Comstock Resources, Inc. Reports Financial Results for 1999
Comstock returned to profitability in the fourth quarter of 1999 and reported revenues of $26.9 million and net income of $2.2 million for the three months ended December 31, 1999. Net income per share for the fourth quarter of 1999 was 9 cents. Comstock generated $14 million in operating cash flow (43 cents per share) and earnings before interest, taxes, depreciation and amortization ("EBITDA") of $19.9 million for the fourth quarter of 1999. These results compare favorably to the 1998 fourth quarter revenues of $21.3 million, a net loss of $13 million or 54 cents per share, operating cash flow of $10.5 million and EBITDA of $14.8 million.
For the year ended December 31, 1999, the Company reported revenues of $92.1 million and a net loss of $4.7 million. The net loss per share in 1999 totaled 19 cents per share. Operating cash flow totaled $42.8 million ($1.43 per share) and EBITDA totaled $66.0 million.
Comstock's production in 1999 totaled 36.6 billion cubic feet equivalent ("Bcfe") of natural gas, a decrease of 13% from 1998's production of 42.1 Bcfe. The decrease is primarily the result of the late start the Company had in restarting its drilling program in 1999 due to low oil and gas prices in early 1999 and late 1998. The production decrease was largely offset by higher crude oil prices in 1999. The average oil and gas prices for 1999 realized by the Company were $17.35 per barrel for oil and $2.23 per thousand cubic feet ("Mcf") for natural gas as compared to an average oil price of $12.73 per barrel and an average gas price of $2.25 per Mcf in 1998.
Comstock also announced that it has revised the 1999 year end proved oil and gas reserves estimates previously announced on February 3, 2000 to properly take into account December 31, 1999 market prices for oil and gas in accordance with Securities and Exchange Commission regulations. Comstock's total proved reserves are 375 Bcfe at December 31, 1999 (19.5 million barrels of crude oil and 258.1 Bcf of natural gas). The present value of the Company's reserves using a 10% discount and using December 31, 1999 prices is $515 million before future income taxes and $469 million after income taxes. In 1999 Comstock discovered 58 Bcfe in new reserves through its drilling program and acquired 6 Bcfe of reserves around its existing properties at a total cost of $35.3 million. The 64 Bcfe of reserve additions were reduced by 24 Bcfe of downward revisions to the Company's offshore properties. After the revisions, Comstock's finding costs in 1999 are 89 cents per Mcfe.
Certain statements in this news release regarding future expectations, plans for drilling, estimates of oil and gas reserves and production and pricing may be regarded as "forward looking statements" within the meaning of the Securities Litigation Reform Act. They are subject to various risks, such as operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas. Actual results may vary materially.
Comstock Resources, Inc. is a rapidly 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.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per share amounts)
Quarter Ended December 31, Year Ended December 31,
1999 1998 1999 1998
Revenues:
Oil and gas sales $26,794 $21,236 $90,103 $92,961
Gain on sale of
properties ------ 130 ---
Other income 66 30 1,911 274
26,860 21,266 92,144 93,235
Expenses:
Oil and gas operating 5,885 6,232 23,714 24,747
Exploration 248 549 1,832 8,301
Depreciation, depletion
and amortization 10,392 12,874 45,171 51,005
Impairment of oil and gas
properties --- 17,000 --- 17,000
General and administrative,
net 1,081 243 2,399 1,617
Interest 6,129 4439 23,361 16,977
23,735 41,337 96,477 119,647
Net income (loss) before
income taxes 3,125 (20,071) (4,333) (26,412)
Provision for income
taxes (261) 7,025 1,517 9,244
Net Income (loss) 2,864 (13,046) (2,816) (17,168)
Preferred stock
dividends (691) --- (1,853) ---
Net income (loss)
attributable to
common stock $2,173 ($13,046) ($4,669) ($17,168)
Net income (loss) per share:
Basic $0.09 ($0.54) ($0.19) ($0.71)
Diluted $0.09
Weighted average common
and common stock
equivalent shares outstanding:
Basic 25,051 24,244 24,601 24,275
Diluted 32,767 24,724 30,007 25,064
Cash flow from
operations (A) $13,952 $10,489 $42,787 $50,163
Cash flow from operations
per share (A):
Basic $0.56 $0.43 $1.74 $2.07
Diluted $0.43 $0.42 $1.43 $2.00
EBITDA $19,894 $14,791 $66,031 $66,871
Oil production
(thousand barrels) 439 584 2,128 2,571
Gas production
(million cubic feet) 6,160 6,725 23,872 26,713
Production (per billion
cubic feet equivalent) 8.8 10.2 36.6 42.1
Average oil price
(per barrel) $23.85 $10.78 $17.35 $12.73
Average gas price
(per thousand
cubic feet - Mcf) $2.65 $2.22 $2.23 $2.25
Average price (per Mcf
equivalent) $3.05 $2.08 $2.46 $2.21
(A) Before changes in working capital accounts.
SOURCE Comstock Resources, Inc.
-0- 02/16/2000
/CONTACT: Roland 0. Burns, Sr. Vice President and Chief Financial Officer
of Comstock Resources, Inc., 972-668-8800/
(CRK)