Comstock Resources, Inc. Announces Third Quarter 2000 Financial and Operating Results
FRISCO, Texas, Nov. 6 /PRNewswire/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today announced financial results for the quarter ended September 30, 2000 and the year to date results of its 2000 drilling program. The third quarter 2000 financial results set a new corporate record for revenues, net income and cash flow.
Third Quarter 2000 Financial Results
Comstock reported revenues of $45.0 million for the third quarter of 2000, an increase of 96% over third quarter 1999 revenues of $23.0 million. Comstock's net income this quarter reached $12.1 million, as compared to a net loss of $1.3 million for the third quarter of 1999. Net income per share for the third quarter of 2000 was 37 cents as compared to a net loss per share of 5 cents for the third quarter of 1999 on weighted average shares outstanding of 34.5 million and 24.8 million for 2000 and 1999, respectively. Comstock generated $31.2 million in operating cash flow (cash flow before changes in working capital accounts) in 2000's third quarter, an increase of over 200% over 1999's third quarter operating cash flow of $10.3 million. Earnings before interest, taxes and depreciation depletion and amortization ("EBITDA") of $37.1 million in 2000's third quarter was 124% higher than 1999's third quarter EBITDA of $16.5 million.
For the nine months ended September 30, 2000, Comstock's revenues totaled $116.8 million, a 79% increase over revenues for the same period in 1999 of $65.3 million. Net income for the nine months ended September 30, 2000 totaled $24.2 million (77 cents per share), as compared to a net loss of $6.8 million (28 cents per share) for the nine months ended September 30, 1999. Operating cash flow generated by Comstock reached $74.8 million for the first nine months of 2000, a 159% increase from the first nine months of 1999's cash flow of $28.8 million. EBITDA grew to $93.1 million for the first nine months of 2000, a 102% increase over EBITDA of $46.1 million for the first nine months of 1999.
The outstanding financial results in the third quarter were driven by increased production and higher oil and gas prices. Comstock produced 9.3 billion cubic feet equivalent ("Bcfe") of natural gas in the third quarter of 2000, a 7% increase from 1999's third quarter production of 8.7 Bcfe. Production for the first nine months of 2000 totaled 28.6 Bcfe as compared to 1999's first nine months production of 27.8 Bcfe. Prices in the third quarter increased to $4.69 per thousand cubic feet ("Mcf") for natural gas and $31.37 per barrel for oil from $2.28 per Mcf and $20.82 per barrel in 1999's third quarter.
East Texas/North Louisiana Region
During the first ten months of this year, Comstock has drilled 15 development wells (9.2 net) in its East Texas/North Louisiana Region. These wells were drilled to target Cotton Valley reservoir sands located between 9,000 and 10,000 feet. All of these wells were successful. Ten of 15 wells have been completed and are now producing with an average per well rate of 1.7 million cubic feet of natural gas equivalent per day. The remaining five are in the process of being completed. Comstock plans to drill an additional eight wells by the end of the year in this region.
Gulf of Mexico Region
Since the beginning of the year, Comstock has drilled 13 wells (3.5 net) in federal and Louisiana state waters in the Gulf of Mexico. Twelve of the wells were successful. Seven of the 13 wells were development wells drilled at the Company's Main Pass and West Cameron properties. The remaining six wells were drilled under the Company's exploratory venture with Bois d' Arc Offshore Ltd. In addition to the four successful wells reported earlier, Comstock has made another major drilling discovery at South Pelto Block 5. The OCS-G 12027 #5 well at South Pelto Block 5 was drilled to a total depth of 16,149 feet penetrating multiple productive reservoirs. Subsequent completion operations perforated the lowermost of these reservoirs at approximately 15,600 feet. This interval was tested at 18.6 million cubic of feet of natural gas per day and 800 barrels of condensate per day with a 9,000 pounds per square inch flowing tubing pressure on a 18/64 inch choke. Comstock expects this well, along with the OCS-G 12027 #6 well drilled earlier, to be connected to sales in December 2000. The new well is expected to be produced at a stabilized rate approaching 30 million cubic feet of natural gas per day. Comstock has a 25% working interest in this well which is operated by Bois d' Arc Offshore Ltd. The one unsuccessful well in this region was a 10,400 foot exploratory well at Bay Marchand Block 5 which was abandoned due to poor sand development. Under the exploration venture, Comstock plans to drill three to four additional offshore wells by the end of this year.
Southeast Texas Region
Comstock's Southeast Texas drilling program centers around its redevelopment and exploration in and around the Double A Wells field in Polk County, Texas. To date in 2000, Comstock has drilled ten successful wells (5.7 net) in the Double A Wells field area and one unsuccessful exploratory well north of the Double A Wells field. Eight of the ten successful wells are now producing with an average per well rate of 6.1 million cubic feet of natural gas equivalent per day. Comstock is in the process of completing the W.T. Carter & Bros. #10 and the Carter Battise #4, the latest two successful wells drilled. The Company is currently drilling the Jackson A #1, a north extension well in the Double A Wells field, and plans to drill an additional three wells in this region before yearend.
Certain statements in this news release regarding future expectations, plans for drilling, estimates of oil and gas reserves and production and pricing may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas. Actual results may vary materially.
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, Louisiana and the Gulf of Mexico.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(in thousands, except per share amounts)
Quarter Ended Nine Months Ended
September 30, September 30,
Income Statement Data: 2000 1999 2000 1999
Revenues:
Oil and gas sales $44,883 $22,922 $116,523 $63,309
Other income 104 52 241 1,975
44,987 22,974 116,764 65,284
Expenses:
Oil and gas
operating 7,049 6,028 21,653 17,829
Exploration 1,041 920 1,828 1,584
Depreciation,
depletion and
amortization 10,342 10,016 32,508 34,779
General and
administrative, net 824 408 2,019 1,318
Interest 6,007 6,252 18,440 17,232
25,263 23,624 76,448 72,742
Net income (loss)
before income
taxes 19,724 (650) 40,316 (7,458)
Provision for income
taxes (6,903) --- (14,111) 1,778
Net income (loss) 12,821 (650) 26,205 (5,680)
Preferred stock
dividends (686) (689) (2,051) (1,162)
Net income (loss)
attributable to
common stock $12,135 ($1,339) $24,154 ($6,842)
Net income (loss)
per share:
Basic $0.47 ($0.05) $0.95 ($0.28)
Diluted $0.37 $0.77
Weighted average common
and common stock
equivalent shares
outstanding:
Basic 25,687 24,822 25,508 24,523
Diluted 34,505 32,902 33,966 29,076
Cash flow from
operations (A) $31,163 $10,343 $74,820 $28,835
Cash flow from
operations
per share(A):
Basic $1.21 $0.42 $2.93 $1.18
Diluted $0.90 $0.31 $2.20 $0.99
EBITDA $37,114 $16,538 $93,092 $46,137
As of September 30,
2000 1999
Balance Sheet Data:
Current Assets $38,782 $27,929
Property and
Equipment, net 428,465 385,142
Other 6,129 6,991
Total Assets $473,376 $420,062
Current Liabilities $47,482 $26,052
Long-term Debt 240,000 254,000
Other 22,192 5,884
Stockholders' Equity 163,702 134,126
Total Liabilities
and Stockholders'
Equity $473,376 $420,062
(A) Before changes in working capital accounts
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months ended September 30, 2000
East Texas/ Gulf of Southeast
North Louisiana Mexico Texas Total
Oil production
(thousand barrels) 17 299 133 449
Gas production
(million cubic feet) 2,091 1,244 3,225 6,560
Total production (mmcfe) 2,193 3,038 4,023 9,254
Oil Sales $530 $9,416 $4,141 $14,087
Gas Sales 9,567 5,453 15,776 30,796
Total Oil &
Gas Sales $10,097 $14,869 $19,917 $44,883
Average oil price
(per barrel) $31.18 $31.49 $31.14 $31.37
Average gas price
(per thousand
cubic feet - Mcf) $4.58 $4.38 $4.89 $4.69
Average price
(per Mcf
equivalent) $4.60 $4.89 $4.95 $4.85
Lifting Costs $1,715 $2,866 $2,468 $7,049
Lifting Costs
(per Mcf equivalent) $0.78 $0.94 $0.61 $0.76
Capital Expenditures $6,250 $6,742 $6,130 $19,122
For the Nine Months ended September 30, 2000
East Texas/ Gulf of Southeast
North Louisiana Mexico Texas Total
Oil production
(thousand barrels) 60 905 421 1,386
Gas production
(million cubic feet) 6,352 4,102 9,785 20,239
Total production (mmcfe) 6,712 9,530 12,312 28,554
Oil Sales $1,696 $26,901 $12,462 $41,059
Gas Sales 23,917 14,824 36,723 75,464
Total Oil & Gas Sales $25,613 $41,725 $49,185 $116,523
Average oil price
(per barrel) $28.27 $29.74 $29.60 $29.63
Average gas price
(per thousand
cubic feet - Mcf) $3.77 $3.61 $3.75 $3.73
Average price
(per Mcf
equivalent) $3.82 $4.38 $3.99 $4.08
Lifting Costs $5,641 $9,128 $6,884 $21,653
Lifting Costs
(per Mcf
equivalent) $0.84 $0.96 $0.56 $0.76
Capital Expenditures $10,781 $26,570 $27,119 $64,470
SOURCE Comstock Resources, Inc.
CONTACT: Roland O. Burns, Sr. Vice President and Chief Financial Officer of Comstock Resources, Inc., 972-668-8800/