Comstock Resources, Inc. Reports First Quarter 2010 Financial and Operating Results
FRISCO, Texas, May 3, 2010 /PRNewswire via COMTEX/ --Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the three months ended March 31, 2010.
Financial Results for the Three Months Ended March 31, 2010
Comstock reported net income of $7.3 million or 16 cents per diluted share for the first quarter of 2010 as compared to 2009's first quarter net loss of $5.7 million or 12 cents per share. The improved profits for the first quarter of 2010 as compared to the net loss in the first quarter of 2009 are primarily attributable to higher natural gas production and increased oil and natural gas prices.
Comstock's production in the first quarter of 2010 grew 34% to 18.8 billion cubic feet of natural gas equivalent ("Bcfe") as compared to 14.1 Bcfe produced in the first quarter of 2009. Production in the first quarter averaged 209 million cubic feet of natural gas equivalent ("MMcfe") per day. The increase in production is primarily attributable to Comstock's successful Haynesville shale drilling program. Production from Haynesville shale wells comprised 93 MMcfe per day (44%) of the Company's total production in the first quarter of 2010, as compared to only 6 MMcfe per day (4%) during the first quarter of 2009. The Company's realized oil prices improved by 91% to $67.08 per barrel in the first quarter of 2010 from $35.03 per barrel in the first quarter of 2009, while natural gas prices increased 55 cents per Mcf or 12% to $5.30 per Mcf in the first quarter of 2010 as compared to $4.75 per Mcf in the first quarter of 2009.
The higher sales volumes, combined with the higher oil and natural gas prices, resulted in sales increasing by 55% to $106.1 million in the first quarter of 2010 as compared to 2009's first quarter sales of $68.4 million. Comstock generated $71.7 million in operating cash flow (before changes in working capital accounts) in the first quarter of 2010 as compared to 2009's first quarter operating cash flow of $44.8 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, was $80.3 million in 2010's first quarter as compared to 2009's first quarter EBITDAX of $45.3 million.
2010 Drilling Results
In the first quarter of 2010, Comstock drilled 14 wells (9.9 net), nine of which have been successfully completed as producing wells. The remaining five wells are scheduled for completion during May, 2010.
In the East Texas/North Louisiana region, Comstock drilled 13 wells (9.4 net) in the first quarter. Twelve of the wells are Haynesville shale wells. Six of the operated Haynesville shale wells drilled in 2010 have been completed and had an average initial production rate of 14.0 MMcfe per day.
In the South Toledo Bend field in Sabine Parish, Louisiana, Comstock drilled the Sustainable Forest 3#1H well to the upper section of the Haynesville shale or Bossier shale and completed the well with 16 frac stages. The well's initial production rate was 20 MMcfe per day. Comstock has a 67% working interest in this well. In the Logansport field in DeSoto Parish, Louisiana, Comstock completed two successful operated Haynesville shale wells. The Horn 5 #1H well was drilled to a vertical depth of 11,275 feet with a 4,669 foot lateral. The well was completed with 18 frac stages and was tested at an initial production rate of 20 MMcfe per day. Comstock has a 100% working interest in this well. The Ramsey 4 #1H well was drilled to a vertical depth of 11,426 feet with a 4,616 foot horizontal lateral. The well was completed with 18 frac stages and was tested at an initial production rate of 15 MMcfe per day. Comstock has a 100% working interest in this well. In the North Toledo Bend field in DeSoto Parish, Louisiana, Comstock completed two successful wells. The BSMC 1 #1H was drilled to a vertical depth of 11,416 feet with a 4,471 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 9 MMcfe per day. Comstock has a 63% working interest in this well. The BSMC 12 #2H was drilled to a vertical depth of 11,017 feet with a 4,431 foot horizontal lateral. The well was completed with 12 frac stages and was tested with an initial production rate of 9 MMcfe per day. Comstock has a 66% working interest in this well. In the Waskom field in Harrison County, Texas Comstock drilled the Clark H #1H well to a vertical depth of 10,908 feet with a 4,261 foot horizontal lateral. The well was completed with 18 frac stages and was tested at an initial production rate of 12 MMcfe per day. Comstock has a 100% working interest in this well.
In addition to its Haynesville shale horizontal drilling program, Comstock has drilled two vertical wells in 2010's first quarter. Comstock successfully completed a Cotton Valley well in our Blocker field in East Texas and also completed the Julian Pasture #4 in the Ball Ranch field in South Texas which was tested at an initial production rate of 8 MMcfe per day.
Comstock has planned a conference call for 9:30 a.m. Central Time on Tuesday, May 4,2010, to discuss the operational and financial results for the first quarter of 2010. Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 1-866-202-3109 (international dial-in use 617-213-8844) and provide access code 60429994 when prompted. If you are unable to participate in the original conference call, a web replay will be available approximately 24 hours following the completion of the call on Comstock's website at www.comstockresources.com. The web replay will be available for approximately one week.
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.
Comstock Resources, Inc. is an independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana. 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
------------
March 31,
---------
2010 2009
---- ----
Revenues:
Oil and gas sales $106,089 $68,351
Operating expenses:
Production taxes 1,675 1,122
Gathering and
transportation 4,528 1,244
Lease operating 14,160 14,593
Exploration 1,169 13
Depreciation, depletion
and amortization 59,409 47,272
Impairment of oil and
gas properties 159 -
General and
administrative 9,801 9,819
Total operating expenses 90,901 74,063
------ ------
Operating income (loss) 15,188 (5,712)
Other income (expenses):
Interest income 139 22
Other income 20 63
Interest expense (7,844) (2,162)
Total other income
(expenses) (7,685) (2,077)
------ ------
Income (loss) before
income taxes 7,503 (7,789)
Benefit from (provision
for) income taxes (161) 2,132
---- -----
Net income (loss) $7,342 $(5,657)
====== =======
Net income (loss) per
share:
Basic $0.16 $(0.12)
===== ======
Diluted $0.16 $(0.12)
===== ======
Weighted average shares
outstanding:
Basic 45,408 44,941
====== ======
Diluted(1) 45,544 44,941
====== ======
(1) For 2009, basic and diluted shares are the same due to the net
loss.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)
Three
Months
Ended
------
March 31,
---------
2010 2009
---- ----
OPERATING CASH FLOW:
Net income (loss) $7,342 $(5,657)
Reconciling items:
Deferred income taxes (55) (721)
Depreciation, depletion and
amortization 59,409 47,272
Impairment of oil and gas
properties 159 -
Debt issuance cost and
discount amortization 602 203
Stock-based compensation 4,233 3,667
Operating cash flow 71,690 44,764
Excess tax benefit from
stock-based compensation (1,490) (679)
(Increase) decrease in
accounts receivable (4,786) 10,185
Decrease in other current
assets 45,817 235
Increase (decrease) in
accounts payable and
accrued expenses 13,505 (14,043)
------ -------
Net cash provided by
operating activities $124,736 $40,462
======== =======
EBITDAX:
Income (loss) $7,342 $(5,657)
Interest expense 7,844 2,162
Income tax expense
(benefit) 161 (2,132)
Depreciation, depletion and
amortization 59,409 47,272
Impairment of oil and gas
properties 159 -
Stock-based compensation 4,233 3,667
Exploration 1,169 13
----- ---
EBITDAX $80,317 $45,325
======= =======
As of March
31,
------------
2010 2009
---- ----
Balance Sheet Data:
Cash and cash equivalents $122,197 $963
Derivative financial
instruments - 18,369
Income taxes receivable - 3,328
Marketable securities 94,378 15,351
Other current assets 52,254 57,363
Property and equipment, net 1,610,604 1,494,923
Other 9,136 2,950
----- -----
Total assets $1,888,569 $1,593,247
========== ==========
Accounts payable and
accrued expenses $100,288 $96,035
Current deferred income
taxes payable 6,029 -
Long-term debt 470,970 265,000
Deferred income taxes 225,481 184,484
Reserve for future
abandonment costs 6,716 5,678
Stockholders' equity 1,079,085 1,042,050
--------- ---------
Total liabilities and
stockholders' equity $1,888,569 $1,593,247
========== ==========
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months Ended March 31, 2010
-----------------------------------------
East
Texas/
North South
Louisiana Texas Other Total
--------- ----- ----- -----
Oil
production
(thousand
barrels) 37 42 97 176
Gas
production
(MMcf) 12,979 4,113 702 17,794
Total
production
(MMcfe) 13,200 4,367 1,280 18,847
Oil sales $2,744 $3,184 $5,845 $11,773
Gas sales 66,467 23,725 4,124 94,316
Gas hedging
gains - - - -
--- --- --- ---
Total gas
sales 66,467 23,725 4,124 94,316
------ ------ ----- ------
Total oil and
gas sales $69,211 $26,909 $9,969 $106,089
======= ======= ====== ========
Average oil
price (per
barrel) $74.75 $75.23 $60.58 $67.08
Average gas
price (per
Mcf) $5.12 $5.77 $5.87 $5.30
Average gas
price
including
hedging (per
Mcf) $5.12 $5.77 $5.87 $5.30
Average price
(per Mcfe) $5.24 $6.16 $7.79 $5.63
Average price
including
hedging (per
Mcfe) $5.24 $6.16 $7.79 $5.63
Production
taxes $1,116 $82 $477 $1,675
Gathering and
transportation $3,660 $773 $95 $4,528
Lease
operating $7,948 $3,468 $2,744 $14,160
Production
taxes (per
Mcfe) $0.08 $0.02 $0.37 $0.09
Gathering and
transportation
(per Mcfe) $0.28 $0.18 $0.07 $0.24
Lease
operating
(per Mcfe) $0.60 $0.79 $2.15 $0.75
Oil and Gas
Capital
Expenditures:
Leasehold
costs $9,855 $ - $56 $9,911
Exploratory
drilling 17,031 - - 17,031
Development
drilling 63,242 1,594 - 64,836
Other
development 1,034 629 246 1,909
----- --- --- -----
Total $91,162 $2,223 $302 $93,687
======= ====== ==== =======
For the Three Months Ended March 31, 2009
East
Texas/
North South
Louisiana Texas Other Total
--------- ----- ----- -----
Oil production
(thousand
barrels) 63 51 102 216
Gas production
(MMcf) 7,179 4,911 703 12,793
Total
production
(MMcfe) 7,555 5,218 1,315 14,088
Oil sales $2,275 $2,079 $3,207 $7,561
Gas sales 31,318 20,964 2,596 54,878
Gas hedging
gains - 5,912 - 5,912
--- ----- --- -----
Total gas
sales 31,318 26,876 2,596 60,790
------ ------ ----- ------
Total oil and
gas sales $33,593 $28,955 $5,803 $68,351
======= ======= ====== =======
Average oil
price (per
barrel) $36.11 $40.76 $31.44 $35.03
Average gas
price (per
Mcf) $4.36 $4.27 $3.69 $4.29
Average gas
price
including
hedging (per
Mcf) $4.36 $5.47 $3.69 $4.75
Average price
(per Mcfe) $4.45 $4.42 $4.41 $4.43
Average price
including
hedging (per
Mcfe) $4.45 $5.55 $4.41 $4.85
Production
taxes $143 $623 $356 $1,122
Gathering and
transportation $273 $855 $116 $1,244
Lease
operating $7,087 $4,024 $3,482 $14,593
Production
taxes (per
Mcfe) $0.02 $0.12 $0.27 $0.08
Gathering and
transportation
(per Mcfe) $0.04 $0.16 $0.09 $0.09
Lease
operating
(per Mcfe) $0.93 $0.77 $2.65 $1.03
Oil and Gas
Capital
Expenditures:
Leasehold
costs $3,401 $271 $ - $3,672
Exploratory
drilling 36,467 1,812 - 38,279
Development
drilling 31,657 18,952 - 50,609
Other
development 1,398 2,966 332 4,696
----- ----- --- -----
Total $72,923 $24,001 $332 $97,256
======= ======= ==== =======
SOURCE Comstock Resources, Inc.