||||||||
|
Gas
production (million cubic feet
– Mmcf)
|
29,322
|
21,536
|
3,009
|
53,867
|
24,407
|
11,790
|
3,034
|
39,231
|
||||||||||||||||||||||||
|
Total
production (Mmcfe)
|
31,117
|
22,611
|
6,195
|
59,923
|
25,378
|
13,077
|
6,827
|
45,282
|
||||||||||||||||||||||||
|
Oil
sales
|
$
|
29,690
|
$
|
18,264
|
$
|
40,003
|
$
|
87,957
|
$
|
11,052
|
$
|
15,189
|
$
|
35,233
|
$
|
61,474
|
||||||||||||||||
|
Gas
sales
|
263,740
|
192,661
|
24,201
|
480,602
|
164,926
|
85,427
|
19,786
|
270,139
|
||||||||||||||||||||||||
|
Gas
hedging losses
|
—
|
(4,810
|
)
|
—
|
(4,810
|
)
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||
|
Total gas
sales
|
263,740
|
187,851
|
24,201
|
475,792
|
164,926
|
85,427
|
19,786
|
270,139
|
||||||||||||||||||||||||
|
Total
oil and gas sales
|
$
|
293,430
|
$
|
206,115
|
$
|
64,204
|
$
|
563,749
|
$
|
175,978
|
$
|
100,616
|
$
|
55,019
|
$
|
331,613
|
||||||||||||||||
|
Average
oil price (per barrel)
|
$
|
99.23
|
$
|
101.96
|
$
|
75.34
|
$
|
87.15
|
$
|
68.22
|
$
|
70.98
|
$
|
55.75
|
$
|
60.96
|
||||||||||||||||
|
Average
gas price (per thousand cubic
feet – Mcf)
|
$
|
8.99
|
$
|
8.95
|
$
|
8.04
|
$
|
8.92
|
$
|
6.76
|
$
|
7.25
|
$
|
6.52
|
$
|
6.89
|
||||||||||||||||
|
Average
gas price including hedging (per Mcf)
|
$
|
8.99
|
$
|
8.72
|
$
|
8.04
|
$
|
8.83
|
$
|
6.76
|
$
|
7.25
|
$
|
6.52
|
$
|
6.89
|
||||||||||||||||
|
Average
price (per Mcf equivalent)
|
$
|
9.43
|
$
|
9.33
|
$
|
10.36
|
$
|
9.49
|
$
|
6.93
|
$
|
7.69
|
$
|
8.06
|
$
|
7.32
|
||||||||||||||||
|
Average
price including hedging (per Mcf equivalent)
|
$
|
9.43
|
$
|
9.12
|
$
|
10.36
|
$
|
9.41
|
$
|
6.93
|
$
|
7.69
|
$
|
8.06
|
$
|
7.32
|
||||||||||||||||
|
Lifting
cost(2)
|
$
|
39,021
|
$
|
27,678
|
$
|
20,031
|
$
|
86,730
|
(2)
|
$
|
29,527
|
$
|
16,832
|
$
|
18,432
|
$
|
64,791
|
(2)
|
||||||||||||||
|
Lifting
cost (per Mcf equivalent)
|
$
|
1.25
|
$
|
1.22
|
$
|
3.23
|
$
|
1.45
|
$
|
1.16
|
$
|
1.29
|
$
|
2.70
|
$
|
1.43
|
||||||||||||||||
|
Oil
and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||
|
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
191,290
|
$
|
—
|
$
|
191,290
|
||||||||||||||||
|
Leasehold
costs
|
116,931
|
2,159
|
175
|
119,265
|
3,377
|
2,755
|
2,850
|
8,982
|
||||||||||||||||||||||||
|
Exploratory
drilling
|
43,544
|
14,953
|
2,616
|
61,113
|
—
|
11,910
|
2,379
|
14,289
|
||||||||||||||||||||||||
|
Development
drilling
|
170,612
|
57,955
|
2,037
|
230,604
|
215,593
|
61,738
|
25,024
|
302,355
|
||||||||||||||||||||||||
|
Other
development
|
1,454
|
9,388
|
3,406
|
14,248
|
2,620
|
3,337
|
2,841
|
8,798
|
||||||||||||||||||||||||
|
Total
|
$
|
332,541
|
$
|
84,455
|
$
|
8,234
|
$
|
425,230
|
$
|
221,590
|
$
|
271,030
|
$
|
33,094
|
$
|
525,714
|
||||||||||||||||
|
(2) Includes
production taxes of $20,648 and $13,830 for the year ended December 31,
2008 and 2007, respectively.
|
||||||||||||||||||||||||||||||||