8-K
false0000023194COMSTOCK RESOURCES INC00000231942023-10-302023-10-30

 

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): October 30, 2023

 

 

COMSTOCK RESOURCES, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

Nevada

001-03262

94-1667468

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

5300 Town and Country Blvd.

Suite 500

 

Frisco, Texas

 

75034

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (972) 668-8800

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

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))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, par value $0.50 (per share)

 

CRK

 

New York Stock Exchange

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 October 30, 2023, Comstock Resources, Inc. ("Comstock" or the "Company") announced financial results for the quarter ended September 30, 2023. A copy of the press release announcing Comstock's earnings and operating results for these periods 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. The non-GAAP financial measures 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 No.

Description

99.1

Press Release dated October 30, 2023

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

COMSTOCK RESOURCES, INC.

 

 

 

 

Date:

October 30, 2023

By:

/s/ ROLAND O. BURNS

 

 

 

Roland O. Burns
President and Chief Financial Officer

 


EX-99.1

 

Exhibit 99.1

https://cdn.kscope.io/f115341b601af2da659065917ea5db8f-img15376905_0.jpg 

5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8834

Contact: Ron Mills

VP of Finance and Investor Relations

Web Site: www.comstockresources.com

 

NEWS RELEASE

For Immediate Release

COMSTOCK RESOURCES, INC. REPORTS

THIRD QUARTER 2023 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, October 30, 2023 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended September 30, 2023.

Highlights of 2023's Third Quarter

Continued weak natural gas prices weighed heavily on the third quarter results.
Natural gas and oil sales, including realized hedging gains, were $316 million.
Operating cash flow was $167 million or $0.60 per diluted share.
Adjusted EBITDAX for the quarter was $209 million.
Adjusted net income was $11.7 million for the quarter.
Solid results from the Haynesville shale drilling program with 21 (18.1 net) operated wells turned to sales since the Company's last update with an average initial production of 29 MMcf per day.
Latest two Western Haynesville wells were successful with average initial production rates of 34 and 35 Mmcf per day.
Entering into new venture to fund the midstream build-out to support Western Haynesville development.

Financial Results for the Three Months Ended September 30, 2023

Comstock's natural gas and oil sales in the third quarter of 2023 totaled $315.8 million (including realized hedging gains of $10.3 million). Operating cash flow (excluding changes in working capital) generated in the third quarter of 2023 was $167.2 million, and net income available to common stockholders for the third quarter was $14.7 million or $0.05 per share. Net income in the quarter included a pre-tax $3.9 million unrealized gain on hedging contracts held for risk management. Excluding this item and certain other items, adjusted net income available to common stockholders for the third quarter of 2023 was $11.7 million, or $0.04 per diluted share.

Comstock's production cost per Mcfe in the third quarter averaged $0.85 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.24 for lease operating costs, $0.20 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 64% in the third quarter of 2023 and 65% after hedging.

 

 


 

Financial Results for the Nine Months Ended September 30, 2023

Natural gas and oil sales for the nine months ended September 30, 2023 totaled $991.4 million (including realized hedging gains of $76.2 million). Operating cash flow (excluding changes in working capital) generated during the first nine months of 2023 was $567.6 million, and net income available to common stockholders was $103.5 million or $0.37 per share. Adjusted net income available to common stockholders for the nine months ended September 30, 2023 was $104.8 million or $0.38 per diluted share.

Comstock's production cost per Mcfe during the nine months ended September 30, 2023 averaged $0.85 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.26 for lease operating costs, $0.16 for production and other taxes and $0.07 for cash general and administrative expenses. Comstock's unhedged operating margin was 65% during the first nine months of 2023 and 67% after hedging.

Drilling Results

Comstock drilled thirteen (10.2 net) operated horizontal Haynesville/Bossier shale wells in the third quarter of 2023 which had an average lateral length of 11,644 feet. Comstock turned 21 (18.1 net) operated wells to sales in the third quarter of 2023.

Since its last operational update in August, Comstock has turned 21 (18.1 net) operated Haynesville/Bossier shale wells to sales. These wells had initial daily production rates that averaged 29 MMcf per day. The completed lateral length of these wells averaged 10,460 feet.

Included in the wells turned to sales were the sixth and seventh successful Western Haynesville wells – the Cazey MS #1 and the Lanier CW #1. The Cazey MS #1 well was drilled to a total vertical depth of 15,986 feet and has a 10,028 foot completed lateral. The well's initial production rate was 34 MMcf per day. The Lanier CW #1 well was drilled to a total vertical depth of 17,309 feet and has a 9,577 foot completed lateral. The well's initial production rate was 35 MMcf per day.

Declaration of Quarterly Dividend

On October 30, 2023, Comstock's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be payable on December 15, 2023 to stockholders of record at the close of business on December 1, 2023.

Midstream Partnership

Comstock is forming a midstream partnership for its Western Haynesville acreage with Quantum Capital Solutions ("QCS"), an affiliate of Quantum Capital Group. As part of this transaction, Comstock will contribute its Pinnacle gathering and treating system, which is comprised of 145-mile high pressure pipeline and the Bethel natural gas processing plant to the partnership in exchange for a total capital commitment by QCS of $300 million to fund the future build-out of the Western Haynesville midstream system over the next several years. Comstock will control and operate the midstream system. "The new partnership with QCS is expected to fund the needed expansion for our Western Haynesville midstream development program over the next five years," stated M. Jay Allison, Chief Executive Officer of Comstock.

 

 


 

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on October 31, 2023, to discuss the third quarter 2023 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at https://register.vevent.com/register/BIfc74a143ead8420db183d8bae 061d4c9. Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/5d543ov4.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on October 31, 2023. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/5d543ov4.

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. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

 


 

COMSTOCK RESOURCES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

304,141

 

 

$

994,979

 

 

$

911,065

 

 

$

2,376,774

 

Oil sales

 

 

1,309

 

 

 

1,936

 

 

 

4,111

 

 

 

6,324

 

Total natural gas and oil sales

 

 

305,450

 

 

 

996,915

 

 

 

915,176

 

 

 

2,383,098

 

Gas services

 

 

71,287

 

 

 

193,090

 

 

 

239,350

 

 

 

322,575

 

Total revenues

 

 

376,737

 

 

 

1,190,005

 

 

 

1,154,526

 

 

 

2,705,673

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Production and ad valorem taxes

 

 

25,386

 

 

 

24,531

 

 

 

59,891

 

 

 

60,080

 

Gathering and transportation

 

 

47,012

 

 

 

44,740

 

 

 

137,981

 

 

 

113,797

 

Lease operating

 

 

31,664

 

 

 

28,608

 

 

 

100,525

 

 

 

79,873

 

Exploration

 

 

 

 

 

 

 

 

1,775

 

 

 

3,363

 

Depreciation, depletion and amortization

 

 

148,190

 

 

 

129,065

 

 

 

422,350

 

 

 

354,994

 

Gas services

 

 

67,632

 

 

 

181,818

 

 

 

224,317

 

 

 

305,271

 

General and administrative

 

 

9,586

 

 

 

10,165

 

 

 

31,992

 

 

 

27,451

 

Loss on sale of assets

 

 

 

 

 

 

 

 

(125

)

 

 

(21

)

Total operating expenses

 

 

329,470

 

 

 

418,927

 

 

 

978,706

 

 

 

944,808

 

Operating income

 

 

47,267

 

 

 

771,078

 

 

 

175,820

 

 

 

1,760,865

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) from derivative financial instruments

 

 

14,276

 

 

 

(271,335

)

 

 

76,190

 

 

 

(781,654

)

Other income

 

 

409

 

 

 

56

 

 

 

1,467

 

 

 

506

 

Interest expense

 

 

(43,624

)

 

 

(41,393

)

 

 

(121,082

)

 

 

(132,204

)

Loss on early retirement of debt

 

 

 

 

 

 

 

 

 

 

 

(46,840

)

Total other expenses

 

 

(28,939

)

 

 

(312,672

)

 

 

(43,425

)

 

 

(960,192

)

Income before income taxes

 

 

18,328

 

 

 

458,406

 

 

 

132,395

 

 

 

800,673

 

Provision for income taxes

 

 

(3,608

)

 

 

(102,810

)

 

 

(28,878

)

 

 

(179,610

)

Net income

 

 

14,720

 

 

 

355,596

 

 

 

103,517

 

 

 

621,063

 

Preferred stock dividends

 

 

 

 

 

(4,411

)

 

 

 

 

 

(13,089

)

Net income available to common stockholders

 

$

14,720

 

 

$

351,185

 

 

$

103,517

 

 

$

607,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

1.50

 

 

$

0.37

 

 

$

2.61

 

Diluted

 

$

0.05

 

 

$

1.28

 

 

$

0.37

 

 

$

2.24

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

276,999

 

 

 

232,482

 

 

 

276,741

 

 

 

232,170

 

Diluted

 

 

276,999

 

 

 

277,715

 

 

 

276,741

 

 

 

277,605

 

Dividends per share

 

$

0.125

 

 

$

 

 

$

0.375

 

 

$

 

 

 


 

COMSTOCK RESOURCES, INC.

OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Natural gas production (MMcf)

 

 

130,528

 

 

 

128,902

 

 

 

383,902

 

 

 

367,758

 

Oil production (Mbbls)

 

 

17

 

 

 

21

 

 

 

57

 

 

 

66

 

Total production (MMcfe)

 

 

130,629

 

 

 

129,025

 

 

 

384,241

 

 

 

368,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

304,141

 

 

$

994,979

 

 

$

911,065

 

 

$

2,376,774

 

Natural gas hedging settlements (1)

 

 

10,344

 

 

 

(304,489

)

 

 

76,221

 

 

 

(679,038

)

Total natural gas including hedging

 

 

314,485

 

 

 

690,490

 

 

 

987,286

 

 

 

1,697,736

 

Oil sales

 

 

1,309

 

 

 

1,936

 

 

 

4,111

 

 

 

6,324

 

Total natural gas and oil sales including hedging

 

$

315,794

 

 

$

692,426

 

 

$

991,397

 

 

$

1,704,060

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average natural gas price (per Mcf)

 

$

2.33

 

 

$

7.72

 

 

$

2.37

 

 

$

6.46

 

Average natural gas price including hedging (per Mcf)

 

$

2.41

 

 

$

5.36

 

 

$

2.57

 

 

$

4.62

 

Average oil price (per barrel)

 

$

77.00

 

 

$

92.19

 

 

$

72.12

 

 

$

95.82

 

Average price (per Mcfe)

 

$

2.34

 

 

$

7.73

 

 

$

2.38

 

 

$

6.47

 

Average price including hedging (per Mcfe)

 

$

2.42

 

 

$

5.37

 

 

$

2.58

 

 

$

4.63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production and ad valorem taxes

 

$

25,386

 

 

$

24,531

 

 

$

59,891

 

 

$

60,080

 

Gathering and transportation

 

 

47,012

 

 

 

44,740

 

 

 

137,981

 

 

 

113,797

 

Lease operating

 

 

31,664

 

 

 

28,608

 

 

 

100,525

 

 

 

79,873

 

Cash general and administrative (2)

 

 

6,931

 

 

 

8,323

 

 

 

24,985

 

 

 

22,533

 

Total production costs

 

$

110,993

 

 

$

106,202

 

 

$

323,382

 

 

$

276,283

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production and ad valorem taxes (per Mcfe)

 

$

0.20

 

 

$

0.19

 

 

$

0.16

 

 

$

0.16

 

Gathering and transportation (per Mcfe)

 

 

0.36

 

 

 

0.35

 

 

 

0.36

 

 

 

0.31

 

Lease operating (per Mcfe)

 

 

0.24

 

 

 

0.22

 

 

 

0.26

 

 

 

0.22

 

Cash general and administrative (per Mcfe)

 

 

0.05

 

 

 

0.06

 

 

 

0.07

 

 

 

0.06

 

Total production costs (per Mcfe)

 

$

0.85

 

 

$

0.82

 

 

$

0.85

 

 

$

0.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unhedged operating margin

 

 

64

%

 

 

89

%

 

 

65

%

 

 

88

%

Hedged operating margin

 

 

65

%

 

 

85

%

 

 

67

%

 

 

84

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Gas services revenue

 

$

71,287

 

 

$

193,090

 

 

$

239,350

 

 

$

322,575

 

Gas services expenses

 

 

67,632

 

 

 

181,818

 

 

 

224,317

 

 

 

305,271

 

Gas services margin

 

$

3,655

 

 

$

11,272

 

 

$

15,033

 

 

$

17,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural Gas and Oil Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Proved property acquisitions

 

$

 

 

$

 

 

$

 

 

$

205

 

Unproved property acquisitions

 

 

19,998

 

 

 

12,214

 

 

 

76,646

 

 

 

37,396

 

Total natural gas and oil properties acquisitions

 

$

19,998

 

 

$

12,214

 

 

$

76,646

 

 

$

37,601

 

Exploration and Development:

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

5,369

 

 

$

3,011

 

 

$

19,087

 

 

$

8,298

 

Exploratory drilling and completion

 

 

74,737

 

 

 

18,606

 

 

 

179,049

 

 

 

49,003

 

Development drilling and completion

 

 

229,594

 

 

 

204,954

 

 

 

740,808

 

 

 

619,373

 

Other development costs

 

 

1,418

 

 

 

15,563

 

 

 

18,868

 

 

 

52,500

 

Total exploration and development capital expenditures

 

$

311,118

 

 

$

242,134

 

 

$

957,812

 

 

$

729,174

 

 

(1)
Included in gain (loss) from derivative financial instruments in operating results.
(2)
Excludes stock-based compensation.

 


 

COMSTOCK RESOURCES, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS:

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

14,720

 

 

$

351,185

 

 

$

103,517

 

 

$

607,974

 

Unrealized (gain) loss from derivative financial instruments

 

 

(3,932

)

 

 

(33,154

)

 

 

31

 

 

 

102,616

 

Loss on early retirement of debt

 

 

 

 

 

 

 

 

 

 

 

46,840

 

Non-cash interest amortization from adjusting debt assumed in acquisition to fair value

 

 

 

 

 

 

 

 

 

 

 

4,174

 

Exploration expense

 

 

 

 

 

 

 

 

1,775

 

 

 

3,363

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(125

)

 

 

(21

)

Adjustment to (provision for) benefit from income taxes

 

 

946

 

 

 

7,580

 

 

 

(418

)

 

 

(29,959

)

Adjusted net income available to common stockholders (1)

 

$

11,734

 

 

$

325,611

 

 

$

104,780

 

 

$

734,987

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income available to common stockholders per share (2)

 

$

0.04

 

 

$

1.18

 

 

$

0.38

 

 

$

2.68

 

Diluted shares outstanding

 

 

276,999

 

 

 

277,715

 

 

 

276,741

 

 

 

277,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,720

 

 

$

355,596

 

 

$

103,517

 

 

$

621,063

 

Interest expense

 

 

43,624

 

 

 

41,393

 

 

 

121,082

 

 

 

132,204

 

Income taxes

 

 

3,608

 

 

 

102,810

 

 

 

28,878

 

 

 

179,610

 

Depreciation, depletion, and amortization

 

 

148,190

 

 

 

129,065

 

 

 

422,350

 

 

 

354,994

 

Exploration

 

 

 

 

 

 

 

 

1,775

 

 

 

3,363

 

Unrealized (gain) loss from derivative financial instruments

 

 

(3,932

)

 

 

(33,154

)

 

 

31

 

 

 

102,616

 

Stock-based compensation

 

 

2,655

 

 

 

1,842

 

 

 

7,006

 

 

 

4,918

 

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

46,840

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(125

)

 

 

(21

)

Total Adjusted EBITDAX (3)

 

$

208,865

 

 

$

597,552

 

 

$

684,514

 

 

$

1,445,587

 

 

(1)
Adjusted net income available to common stockholders is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding loss on early retirement of debt, non-cash unrealized gains and losses on derivative financial instruments, gains and losses on sales of assets and other unusual items.
(2)
Adjusted net income available to common stockholders per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units and preferred stock pursuant to the treasury stock method.
(3)
Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including loss on early retirement of debt, depreciation, depletion and amortization and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

 


 

COMSTOCK RESOURCES, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands)

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

OPERATING CASH FLOW (1):

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,720

 

 

$

355,596

 

 

$

103,517

 

 

$

621,063

 

Reconciling items:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (gain) loss from derivative financial instruments

 

 

(3,932

)

 

 

(33,154

)

 

 

31

 

 

 

102,616

 

Deferred income taxes

 

 

3,608

 

 

 

78,060

 

 

 

28,878

 

 

 

148,389

 

Depreciation, depletion and amortization

 

 

148,190

 

 

 

129,065

 

 

 

422,350

 

 

 

354,994

 

Loss on early retirement of debt

 

 

 

 

 

 

 

 

 

 

 

46,840

 

Amortization of debt discount and issuance costs

 

 

1,989

 

 

 

1,444

 

 

 

5,980

 

 

 

8,542

 

Stock-based compensation

 

 

2,655

 

 

 

1,842

 

 

 

7,006

 

 

 

4,918

 

Gain on sale of assets

 

 

 

 

 

 

 

 

(125

)

 

 

(21

)

Operating cash flow

 

$

167,230

 

 

$

532,853

 

 

$

567,637

 

 

$

1,287,341

 

(Increase) decrease in accounts receivable

 

 

(20,887

)

 

 

(155,682

)

 

 

295,323

 

 

 

(359,600

)

(Increase) decrease in other current assets

 

 

(1,825

)

 

 

(522

)

 

 

(624

)

 

 

359

 

Increase (decrease) in accounts payable and accrued expenses

 

 

(73,753

)

 

 

156,873

 

 

 

(73,697

)

 

 

301,956

 

Net cash provided by operating activities

 

$

70,765

 

 

$

533,522

 

 

$

788,639

 

 

$

1,230,056

 

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

FREE CASH FLOW (2):

 

 

 

 

 

 

 

 

 

 

 

 

Operating cash flow

 

$

167,230

 

 

$

532,853

 

 

$

567,637

 

 

$

1,287,341

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Exploration and development capital expenditures

 

 

(311,118

)

 

 

(242,134

)

 

 

(957,812

)

 

 

(729,174

)

Other capital expenditures

 

 

(10,563

)

 

 

(603

)

 

 

(22,076

)

 

 

(713

)

Preferred stock dividends

 

 

 

 

 

(4,411

)

 

 

 

 

 

(13,089

)

Free cash flow (deficit) from operations

 

$

(154,451

)

 

$

285,705

 

 

$

(412,251

)

 

$

544,365

 

Acquisitions of natural gas and oil properties

 

 

(19,998

)

 

 

(12,347

)

 

 

(76,646

)

 

 

(54,492

)

Proceeds from divestitures

 

 

 

 

 

 

 

 

41,295

 

 

 

93

 

Free cash flow (deficit) after acquisition and divestiture activity

 

$

(174,449

)

 

$

273,358

 

 

$

(447,602

)

 

$

489,966

 

 

(1)
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 which excludes changes to other working capital accounts.
(2)
Free cash flow from operations and free cash flow after acquisition and divestiture activity are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, preferred dividend payments, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

 


 

COMSTOCK RESOURCES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

September 30,
2023

 

 

December 31,
2022

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,835

 

 

$

54,652

 

Accounts receivable

 

 

214,804

 

 

 

510,127

 

Derivative financial instruments

 

 

23,973

 

 

 

23,884

 

Other current assets

 

 

68,572

 

 

 

56,324

 

Total current assets

 

 

327,184

 

 

 

644,987

 

Property and equipment, net

 

 

5,219,961

 

 

 

4,622,655

 

Goodwill

 

 

335,897

 

 

 

335,897

 

Operating lease right-of-use assets

 

 

148,066

 

 

 

90,716

 

 

 

$

6,031,108

 

 

$

5,694,255

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Accounts payable

 

$

503,564

 

 

$

530,195

 

Accrued costs

 

 

103,666

 

 

 

183,111

 

Operating leases

 

 

52,731

 

 

 

38,411

 

Derivative financial instruments

 

 

 

 

 

4,420

 

Total current liabilities

 

 

659,961

 

 

 

756,137

 

Long-term debt

 

 

2,503,407

 

 

 

2,152,571

 

Deferred income taxes

 

 

454,612

 

 

 

425,734

 

Derivative financial instruments

 

 

4,540

 

 

 

 

Long-term operating leases

 

 

95,397

 

 

 

52,385

 

Asset retirement obligation

 

 

30,434

 

 

 

29,114

 

Total liabilities

 

 

3,748,351

 

 

 

3,415,941

 

Stockholders' Equity:

 

 

 

 

 

 

Common stock

 

 

139,214

 

 

 

138,759

 

Additional paid-in capital

 

 

1,258,069

 

 

 

1,253,417

 

Accumulated earnings

 

 

885,474

 

 

 

886,138

 

Total stockholders' equity

 

 

2,282,757

 

 

 

2,278,314

 

 

 

$

6,031,108

 

 

$

5,694,255