Comstock Resources, Inc. Announces Third Quarter 2001 Results of Operations
FRISCO, Texas, Nov. 6 /PRNewswire/ -- Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today announced financial results for the quarter, the nine months ended September 30, 2001 and the year to date results of its 2001 drilling program where Comstock has drilled 39 successful wells out of a total of 45 wells drilled this year to date.
Financial Results for the Third Quarter of 2001
Earnings for the quarter ended September 30, 2001 were $2.5 million or 9 cents per common share (9 cents per diluted common share) as compared to earnings of $12.1 million or 47 cents per common share (37 cents per diluted common share). Sales of oil and natural gas in the third quarter of 2001 totaled $29.7 million, a 34% decrease as compared to sales of $44.9 million in the third quarter of 2000. Total production of oil and natural gas in the third quarter of 2001 was 8.8 billion cubic feet equivalent ("Bcfe") of natural gas which was down 5% from production in the third quarter of 2000 of 9.3 Bcfe. The average price realized by Comstock for its third quarter natural gas production was $3.03 per thousand cubic feet ("Mcf"), 35% less than the third quarter 2000 average natural gas price of $4.69 per Mcf. Comstock's average realized price for its oil production in the third quarter was $26.26 per barrel, a 16% drop from third quarter 2000's average realized oil price of $31.37 per barrel. Comstock generated $16.9 million in operating cash flow (cash flow before changes in working capital accounts) in 2001's third quarter, as compared to $31.2 million in 2000's third quarter. Earnings before interest, taxes and depreciation, depletion and amortization ("EBITDA") in 2001's third quarter was $21.9 million as compared to 2000's third quarter EBITDA of $37.1 million.
Financial Results for the Nine Months Ended September 30, 2001
Earnings for the nine months ended September 30, 2001 were $38.5 million or $1.32 per common share ($1.14 per diluted common share) which were 59% higher than earnings for the first nine months of 2000 of $24.2 million or 95 cents per common share (77 cents per diluted common share). Oil and gas sales in the first nine months of 2001 totaled $143.5 million, a 23% increase over sales of $116.5 million in the same period in 2000. Total production of oil and natural gas was 28.2 Bcfe of natural gas which was down 1% from 28.6 Bcfe of production in the first nine months of 2000. The average price realized by Comstock for its natural gas production was $5.27 per Mcf for the first three quarters of 2001, a 41% increase over the average natural gas price of $3.73 per Mcf for the same period in 2000. Comstock's average realized price for its oil production in the first nine months of 2001 was $27.17 per barrel, a decrease of 8% from the first nine months of 2000's average oil price of $29.63. Operating cash flow increased 30% to $97.1 million in the first nine months of 2001 as compared to $74.8 million in the same period in 2000. EBITDA totaled $116.4 million in 2001's first nine months, an increase of 25% from EBITDA of $93.1 million for the same period in 2000.
East Texas / North Louisiana Region
To date in 2001, Comstock has drilled 16 wells (11.4 net) in its infill natural gas development drilling program in the East Texas and North Louisiana region. All of these wells were successful. Fourteen of these wells have been tested at a per well average rate of 1.4 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 six successful wells (3.1 net) and three developmental dry holes (1.6 net) in its Southeast Texas region to date in 2001. Five of these wells have been tested at an average per well rate of 2.0 Mmcfe per day. The remaining well is in the process of being completed. Comstock is currently drilling one well in this region and plans to drill one additional well in this region by the end of the year.
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 19 wells (5.2 net) in federal and Louisiana state waters in the Gulf of Mexico and one (0.3 net) onshore well on the Texas Gulf Coast. Seventeen of the 20 wells were successful. Fifteen of the 17 successful wells have been completed and were tested at an average per well of 7 Mmcfe per day. The remaining two wells are in the process of being completed. The most recent discoveries in Comstock's offshore exploration program with Bois d' Arc Offshore, Ltd. are the State Lease 16944 #1 at South Timbalier Block 9 and the OCSG 13925 #3 at South Timbalier Block 11. The South Timbalier Block 9 State Lease 16944 #1 well was drilled to a depth of 17,351 feet. Completion operations included testing a sand development through perforations between 16,942 feet to 17,006 feet. This interval tested at 5.5 Mmcf per day and 293 barrels of oil per day at 6,810 pounds per square inch flowing tubing pressure on a 13/64 inch adjustable choke. Comstock has a 33% working interest in this well. The South Timbalier Block 11 OCSG 13925 #3 well was drilled to a depth of 16,372 feet. Completion operations included testing a sand development through perforations between 15,848 feet to 15,886 feet. This interval tested at 7.2 Mmcf per day and 173 barrels of oil per day at 8,910 pounds per square inch flowing tubing pressure on a 12/64 inch adjustable choke. Comstock has a 29.9% working interest in this well. Both wells also have additional behind pipe reserves. Comstock is currently drilling the State Lease 101256 #1 well in Galveston Block 278, a 8,600 foot exploratory test well and plans to drill two additional offshore exploratory wells by the end of the year.
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 Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Income Statement Data:
Revenues:
Oil and gas sales $29,668 $44,883 $143,521 $116,523
Other income 113 104 381 241
29,781 44,987 143,902 116,764
Expenses:
Oil and gas operating 7,250 7,049 25,064 21,653
Exploration 63 1,041 3,371 1,828
Depreciation, depletion
and amortization 12,381 10,342 36,458 32,508
General and
administrative, net 623 824 2,450 2,019
Interest 5,018 6,007 15,479 18,440
25,335 25,263 82,822 76,448
Net income before
income taxes 4,446 19,724 61,080 40,316
Provision for income
taxes (1,556) (6,903) (21,378) (14,111)
Net Income 2,890 12,821 39,702 26,205
Preferred stock
dividends (404) (686) (1,199) (2,051)
Net income attributable
to common stock $2,486 $12,135 $38,503 $24,154
Net income per share:
Basic $0.09 $0.47 $1.32 $0.95
Diluted $0.09 $0.37 $1.14 $0.77
Weighted average common
and common stock
equivalent shares
outstanding:
Basic 28,796 25,687 29,207 25,508
Diluted 33,970 34,505 34,851 33,966
Cash flow from
operations (A) $16,946 $31,163 $97,101 $74,820
Cash flow from
operations per
share (A):
Basic $0.59 $1.21 $3.32 $2.93
Diluted $0.50 $0.90 $2.79 $2.20
EBITDA $21,908 $37,114 $116,388 $93,092
As of September 30,
2001 2000
Balance Sheet Data:
Current Assets $26,145 $38,782
Property and Equipment, net 480,698 428,465
Other 5,056 6,129
Total Assets $511,899 $473,376
Current Liabilities $37,817 $47,482
Long-term Debt 206,000 240,000
Other 47,526 22,192
Stockholders' Equity 220,556 163,702
Total Liabilities and
Stockholders' Equity $511,899 $473,376
(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, 2001
East Texas/ Gulf of Southeast
North Louisiana Mexico Texas Total
Oil production
(thousand barrels) 23 251 97 371
Gas production
(million cubic feet) 2,525 1,519 2,522 6,566
Total production (mmcfe) 2,663 3,025 3,104 8,792
Oil Sales $586 $6,638 $2,525 $9,749
Gas Sales 7,428 4,500 7,991 19,919
Total Oil & Gas Sales $8,014 $11,138 $10,516 $29,668
Average oil price
(per barrel) $25.48 $26.45 $26.03 $26.26
Average gas price (per
thousand cubic feet - Mcf) $2.94 $2.96 $3.17 $3.03
Average price
(per Mcf equivalent) $3.01 $3.68 $3.39 $3.37
Lifting Costs $2,397 $3,401 $1,452 $7,250
Lifting Costs
(per Mcf equivalent) $0.90 $1.12 $0.47 $0.82
Capital Expenditures $10,087 $9,902 $2,692 $22,681
For the Nine Months ended September 30, 2001
East Texas/ Gulf of Southeast
North Louisiana Mexico Texas Total
Oil production
(thousand barrels) 61 792 331 1,184
Gas production
(million cubic feet) 6,913 5,782 8,417 21,112
Total production (mmcfe) 7,279 10,534 10,403 28,216
Oil Sales $1,602 $21,425 $9,145 $32,172
Gas Sales 34,501 30,465 46,383 111,349
Total Oil & Gas Sales $36,103 $51,890 $55,528 $143,521
Average oil price
(per barrel) $26.26 $27.05 $27.63 $27.17
Average gas price (per
thousand cubic feet - Mcf) $4.99 $5.27 $5.51 $5.27
Average price
(per Mcf equivalent) $4.96 $4.93 $5.34 $5.09
Lifting Costs $6,829 $9,168 $9,067 $25,064
Lifting Costs
(per Mcf equivalent) $0.94 $0.87 $0.87 $0.89
Capital Expenditures $24,588 $40,690 $16,413 $81,691
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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/