UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of Earliest Event Reported): November 7, 2005

 

COMSTOCK RESOURCES, INC.

 

(Exact Name of Registrant as Specified in Charter)

 

 

STATE OF NEVADA

 

000-16741

94-1667468

(State or other
jurisdiction incorporation)

 

(Commission File Number)

(I.R.S. Employer
Identification Number)

5300 Town And Country Boulevard

Suite 500

Frisco, Texas 75034

(Address of principal executive offices)

 

(972) 668-8800

(Registrant’s Telephone No.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 



 

 

Item 2.02.

Results of Operations and Financial Condition

 

The information in this Form 8-K and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

 

On November 7, 2005, Comstock Resources, Inc. (“Comstock”) announced financial results for the three months and nine months ended September 30, 2005. A copy of the press release announcing Comstock’s earnings results for three months and nine months ended September 30, 2005 is attached hereto as Exhibit 99.1.

 

The earnings press release contains financial measures that are not in accordance with generally accepted accounting principles in the United States (“GAAP”). Comstock has provided reconciliations within the earnings release of the non-GAAP financial measures to the most directly comparable GAAP financial measures. Operating cash flow is presented in the earnings release because management believes it to be useful to investors. EBITDAX is presented in the earnings release because management believes that EBITDAX, which represents Comstock’s results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts. The non-GAAP financial measures described above should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP that are presented in the earnings release.

 

Item 9.01.

Financial Statements and Exhibits

 

 

(a)

Financial Statements of Business Acquired.

Not applicable.

 

 

(b)

Pro Forma Financial Information.

Not applicable.

 

 

(c)

Exhibits. The following exhibits are filed with this document:

 

Exhibit No.

Description

99.1

Press Release dated November 7, 2005.

 

 



 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

COMSTOCK RESOURCES, INC.

 

 

 

Dated: November 7, 2005

     By:

/s/ M. Jay Allison

 

 

M. Jay Allison

 

 

President and Chief Executive Officer

 

 

 

 

 

 

 

Exhibit 99.1


 


5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8800

Contact: Roland O. Burns

Sr. Vice President and Chief Financial Officer

Web Site: www.comstockresources.com

 


 

NEWS RELEASE

 



For Immediate Release


 

COMSTOCK RESOURCES, INC. REPORTS

THIRD QUARTER 2005 FINANCIAL AND OPERATING RESULTS

 

FRISCO, TEXAS, November 7, 2005 – Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) today reported financial and operating results for the quarter and nine months ended September 30, 2005.

 

Financial Results for the Three Months and Nine Months Ended September 30, 2005

 

Comstock reported net income of $14.1 million or 33¢ per diluted share for the three months ended September 30, 2005 as compared to net income of $12.3 million or 34¢ per diluted share in the same quarter of 2004. The third quarter 2005 results include a $17.7 million unrealized loss on the Company’s derivatives held for price risk management. Without the unrealized loss from derivatives, net income for the third quarter of 2005 would have been approximately $25.6 million, or 60¢ per diluted share. Comstock's oil and gas sales were $71.6 million in 2005’s third quarter, an increase of 13% over 2004’s third quarter oil and gas sales of $63.2 million. Comstock generated $53.4 million in operating cash flow (before changes in working capital accounts) in 2005’s third quarter, which represents a 16% increase over 2004’s third quarter cash flow of $45.8 million. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $58.9 million for the three months ended September 30, 2005 as compared to 2004’s third quarter EBITDAX of $48.1 million. On May 10, 2005, Comstock began accounting for its interest in Bois d’Arc Energy, Inc. (NYSE: BDE) (“Bois d’Arc”) under the equity method and since that date is no longer including its share of Bois d’Arc’s revenues, EBITDAX and cash flow in its consolidated results.

 

For the nine months ended September 30, 2005, Comstock’s oil and gas sales totaled $210.0 million, as compared to oil and gas sales of $190.5 million for the same period in 2004. Net income for the nine months ended September 30, 2005 was $19.1 million, or 47¢ per diluted share, as compared to net income of $31.0 million or 86¢ per diluted share in 2004. The 2005 results include the Company’s share of a one time provision of $64.6 million for deferred income taxes by Bois d’Arc in connection with its conversion from a limited liability company to a corporation and a gain of $28.8 million recognized by Comstock in connection with Bois d’Arc’s initial public offering. The 2005 results also include a $20.9 million unrealized loss on the Company’s derivatives held for price risk management. Excluding the one time adjustments to reflect Bois d’Arc’s conversion to a corporation and initial public offering and the unrealized loss on derivatives, Comstock’s net income for the nine months ended September 30, 2005 would have been $54.6 million or $1.35 per diluted share. Operating cash flow (before changes in working capital accounts) generated by Comstock was $147.3 million for the first nine months of 2005, a 14% increase from the first nine months of 2004’s cash flow of $128.7 million. For the nine months ended September 30, 2005, EBITDAX was $167.8 million as compared to EBITDAX of $146.7 million for the same period in 2004.

 

Production from Comstock’s onshore properties in the third quarter of 2005 totaled 8.6 Bcf equivalent of natural gas (“Bcfe”), a 25% increase from 2004’s third quarter production of 6.9 Bcfe. Hurricanes Katrina and Rita impacted the Company’s onshore production in the third quarter as the storms caused the shut in of certain of the Company’s fields. Deferred production attributable to the hurricanes totaled 368,000 Mcfe during the third quarter. For the first nine months of 2005, Comstock’s onshore production was 23.9 Bcfe, an increase of 10% as compared to production of 21.4 Bcfe in the same period of 2004.

 

Comstock’s share of Bois d’Arc’s earnings for the quarter was also significantly impacted by the storm activity in the Gulf of Mexico. Approximately 30% of Bois d’Arc’s production was deferred in the third quarter as production facilities were shut in during the storm activity and certain facilities were not restored to production due to damage to third party pipelines and processing facilities.

 

The Company’s realized natural gas price averaged $8.28 per Mcf in 2005’s third quarter as compared to $5.83 per Mcf in 2004’s third quarter. Realized oil prices in the third quarter of 2005 averaged $52.71 per barrel as compared to $42.46 per barrel for 2004. For the first nine months of 2005, Comstock’s realized natural gas price averaged $7.01 per Mcf as compared to 2004’s average natural gas price of $5.75 per Mcf. For the first nine months of 2005, Comstock’s realized oil price was $48.68 per barrel as compared to $38.12 per barrel in 2004.

 

Comstock’s debt has been reduced from $403.0 million at the beginning of 2005 to $282.0 million at the end of the third quarter. Comstock’s total stockholders equity increased from $355.9 million at the beginning of 2005 to $533.3 million at September 30, 2005. Debt as a percent of total book capitalization has improved from 53% at the end of 2004 to 35% at September 30, 2005.

 

Year to Date 2005 Drilling Results

 

Comstock also announced the results to date of its 2005 drilling program. Onshore, Comstock has drilled 59 wells (37.5 net) in the first nine months of 2005. Fifty-six (31.6 net) of the wells drilled were development wells and three (1.4 net) were exploratory. All of the development wells were successful and one (.2 net) of the exploratory wells was successful. The unsuccessful exploratory wells were a shallow test well drilled in West Texas and an unsuccessful exploratory well drilled to test the “Big Sandy” prospect in Polk County, Texas.

 

Comstock drilled 40 successful wells (30.5 net) in its East Texas/North Louisiana region. These wells have been tested at a per well average rate of 1.5 million cubic feet of gas equivalent (“Mmcfe”) per day and are part of Comstock’s expanded drilling program underway in this region for 2005. Comstock currently has three rigs under contract drilling in this region and six drilling rigs under contract for this region in 2006, which will allow the Company to drill 100 wells.

 

In its South Texas region, Comstock has drilled eight (2.8 net) successful wells. These wells have been tested at a per well average rate of 4.5 Mmcfe per day. In the third quarter Comstock participated in drilling two additional successful wells in the Ball Ranch field. The Clark Sain #14 was drilled to a depth of 12,052 feet and encountered 45 feet of net pay. The well’s initial production rate was 7.6 Mmcfe per day. Comstock has a 20% working interest in the well. The French State #1 was drilled to a depth of 14,458 feet and encountered 24 feet of net pay. The well’s initial production rate was 13.6 Mmcfe per day. Comstock has a 25% working interest in this well.

 

Comstock drilled ten wells (3.3 net) in its other regions during the first nine months of 2005. Nine (3.1 net) were successful and have been tested at a per well average rate of 1.6 Mmcfe per day. Six of the wells (1.0 net) were successful coal bed methane wells in the San Juan Basin in New Mexico. The remaining three (2.1 net) successful wells were drilled in Arkansas and Oklahoma.

 

Comstock’s offshore operations are conducted exclusively through its 48% ownership of Bois d’Arc. Bois d’Arc has drilled 17 offshore wells (15.2 net) in the Gulf of Mexico to date in 2005 with an 87% success rate. Eight of the wells were exploratory and nine were developmental. All of the exploration wells were successful and seven of the nine developmental wells were successful. The discoveries at Ship Shoal block 111, which proved up the “Laker” prospect, the South Timbalier block 75 discovery, which tested the “Doc Holiday” prospect, and the Ship Shoal block 92 “Paddlefish” well were the larger reserve discoveries made by Bois d’Arc this 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 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 Louisiana and Texas and in the Gulf of Mexico through its ownership in Bois d’Arc Energy, Inc. (NYSE: BDE). 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 September 30,

 

Nine Months ended September 30,

 

 

 

2005

 

 

2004

 

 

2005

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas sales

 

$

71,619

 

 

$

63,202

 

 

$

209,970

 

 

$

190,471

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas operating

 

 

10,803

 

 

 

12,482

 

 

 

36,869

 

 

 

37,588

 

Exploration

 

 

2,423

 

 

 

6,728

 

 

 

19,709

 

 

 

11,907

 

Depreciation, depletion and amortization

 

 

14,036

 

 

 

15,601

 

 

 

47,368

 

 

 

47,138

 

Impairment

 

 

3,400

 

 

 

 

 

 

3,400

 

 

 

 

General and administrative

 

 

3,058

 

 

 

3,344

 

 

 

11,015

 

 

 

9,316

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

33,720

 

 

 

38,155

 

 

 

118,361

 

 

 

105,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

37,899

 

 

 

25,047

 

 

 

91,609

 

 

 

84,522

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

37

 

 

 

43

 

 

 

173

 

 

 

129

 

Interest income

 

 

242

 

 

 

495

 

 

 

1,449

 

 

 

529

 

Interest expense

 

 

(4,982

)

 

 

(4,803

)

 

 

(15,499

)

 

 

(15,594

)

Equity in earnings of Bois d’Arc Energy

 

 

6,358

 

 

 

 

 

 

(54,867

)

 

 

 

Gain on sale of Bois d’Arc Energy shares

 

 

 

 

 

 

 

 

28,797

 

 

 

 

Loss on derivatives

 

 

(17,814

)

 

 

(553

)

 

 

(21,045

)

 

 

(553

)

Loss on early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

(19,599

)

Formation Costs

 

 

 

 

 

(982

)

 

 

 

 

 

(982

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other expenses

 

 

(16,159

)

 

 

(5,800

)

 

 

(60,992

)

 

 

(36,070

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

21,740

 

 

 

19,247

 

 

 

30,617

 

 

 

48,452

 

Provision for income taxes

 

 

(7,602

)

 

 

(6,929

)

 

 

(11,469

)

 

 

(17,443

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,138

 

 

$

12,318

 

 

$

19,148

 

 

$

31,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.35

 

 

$

0.36

 

 

$

0.50

 

 

$

0.91

 

Diluted

 

$

0.33

 

 

$

0.34

 

 

$

0.47

 

 

$

0.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common and common stock

equivalent shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

40,432

 

 

 

34,204

 

 

 

38,417

 

 

 

34,091

 

Diluted

 

 

42,380

 

 

 

36,113

 

 

 

40,516

 

 

 

36,037

 

 

 

 

 

 

 

 



 

 

 

 

COMSTOCK RESOURCES, INC.

OPERATING RESULTS

(In thousands)

 

 

 

 

Three Months ended September 30,

 

 

Nine Months ended September 30,

 

 

 

2005

 

 

2004

 

 

2005

 

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

55,657

 

 

$

50,934

 

 

$

155,254

 

 

$

118,753

 

Increase (decrease) in accounts receivable

 

 

7,460

 

 

 

(6,103

)

 

 

4,741

 

 

 

(10,776

)

Increase (decrease) in other current assets

 

 

(1,663

)

 

 

1,641

 

 

 

(1,659

)

 

 

802

 

Decrease (increase) in accounts payable and accrued expenses

 

 

(8,076

)

 

 

(630

)

 

 

(11,085

)

 

 

19,966

 

Cash flow from operations

 

$

53,378

 

 

$

45,842

 

 

$

147,251

 

 

$

128,745

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

14,138

 

 

$

12,318

 

 

$

19,148

 

 

$

31,009

 

Interest expense

 

 

4,982

 

 

 

4,803

 

 

 

15,499

 

 

 

15,594

 

Income tax expense

 

 

7,602

 

 

 

6,929

 

 

 

11,469

 

 

 

17,443

 

Depreciation, depletion and amortization

 

 

14,036

 

 

 

15,601

 

 

 

47,368

 

 

 

47,138

 

Impairment

 

 

3,400

 

 

 

 

 

 

3,400

 

 

 

 

Equity in earnings of Bois d’Arc Energy

 

 

(6,358

)

 

 

 

 

 

54,867

 

 

 

 

Gain on sale of shares by Bois d’Arc Energy

 

 

 

 

 

 

 

 

(28,797

)

 

 

 

Unrealized loss on derivatives.

 

 

17,674

 

 

 

553

 

 

 

20,905

 

 

 

553

 

Loss from early extinguishment of debt

 

 

 

 

 

 

 

 

 

 

 

19,599

 

Stock-based compensation

 

 

1,017

 

 

 

1,118

 

 

 

4,195

 

 

 

3,494

 

Exploration expense

 

 

2,423

 

 

 

6,728

 

 

 

19,709

 

 

 

11,907

 

EBITDAX

 

$

58,914

 

 

$

48,050

 

 

$

167,763

 

 

$

146,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of September 30,

 

 

 

2005

 

 

2004

 

 

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

Current assets

 

$

40,758

 

 

$

60,692

 

Property and equipment, net

 

 

695,430

 

 

 

741,409

 

Investment in Bois d’Arc Energy

 

 

247,128

 

 

 

 

Other

 

 

5,071

 

 

 

73,836

 

Total assets

 

$

988,387

 

 

$

875,937

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

70,846

 

 

$

52,924

 

Long-term debt

 

 

282,000

 

 

 

381,000

 

Other

 

 

102,279

 

 

 

109,673

 

Stockholders’ equity

 

 

533,262

 

 

 

332,340

 

Total liabilities and stockholders’ equity

 

$

988,387

 

 

$

875,937

 

 

 



 

 

 

 

COMSTOCK RESOURCES, INC.

SELECTED OPERATING AND FINANCIAL RESULTS

 

(In thousands, except as noted and per unit amounts)

 

For the Three Months ended September 30, 2005

 

 

 

Comstock    Resources(1)

 

 

Bois d’Arc(2)

 

 

Equity Method
Adjustments

 

 

Total(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil production (thousand barrels)

 

 

208

 

 

 

117

 

 

 

(117

)

 

 

208

 

Gas production (million cubic feet – Mmcf)

 

 

7,328

 

 

 

1,585

 

 

 

(1,585

)

 

 

7,328

 

Total production (Mmcfe)

 

 

8,575

 

 

 

2,290

 

 

 

(2,290

)

 

 

8,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

10,960

 

 

$

7,041

 

 

$

(7,041

)

 

$

10,960

 

Gas sales

 

 

60,659

 

 

 

13,786

 

 

 

(13,786

)

 

 

60,659

 

Total oil and gas sales

 

$

71,619

 

 

$

20,827

 

 

$

(20,827

)

 

$

71,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

52.71

 

 

$

59.96

 

 

 

 

 

 

$

52.71

 

Average gas price (per thousand cubic feet – Mcf)

 

$

8.28

 

 

$

8.70

 

 

 

 

 

 

$

8.28

 

Average price (per Mcf equivalent)

 

$

8.35

 

 

$

9.10

 

 

 

 

 

 

$

8.35

 

Lifting cost

 

$

10,803

 

 

$

4,001

 

 

$

(4,001

)

 

$

10,803

 

Lifting cost (per Mcf equivalent)

 

$

1.26

 

 

$

1.75

 

 

 

 

 

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



For the Nine Months ended September 30, 2005


 

 

Comstock    Resources(1)

 

 

Bois d’Arc(2)

 

 

Equity Method
Adjustments

 

 

Total(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil production (thousand barrels)

 

 

501

 

 

 

519

 

 

 

(217

)

 

 

803

 

Gas production (million cubic feet – Mmcf)

 

 

20,874

 

 

 

6,326

 

 

 

(2,818

)

 

 

24,382

 

Total production (Mmcfe)

 

 

23,881

 

 

 

9,442

 

 

 

(4,124

)

 

 

29,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

24,534

 

 

$

26,567

 

 

$

(12,021

)

 

$

39,080

 

Gas sales

 

 

146,906

 

 

 

46,216

 

 

 

(22,232

)

 

 

170,890

 

Total oil and gas sales

 

$

171,440

 

 

$

72,783

 

 

$

(34,253

)

 

$

209,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

48.96

 

 

$

51.16

 

 

 

 

 

 

$

48.68

 

Average gas price (per thousand cubic feet – Mcf)

 

$

7.04

 

 

$

7.31

 

 

 

 

 

 

$

7.01

 

Average price (per Mcf equivalent)

 

$

7.18

 

 

$

7.71

 

 

 

 

 

 

$

7.19

 

Lifting cost

 

$

30,171

 

 

$

13,013

 

 

$

(6,315

)

 

$

36,869

 

Lifting cost (per Mcf equivalent)

 

$

1.26

 

 

$

1.38

 

 

 

 

 

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                                                                                                                                                                                                      

(1)

Excludes Bois d’Arc Energy.

 

(2)

Comstock owned 60% of Bois d’Arc Energy through May 10, 2005, 48% thereafter.

 

(3)

Includes Comstock’s proportionate share of Bois d’Arc Energy’s results through May 10, 2005.

 

 

 

 



 

 

 

COMSTOCK RESOURCES, INC.

SELECTED OPERATING AND FINANCIAL RESULTS

 

(In thousands, except as noted and per unit amounts)

 

For the Three Months ended September 30, 2005

 

 

 

East Texas/

North Louisiana

 

 

Southeast Texas

 

 

Other

 

 

Total Onshore

 

Oil production (thousand barrels)

 

 

23

 

 

 

36

 

 

 

149

 

 

 

208

 

Gas production (million cubic feet – Mmcf)

 

 

3,930

 

 

 

1,389

 

 

 

2,009

 

 

 

7,328

 

Total production (Mmcfe)

 

 

4,069

 

 

 

1,602

 

 

 

2,904

 

 

 

8,575

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

1,230

 

 

$

2,146

 

 

$

7,584

 

 

$

10,960

 

Gas sales

 

 

32,226

 

 

 

11,591

 

 

 

16,842

 

 

 

60,659

 

Total oil and gas sales

 

$

33,456

 

 

$

13,737

 

 

$

24,426

 

 

$

71,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

53.48

 

 

$

59.61

 

 

$

50.90

 

 

$

52.71

 

Average gas price (per thousand cubic feet – Mcf)

 

$

8.20

 

 

$

8.34

 

 

$

8.38

 

 

$

8.28

 

Average price (per Mcf equivalent)

 

$

8.22

 

 

$

8.57

 

 

$

8.41

 

 

$

8.35

 

Lifting cost

 

$

3,061

 

 

$

2,212

 

 

$

5,530

 

 

$

10,803

 

Lifting cost (per Mcf equivalent)

 

$

0.75

 

 

$

1.38

 

 

$

1.90

 

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, development and exploration

expenditures

 

$

36,910

 

 

$

2,692

 

 

$

8,947

 

 

$

48,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months ended September 30, 2005

 

 

 

East Texas/

North Louisiana

 

 

Southeast Texas

 

 

Other

 

 

Total Onshore

 

Oil production (thousand barrels)

 

 

63

 

 

 

122

 

 

 

316

 

 

 

501

 

Gas production (million cubic feet – Mmcf)

 

 

9,854

 

 

 

4,924

 

 

 

6,096

 

 

 

20,874

 

Total production (Mmcfe)

 

 

10,232

 

 

 

5,654

 

 

 

7,995

 

 

 

23,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

3,183

 

 

$

6,389

 

 

$

14,962

 

 

$

24,534

 

Gas sales

 

 

69,173

 

 

 

35,178

 

 

 

42,555

 

 

 

146,906

 

Total oil and gas sales

 

$

72,356

 

 

$

41,567

 

 

$

57,517

 

 

$

171,440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

50.52

 

 

$

52.37

 

 

$

47.35

 

 

$

48.96

 

Average gas price (per thousand cubic feet – Mcf)

 

$

7.02

 

 

$

7.14

 

 

$

6.98

 

 

$

7.04

 

Average price (per Mcf equivalent)

 

$

7.07

 

 

$

7.35

 

 

$

7.19

 

 

$

7.18

 

Lifting cost

 

$

11,700

 

 

$

6,294

 

 

$

12,177

 

 

$

30,171

 

Lifting cost (per Mcf equivalent)

 

$

1.14

 

 

$

1.11

 

 

$

1.52

 

 

$

1.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition, development and exploration

expenditures

 

$

187,841

 

 

$

15,654

 

 

$

92,902

 

 

$

296,397