Comstock Resources is a leading independent natural gas producer with operations focused
on the development of the Haynesville Shale in North Louisiana and East Texas

News Releases Details

Comstock Resources, Inc. Reports First Quarter 2013 Financial And Operating Results

PDF Version

FRISCO, Texas, April 29, 2013 /PRNewswire/ -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the three months ended March 31, 2013. 

Financial Results for the Three Months Ended March 31, 2013

Comstock reported a net loss from continuing operations of $24.5 million or 52¢ per share for the first quarter of 2013 as compared to net income from continuing operations of $1.4 million or 3¢ per diluted share for the three months ended March 31, 2012.  As previously announced, Comstock entered into an agreement on March 14, 2013 to sell its West Texas properties for $768.0 million.  The sale is expected to close on or about May 14, 2013 with an effective date of January 1, 2013.  The West Texas properties have been classified as "Discontinued Operations" as a result of the pending sale.  Including discontinued operations in the first quarter financial results, Comstock reported a net loss of $27.1 million or 58¢ per share for the first quarter of 2013 as compared to net income of $1.4 million or 3¢ per share for the first quarter of 2012.

The first quarter of 2013 results include an unrealized loss from derivative financial instruments of $8.8 million ($5.7 million after tax or 12¢ per share), a gain of $7.9 million ($5.1 million after tax, or 11¢ per share) from sales of marketable securities and an impairment on unevaluated acreage of $2.4 million ($1.6 million after tax or 3¢ per share).  Results for the three months ended March 31, 2012 include an unrealized loss from derivative financial instruments of $10.2 million ($6.6 million after tax or 14¢ per share), a gain on sale of marketable securities of $26.6 million ($17.3 million after tax or 37¢ per share), a gain of $6.7 million ($4.4 million after tax or 9¢ per share) from the sale of oil and gas properties and impairments of unevaluated acreage of $1.3 million ($0.9 million after tax or 2¢ per share).

Comstock's production from continuing operations in the first quarter of 2013 of 432,000 barrels of oil and 15.6 billion cubic feet of natural gas or 18.2 billion cubic feet of natural gas equivalent ("Bcfe") decreased 27% from the 24.9 Bcfe produced in the first quarter of 2012 due to production declines from the Company's Haynesville shale properties and due to divestitures completed in 2012.  Oil production in the first quarter, which averaged 4,800 barrels of oil per day, grew 7% from the 4,500 barrels per day produced in the fourth quarter of 2012. 

Comstock's average realized natural gas price increased 21% to $3.15 per Mcf for the first quarter of 2013 as compared to $2.61 per Mcf realized in the first quarter of 2012.  The Company's average realized oil price, including hedging gains, improved by 9% to $111.19 per barrel for the first quarter of 2013 as compared to $102.06 per barrel for the first quarter of 2012.  Oil and gas sales from continuing operations (including realized gains or losses from hedging) of $97.3 million decreased by 5% as compared to 2012's first quarter sales of $102.4 million.  Operating cash flow from continuing operations (before changes in working capital accounts) was $56.3 million in the first quarter of 2013 as compared to operating cash flow from continuing operations of $61.7 million for the first quarter of 2012.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, from continuing operations was $72.5 million in the first quarter of 2013 as compared to EBITDAX from continuing operations of $73.0 million in the first quarter of 2012.

2013 Drilling Results

Comstock reported on the results to date of its 2013 drilling program related to its continuing operations which is focused on developing its Eagle Ford oil shale properties in South Texas.  During the first three months of 2013, Comstock spent $56.1 million on its continuing development and exploration activities and $2.1 million on acreage and other acquisition costs.  Comstock drilled 11 horizontal oil wells (7.2 net) and had three wells (2.3 net) drilling at March 31, 2013.

Since the beginning of 2013, the Company has completed ten (6.4 net) horizontal Eagle Ford shale wells including six (3.8 net) wells drilled in 2012.  The ten Eagle Ford shale wells that were completed had an average per well initial production rate of 854 barrels of oil equivalent ("BOE") per day.  The 2013 completions have an average initial rate that is 32% higher than the average initial rate in 2012.  The four wells with the highest initial production rates were the Swenson A #1H, the Gloria Wheeler C #1H, the Gloria Wheeler A #3H, and the Rancho Tres Hijos B #1H.  These wells are located in McMullen County and had initial production rates of 1,222, 1,032, 978 and 968 BOE per day, respectively.

Comstock has planned a conference call for 9:30 a.m. Central Time on April 30, 2013, to discuss the operational and financial results for the first quarter of 2013.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 1-877-546-5021 (international dial-in use 857-244-7553) and provide access code 62393735 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.  A replay of the conference call will be available beginning at 12:30 p.m. ET April 30, 2013 and will continue until 11:59 p.m. May 7, 2013.  To hear the replay, call 888-286-8010 (617-801-6888 if calling from outside the US).  The conference call ID number is 62248208.

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, 2013

Three Months Ended March 31, 2012


Continuing Operations

Discontinued Operations

Total

Continuing Operations


Discontinued Operations


Total

























Revenues:























Oil and gas sales

$

95,020

$

16,299

$

111,319

$

103,772

$

7,917

$

111,689

Gain on sale of oil and gas properties

—


—


—


6,727


—


6,727

Total revenues

95,020


16,299


111,319


110,499


7,917


118,416

























Operating expenses:























Production taxes

2,121


693


2,814


3,247


390


3,637

Gathering and transportation

4,202


331


4,533


7,715


177


7,892

Lease operating

13,206


6,308


19,514


13,458


1,291


14,749

Exploration(1)

2,593


—


2,593


1,353


—


1,353

Depreciation, depletion and amortization

84,967


8,649


93,616


77,311


1,786


79,097

General and administrative

8,787


—


8,787


8,798


—


8,798

Impairment of oil and gas properties

—


—


—


49


—


49

Total operating expenses

115,876


15,981


131,857


111,931


3,644


115,575

























Operating income (loss)

(20,856)


318


(20,538)


(1,432)


4,273


2,841

























Other income (expenses):























Gain on sale of marketable securities

7,877


—


7,877


26,621


—


26,621

Realized gain (loss) from derivatives

2,320


—


2,320


(1,354)


—


(1,354)

Unrealized loss from derivatives

(8,767)


—


(8,767)


(10,187)


—


(10,187)

Other income

245


—


245


239


—


239

Interest expense

(17,578)


(3,499)


(21,077)

(2)

(12,303)


(934)


(13,237)

(2)

Total other income (expenses)

(15,903)


(3,499)


(19,402)


3,016


(934)


2,082

























Income (loss) before income

taxes

(36,759)


(3,181)


(39,940)


1,584


3,339


4,923

Benefit from (provision for) income taxes

12,242


554


12,796


(167)


(3,381)


(3,548)

Income (loss) from continuing operations

(24,517)


—


(24,517)


1,417


—


1,417

Loss from discontinued operations, net of taxes

—


(2,627)


(2,627)


—


(42)


(42)

Net income (loss)

$

(24,517)

$

(2,627)

$

(27,144)

$

1,417

$

(42)

$

1,375

























Net income (loss) per share:























Basic       — income (loss) from continuing operations

$

(0.52)

$

—

$

(0.52)

$

0.03

$

—

$

0.03

            — loss from discontinued operations

—


(0.06)


(0.06)


—


—


—

    — net income (loss)

$

(0.52)

$

(0.06)

$

(0.58)

$

0.03

$

—

$

0.03

Diluted     — income (loss) from continuing operations

$

(0.52)

$

—

$

(0.52)

$

0.03

$

—

$

0.03

                — loss from discontinued operations

—


(0.06)


(0.06)


—


—


—

    — net income (loss)

$

(0.52)

$

(0.06)

$

(0.58)

$

0.03

$

—

$

0.03

























Weighted average shares outstanding:





















Basic

46,730


46,730


46,730


46,372


46,372


46,372

Diluted

46,730


46,730


46,730


46,372


46,372


46,372

























 

(1)

Includes impairments of unevaluated leases of $2.4 million and $1.3 million in the three months ended March 31, 2013 and 2012, respectively.

(2)

$3.0 million and $5.2 million of interest expense was capitalized for the three months ended March 31, 2013 and 2012, respectively.

 

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)





Three Months Ended March 31,


2013

2012








OPERATING CASH FLOW:














Net income (loss)

$

(27,144)

$

1,375

Reconciling items: 






Loss from discontinued operations

2,627


42

Deferred income taxes

(12,245)


250

Depreciation, depletion and amortization

84,967


77,311

Impairment of oil and gas properties

—


49

Dry hole costs and lease impairments

2,443


1,315

Gain on sale of assets

(7,877)


(33,348)

Unrealized loss on derivatives

8,767


10,187

Debt issuance cost and discount amortization

1,587


944

Stock-based compensation

3,218


3,535

Operating cash flow from continuing operations

56,343


61,660

Excess income taxes from stock-based compensation

1,742


1,405

(Increase) decrease in accounts receivable

(19,724)


5,070

Decrease in other current assets

480


110

Increase in accounts payable and accrued expenses

34,981


48,328

Net cash provided by continuing operations

73,822


116,573

Net cash provided by discontinuing operations(1)

23,530


16,607

Net cash provided by operating activities

$

97,352

$

133,180











(1)    $5.5 million and $5.1 million for the three months ended March 31, 2013 and 2012, respectively, excluding working capital changes.








EBITDAX:














Net income (loss) from continuing operations

$

(24,517)

$

1,417

Interest expense

17,578


12,303

Provision for (benefit from) income taxes

(12,242)


167

Depreciation, depletion and amortization

84,967


77,311

Exploration

2,593


1,353

Impairments of oil and gas properties

—


49

Gain on sale of assets

(7,877)


(33,348)

Unrealized loss from derivatives

8,767


10,187

Stock-based compensation

3,218


3,535

EBITDAX from continuing operations

72,487


72,974

EBITDAX from discontinued operations

8,967


6,059

Total EBITDAX

$

81,454

$

79,033



















 

As of


March 31, 2013

December 31, 2012









Balance Sheet Data:
















Cash and cash equivalents

$

6,844

$

4,471

Restricted cash

38,400


—

Marketable securities

—


12,312

Derivative financial instruments

2,884


11,651

Other current assets

63,144


43,898

Assets of discontinued operations

562,453


518,934

Property and equipment, net

1,929,840


1,958,687

Other

18,942


19,944

Total assets

$

2,622,507

$

2,569,897


















Current liabilities

$

175,335

$

110,139

Liabilities of discontinued operations

50,516


33,280

Long-term debt

1,334,957


1,324,383

Deferred income taxes

140,798


149,901

Other non-current liabilities

19,019


18,660

Stockholders' equity

901,882


933,534

Total liabilities and stockholders' equity

$

2,622,507

$

2,569,897

 

COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)



For the Three Months Ended March 31, 2013


East Texas/ North

Louisiana

South Texas

Other

Continuing Operations


Discontinued Operations


Total

Oil production (Mbbls)

16


410


6


432


174


606

Gas production (MMcf)

13,399


1,781


448


15,628


269


15,897

Total production (MMcfe)

13,495


4,242


484


18,221


1,311


19,532
























Oil sales

$

1,504

$

43,546

$

690

$

45,740

$

14,734

$

60,474

Oil hedging gains(1)

—


—


—


2,320


—


2,320

Total oil including hedging

1,504


43,546


690


48,060


14,734


62,794

Natural gas sales

41,157


6,471


1,652


49,280


1,565


50,845

Total oil and gas sales and realized gain from derivatives

$

42,661

$

50,017

$

2,342

$

97,340

$

16,299

$

113,639
























Average oil price (per barrel)

$

93.58

$

106.19

$

113.69

$

105.82

$

84.84

$

99.81

Average oil price including hedging (per barrel)

$

93.58

$

106.19

$

113.69

$

111.19

$

84.84

$

103.64

Average gas price (per Mcf)

$

3.07

$

3.63

$

3.69

$

3.15

$

5.82

$

3.20

Average price (per Mcfe)

$

3.16

$

11.79

$

4.84

$

5.21

$

12.43

$

5.70

Average price including hedging (per Mcfe)

$

3.16

$

11.79

$

4.84

$

5.34

$

12.43

$

5.82
























Production taxes

$

(231)

$

2,220

$

132

$

2,121

$

693

$

2,814

Gathering and transportation

$

3,557

$

612

$

33

$

4,202

$

331

$

4,533

Lease operating

$

7,493

$

4,712

$

1,001

$

13,206

$

6,308

$

19,514
























Production taxes (per Mcfe)

$

(0.02)

$

0.52

$

0.27

$

0.12

$

0.53

$

0.14

Gathering and transportation (per Mcfe)

$

0.26

$

0.14

$

0.07

$

0.23

$

0.25

$

0.23

Lease operating (per Mcfe)

$

0.56

$

1.12

$

2.07

$

0.72

$

4.81

$

1.01
























Oil and Gas Capital Expenditures:






















Exploratory leasehold

$

—

$

1,939

$

—

$

1,939

$

6,203

$

8,142

Development leasehold

—


184


—


184


—


184

Exploratory drilling

—


—


—


—


—


—

Development drilling

3,047


50,741


—


53,788


49,658


103,446

Other development

1,076


1,137


55


2,268


180


2,448

Total

$

4,123

$

54,001

(2)

$

55

$

58,179

$

56,041

$

114,220























 

(1)

Reported as realized gain from derivatives in operating results.

(2)

Net of reimbursements received of $8.1 million under the Company's Eagle Ford shale joint venture.

 

COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)





For the Three Months Ended March 31, 2012


East Texas/ North

Louisiana

South Texas

Other

Continuing Operations


Discontinued Operations


Total

Oil production (Mbbls)

27


403


3


433


73


506

Gas production (MMcf)

19,100


2,660


535


22,295


127


22,422

Total production (MMcfe)

19,263


5,075


554


24,892


566


25,458
























Oil sales

$

2,751

$

42,474

$

303

$

45,528

$

7,113

$

52,641

Oil hedging losses(1)

—


—


—


(1,354)


—


(1,354)

Total oil including hedging

2,751


42,474


303


44,174


7,113


51,287

Natural gas sales

47,502


9,136


1,606


58,244


804


59,048

Total oil and gas sales and realized loss from derivatives

$

50,253

$

51,610

$

1,909

$

102,418

$

7,917

$

110,335
























Average oil price (per barrel)

$

101.49

$

105.52

$

94.88

$

105.19

$

97.12

$

104.02

Average oil price including hedging (per barrel)

$

101.49

$

105.52

$

94.88

$

102.06

$

97.12

$

101.35

Average gas price (per Mcf)

$

2.49

$

3.43

$

3.00

$

2.61

$

6.33

$

2.63

Average price (per Mcfe)

$

2.61

$

10.17

$

3.45

$

4.17

$

13.99

$

4.39

Average price including hedging (per Mcfe)

$

2.61

$

10.17

$

3.45

$

4.11

$

13.99

$

4.33
























Production taxes

$

801

$

2,291

$

155

$

3,247

$

390

$

3,637

Gathering and transportation

$

6,833

$

772

$

110

$

7,715

$

177

$

7,892

Lease operating

$

8,661

$

3,719

$

1,078

$

13,458

$

1,291

$

14,749
























Production taxes (per Mcfe)

$

0.04

$

0.45

$

0.28

$

0.13

$

0.69

$

0.14

Gathering and transportation (per Mcfe)

$

0.35

$

0.15

$

0.20

$

0.31

$

0.31

$

0.31

Lease operating (per Mcfe)

$

0.46

$

0.74

$

1.94

$

0.54

$

2.28

$

0.58
























Oil and Gas Capital Expenditures:






















Acquisitions

$

—

$

—

$

—

$

—

$

3,333

$

3,333

Exploratory leasehold

1,595


1,488


—


3,083


3,543


6,626

Development leasehold

345


1,216


—


1,561


—


1,561

Exploratory drilling

368


405


—


773


—


773

Development drilling

68,208


64,438


—


132,646


34,516


167,162

Other development

1,026


607


149


1,782


336


2,118

Total

$

71,542

$

68,154

$

149

$

139,845

$

41,728

$

181,573
























 

(1)

Reported as realized loss from derivatives in operating results.

 

SOURCE Comstock Resources, Inc.

Gary H. Guyton, Director of Planning and Investor Relations, Telephone: (972) 668-8800, Web Site: www.comstockresources.com