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 May 5, 2014.
|
COMSTOCK RESOURCES, INC.
|
||
Dated: May 5, 2014
|
By:
|
/s/ ROLAND O. BURNS
|
Roland O. Burns
|
||
President and Chief Financial Officer
|
5300 Town and Country Blvd., Suite 500
|
|
|
Frisco, Texas 75034
|
Telephone: (972) 668-8834
|
|
Contact: Gary H. Guyton
|
|
Director of Planning and Investor Relations
|
|
Web Site: www.comstockresources.com
|
Three Months Ended March 31,
|
|||||||||||
2014
|
2013
|
||||||||||
Revenues:
|
|||||||||||
Oil sales
|
$
|
90,313
|
$
|
45,740
|
|||||||
Natural gas sales
|
51,596
|
49,280
|
|||||||||
Total revenues
|
141,909
|
95,020
|
|||||||||
Operating expenses:
|
|||||||||||
Production taxes
|
5,601
|
2,121
|
|||||||||
Gathering and transportation
|
3,776
|
4,202
|
|||||||||
Lease operating
|
15,061
|
13,206
|
|||||||||
Exploration(1)
|
—
|
2,593
|
|||||||||
Depreciation, depletion and amortization
|
88,874
|
84,967
|
|||||||||
General and administrative
|
8,369
|
8,787
|
|||||||||
Total operating expenses
|
121,681
|
115,876
|
|||||||||
Operating income (loss)
|
20,228
|
(20,856
|
)
|
||||||||
Other income (expenses):
|
|||||||||||
Gain on sale of marketable securities
|
—
|
7,877
|
|||||||||
Loss from derivative financial instruments
|
(4,946
|
)
|
(6,447
|
)
|
|||||||
Interest and other income
|
251
|
245
|
|||||||||
Interest expense(2)
|
(13,680
|
)
|
(17,578
|
)
|
|||||||
Total other income (expenses)
|
(18,375
|
)
|
(15,903
|
)
|
|||||||
Income (loss) before income taxes
|
1,853
|
(36,759
|
)
|
||||||||
Benefit from (provision for) income taxes
|
(688
|
)
|
12,242
|
||||||||
Income (loss) from continuing operations
|
1,165
|
(24,517
|
)
|
||||||||
Loss from discontinued operations, net of income taxes
|
—
|
(2,627
|
)
|
||||||||
Net income (loss)
|
$ |
1,165
|
$ |
(27,144
|
)
|
||||||
Net income (loss) per share:
|
|||||||||||
Basic |
— income (loss) from continuing operations
|
$
|
0.02
|
$
|
(0.52
|
)
|
|||||
— loss from discontinued operations
|
—
|
(0.06 | ) | ||||||||
— net income (loss) | $ |
0.02
|
$ | (0.58 | ) | ||||||
Diluted | — income (loss) from continuing operations | $ | 0.02 | $ | (0.52 | ) | |||||
— loss from discontinued operations
|
—
|
(0.06 | ) | ||||||||
— net income (loss)
|
$ | 0.02 | $ | (0.58 | ) | ||||||
Dividends per common share
|
$
|
0.125
|
$ |
—
|
|||||||
Weighted average shares outstanding:
|
|||||||||||
Basic
|
46,599
|
46,730
|
|||||||||
Diluted
|
46,749
|
46,730
|
|||||||||
(1) Includes impairments of unevaluated leases of $2.4 million in the three months ended March 31, 2013. | |||||||||||
(2) $2.2 million and $1.0 million of interest expense was capitalized for the three months ended March 31, 2014 and 2013, respectively. |
Three Months Ended March 31,
|
||||||||
2014 | 2013 | |||||||
OPERATING CASH FLOW:
|
||||||||
Net income (loss)
|
$
|
1,165
|
$
|
(27,144
|
)
|
|||
Reconciling items:
|
||||||||
Loss from discontinued operations
|
—
|
2,627
|
||||||
Deferred income taxes
|
674
|
(12,245
|
)
|
|||||
Depreciation, depletion and amortization
|
88,874
|
84,967
|
||||||
Dry hole costs and lease impairments
|
—
|
2,443
|
||||||
Gain on sale of assets
|
—
|
(7,877
|
)
|
|||||
Loss from derivative financial instruments
|
4,946
|
6,447
|
||||||
Cash settlements of derivative financial instruments
|
(1,297
|
)
|
2,320
|
|||||
Debt issuance cost and discount amortization
|
1,163
|
1,587
|
||||||
Stock-based compensation
|
2,263
|
3,218
|
||||||
Operating cash flow from continuing operations
|
97,788
|
56,343
|
||||||
Excess income taxes from stock-based compensation
|
1,098
|
1,742
|
||||||
Increase in accounts receivable
|
(22,876
|
)
|
(19,059
|
)
|
||||
Increase in other current assets
|
(554
|
)
|
(185
|
)
|
||||
Increase in accounts payable and accrued expenses
|
20,285
|
34,981
|
||||||
Net cash provided by continuing operations
|
95,741
|
73,822
|
||||||
Net cash provided by discontinuing operations(1)
|
—
|
23,530
|
||||||
Net cash provided by operating activities
|
$
|
95,741
|
$
|
97,352
|
||||
(1) $5.5 million for the three months ended March 31, 2013 excluding working capital changes. |
EBITDAX:
|
||||||||
Net income (loss) from continuing operations
|
$
|
1,165
|
$
|
(24,517
|
)
|
|||
Interest expense
|
13,680
|
17,578
|
||||||
Provision for (benefit from) income taxes
|
688
|
(12,242
|
)
|
|||||
Depreciation, depletion and amortization
|
88,874
|
84,967
|
||||||
Exploration
|
—
|
2,593
|
||||||
Gain on sale of assets
|
—
|
(7,877
|
)
|
|||||
Loss from derivative financial instruments
|
4,946
|
6,447
|
||||||
Cash settlements of derivative financial instruments
|
(1,297
|
)
|
2,320
|
|||||
Stock-based compensation
|
2,263
|
3,218
|
||||||
EBITDAX from continuing operations
|
110,319
|
72,487
|
||||||
EBITDAX from discontinued operations
|
—
|
8,967
|
||||||
Total EBITDAX
|
$
|
110,319
|
$
|
81,454
|
As of
|
||||||||
March 31,
2014
|
December 31,
2013
|
|||||||
BALANCE SHEET DATA:
|
||||||||
Cash and cash equivalents
|
$
|
1,771
|
$
|
2,967
|
||||
Other current assets
|
77,567
|
54,167
|
||||||
Property and equipment, net
|
2,166,275
|
2,066,735
|
||||||
Other
|
15,325
|
15,529
|
||||||
Total assets
|
$
|
2,260,938
|
$
|
2,139,398
|
||||
Current liabilities
|
$
|
168,536
|
$
|
194,995
|
||||
Long-term debt
|
949,140
|
798,700
|
||||||
Deferred income taxes
|
180,077
|
177,026
|
||||||
Other non-current liabilities
|
17,179
|
16,672
|
||||||
Stockholders' equity
|
946,006
|
952,005
|
||||||
Total liabilities and stockholders' equity
|
$
|
2,260,938
|
$
|
2,139,398
|
For the Three Months Ended March 31, 2014
|
||||||||||||||||
East Texas/ North
Louisiana
|
South Texas
|
Other
|
Total
|
|||||||||||||
Oil production (Mbbls)
|
17
|
914
|
4
|
935
|
||||||||||||
Gas production (MMcf)
|
8,813
|
1,807
|
359
|
10,979
|
||||||||||||
Total production (MMcfe)
|
8,914
|
7,291
|
384
|
16,589
|
||||||||||||
Oil sales
|
$
|
1,585
|
$
|
88,317
|
$
|
411
|
$
|
90,313
|
||||||||
Oil hedging settlements(1)
|
—
|
—
|
—
|
(1,297
|
)
|
|||||||||||
Total oil including hedging
|
1,585
|
88,317
|
411
|
89,016
|
||||||||||||
Natural gas sales
|
39,557
|
10,135
|
1,904
|
51,596
|
||||||||||||
Total oil and gas sales including hedging
|
$
|
41,142
|
$
|
98,452
|
$
|
2,315
|
$
|
140,612
|
||||||||
Average oil price (per barrel)
|
$
|
94.84
|
$
|
96.62
|
$
|
96.18
|
$
|
96.59
|
||||||||
Average oil price including hedging (per barrel)
|
$
|
94.84
|
$
|
96.62
|
$
|
96.18
|
$
|
95.20
|
||||||||
Average gas price (per Mcf)
|
$
|
4.49
|
$
|
5.61
|
$
|
5.30
|
$
|
4.70
|
||||||||
Average price (per Mcfe)
|
$
|
4.62
|
$
|
13.50
|
$
|
6.03
|
$
|
8.55
|
||||||||
Average price including hedging (per Mcfe)
|
$
|
4.62
|
$
|
13.50
|
$
|
6.03
|
$
|
8.48
|
||||||||
Production taxes
|
$
|
812
|
$
|
4,637
|
$
|
152
|
$
|
5,601
|
||||||||
Gathering and transportation
|
$
|
2,706
|
$
|
974
|
$
|
96
|
$
|
3,776
|
||||||||
Lease operating
|
$
|
6,445
|
$
|
7,946
|
$
|
670
|
$
|
15,061
|
||||||||
Production taxes (per Mcfe)
|
$
|
0.09
|
$
|
0.64
|
$
|
0.40
|
$
|
0.34
|
||||||||
Gathering and transportation (per Mcfe)
|
$
|
0.30
|
$
|
0.13
|
$
|
0.25
|
$
|
0.23
|
||||||||
Lease operating (per Mcfe)
|
$
|
0.73
|
$
|
1.09
|
$
|
1.74
|
$
|
0.90
|
||||||||
Oil and Gas Capital Expenditures:
|
||||||||||||||||
Acquisitions
|
$
|
—
|
$
|
2,400
|
$
|
—
|
$
|
2,400
|
||||||||
Exploratory leasehold
|
—
|
34,787
|
4,918
|
39,705
|
||||||||||||
Development leasehold
|
86
|
2,583
|
—
|
2,669
|
||||||||||||
Development drilling
|
689
|
140,002
|
—
|
140,691
|
||||||||||||
Other development
|
960
|
1,353
|
2,313
|
|||||||||||||
Total
|
$
|
1,735
|
$
|
181,125
|
(2)
|
$
|
4,918
|
$
|
187,778
|
(2)
|
|
For the Three Months Ended March 31, 2013
|
||||||||||||||||||||||||
East Texas/
North
Louisiana
|
South
Texas
|
Other
|
Continuing
Operations
|
Discontinued
Operations
|
Total
|
|||||||||||||||||||
Oil production (Mbbls)
|
16
|
410
|
6
|
432
|
174
|
606
|
||||||||||||||||||
Gas production (MMcf)
|
13,399
|
1,781
|
448
|
15,628
|
269
|
15,897
|
||||||||||||||||||
Total production (MMcfe)
|
13,495
|
4,242
|
484
|
18,221
|
1,311
|
19,532
|
||||||||||||||||||
Oil sales
|
$
|
1,504
|
$
|
43,546
|
$
|
690
|
$
|
45,740
|
$
|
14,734
|
$
|
60,474
|
||||||||||||
Oil hedging settlements(1)
|
—
|
—
|
—
|
2,320
|
—
|
2,320
|
||||||||||||||||||
Total oil including hedging
|
1,504
|
43,546
|
690
|
48,060
|
14,734
|
62,794
|
||||||||||||||||||
Natural gas sales
|
41,157
|
6,471
|
1,652
|
49,280
|
1,565
|
50,845
|
||||||||||||||||||
Total oil and gas sales including hedging
|
$
|
42,661
|
$
|
50,017
|
$
|
2,342
|
$
|
97,340
|
$
|
16,299
|
$
|
113,639
|
||||||||||||
Average oil price (per barrel)
|
$
|
93.58
|
$
|
106.19
|
$
|
113.69
|
$
|
105.82
|
$
|
84.84
|
$
|
99.81
|
||||||||||||
Average oil price including hedging (per barrel)
|
$
|
93.58
|
$
|
106.19
|
$
|
113.69
|
$
|
111.19
|
$
|
84.84
|
$
|
103.64
|
||||||||||||
Average gas price (per Mcf)
|
$
|
3.07
|
$
|
3.63
|
$
|
3.69
|
$
|
3.15
|
$
|
5.82
|
$
|
3.20
|
||||||||||||
Average price (per Mcfe)
|
$
|
3.16
|
$
|
11.79
|
$
|
4.84
|
$
|
5.21
|
$
|
12.43
|
$
|
5.70
|
||||||||||||
Average price including hedging (per Mcfe)
|
$
|
3.16
|
$
|
11.79
|
$
|
4.84
|
$
|
5.34
|
$
|
12.43
|
$
|
5.82
|
||||||||||||
Production taxes
|
$
|
(231
|
)
|
$
|
2,220
|
$
|
132
|
$
|
2,121
|
$
|
693
|
$
|
2,814
|
|||||||||||
Gathering and transportation
|
$
|
3,557
|
$
|
612
|
$
|
33
|
$
|
4,202
|
$
|
331
|
$
|
4,533
|
||||||||||||
Lease operating
|
$
|
7,493
|
$
|
4,712
|
$
|
1,001
|
$
|
13,206
|
$
|
6,308
|
$
|
19,514
|
||||||||||||
Production taxes (per Mcfe)
|
$
|
(0.02
|
)
|
$
|
0.52
|
$
|
0.27
|
$
|
0.12
|
$
|
0.53
|
$
|
0.14
|
|||||||||||
Gathering and transportation (per Mcfe)
|
$
|
0.26
|
$
|
0.14
|
$
|
0.07
|
$
|
0.23
|
$
|
0.25
|
$
|
0.23
|
||||||||||||
Lease operating (per Mcfe)
|
$
|
0.56
|
$
|
1.12
|
$
|
2.07
|
$
|
0.72
|
$
|
4.81
|
$
|
1.01
|
||||||||||||
Oil and Gas Capital Expenditures:
|
||||||||||||||||||||||||
Exploratory leasehold
|
$
|
—
|
$
|
1,939
|
$
|
—
|
$
|
1,939
|
$
|
6,203
|
$
|
8,142
|
||||||||||||
Development leasehold
|
—
|
184
|
—
|
184
|
—
|
184
|
||||||||||||||||||
Development drilling
|
3,047
|
50,741
|
—
|
53,788
|
49,658
|
103,446
|
||||||||||||||||||
Other development
|
1,076
|
1,137
|
55
|
2,268
|
180
|
2,448
|
||||||||||||||||||
Total
|
$
|
4,123
|
$
|
54,001
|
(2)
|
$
|
55
|
$
|
58,179
|
$
|
56,041
|
$
|
114,220
|
(2)
|
|