Comstock Resources, Inc. Reports Fourth Quarter and Year End 2003 Financial Results
FRISCO, Texas, Feb 17, 2004 /PRNewswire-FirstCall via COMTEX/ -- For the year ended December 31, 2003, Comstock Resources, Inc. (NYSE: CRK) ("Comstock" or the "Company") today reported the highest production, revenues and net income in the Company's history. Oil and gas sales for 2003 totaled $235.1 million, a 65% increase over oil and gas sales in 2002 of $142.1 million. Comstock's net income from continuing operations in 2003 was $53.4 million, or $1.53 per share (diluted) as compared to net income from continuing operations of $11.0 million, or 37 cents per share (diluted) in 2002. The 2003 results include a gain of $0.7 million (2 cents per share) relating to the cumulative effect of adopting a new accounting standard which changed the Company's accounting for future abandonment costs of its oil and gas properties. Cash flow from operations (before changes to working capital accounts) generated by Comstock in 2003 reached $152.0 million for the year ended December 31, 2003 as compared to $79.3 million in 2002. EBITDAX or earnings before interest expense, income taxes, depletion, depreciation and amortization, exploration expense and other noncash expenses was $182.6 million in 2003 a 67% increase over 2002 EBITDAX of $109.1 million.
In the fourth quarter of 2003, Comstock's oil and gas sales were $52.5 million, up 25% from fourth quarter 2002 sales of $42.0 million. Net income for the fourth quarter of 2003 was $5.7 million, or 16 cents per share (diluted) as compared to net income attributable to common stock of $9.5 million or 29 cent per share (diluted) for the fourth quarter of 2002. Included in the fourth quarter results was an impairment charge of $4.3 million on certain of the Company's oil and gas properties. The fourth quarter of 2002 results included other income of $7.7 million related to refunds of severance taxes paid in prior years. Comstock generated $30.4 million in operating cash flow in 2003's fourth quarter, as compared to 2002's fourth quarter operating cash flow of $30.8 million. EBITDAX was $38.5 million in 2003's fourth quarter as compared to 2002's fourth quarter EBITDAX of $38.7 million.
Comstock's production in 2003 totaled 44.0 Bcf equivalent of natural gas ("Bcfe") an increase of 7% over 2002 production of 41.0 Bcfe. For the fourth quarter of 2003, production increased 9% to approximately 11.1 Bcfe from 10.1 Bcfe for the same period ended 2002. For the year ended December 31, 2003, Comstock's realized gas prices averaged $5.41 per Mcf as compared to $3.30 per Mcf in 2002. Realized oil prices averaged $30.70 per barrel as compared to $24.95 per barrel for 2002. Comstock's realized natural gas prices for the fourth quarter of 2003 averaged $4.65 per Mcf as compared to $4.07 per Mcf in the fourth quarter of 2002. Comstock's realized oil prices averaged $30.46 per barrel in the fourth quarter of 2003 as compared to $27.26 per barrel for the fourth quarter of 2002.
During 2003, Comstock made significant progress in strengthening its balance sheet. In addition to funding capital expenditures of $92.9 million, Comstock was able to reduce its long-term debt by $60.0 million. As a result of this debt reduction and profits generated in 2003, Comstock's total long- term debt at December 31, 2003 had fallen to $306.0 million and stockholders' equity increased to $289.7 million. Debt as a percentage of Comstock's capitalization on a book basis was reduced to 51% at December 31, 2003 as compared to 64% at December 31, 2002.
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)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Oil and gas sales $ 52,499 $ 42,041 $ 235,102 $ 142,085
Operating expenses:
Oil and gas operating 12,038 8,973 45,746 33,499
Exploration 1,044 2,087 4,410 5,479
Depreciation, depletion
and amortization 16,302 13,364 61,169 53,155
Impairment of oil
& gas properties 4,255 --- 4,255 ---
General and
administrative, net 2,023 2,171 7,006 5,113
Total operating expenses 35,662 26,595 122,586 97,246
Income from operations 16,837 15,446 112,516 44,839
Other income (expenses):
Interest income 14 21 73 62
Interest expense (7,212) (7,945) (29,860) (31,252)
Loss from derivatives --- (32) (3) (2,326)
Other income 56 7,741 223 8,027
(7,142) (215) (29,567) (25,489)
Income from continuing operations
before income taxes 9,695 15,231 82,949 19,350
Provision for income taxes (4,043) (5,331) (29,682) (6,773)
Net income from continuing
operations 5,652 9,900 53,267 12,577
Discontinued operations
including loss on disposal,
net of income taxes --- --- --- (1,072)
Cumulative effect of change
in accounting principle --- --- 675 ---
Net income 5,652 9,900 53,942 11,505
Preferred stock dividends --- (405) (573) (1,604)
Net income attributable
to common stock $ 5,652 $ 9,495 $ 53,369 $ 9,901
Basic net income per share:
From continuing operations $ 0.17 $ 0.33 $ 1.65 $ 0.38
Discontinued operations --- --- --- (0.04)
Cumulative effect of change
in accounting principle --- --- 0.02 ---
$ 0.17 $ 0.33 $ 1.67 $ 0.34
Diluted net income per share:
From continuing operations $ 0.16 $ 0.29 $ 1.51 $ 0.37
Discontinued operations --- --- --- (0.03)
Cumulative effect of change
in accounting principle --- --- 0.02 ---
$ 0.16 $ 0.29 $ 1.53 $ 0.34
Weighted average common
and common stock equivalent
shares outstanding:
Basic 33,828 28,861 31,964 28,764
Diluted 36,174 34,112 35,275 33,901
COMSTOCK RESOURCES, INC.
OTHER FINANCIAL DATA
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Cash flow from operations:
Net cash provided
by operating activities $ 34,676 $ 30,220 $ 153,785 $ 84,437
Increase in accounts receivable 3,867 10,247 10,450 10,810
Increase (decrease)
in other current assets 2,337 359 2,124 (4,740)
Increase in accounts payable
and accrued expenses (10,433) (10,044) (14,404) (11,191)
Cash flow from operations $ 30,447 $ 30,782 $ 151,955 $ 79,316
EBITDAX:
Net income from continuing
operations $ 5,652 $ 9,900 $ 53,267 $ 12,577
Interest expense 7,212 7,945 29,860 31,252
Income tax expense 4,043 5,331 29,682 6,773
Depreciation, depletion
and amortization 16,302 13,364 61,169 53,155
Impairment of oil
and gas properties 4,255 --- 4,255 ---
Exploration expense 1,044 2,087 4,410 5,479
Other non-cash items --- 70 --- (119)
EBITDAX $ 38,508 $ 38,697 $ 182,643 $109,117
As of December 31,
2003 2002
Balance Sheet Data:
Current assets $ 56,137 $ 39,902
Property and equipment, net 699,651 664,208
Other 6,133 6,943
Total assets $ 761,921 $ 711,053
Current liabilities $ 64,497 $ 49,797
Long-term debt 306,000 366,002
Other 101,768 86,827
Stockholders' equity 289,656 208,427
Total liabilities
and stockholders' equity $ 761,921 $ 711,053
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months ended December 31, 2003
East
Texas/ South
Gulf of North Southeast Texas/
Mexico Louisiana Texas Other Total
Oil production
(thousand barrels) 321 19 59 42 441
Gas production
(million cubic feet - Mmcf) 1,707 2,723 2,633 1,345 8,408
Total production (Mmcfe) 3,633 2,837 2,987 1,598 11,055
Oil sales $ 9,820 $ 576 $ 1,772 $ 1,271 $ 13,439
Gas sales 8,126 12,450 12,284 6,200 39,060
Total oil and gas sales $ 17,946 $ 13,026 $ 14,056 $ 7,471 $ 52,499
Average oil price
(per barrel) $ 30.59 $ 30.32 $ 30.03 $ 30.26 $ 30.46
Average gas price (per
thousand cubic feet - Mcf) $ 4.76 $ 4.57 $ 4.67 $ 4.61 $ 4.65
Average price (per Mcf
equivalent) $ 4.94 $ 4.59 $ 4.71 $ 4.68 $ 4.75
Lifting costs $ 4,872 $ 2,754 $ 2,733 $ 1,679 $ 12,038
Lifting costs (per Mcf
equivalent) $ 1.34 $ 0.97 $ 0.92 $ 1.05 $ 1.09
Oil and gas capital
expenditures $ 23,508 $ 269 $ 1,292 $ 5,257 $ 30,326
For the Twelve Months ended December 31, 2003
East
Texas/ South
Gulf of North Southeast Texas/
Mexico Louisiana Texas Other Total
Oil production
(thousand barrels) 1,150 86 269 110 1,615
Gas production (million
cubic feet - Mmcf) 7,957 10,640 10,370 5,353 34,320
Total production (Mmcfe) 14,857 11,156 11,984 6,012 44,009
Oil sales $ 35,465 $ 2,587 $ 8,184 $ 3,335 $ 49,571
Gas sales 45,152 55,863 56,537 27,979 185,531
Total oil and gas sales $ 80,617 $ 58,450 $ 64,721 $ 31,314 $ 235,102
Average oil price
(per barrel) $ 30.84 $ 30.08 $ 30.42 $ 30.32 $ 30.70
Average gas price
(per thousand cubic
feet - Mcf) $ 5.67 $ 5.25 $ 5.45 $ 5.23 $ 5.41
Average price (per Mcf
equivalent) $ 5.43 $ 5.24 $ 5.40 $ 5.21 $ 5.34
Lifting costs $ 17,216 $ 10,525 $ 10,537 $ 7,468 $ 45,746
Lifting costs
(per Mcf equivalent) $ 1.16 $ 0.94 $ 0.88 $ 1.24 $ 1.04
Oil and gas capital
expenditures $ 59,824 $ 5,553 $ 8,021 $ 17,481 $ 90,879
SOURCE Comstock Resources, Inc.
Roland O. Burns, Sr. Vice President and Chief Financial Officer
of Comstock Resources, Inc., +1-972-668-8800
http://www.comstockresources.com