Comstock Resources, Inc. Reports First Quarter 2019 Financial and Operating Results
FIRST QUARTER 2019 FINANCIAL AND OPERATING RESULTS
Financial Results for the Three Months Ended
In the first quarter of 2019, Comstock reported net income of
Comstock produced 33.1 billion cubic feet of natural gas and 810,470 barrels of oil or 38.0 billion cubic feet of natural gas equivalent ("Bcfe") in the first quarter of 2019. The Company's natural gas production averaged 368 million cubic feet ("MMcf") per day, an increase of 53% over natural gas production in the Predecessor first quarter of 2018 and 10% higher than the fourth quarter of 2018. The growth in natural gas production was primarily attributable to the continuing successful results from Comstock's Haynesville shale drilling program. Oil production in the first quarter of 2019, which averaged 9,005 barrels of oil per day, increased from the 2,110 barrels per day produced in the Predecessor first quarter of 2018 due to production from the
Comstock's average realized natural gas price, including hedging gains, increased 2% to
Drilling Results
Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program. During the first three months of 2019, Comstock spent
Since the last operational update, Comstock reported on six new Haynesville shale wells. The average initial production rate of these wells was 26 MMcf per day. The wells had completed lateral lengths ranging from 9,646 feet to 9,913 feet, with an average completed lateral length of 9,799 feet. Each well was tested at initial production rates of 21 to 30 MMcf per day. Comstock currently has eight (7.0 net) operated Haynesville shale wells that are in the process of being completed.
With lower drilling and completion contracted rates from its major service providers beginning in April, Comstock announced that it is reducing its 2019 drilling and completion budget to
Other
Comstock has planned a conference call for
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.
OPERATING RESULTS
(In thousands, except per share amounts)
Predecessor | ||||||||
Three Months Ended March 31, |
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2019 | 2018 | |||||||
Revenues: | ||||||||
Natural gas sales..................................................................................... | $ | 90,132 | $ | 59,543 | ||||
Oil sales.................................................................................................... | 36,749 | 13,050 | ||||||
Total oil and gas sales................................................................. | 126,881 | 72,593 | ||||||
Operating expenses: | ||||||||
Production taxes..................................................................................... | 5,939 | 1,840 | ||||||
Gathering and transportation............................................................... | 7,430 | 4,334 | ||||||
Lease operating...................................................................................... | 14,885 | 9,773 | ||||||
Depreciation, depletion and amortization......................................... | 37,590 | 27,152 | ||||||
General and administrative.................................................................. | 7,814 | 6,016 | ||||||
(Gain) loss on sale of oil and gas properties...................................... | (1 | ) | 28,600 | |||||
Total operating expenses................................................................ | 73,657 | 77,715 | ||||||
Operating income (loss)............................................................................. | 53,224 | (5,122 | ) | |||||
Other income (expenses): | ||||||||
Gain (loss) from derivative financial instruments............................ | (7,657 | ) | 2,602 | |||||
Other income........................................................................................... | 93 | 66 | ||||||
Interest expense...................................................................................... | (27,851 | ) | (38,850 | ) | ||||
Total other income (expenses)....................................................... | (35,415 | ) | (36,182 | ) | ||||
Income (loss) before income taxes......................................................... | 17,809 | (41,304 | ) | |||||
Provision for income taxes....................................................................... | (4,234 | ) | (582 | ) | ||||
Net income (loss)........................................................................................ | $ | 13,575 | $ | (41,886 | ) | |||
Net income (loss) per share – basic and diluted............................... | $ | 0.13 | $ | (2.78 | ) | |||
Weighted average shares outstanding – basic and diluted.................................................................................... |
105,457 | 15,084 |
OPERATING RESULTS
(In thousands)
Predecessor | ||||||||
Three Months Ended March 31, |
||||||||
2019 | 2018 | |||||||
OPERATING CASH FLOW: | ||||||||
Net income (loss)..................................................................................................... | $ | 13,575 | $ | (41,886 | ) | |||
Reconciling items: | ||||||||
Deferred income taxes.......................................................................................... | 4,352 | 572 | ||||||
Depreciation, depletion and amortization.............................................................. | 37,590 | 27,152 | ||||||
Unrealized (gain) loss from derivative financial instruments................................ | 13,045 | (1,198 | ) | |||||
Amortization of debt discount and issuance costs................................................ | 1,574 | 11,056 | ||||||
Interest paid in-kind.............................................................................................. | — | 9,845 | ||||||
Stock-based compensation................................................................................... | 648 | 1,601 | ||||||
(Gain) loss on sale of oil and gas properties......................................................... | (1 | ) | 28,600 | |||||
Operating cash flow......................................................................................... | 70,783 | 35,742 | ||||||
Decrease in accounts receivable.................................................................. | 10,783 | 1,455 | ||||||
Decrease in other current assets.................................................................. | 1,577 | 472 | ||||||
Decrease in accounts payable and accrued expenses...................................................................................... |
(8,428 | ) | (16,113 | ) | ||||
Net cash provided by operating activities............................................. | $ | 74,715 | $ | 21,556 | ||||
EBITDAX: | ||||||||
Net income (loss)..................................................................................................... | $ | 13,575 | $ | (41,886 | ) | |||
Interest expense........................................................................................................ | 27,851 | 38,850 | ||||||
Income taxes............................................................................................................. | 4,234 | 582 | ||||||
Depreciation, depletion and amortization.................................................................. | 37,590 | 27,152 | ||||||
Unrealized (gain) loss from derivative financial instruments.................................... | 13,045 | (1,198 | ) | |||||
Stock-based compensation....................................................................................... | 648 | 1,601 | ||||||
(Gain) loss on sale of oil and gas properties............................................................. | (1 | ) | 28,600 | |||||
Total EBITDAX................................................................................... | $ | 96,942 | $ | 53,701 |
As of March 31, 2019 |
As of December 31, 2018 |
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BALANCE SHEET DATA: | ||||||||
Cash and cash equivalents.......................................................................................................... | $ | 29,324 | $ | 23,193 | ||||
Derivative financial instruments.................................................................................................. | 2,356 | 15,401 | ||||||
Other current assets.................................................................................................................... | 102,443 | 120,833 | ||||||
Property and equipment, net....................................................................................................... | 1,722,558 | 1,667,979 | ||||||
Other.......................................................................................................................................... | 365,207 | 360,434 | ||||||
Total assets.......................................................................................................................... | $ | 2,221,888 | $ | 2,187,840 | ||||
Current liabilities........................................................................................................................ | $ | 198,086 | $ | 206,853 | ||||
Long-term debt........................................................................................................................... | 1,265,847 | 1,244,363 | ||||||
Deferred income taxes................................................................................................................ | 166,152 | 161,917 | ||||||
Other non-current liabilities........................................................................................................ | 2,766 | — | ||||||
Asset retirement obligation......................................................................................................... | 5,243 | 5,136 | ||||||
Stockholders' equity................................................................................................................... | 583,794 | 569,571 | ||||||
Total liabilities and stockholders' equity.............................................................................. | $ | 2,221,888 | $ | 2,187,840 |
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months Ended March 31, 2019 | |||||||||||||||||||||||||||
Haynesville/ Bossier | Cotton Valley |
Bakken | Eagle Ford | Other | Total | ||||||||||||||||||||||
Gas production (MMcf)............................................................................ | 31,364 | 903 | 768 | — | 114 | 33,149 | |||||||||||||||||||||
Oil production (Mbbls)......................................................................... | — | 7 | 799 | — | 4 | 810 | |||||||||||||||||||||
Total production (MMcfe)........................................................................ | 31,364 | 947 | 5,562 | — | 139 | 38,012 | |||||||||||||||||||||
Natural gas sales................................................................................. | $ | 85,738 | $ | 2,571 | $ | 1,500 | $ | — | $ | 323 | $ | 90,132 | |||||||||||||||
Natural gas hedging settlements(1).................................................................... | — | — | — | — | — | 5,033 | |||||||||||||||||||||
Total natural gas including hedging.................................................................. | 85,738 | 2,571 | 1,500 | — | 323 | 95,165 | |||||||||||||||||||||
Oil sales................................................................................. | 4 | 363 | 36,147 | — | 235 | 36,749 | |||||||||||||||||||||
Oil hedging settlements(1).................................................................... | — | — | — | — | — | 355 | |||||||||||||||||||||
Total oil including hedging.................................................................. | 4 | 363 | 36,147 | — | 235 | 37,104 | |||||||||||||||||||||
Total oil and gas sales including hedging.................................................................. | $ | 85,742 | $ | 2,934 | $ | 37,647 | $ | — | $ | 558 | $ | 132,269 | |||||||||||||||
Average gas price (per Mcf)............................................................................... | $ | 2.73 | $ | 2.85 | $ | 1.95 | $ | — | $ | 2.83 | $ | 2.72 | |||||||||||||||
Average gas price including hedging (per Mcf)............................................................................... | $ | 2.87 | |||||||||||||||||||||||||
Average oil price (per barrel)............................................................................ | $ | 49.47 | $ | 49.47 | $ | 45.24 | $ | — | $ | 58.34 | $ | 45.34 | |||||||||||||||
Average oil price including hedging (per barrel)............................................................................ | $ | 45.78 | |||||||||||||||||||||||||
Average price (per Mcfe)............................................................................. | $ | 2.73 | $ | 3.10 | $ | 6.77 | $ | — | $ | 4.04 | $ | 3.34 | |||||||||||||||
Average price including hedging (per Mcfe)............................................................................. | $ | 3.48 | |||||||||||||||||||||||||
Production taxes................................................................................. | $ | 1,732 | $ | 95 | $ | 4,073 | $ | — | $ | 39 | $ | 5,939 | |||||||||||||||
Gathering and transportation................................................................. | $ | 7,273 | $ | 63 | $ | — | $ | — | $ | 94 | $ | 7,430 | |||||||||||||||
Lease operating.......................................................................... | $ | 4,933 | $ | 3,235 | $ | 6,519 | $ | — | $ | 198 | $ | 14,885 | |||||||||||||||
Production taxes (per Mcfe)............................................................................. | $ | 0.06 | $ | 0.10 | $ | 0.73 | $ | — | $ | 0.28 | $ | 0.16 | |||||||||||||||
Gathering and transportation (per Mcfe)............................................................................ | $ | 0.23 | $ | 0.07 | $ | — | $ | — | $ | 0.67 | $ | 0.20 | |||||||||||||||
Lease operating (per Mcfe)............................................................................. | $ | 0.15 | $ | 3.41 | $ | 1.17 | $ | — | $ | 1.43 | $ | 0.38 | |||||||||||||||
Oil and Gas Capital Expenditures: | |||||||||||||||||||||||||||
Development leasehold(2)................................................................. | $ | 1,857 | $ | — | $ | — | $ | — | $ | — | $ | 1,857 | |||||||||||||||
Development drilling and completion................................................................. | 82,638 | — | (953 | ) | 5,648 | — | 87,333 | ||||||||||||||||||||
Other development................................................................. | 3,279 | — | — | — | — | 3,279 | |||||||||||||||||||||
Total........................................................................... | $ | 87,774 | $ | — | $ | (953 | ) | $ | 5,648 | $ | — | $ | 92,469 |
(1) Included in gain (loss) from derivative financial instruments in operating results
(2) Net of acreage reimbursements
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
Predecessor | |||||||||||||||||||||||
For the Three Months ended March 31, 2018 |
|||||||||||||||||||||||
Haynesville/ Bossier | Cotton Valley |
Bakken | Eagle Ford | Other | Total | ||||||||||||||||||
Gas production (MMcf)............................................................................ | 19,997 | 1,062 | — | 282 | 305 | 21,646 | |||||||||||||||||
Oil production (Mbbls)......................................................................... | — | 11 | — | 173 | 6 | 190 | |||||||||||||||||
Total production (MMcfe)........................................................................ | 19,997 | 1,126 | — | 1,323 | 340 | 22,786 | |||||||||||||||||
Natural gas sales................................................................................. | $ | 54,564 | $ | 2,913 | $ | — | $ | 1,191 | $ | 875 | $ | 59,543 | |||||||||||
Natural gas hedging settlements(1).................................................................... | — | — | — | — | — | 1,404 | |||||||||||||||||
Total natural gas including hedging.................................................................. | 54,564 | 2,913 | — | 1,191 | 875 | 60,947 | |||||||||||||||||
Oil sales................................................................................. | — | 646 | — | 12,021 | 383 | 13,050 | |||||||||||||||||
Total oil and gas sales including hedging.................................................................. | $ | 54,564 | $ | 3,559 | $ | — | $ | 13,212 | $ | 1,258 | $ | 73,997 | |||||||||||
Average gas price (per Mcf)............................................................................... | $ | 2.73 | $ | 2.74 | $ | — | $ | 4.22 | $ | 2.86 | $ | 2.75 | |||||||||||
Average gas price including hedging (per Mcf)............................................................................... | $ | 2.82 | |||||||||||||||||||||
Average oil price (per barrel)............................................................................ | $ | — | $ | 60.80 | $ | — | $ | 69.30 | $ | 65.64 | $ | 68.71 | |||||||||||
Average price (per Mcfe)............................................................................. | $ | 2.73 | $ | 3.16 | $ | — | $ | 9.99 | $ | 3.69 | $ | 3.19 | |||||||||||
Average price including hedging (per Mcfe)............................................................................. | $ | 3.25 | |||||||||||||||||||||
Production taxes................................................................................. | $ | 1,068 | $ | 60 | $ | — | $ | 630 | $ | 82 | $ | 1,840 | |||||||||||
Gathering and transportation................................................................. | $ | 3,706 | $ | 209 | $ | — | $ | 344 | $ | 75 | $ | 4,334 | |||||||||||
Lease operating.......................................................................... | $ | 2,895 | $ | 3,198 | $ | — | $ | 3,417 | $ | 263 | $ | 9,773 | |||||||||||
Production taxes (per Mcfe)............................................................................. | $ | 0.05 | $ | 0.05 | $ | — | $ | 0.48 | $ | 0.24 | $ | 0.08 | |||||||||||
Gathering and transportation (per Mcfe)............................................................................ | $ | 0.19 | $ | 0.19 | $ | — | $ | 0.26 | $ | 0.22 | $ | 0.19 | |||||||||||
Lease operating (per Mcfe)............................................................................. | $ | 0.14 | $ | 2.84 | $ | — | $ | 2.58 | $ | 0.78 | $ | 0.43 | |||||||||||
Oil and Gas Capital Expenditures: | |||||||||||||||||||||||
Development leasehold.................................................................... | $ | 1,153 | $ | — | $ | — | $ | — | $ | — | $ | 1,153 | |||||||||||
Development drilling and completion................................................................. | 38,539 | — | — | — | — | 38,539 | |||||||||||||||||
Other development................................................................. | 6,327 | — | — | 240 | 253 | 6,820 | |||||||||||||||||
Total........................................................................... | $ | 46,019 | $ | — | $ | — | $ | 240 | $ | 253 | $ | 46,512 |
(1) Included in gain (loss) from derivative financial instruments in operating results
Comstock Resources Gary H. Guyton Director of Planning and Investor Relations 972-668-8834