STATE OF NEVADA
|
001-03262
|
94-1667468
|
(State or other
jurisdiction incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
Identification Number)
|
¨
|
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))
|
Exhibit 99.1
|
Press Release dated July 30, 2012.
|
COMSTOCK RESOURCES, INC.
|
||
Dated: July 30, 2012
|
By:
|
/s/ ROLAND O. BURNS
|
Roland O. Burns
|
||
Senior Vice President and Chief Financial Officer
|
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
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Revenues:
|
||||||||||||||||
Oil and gas sales
|
$
|
104,690
|
$
|
112,451
|
$
|
215,025
|
$
|
200,489
|
||||||||
Gain on sale of oil and gas properties
|
20,338
|
—
|
27,065
|
—
|
||||||||||||
Total revenues
|
125,028
|
112,451
|
242,090
|
200,489
|
||||||||||||
Operating expenses:
|
||||||||||||||||
Production taxes
|
3,380
|
1,363
|
7,017
|
2,089
|
||||||||||||
Gathering and transportation
|
7,338
|
6,611
|
15,230
|
12,239
|
||||||||||||
Lease operating
|
13,948
|
12,437
|
28,697
|
23,985
|
||||||||||||
Exploration
|
37
|
82
|
1,390
|
9,619
|
||||||||||||
Depreciation, depletion and amortization
|
90,083
|
74,689
|
169,180
|
135,014
|
||||||||||||
Impairment of oil and gas properties
|
5,301
|
—
|
5,350
|
—
|
||||||||||||
Loss on sale of oil and gas properties
|
—
|
(26
|
) |
—
|
83
|
|||||||||||
General and administrative
|
9,033
|
8,917
|
17,831
|
17,345
|
||||||||||||
Total operating expenses
|
129,120
|
104,073
|
244,695
|
200,374
|
||||||||||||
Operating income (loss)
|
(4,092
|
)
|
8,378
|
(2,605
|
)
|
115
|
||||||||||
Other income (expenses):
|
||||||||||||||||
Interest expense
|
(14,529
|
)
|
(10,410
|
)
|
(27,766
|
)
|
(20,694
|
)
|
||||||||
Gain on sale of marketable securities
|
—
|
8,480
|
26,621
|
29,729
|
||||||||||||
Other income
|
545
|
83
|
522
|
393
|
||||||||||||
Total other income (expenses)
|
(13,984
|
)
|
(1,847
|
)
|
(623
|
)
|
9,428
|
|||||||||
Income (loss) before income taxes
|
(18,076
|
)
|
6,531
|
(3,228
|
)
|
9,543
|
||||||||||
Benefit from (provision for) income taxes
|
7,772
|
(2,582
|
)
|
(217
|
)
|
(3,190
|
)
|
|||||||||
Net income (loss)
|
$
|
(10,304
|
)
|
$
|
3,949
|
$
|
(3,445
|
)
|
$
|
6,353
|
||||||
Net income (loss) per share:
|
||||||||||||||||
Basic
|
$
|
(0.22
|
)
|
$
|
0.08
|
$
|
(0.07
|
)
|
$
|
0.13
|
||||||
Diluted
|
$
|
(0.22
|
)
|
$
|
0.08
|
$
|
(0.07
|
)
|
$
|
0.13
|
||||||
Weighted average shares outstanding:
|
||||||||||||||||
Basic
|
46,426
|
45,992
|
46,399
|
45,983
|
||||||||||||
Diluted
|
46,426
|
45,992
|
46,399
|
45,983
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
OPERATING CASH FLOW:
|
||||||||||||||||
Net income (loss)
|
$
|
(10,304
|
)
|
$
|
3,949
|
$
|
(3,445
|
)
|
$
|
6,353
|
||||||
Reconciling items:
|
||||||||||||||||
Deferred income taxes
|
(7,656
|
)
|
2,172
|
416
|
2,621
|
|||||||||||
Depreciation, depletion and amortization
|
90,083
|
74,689
|
169,180
|
135,014
|
||||||||||||
Impairment of oil and gas properties
|
5,301
|
—
|
5,350
|
—
|
||||||||||||
Dry hole costs and leasehold impairments
|
—
|
—
|
1,315
|
9,454
|
||||||||||||
Gain on sale of assets
|
(20,338
|
)
|
(8,506
|
)
|
(53,686
|
)
|
(29,646
|
)
|
||||||||
Debt issuance cost and discount amortization
|
1,159
|
938
|
2,103
|
2,403
|
||||||||||||
Unrealized loss on derivative financial instruments
|
(262
|
)
|
—
|
—
|
—
|
|||||||||||
Stock-based compensation
|
3,325
|
3,850
|
6,860
|
7,012
|
||||||||||||
Operating cash flow
|
61,308
|
77,092
|
128,093
|
133,211
|
||||||||||||
Excess income taxes from stock-based compensation
|
265
|
125
|
1,670
|
612
|
||||||||||||
(Increase) decrease in accounts receivable
|
9,796
|
(1,332
|
)
|
11,611
|
(6,631
|
)
|
||||||||||
Increase in other current assets
|
(3,898
|
)
|
(7,338
|
)
|
(4,097
|
)
|
(8,454
|
)
|
||||||||
Increase (decrease) in accounts payable and accrued expenses
|
(58,753
|
)
|
(1,572
|
)
|
4,621
|
(836
|
)
|
|||||||||
Net cash provided by operating activities
|
$
|
8,718
|
$
|
66,975
|
$
|
141,898
|
$
|
117,902
|
||||||||
EBITDAX:
|
||||||||||||||||
Net income (loss)
|
$
|
(10,304
|
)
|
$
|
3,949
|
$
|
(3,445
|
)
|
$
|
6,353
|
||||||
Interest expense
|
14,529
|
10,410
|
27,766
|
20,694
|
||||||||||||
Income taxes
|
(7,772
|
)
|
2,582
|
217
|
3,190
|
|||||||||||
Depreciation, depletion and amortization
|
90,083
|
74,689
|
169,180
|
135,014
|
||||||||||||
Exploration
|
37
|
82
|
1,390
|
9,619
|
||||||||||||
Impairments
|
5,301
|
—
|
5,350
|
—
|
||||||||||||
Gain on sale of assets
|
(20,338
|
)
|
(8,506
|
)
|
(53,686
|
)
|
(29,646
|
)
|
||||||||
Unrealized loss on derivative financial instruments
|
(262
|
)
|
—
|
—
|
—
|
|||||||||||
Stock-based compensation
|
3,325
|
3,850
|
6,860
|
7,012
|
||||||||||||
EBITDAX
|
$
|
74,599
|
$
|
87,056
|
$
|
153,632
|
$
|
152,236
|
As of June 30,
|
||||||||
2012
|
2011
|
|||||||
BALANCE SHEET DATA:
|
||||||||
Cash and cash equivalents
|
$
|
3,505
|
$
|
3,556
|
||||
Marketable securities
|
15,204
|
62,482
|
||||||
Derivative financial instruments
|
18,536
|
—
|
||||||
Other current assets
|
48,817
|
64,447
|
||||||
Property and equipment, net
|
2,547,219
|
2,021,287
|
||||||
Other
|
28,031
|
16,677
|
||||||
Total assets
|
$
|
2,661,312
|
$
|
2,168,449
|
||||
Accounts payable and accrued expenses
|
$
|
176,726
|
$
|
172,024
|
||||
Long-term debt
|
1,223,235
|
691,640
|
||||||
Deferred income taxes
|
203,530
|
217,992
|
||||||
Other non-current liabilities
|
16,528
|
9,508
|
||||||
Stockholders' equity
|
1,041,293
|
1,077,285
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,661,312
|
$
|
2,168,449
|
For the Three Months Ended June 30, 2012
|
For the Three Months Ended June 30, 2011
|
|||||||||||||||||||||||||||||||||||
East Texas/
North
Louisiana
|
South
Texas
|
West
Texas
|
Other
|
Total
|
East Texas/
North
Louisiana
|
South
Texas
|
Other
|
Total
|
||||||||||||||||||||||||||||
Oil production (Mbbls)
|
20
|
425
|
124
|
14
|
583
|
29
|
128
|
2
|
159
|
|||||||||||||||||||||||||||
Gas production (MMcf)
|
19,012
|
2,210
|
145
|
526
|
21,893
|
19,552
|
2,915
|
529
|
22,996
|
|||||||||||||||||||||||||||
Total production (MMcfe)
|
19,129
|
4,762
|
885
|
613
|
25,389
|
19,728
|
3,679
|
547
|
23,954
|
|||||||||||||||||||||||||||
Oil sales
|
$
|
1,860
|
$
|
43,970
|
$
|
10,169
|
$
|
1,503
|
$
|
57,502
|
$
|
3,092
|
$
|
12,726
|
$
|
305
|
$
|
16,123
|
||||||||||||||||||
Hedging gains
|
—
|
2,220
|
499
|
—
|
2,719
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||||
Total oil including hedging
|
1,860
|
46,190
|
10,668
|
1,503
|
60,221
|
3,092
|
12,726
|
305
|
16,123
|
|||||||||||||||||||||||||||
Natural gas sales
|
36,594
|
5,656
|
887
|
1,332
|
44,469
|
79,384
|
14,170
|
2,774
|
96,328
|
|||||||||||||||||||||||||||
Total oil and gas sales
|
$
|
38,454
|
$
|
51,846
|
$
|
11,555
|
$
|
2,835
|
$
|
104,690
|
$
|
82,476
|
$
|
26,896
|
$
|
3,079
|
$
|
112,451
|
||||||||||||||||||
Average oil price (per barrel)
|
$
|
95.33
|
$
|
103.36
|
$
|
84.27
|
$
|
104.92
|
$
|
98.70
|
$
|
105.40
|
$
|
99.88
|
$
|
107.06
|
$
|
101.02
|
||||||||||||||||||
Average oil price including hedging (per barrel)
|
$
|
95.33
|
$
|
108.58
|
$
|
86.50
|
$
|
104.92
|
$
|
103.37
|
$
|
105.40
|
$
|
99.88
|
$
|
107.06
|
$
|
101.02
|
||||||||||||||||||
Average gas price (per Mcf)
|
$
|
1.92
|
$
|
2.56
|
$
|
6.12
|
$
|
2.53
|
$
|
2.03
|
$
|
4.06
|
$
|
4.86
|
$
|
5.24
|
$
|
4.19
|
||||||||||||||||||
Average price (per Mcfe)
|
$
|
2.01
|
$
|
10.42
|
$
|
12.49
|
$
|
4.62
|
$
|
4.02
|
$
|
4.18
|
$
|
7.31
|
$
|
5.63
|
$
|
4.69
|
||||||||||||||||||
Average price including hedging (per Mcfe)
|
$
|
2.01
|
$
|
10.89
|
$
|
13.06
|
$
|
4.62
|
$
|
4.12
|
$
|
4.18
|
$
|
7.31
|
$
|
5.63
|
$
|
4.69
|
||||||||||||||||||
Production taxes
|
$
|
606
|
$
|
1,992
|
$
|
519
|
$
|
263
|
$
|
3,380
|
$
|
65
|
$
|
1,116
|
$
|
182
|
$
|
1,363
|
||||||||||||||||||
Gathering and transportation
|
$
|
6,244
|
$
|
735
|
$
|
232
|
$
|
127
|
$
|
7,338
|
$
|
6,134
|
$
|
356
|
$
|
121
|
$
|
6,611
|
||||||||||||||||||
Lease operating
|
$
|
7,977
|
$
|
3,135
|
$
|
1,755
|
$
|
1,081
|
$
|
13,948
|
$
|
7,796
|
$
|
3,620
|
$
|
1,021
|
$
|
12,437
|
||||||||||||||||||
Production taxes (per Mcfe)
|
$
|
0.03
|
$
|
0.42
|
$
|
0.59
|
$
|
0.43
|
$
|
0.13
|
$
|
—
|
$
|
0.30
|
$
|
0.33
|
$
|
0.06
|
||||||||||||||||||
Gathering and transportation (per Mcfe)
|
$
|
0.33
|
$
|
0.15
|
$
|
0.26
|
$
|
0.21
|
$
|
0.29
|
$
|
0.31
|
$
|
0.10
|
$
|
0.22
|
$
|
0.28
|
||||||||||||||||||
Lease operating (per Mcfe)
|
$
|
0.42
|
$
|
0.66
|
$
|
1.98
|
$
|
1.76
|
$
|
0.55
|
$
|
0.40
|
$
|
0.98
|
$
|
1.87
|
$
|
0.51
|
||||||||||||||||||
Oil and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||||||
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
(98
|
)
|
$
|
—
|
$
|
(98
|
)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||
Exploratory leasehold
|
1,774
|
1,611
|
4,471
|
—
|
7,856
|
4,224
|
17,508
|
1,311
|
23,043
|
|||||||||||||||||||||||||||
Development leasehold
|
84
|
—
|
—
|
—
|
84
|
185
|
77
|
—
|
262
|
|||||||||||||||||||||||||||
Exploratory drilling
|
200
|
1,923
|
—
|
—
|
2,123
|
10,046
|
18,367
|
—
|
28,413
|
|||||||||||||||||||||||||||
Development drilling
|
22,336
|
71,456
|
45,209
|
—
|
139,001
|
123,439
|
12,803
|
675
|
136,917
|
|||||||||||||||||||||||||||
Other development
|
(41
|
)
|
(104
|
)
|
(15
|
)
|
(18
|
)
|
(178
|
)
|
998
|
1,015
|
198
|
2,211
|
||||||||||||||||||||||
Total
|
$
|
24,353
|
$
|
74,886
|
$
|
49,567
|
$
|
(18
|
)
|
$
|
148,788
|
$
|
138,892
|
$
|
49,770
|
$
|
2,184
|
$
|
190,846
|
For the Six Months Ended June 30, 2012
|
For the Six Months Ended June 30, 2011
|
|||||||||||||||||||||||||||||||||||
East Texas/
North
Louisiana
|
South
Texas
|
West
Texas
|
Other
|
Total
|
East Texas/
North
Louisiana
|
South
Texas
|
Other
|
Total
|
||||||||||||||||||||||||||||
Oil production (Mbbls)
|
47
|
828
|
197
|
17
|
1,089
|
63
|
222
|
12
|
297
|
|||||||||||||||||||||||||||
Gas production (MMcf)
|
38,112
|
4,870
|
272
|
1,061
|
44,315
|
34,996
|
5,780
|
1,329
|
42,105
|
|||||||||||||||||||||||||||
Total production (MMcfe)
|
38,392
|
9,837
|
1,451
|
1,167
|
50,847
|
35,375
|
7,110
|
1,404
|
43,889
|
|||||||||||||||||||||||||||
Oil sales
|
$
|
4,611
|
$
|
86,444
|
$
|
17,282
|
$
|
1,806
|
$
|
110,143
|
$
|
6,037
|
$
|
21,365
|
$
|
1,111
|
$
|
28,513
|
||||||||||||||||||
Hedging gains
|
—
|
1,091
|
274
|
—
|
1,365
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||||
Total oil including hedging
|
4,611
|
87,535
|
17,556
|
1,806
|
111,508
|
6,037
|
21,365
|
1,111
|
28,513
|
|||||||||||||||||||||||||||
Natural gas sales
|
84,096
|
14,792
|
1,691
|
2,938
|
103,517
|
137,994
|
27,320
|
6,662
|
171,976
|
|||||||||||||||||||||||||||
Total oil and gas sales
|
$
|
88,707
|
$
|
102,327
|
$
|
19,247
|
$
|
4,744
|
$
|
215,025
|
$
|
144,031
|
$
|
48,685
|
$
|
7,773
|
$
|
200,489
|
||||||||||||||||||
Average oil price (per barrel)
|
$
|
98.91
|
$
|
104.41
|
$
|
87.92
|
$
|
103.10
|
$
|
101.17
|
$
|
95.64
|
$
|
96.36
|
$
|
88.82
|
$
|
95.89
|
||||||||||||||||||
Average oil price including hedging (per barrel)
|
$
|
98.91
|
$
|
105.73
|
$
|
89.31
|
$
|
103.10
|
$
|
102.43
|
$
|
95.64
|
$
|
96.36
|
$
|
88.82
|
$
|
95.89
|
||||||||||||||||||
Average gas price (per Mcf)
|
$
|
2.21
|
$
|
3.04
|
$
|
6.22
|
$
|
2.77
|
$
|
2.34
|
$
|
3.94
|
$
|
4.73
|
$
|
5.01
|
$
|
4.08
|
||||||||||||||||||
Average price (per Mcfe)
|
$
|
2.31
|
$
|
10.29
|
$
|
13.08
|
$
|
4.07
|
$
|
4.20
|
$
|
4.07
|
$
|
6.85
|
$
|
5.54
|
$
|
4.57
|
||||||||||||||||||
Average price including hedging (per Mcfe)
|
$
|
2.31
|
$
|
10.40
|
$
|
13.26
|
$
|
4.07
|
$
|
4.23
|
$
|
4.07
|
$
|
6.85
|
$
|
5.54
|
$
|
4.57
|
||||||||||||||||||
Production taxes
|
$
|
1,407
|
$
|
4,283
|
$
|
909
|
$
|
418
|
$
|
7,017
|
$
|
94
|
$
|
1,498
|
$
|
497
|
$
|
2,089
|
||||||||||||||||||
Gathering and transportation
|
$
|
13,077
|
$
|
1,507
|
$
|
409
|
$
|
237
|
$
|
15,230
|
$
|
11,210
|
$
|
813
|
$
|
216
|
$
|
12,239
|
||||||||||||||||||
Lease operating
|
$
|
16,638
|
$
|
6,854
|
$
|
3,046
|
$
|
2,159
|
$
|
28,697
|
$
|
14,995
|
$
|
6,987
|
$
|
2,003
|
$
|
23,985
|
||||||||||||||||||
Production taxes (per Mcfe)
|
$
|
0.04
|
$
|
0.44
|
$
|
0.63
|
$
|
0.36
|
$
|
0.14
|
$
|
—
|
$
|
0.21
|
$
|
0.35
|
$
|
0.05
|
||||||||||||||||||
Gathering and transportation (per Mcfe)
|
$
|
0.34
|
$
|
0.15
|
$
|
0.28
|
$
|
0.20
|
$
|
0.30
|
$
|
0.32
|
$
|
0.11
|
$
|
0.15
|
$
|
0.28
|
||||||||||||||||||
Lease operating (per Mcfe)
|
$
|
0.43
|
$
|
0.70
|
$
|
2.10
|
$
|
1.85
|
$
|
0.56
|
$
|
0.42
|
$
|
0.99
|
$
|
1.43
|
$
|
0.54
|
||||||||||||||||||
Oil and Gas Capital Expenditures:
|
||||||||||||||||||||||||||||||||||||
Acquisitions
|
$
|
—
|
$
|
—
|
$
|
3,235
|
$
|
—
|
$
|
3,235
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||||||||||||||
Exploratory leasehold
|
3,369
|
3,099
|
8,014
|
—
|
14,482
|
15,069
|
19,188
|
1,311
|
35,568
|
|||||||||||||||||||||||||||
Development leasehold
|
429
|
1,216
|
—
|
—
|
1,645
|
315
|
77
|
—
|
392
|
|||||||||||||||||||||||||||
Exploratory drilling
|
568
|
2,328
|
—
|
—
|
2,896
|
26,890
|
38,795
|
—
|
65,685
|
|||||||||||||||||||||||||||
Development drilling
|
90,544
|
135,894
|
79,725
|
—
|
306,163
|
219,027
|
24,341
|
773
|
244,141
|
|||||||||||||||||||||||||||
Other development
|
985
|
615
|
209
|
131
|
1,940
|
1,851
|
1,109
|
292
|
3,252
|
|||||||||||||||||||||||||||
Total
|
$
|
95,895
|
$
|
143,152
|
$
|
91,183
|
$
|
131
|
$
|
330,361
|
$
|
263,152
|
$
|
83,510
|
$
|
2,376
|
$
|
349,038
|