Comstock Resources, Inc. Announces Financial and Operating Results for Second Quarter 2001
FRISCO, Texas, Aug. 8 /PRNewswire/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today announced financial results for the quarter and the six months ended June 30, 2001 and the year to date results of its 2001 drilling program where Comstock has drilled 34 successful wells out of a total of 39 wells drilled this year to date.
Financial Results for the Second Quarter of 2001
Earnings for the quarter ended June 30, 2001 were $12.4 million or 43 cents per common share (37 cents per diluted common share). Earnings in 2001's second quarter were 57% higher than earnings for 2000's second quarter of $7.9 million or 31 cents per common share (25 cents per diluted common share). Sales of oil and natural gas in the second quarter of 2001 reached $46.5 million, a 20% increase over sales of $38.6 million in the second quarter of 2000. Total production of oil and natural gas in the second quarter of 2001 was 9.5 billion cubic feet equivalent ("Bcfe") of natural gas which was comparable to the 9.5 Bcfe of production in the second quarter of 2000. The average price realized by Comstock for its second quarter natural gas production was $5.04 per thousand cubic feet ("Mcf"), a 33% increase over the second quarter 2000 average natural gas price of $3.77 per Mcf. Comstock's average realized price for its oil production in the second quarter was $26.94 per barrel, a 6% drop from second quarter 2000's average realized oil price of $28.55 per barrel. Comstock generated $31.0 million in operating cash flow (cash flow before changes in working capital accounts) in 2001's second quarter, an increase of 26% over 2000's second quarter operating cash flow of $24.6 million. Earnings before interest, taxes and depreciation depletion and amortization ("EBITDA") of $37.3 million in 2001's second quarter was 21% higher than 2000's second quarter EBITDA of $30.7 million.
Financial Results for the Six Months Ended June 30, 2001
Earnings for the six months ended June 30, 2001 were $36.0 million or $1.24 per common share ($1.05 per diluted common share) which were 200% higher than earnings for the first half of 2000 of $12.0 million or 47 cents per common share (40 cents per diluted common share). Oil and gas sales in the first half of 2001 totaled $113.9 million, a 59% increase over sales of $71.6 million in the same period in 2000. Total production of oil and natural gas was 19.4 Bcfe of natural gas which was up 1% from 19.3 Bcfe of production in the first six months of 2000. The average price realized by Comstock for its natural gas production was $6.29 per Mcf in the first half of 2001, a 92% increase over the average natural gas price of $3.27 per Mcf for the same period in 2000. Comstock's average realized price for its oil production in the first half of 2001 was $27.58 per barrel, a decrease of 4% from the first half of 2000's average oil price of $28.79. Operating cash flow increased 84% to $80.2 million in the first half of 2001 as compared to $43.7 million in the same period in 2000. EBITDA totaled $94.5 million in 2001's first half, an increase of 69% from 2000's first half's EBITDA of $56.0 million.
East Texas / North Louisiana Region
To date in 2001, Comstock has drilled 13 wells (8.6 net) in its infill natural gas development drilling program in the East Texas and North Louisiana region. All of these wells were successful. Eleven of these wells have been tested at a per well average rate of 1.6 million cubic feet of natural gas equivalent ("Mmcfe") per day. The remaining two wells are in the process of being completed.
Southeast Texas Region
Comstock has drilled five successful wells (2.7 net) and two developmental dry holes (0.7 net) in its Southeast Texas region to date in 2001. Four of these wells have been tested at an average per well rate of 1.5 Mmcfe per day and the latest development well in the Double A Wells field, the Carter Battise #5, is in the process of being completed.
Gulf of Mexico Region
Comstock's Gulf of Mexico drilling program has been very successful to date this year. Since the beginning of the year, Comstock has drilled 18 wells (4.9 net) in federal and Louisiana state waters in the Gulf of Mexico and one (0.3 net) onshore well on the Texas Gulf Coast. 16 of the 19 wells were successful. Nine of the 16 successful wells have been completed and were tested at an average per well of 7.3 Mmcfe per day. In Comstock's offshore exploration program, new discoveries have been made this year in primarily the Ship Shoal, South Pelto, South Timbalier areas in the Gulf of Mexico. Comstock and its exploration partner, Bois d'Arc Offshore Ltd., are currently in the process of modifying existing production facilities in order to allow the connection of these new wells. At this time Comstock has 12 wells that are awaiting connection in the Gulf of Mexico which should be producing by the fourth quarter of this year. These wells are expected to add approximately 20 Mcfe to Comstock's net daily production rate.
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 that 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 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. 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)
Quarter Ended Six Months Ended
June 30, June 30,
Income Statement Data: 2001 2000 2001 2000
Revenues:
Oil and gas sales $46,454 $38,569 $113,853 $71,640
Other income 121 65 268 137
46,575 38,634 114,121 71,777
Expenses:
Oil and gas operating 8,314 7,218 17,814 14,604
Exploration 477 787 3,308 787
Depreciation, depletion
and amortization 12,078 10,454 24,077 22,166
General and administrative,
net 998 700 1,827 1,195
Interest 4,956 6,218 10,461 12,433
26,823 25,377 57,487 51,185
Net income before
income taxes 19,752 13,257 56,634 20,592
Provision for income taxes (6,913) (4,641) (19,822) (7,208)
Net income 12,839 8,616 36,812 13,384
Preferred stock dividends (400) (682) (795) (1,365)
Net income attributable to
common stock $12,439 $7,934 $36,017 $12,019
Net income per share:
Basic $0.43 $0.31 $1.24 $0.47
Diluted $0.37 $0.25 $1.05 $0.40
Weighted average common and
common stock equivalent
shares outstanding:
Basic 29,252 25,459 29,127 25,417
Diluted 34,902 33,967 34,967 33,636
Cash flow from
operations (a) $30,980 $24,553 $80,155 $43,657
Cash flow from operations
per share (a):
Basic $1.06 $0.96 $2.75 $1.72
Diluted $0.89 $0.72 $2.29 $1.30
EBITDA $37,263 $30,716 $94,480 $55,978
As of June 30,
2001 2000
Balance Sheet Data:
Current Assets $34,406 $32,689
Property and Equipment, net 468,118 419,904
Other 5,324 6,399
Total Assets $507,848 $458,992
Current Liabilities $46,569 $32,800
Long-term Debt 196,000 260,000
Other 45,970 15,289
Stockholders' Equity 219,309 150,903
Total Liabilities and
Stockholders' Equity $507,848 $458,992
(a) Before changes in working capital accounts
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months ended June 30, 2001
East Texas /
North Gulf Southeast
Louisiana of Mexico Texas Total
Oil production
(thousand barrels) 26 266 106 398
Gas production
(million cubic feet) 2,235 2,010 2,850 7,095
Total production (mmcfe) 2,391 3,604 3,486 9,481
Oil Sales $688 $7,083 $2,949 $10,720
Gas Sales 10,983 9,571 15,181 35,735
Total Oil & Gas Sales $11,671 $16,654 $18,129 $46,454
Average oil price
(per barrel) $26.46 $26.66 $27.82 $26.94
Average gas price (per
thousand cubic feet - Mcf) $4.91 $4.76 $5.33 $5.04
Average price
(per Mcf equivalent) $4.88 $4.62 $5.20 $4.90
Lifting Costs $2,218 $2,814 $3,282 $8,314
Lifting Costs
(per Mcf equivalent) $0.93 $0.78 $0.94 $0.88
Capital Expenditures $6,369 $16,952 $7,757 $31,078
For the Six Months ended June 30, 2001
East Texas /
North Gulf Southeast
Louisiana of Mexico Texas Total
Oil production
(thousand barrels) 38 541 234 813
Gas production
(million cubic feet) 4,388 4,263 5,895 14,546
Total production (mmcfe) 4,616 7,509 7,299 19,424
Oil Sales $1,016 $14,787 $6,620 $22,424
Gas Sales 27,073 25,965 38,392 91,430
Total Oil & Gas Sales $28,089 $40,752 $45,012 $113,854
Average oil price
(per barrel) $26.75 $27.33 $28.29 $27.58
Average gas price (per
thousand cubic feet - Mcf) $6.17 $6.09 $6.51 $6.29
Average price
(per Mcf equivalent) $6.09 $5.43 $6.17 $5.86
Lifting Costs $4,432 $5,767 $7,615 $17,814
Lifting Costs
(per Mcf equivalent) $0.96 $0.77 $1.04 $0.92
Capital Expenditures $14,501 $30,788 $13,721 $59,010
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SOURCE Comstock Resources, Inc.
CONTACT: Roland O. Burns, Sr. Vice President and Chief Financial Officer of Comstock Resources, Inc., +1-972-668-8800/