crk-8k_20180226.htm

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):  Febuary 26, 2018

 

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 

Item 2.02

Results of Operations and Financial Condition

 

On February 26, 2018, Comstock Resources, Inc. ("Comstock") announced financial results for the three months and year ended December 31, 2017.  A copy of the press release announcing Comstock's earnings and operating results for the three months and year ended December 31, 2017 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.

 

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, as amended (the "Exchange Act") or otherwise subject to the liability of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits

 

Exhibit 99.1

Press Release dated December 31, 2017

 

 

 

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, hereunto duly authorized.

 

 

 

COMSTOCK RESOURCES, INC.

 

 

 

 

 

 

Dated: February 26, 2018

By:

/s/ ROLAND O. BURNS

 

 

Roland O. Burns

 

 

President and Chief Financial Officer

 

crk-ex991_6.htm

Exhibit 99.1

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

 

NEWS RELEASE

 

For Immediate Release

 

COMSTOCK RESOURCES, INC. REPORTS

FOURTH QUARTER AND CALENDAR YEAR 2017

FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, February 26, 2018 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the three months and year ended December 31, 2017.  

 

Financial Results

Comstock produced 22 billion cubic feet of natural gas and 214,000 barrels of oil or 23.5 billion cubic feet of natural gas equivalent ("Bcfe") in the fourth quarter of 2017.  Natural gas production averaged 241 million cubic feet ("MMcf") per day, reflecting growth of 90% from pro forma natural gas production in the fourth quarter of 2016 (excluding the divestitures completed in 2016).  The growth in natural gas production was driven by Comstock's successful Haynesville shale drilling program.  

Oil and natural gas prices improved in the fourth quarter of 2017.  Comstock's average realized natural gas price, including hedging gains, increased 3% to $2.94 per Mcf in the fourth quarter of 2017 as compared to $2.85 per Mcf realized in the fourth quarter of 2016.  The Company's average realized oil price increased by 23% to $56.48 per barrel in the fourth quarter of 2017 as compared to $45.96 per barrel in the fourth quarter of 2016.  The higher realized prices and the growth in natural gas production caused oil and gas sales to increase by 59% in the fourth quarter of 2017 to $77.3 million (including realized hedging gains) as compared to 2016's fourth quarter sales of $48.5 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, was $56.0 million in the fourth quarter of 2017, an increase of 105% over EBITDAX of $27.2 million generated in the fourth quarter of 2016.  Operating cash flow generated in the fourth quarter of 2017 was $37.6 million as compared to operating cash flow of $9.2 million in the fourth quarter of 2016.

Comstock reported a net loss of $42.3 million or $2.86 per share for the fourth quarter of 2017 as compared to a net loss of $54.9 million or $4.48 per share for the fourth quarter of 2016.  The loss included several unusual items including an impairment charge of $44.0 million, primarily of the Company’s South Texas oil properties which are held for sale, $10.9 million of non-cash interest expense associated with the discounts recognized and costs incurred on the debt exchange that occurred in 2016, an unrealized loss from derivative financial instruments of $1.9 million and a $19.1 million income tax benefit due to the new U.S. federal income tax law.  Financial results for the fourth quarter of 2016 included impairments on oil and gas properties and unevaluated leases and losses realized from divestitures of $2.8 million, an unrealized loss from derivative financial instruments of $6.0 million, an


income tax charge to reflect a change in state law of $3.4 million, and charges associated with the debt exchange totaling $11.1 million.  Excluding these items from each year's results, the net loss for the fourth quarter of 2017 would have been $4.6 million or $0.31 per share as compared to a net loss of $31.6 million or $2.58 per share in the fourth quarter of 2016.

Comstock produced 73.5 billion cubic feet of natural gas and 951,000 barrels of oil or 79 billion cubic feet of natural gas equivalent in the year ended December 31, 2017 compared to 54 Bcf of natural gas and 1.4 million barrels of oil or 62 Bcfe in 2016. Natural gas production averaged 201 million cubic feet per day in 2017, an increase of 46% over pro forma 2016 natural gas production, excluding the divestitures completed in 2016.  Oil production in 2017 declined by 31% from 2016.

Comstock's average realized natural gas price, including hedging gains, increased 28% to $2.97 per Mcf in the 2017 as compared to $2.32 per Mcf realized in 2016.  The Company's average realized oil price increased by 28% to $49.02 per barrel in the year ended December 31, 2017 as compared to $38.24 per barrel in the year ended December 31, 2016.  The higher realized prices and the growth in natural gas production caused oil and gas sales to increase by 49% to $264.7 million (including realized hedging gains) as compared to $177.8 million in the year ended December 31, 2016.  EBITDAX of $184.3 million in the year ended December 31, 2017 was 103% higher than the EBITDAX of $90.9 million generated in the year ended December 31, 2016.  Operating cash flow generated in the year ended December 31, 2017 was $111.7 million as compared to an operating cash flow deficit of $8.2 million in the year ended December 31, 2016.

Comstock reported a net loss of $111.4 million or $7.61 per share for the year ended December 31, 2017 as compared to a net loss of $135.1 million or $11.52 per share for the year ended December 31, 2016.  The results for the year ended December 31, 2017 include an unrealized gain from derivative financial instruments of $7.3 million, impairments and loss on sale of oil and gas properties of $45.0 million, $35.7 million of non-cash interest expense associated with the discounts recognized and costs incurred on the debt exchange that occurred in 2016 and the $19.1 million benefit due to the new U.S. federal tax law change.  Financial results for the year ended December 31, 2016 include impairments on oil and gas properties and unevaluated leases and losses realized from divestitures of $125.5 million, an unrealized loss from derivative financial instruments of $7.5 million, an income tax charge to reflect a change in state law of $7.2 million, and a gain of $176.5 million from extinguishment of debt, less the amortization of the original issue discount from the notes issued in the debt exchange completed in September 2016.   Excluding these items from results for each period, the net loss for the year ended December 31, 2017 would have been $57.1 million or $3.90 per share as compared to a net loss of $171.4 million, or $14.61 per share in the year ended December 31, 2016.

In order to protect returns for the previously reported $170 million Haynesville shale drilling program in 2018, the Company has, in the aggregate, hedged 42 million cubic feet per day of its first quarter production at a NYMEX equivalent of $3.26 per Mcf and 60 million cubic feet of second through fourth quarter production at a NYMEX equivalent of $3.00 per Mcf.  Comstock will continue to add to these positions.

2017 Drilling Results

During 2017, Comstock spent $178.8 million on its development and exploration activities and drilled 30 horizontal natural gas wells (15.7 net) and had four operated wells (1.5 net) drilling at December 31, 2017.  Since the last operational update, Comstock has completed six operated Haynesville shale wells.  The two Derrick wells drilled in the Logansport area of DeSoto Parish set a new corporate record with both wells exceeding 6.5 MMcf per day per 1,000 feet of completed lateral. The Derrick 21 #2 well was drilled to vertical depth of 11,957 feet with a 4,549 foot lateral and the Derrick 21 #3 well was drilled to a total vertical depth of 11,942 feet with a 4,552 foot lateral.  Both wells were each tested with an initial


production rate of 30 MMcf per day.    Comstock also reported results of its first two joint venture wells drilled in Caddo Parish, Louisiana.  The Hunter 28-21 #1 was drilled to a total vertical depth of 11,182 feet with a 9,301 foot lateral and the Hunter 28-21 #2 well was drilled to a total vertical depth of 11,088 feet with a 9,135 foot lateral.  Both wells were each tested with an initial production rate of 27 MMcf per day. Comstock also had two wells, the Bogle 36-1 #1 and #2 in DeSoto Parish, Louisiana, which were successful but their initial rates had to be limited due to certain operational constraints. The Bogle 36-1 #1 with a 7,818 completed lateral was tested at 16 MMcf per day and the Bogle 36-1 #2 with a 5,228 completed lateral was tested at 14 MMcf per day.

Comstock also announced a successful Bossier well drilled in Sabine Parish, Louisiana.  The BSMC LA 18-7 #1 well was drilled to a total vertical depth of 11,219 feet with a 7,489 foot lateral.  This well was tested with an initial production rate of 21 MMcf per day.

Comstock is currently performing frac operations on the Florsheim 9-16 #1 and the Florsheim 9-16 #2 wells which have 9,400 foot laterals and the BSMC 13-24 #1 and BSMC 13-24 #3 Bossier shale wells that have approximately 9,800 foot laterals.  Comstock also has an additional five wells in various stages of completion and has an additional two Haynesville shale horizontal wells waiting to be completed.  

 

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on February 26, 2018, to discuss the operational and financial results for the year ended December 31, 2017 as well as update investors on its refinancing plans for 2018.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 844-776-7840 (international dial-in use 661-378-9538) and provide access code 4886189 when prompted.  If you are unable to participate in the original conference call, a web replay will be available approximately 24 hours following the completion of the call on Comstock's website at www.comstockresources.com.  The web replay will be available for approximately one week.  A replay of the conference call will be available beginning at 1:00 p.m. CT February 26, 2018 and will continue until 1:00 p.m. March 5, 2018.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 4886189.

 

 

 

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 an 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,

 

 

 

2017

 

  

2016

 

  

2017

 

  

2016

 

Revenues:

 

(In thousands, except per share amounts)

 

 

Natural gas sales

 

$

61,200

 

 

$

34,897

 

  

$

208,741

 

 

$

122,623

 

Oil sales

 

 

12,048

 

 

 

13,601

 

 

 

46,590

 

 

 

53,083

 

Total oil and gas sales

 

 

73,248

 

 

 

48,498

 

 

 

255,331

 

 

 

175,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

 

1,643

 

 

 

864

 

 

 

5,373

 

 

 

4,933

 

Gathering and transportation

 

 

5,110

 

 

 

3,605

 

 

 

17,538

 

 

 

15,824

 

Lease operating

 

 

9,178

 

 

 

9,447

 

 

 

37,859

 

 

 

47,696

 

Exploration

 

 

 

 

 

 

 

 

 

 

 

84,144

 

Depreciation, depletion and amortization

 

 

30,548

 

 

 

29,077

 

 

 

123,557

 

 

 

141,487

 

General and administrative

 

 

7,003

 

 

 

8,537

 

 

 

26,137

 

 

 

23,963

 

Impairment of oil and gas properties

 

 

43,990

 

 

 

2,561

 

 

 

43,990

 

 

 

27,134

 

Loss on sales of oil and gas properties

 

 

 

 

 

212

 

 

 

1,060

 

 

 

14,315

 

Total operating expenses

 

 

97,472

 

 

 

54,303

 

 

 

255,514

 

 

 

359,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

(24,224

)

 

 

(5,805

)

 

 

(183

)

 

 

(183,790

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain) on extinguishment of debt

 

 

 

 

 

(1,064

)

 

 

 

 

 

189,052

 

Gain (loss) on derivative financial instruments

 

 

2,168

 

 

 

(6,030

)

 

 

16,753

 

 

 

(5,356

)

Other income

 

 

132

 

 

 

102

 

 

 

530

 

 

 

872

 

Interest expense(1)

 

 

(39,199

)

 

 

(38,690

)

 

 

(146,449

)

 

 

(128,743

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

(36,899

)

 

 

(45,682

)

 

 

(129,166

)

 

 

55,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before income taxes

 

 

(61,123

)

 

 

(51,487

)

 

 

(129,349

)

 

 

(127,965

)

Benefit from (provision for) income taxes

 

 

18,827

 

 

 

(3,446

)

 

 

17,944

 

 

 

(7,169

)

Net loss

 

$

(42,296

)

 

$

(54,933

)

 

$

(111,405

)

 

$

(135,134

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share – basic and diluted

 

$

(2.86

)

 

$

(4.48

)

 

$

(7.61

)

 

$

(11.52

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – basic and diluted

 

 

14,808

 

 

 

12,262

 

 

 

14,644

 

 

 

11,729

 

 

 

 

(1)

Includes $10.9 million and $10.0 million for the three months ended December 31, 2017 and 2016, respectively, and $35.7 million and $12.6 million for the year ended December 31, 2017 and 2016, respectively, related to the amortization of discounts and costs recorded in connection with the debt exchange completed on September 6, 2016.  Includes $9.9 million and $9.3 million for the three months ended December 31, 2017 and 2016, respectively, and $38.1 million and $11.9 million for the year ended December 31, 2017, respectively of interest paid in-kind related to the Company's convertible notes.  

 

 

 

 

 

 

 

 

 


COMSTOCK RESOURCES, INC.
OPERATING RESULTS

(In thousands)

 

 

Three Months Ended December 31,

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING CASH FLOW:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,296

)

 

$

(54,933

)

 

$

(111,405

)

 

$

(135,134

)

Reconciling items:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred and non-current income taxes

 

 

(18,848

)

 

 

3,418

 

 

 

(18,080

)

 

 

7,105

 

Depreciation, depletion and amortization

 

 

30,548

 

 

 

29,077

 

 

 

123,557

 

 

 

141,487

 

Unrealized loss (gain) from derivative financial instruments

 

 

1,885

 

 

 

6,030

 

 

 

(7,348

)

 

 

7,476

 

Amortization of debt discount, premium and issuance costs

 

 

10,966

 

 

 

11,375

 

 

 

35,880

 

 

 

17,788

 

Interest paid in-kind

 

 

9,879

 

 

 

9,284

 

 

 

38,073

 

 

 

11,860

 

Stock-based compensation

 

 

1,468

 

 

 

1,089

 

 

 

5,923

 

 

 

4,660

 

Impairment of oil and gas properties

 

 

43,990

 

 

 

2,561

 

 

 

43,990

 

 

 

27,134

 

Exploratory lease impairments

 

 

 

 

 

 

 

 

 

 

 

84,144

 

Net loss on sales of oil and gas properties

 

 

 

 

 

212

 

 

 

1,060

 

 

 

14,315

 

Loss (gain) on extinguishment of debt

 

 

 

 

 

1,064

 

 

 

 

 

 

(189,052

)

Operating cash flow

 

 

37,592

 

 

 

9,177

 

 

 

111,650

 

 

 

(8,217

)

Increase in accounts receivable

 

 

(4,176

)

 

 

(3,752

)

 

 

(16,128

)

 

 

(3,651

)

Decrease (increase) in other current assets

 

 

(251

)

 

 

151

 

 

 

(921

)

 

 

169

 

Increase (decrease) in accounts payable and accrued expenses

 

 

50,686

 

 

 

25,414

 

 

 

80,013

 

 

 

(12,029

)

Net cash provided by (used for) operating activities

 

$

83,851

 

 

$

30,990

 

 

$

174,614

 

 

$

(23,728

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(42,296

)

 

$

(54,933

)

 

$

(111,405

)

 

$

(135,134

)

Interest expense

 

 

39,199

 

 

 

38,690

 

 

 

146,449

 

 

 

128,743

 

Income taxes

 

 

(18,827

)

 

 

3,446

 

 

 

(17,944

)

 

 

7,169

 

Depreciation, depletion and amortization

 

 

30,548

 

 

 

29,077

 

 

 

123,557

 

 

 

141,487

 

Unrealized loss (gain) from derivative financial instruments

 

 

1,885

 

 

 

6,030

 

 

 

(7,348

)

 

 

7,476

 

Stock-based compensation

 

 

1,468

 

 

 

1,089

 

 

 

5,923

 

 

 

4,660

 

Exploration

 

 

 

 

 

 

 

 

 

 

 

84,144

 

Impairment of oil and gas properties

 

 

43,990

 

 

 

2,561

 

 

 

43,990

 

 

 

27,134

 

Net loss on sales of oil and gas properties

 

 

 

 

 

212

 

 

 

1,060

 

 

 

14,315

 

Net loss (gain) on extinguishment of debt

 

 

 

 

 

1,064

 

 

 

 

 

 

(189,052

)

Total EBITDAX

 

$

55,967

 

 

$

27,236

 

 

$

184,282

 

 

$

90,942

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

 

 

 

 

 

 

 

 

 

December 31,

2017

 

 

December 31,

2016

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

61,255

 

 

$

65,904

 

Assets held for sale

 

 

198,615

 

 

 

 

Other current assets

 

 

42,635

 

 

 

24,268

 

Property and equipment, net

 

 

607,929

 

 

 

798,662

 

Other

 

 

19,985

 

 

 

1,040

 

Total assets

 

$

930,419

 

 

$

889,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

168,489

 

 

$

91,707

 

Long-term debt

 

 

1,110,529

 

 

 

1,044,506

 

Deferred income taxes

 

 

10,266

 

 

 

9,126

 

Asset retirement obligation

 

 

10,407

 

 

 

15,804

 

Stockholders' deficit

 

 

(369,272

)

 

 

(271,269

)

Total liabilities and stockholders' deficit

 

$

930,419

 

 

$

889,874

 

 

 

 



 

COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

 

 

 

 

For the Three Months Ended December 31, 2017

 

 

 

East Texas/ North

Louisiana

 

 

South Texas

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

21,750

 

 

 

301

 

 

 

163

 

 

 

22,214

 

Oil production (Mbbls)

 

 

14

 

 

 

194

 

 

 

6

 

 

 

214

 

Total production (MMcfe)

 

 

21,834

 

 

 

1,464

 

 

 

196

 

 

 

23,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

59,317

 

 

$

1,424

 

 

$

459

 

 

$

61,200

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

4,053

 

Total natural gas including hedging

 

 

59,317

 

 

 

1,424

 

 

 

459

 

 

 

65,253

 

Oil sales

 

 

737

 

 

 

11,008

 

 

 

303

 

 

 

12,048

 

Total oil and gas sales including hedging

 

$

60,054

 

 

$

12,432

 

 

$

762

 

 

$

77,301

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.73

 

 

$

4.73

 

 

$

2.82

 

 

$

2.76

 

Average gas price including hedging
(per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.94

 

Average oil price (per barrel)

 

$

52.47

 

 

$

56.80

 

 

$

55.74

 

 

$

56.48

 

Average price (per Mcfe)

 

$

2.75

 

 

$

8.49

 

 

$

3.89

 

 

$

3.12

 

Average price including hedging
(per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

1,013

 

 

$

584

 

 

$

46

 

 

$

1,643

 

Gathering and transportation

 

$

4,692

 

 

$

369

 

 

$

49

 

 

$

5,110

 

Lease operating

 

$

5,484

 

 

$

3,367

 

 

$

327

 

 

$

9,178

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

0.40

 

 

$

0.23

 

 

$

0.07

 

Gathering and transportation (per Mcfe)

 

$

0.21

 

 

$

0.25

 

 

$

0.25

 

 

$

0.22

 

Lease operating (per Mcfe)

 

$

0.25

 

 

$

2.30

 

 

$

1.67

 

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

2,751

 

 

$

 

 

$

 

 

$

2,751

 

Development drilling

 

 

42,899

 

 

 

12

 

 

 

 

 

 

42,911

 

Other development

 

 

2,805

 

 

 

514

 

 

 

23

 

 

 

3,342

 

Total

 

$

48,455

 

 

$

526

 

$

23

 

 

$

49,004

 

 

 

(1)Included in gain from derivative financial instruments in operating results.

 

 



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

For the Three Months Ended December 31, 2016

 

 

 

East Texas/ North

Louisiana

 

 

South Texas

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

10,977

 

 

 

1,036

 

 

 

247

 

 

 

12,260

 

Oil production (Mbbls)

 

 

15

 

 

 

276

 

 

 

5

 

 

 

296

 

Total production (MMcfe)

 

 

11,063

 

 

 

2,694

 

 

 

278

 

 

 

14,035

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

31,116

 

 

$

3,179

 

 

$

602

 

 

$

34,897

 

Oil sales

 

 

652

 

 

 

12,715

 

 

 

234

 

 

 

13,601

 

Total oil and gas sales

 

$

31,768

 

 

$

15,894

 

 

$

836

 

 

$

48,498

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.83

 

 

$

3.07

 

 

$

2.44

 

 

$

2.85

 

Average oil price (per barrel)

 

$

44.90

 

 

$

46.01

 

 

$

46.27

 

 

$

45.96

 

Average price (per Mcfe)

 

$

2.87

 

 

$

5.90

 

 

$

3.01

 

 

$

3.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

63

 

 

$

748

 

 

$

53

 

 

$

864

 

Gathering and transportation

 

$

2,836

 

 

$

718

 

 

$

51

 

 

$

3,605

 

Lease operating

 

$

5,826

 

 

$

3,233

 

 

$

388

 

 

$

9,447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.01

 

 

$

0.28

 

 

$

0.19

 

 

$

0.06

 

Gathering and transportation (per Mcfe)

 

$

0.26

 

 

$

0.27

 

 

$

0.18

 

 

$

0.26

 

Lease operating (per Mcfe)

 

$

0.52

 

 

$

1.19

 

 

$

1.40

 

 

$

0.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

 

 

$

495

 

 

$

 

 

$

495

 

Development drilling

 

 

20,942

 

 

 

266

 

 

 

 

 

 

21,208

 

Other development

 

 

440

 

 

 

698

 

 

 

50

 

 

 

1,188

 

Total

 

$

21,382

 

 

$

1,459

 

$

50

 

 

$

22,891

 

 

 



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

For the Year Ended December 31, 2017

 

 

 

East Texas/ North

Louisiana

 

 

South Texas

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

71,550

 

 

 

1,372

 

 

 

599

 

 

 

73,521

 

Oil production (Mbbls)

 

 

53

 

 

 

876

 

 

 

22

 

 

 

951

 

Total production (MMcfe)

 

 

71,868

 

 

 

6,626

 

 

 

730

 

 

 

79,224

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

201,534

 

 

$

5,574

 

 

$

1,633

 

 

$

208,741

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

9,405

 

Total natural gas including hedging

 

 

201,534

 

 

 

5,574

 

 

 

1,633

 

 

 

218,146

 

Oil sales

 

 

2,557

 

 

 

42,961

 

 

 

1,072

 

 

 

46,590

 

Total oil and gas sales including hedging

 

$

204,091

 

 

$

48,535

 

 

$

2,705

 

 

$

264,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.82

 

 

$

4.06

 

 

$

2.73

 

 

$

2.84

 

Average gas price including hedging
(per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.97

 

Average oil price (per barrel)

 

$

48.21

 

 

$

49.06

 

 

$

49.10

 

 

$

49.02

 

Average price (per Mcfe)

 

$

2.84

 

 

$

7.32

 

 

$

3.71

 

 

$

3.22

 

Average price including hedging
(per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

2,941

 

 

$

2,248

 

 

$

184

 

 

$

5,373

 

Gathering and transportation

 

$

15,654

 

 

$

1,648

 

 

$

236

 

 

$

17,538

 

Lease operating

 

$

22,232

 

 

$

14,323

 

 

$

1,304

 

 

$

37,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.04

 

 

$

0.34

 

 

$

0.25

 

 

$

0.07

 

Gathering and transportation (per Mcfe)

 

$

0.22

 

 

$

0.25

 

 

$

0.32

 

 

$

0.22

 

Lease operating (per Mcfe)

 

$

0.31

 

 

$

2.16

 

 

$

1.79

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

4,177

 

 

$

521

 

 

$

 

 

$

4,698

 

Development drilling

 

 

163,755

 

 

 

717

 

 

 

 

 

 

164,472

 

Other development

 

 

7,187

 

 

 

1,999

 

 

 

458

 

 

 

9,644

 

Total

 

$

175,119

 

 

$

3,237

 

$

458

 

 

$

178,814

 

 

 

(1)Included in gain from derivative financial instruments in operating results.

 

 



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

For the Year Ended December 31, 2016

 

 

 

East Texas/ North

Louisiana

 

 

South Texas

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

47,524

 

 

 

5,096

 

 

 

1,058

 

 

 

53,678

 

Oil production (Mbbls)

 

 

62

 

 

 

1,298

 

 

 

28

 

 

 

1,388

 

Total production (MMcfe)

 

 

47,893

 

 

 

12,884

 

 

 

1,229

 

 

 

62,006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

107,951

 

 

$

12,546

 

 

$

2,126

 

 

$

122,623

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

2,120

 

Total natural gas including hedging

 

 

107,951

 

 

 

12,546

 

 

 

2,126

 

 

 

124,743

 

Oil sales

 

 

2,360

 

 

 

49,587

 

 

 

1,136

 

 

 

53,083

 

Total oil and gas sales including hedging

 

$

110,311

 

 

$

62,133

 

 

$

3,262

 

 

$

177,826

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.27

 

 

$

2.46

 

 

$

2.01

 

 

$

2.28

 

Average gas price including hedging
(per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.32

 

Average oil price (per barrel)

 

$

38.36

 

 

$

38.20

 

 

$

39.77

 

 

$

38.24

 

Average price (per Mcfe)

 

$

2.30

 

 

$

4.82

 

 

$

2.65

 

 

$

2.83

 

Average price including hedging
(per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.87

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

1,924

 

 

$

2,820

 

 

$

189

 

 

$

4,933

 

Gathering and transportation

 

$

12,907

 

 

$

2,675

 

 

$

242

 

 

$

15,824

 

Lease operating

 

$

23,752

 

 

$

22,118

 

 

$

1,826

 

 

$

47,696

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.04

 

 

$

0.22

 

 

$

0.15

 

 

$

0.08

 

Gathering and transportation (per Mcfe)

 

$

0.27

 

 

$

0.21

 

 

$

0.20

 

 

$

0.26

 

Lease operating (per Mcfe)

 

$

0.50

 

 

$

1.71

 

 

$

1.49

 

 

$

0.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

975

 

 

$

2,292

 

 

$

 

 

$

3,267

 

Development drilling

 

 

50,412

 

 

 

299

 

 

 

 

 

 

50,711

 

Other development

 

 

1,619

 

 

 

3,900

 

 

 

50

 

 

 

5,569

 

Total

 

$

53,006

 

 

$

6,491

 

$

50

 

 

$

59,547

 

 

 

(1)Included in gain from derivative financial instruments in operating results.