News Releases Details

Frisco, TX, Feb. 21, 2019 (GLOBE NEWSWIRE) --

COMSTOCK RESOURCES, INC. REPORTS
FOURTH QUARTER 2018 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, February 21, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results.  As a result of the transactions that were completed on August 14, 2018 in which entities controlled by Dallas businessman Jerry Jones and his children contributed their Bakken Shale properties to the Company in exchange for approximately 88.6 million shares of Comstock common stock (the "Jones Contribution") and the Company refinanced its long-term debt, the Company is presenting its 2018 results as two separate periods.  References to "Successor" relate to the financial position and results of operations of the Company subsequent to August 13, 2018, and references to "Predecessor" relate to the financial position and results of operations of the Company on or prior to August 13, 2018.  The Company's consolidated financial results are being presented with a blackline division which delineates the lack of comparability between amounts presented before and after August 13, 2018.

Financial Results for the Three Months Ended December 31, 2018

In the first full quarter following the closing of the Jones Contribution, Comstock reported net income of $50.3 million or $0.48 per diluted share for the fourth quarter of 2018 as compared to a net loss of $42.3 million or $2.86 per share for the Predecessor fourth quarter of 2017.  The fourth quarter 2018 results included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $18.3 million.  Excluding the unrealized gain, the net income for the fourth quarter of 2018 would have been $36.6 million or $0.35 per share.

Comstock produced 30.9 billion cubic feet of natural gas and 843,000 barrels of oil or 36.0 billion cubic feet of natural gas equivalent ("Bcfe") in the fourth quarter of 2018.  The Company's natural gas production averaged 336 million cubic feet ("MMcf") per day, an increase of 39% over natural gas production in the Predecessor fourth quarter of 2017.  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 fourth quarter of 2018, which averaged 9,155 barrels of oil per day, increased from the 2,319 barrels per day produced in the Predecessor fourth quarter of 2017 due to production from the Bakken Shale properties acquired in the Jones Contribution.  The fourth quarter 2018 oil production was revised from what was previously reported to account for oil production shut-in for completions and workovers.  Oil production during the month of December 2018 averaged 10,820 barrels of oil per day.

Comstock's average realized natural gas price, including hedging losses, increased 12% to $3.28 per Mcf in the fourth quarter of 2018 as compared to $2.94 per Mcf realized in the Predecessor fourth quarter of 2017.  The Company's average realized oil price, including hedging gains, decreased by 3% to $54.96 per barrel in the fourth quarter of 2018 as compared to $56.48 per barrel in the Predecessor fourth quarter of 2017.  Oil and gas sales were $147.7 million (including realized hedging gains and losses) in the fourth quarter of 2018 as compared to the Predecessor 2017 fourth quarter sales of $77.3 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $112.5 million in the fourth quarter of 2018 increased by 117% over EBITDAX of $56.0 million for the Predecessor fourth quarter of 2017.  The Company's operating cash flow generated in the fourth quarter of 2018 of $95.6 million increased 154% over operating cash flow of $37.6 million in the Predecessor fourth quarter of 2017. 

Financial Results for the Period August 14, 2018 through December 31, 2018

Financial results subsequent to the Jones Contribution are for the 140 day period from August 14, 2018 through December 31, 2018 (the "Successor Period").  Comstock reported net income of $64.1 million or $0.61 per diluted share for the Successor Period.  The results for this period included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $16.0 million.  Excluding the unrealized gain, the net income for the Successor period would have been $52.0 million or $0.49 per share.

Comstock produced 1.4 million barrels of oil and 45.0 billion cubic feet ("Bcf") of natural gas or 53.3 Bcfe in the Successor Period.  Oil production averaged 9,889 barrels of oil per day and natural gas production averaged 322 MMcf per day.  Comstock's average realized oil price after hedging was $57.80 per barrel and the average realized gas price after hedging was $3.07 per Mcf during the Successor Period.  Oil and gas sales for the Successor Period were $218.0 million (including realized hedging gains and losses), EBITDAX was $165.4 million and operating cash flow generated was $134.3 million.

Drilling Results

Comstock reported the results from its 2018 Haynesville/Bossier shale drilling program.  During 2018, Comstock spent $267.1 million on its development activities.  Comstock spent $224.4 million in the Haynesville and Bossier shale, including $197.2 million on drilling and completing wells and an additional $27.2 million on refrac and other development activity.  Comstock drilled 49 (17.0 net) horizontal Haynesville or Bossier shale wells in 2018, which had an average lateral length of approximately 8,300 feet.  Comstock also completed 16 (4.2 net) wells that were drilled in 2017.  Thirty (11.9 net) of the wells drilled in 2018 were also completed in 2018.  The Company currently expects the remaining 19 (5.1 net) wells drilled in 2018 will be completed in 2019.  Comstock also spent $42.7 million of development costs on its other properties primarily on completing 24 (7.0 net) Bakken shale wells. 
     
Since the last operational update, Comstock reported on an additional thirteen Haynesville shale wells, eight of which were operated by Comstock.  Comstock has a 30% working interest in the five non-operated wells.  The average initial production rate of these wells was 28 MMcf per day. The wells had completed lateral lengths ranging from 5,239 feet to 10,964 feet, with an average completed lateral length of 9,470 feet.  Each well was tested at initial production rates of 17 to 40 MMcf per day.  Comstock currently has five (3.5 net) operated Haynesville shale wells that are in the process of being completed.

2019 Drilling Budget

The Company also announced its current drilling plans for 2019.  Comstock's planned capital expenditures for 2019 are $364.0 million.  Haynesville/Bossier shale drilling and completion activities comprise $339.8 million of the activity in 2019 to drill 58 (36.4 net) horizontal wells including spending $25.0 million to complete 16 (5.7 net) wells drilled in 2018.  Comstock expects to spend an additional $24.2 million on its Bakken shale and Eagle Ford shale properties.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on February 21, 2019, to discuss the 2018 operational and financial results.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 844-776-7840 (international dial-in use 661-378-9538) and provide access code 5897118 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 1:00 p.m. CTFebruary 21, 2019 and will continue until 1:00 p.m.February 28, 2019.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 5897118.

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 engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota.  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)

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

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

(1)    Included in gain from derivative financial instruments in operating results.
      

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

(1)    Included in gain from derivative financial instruments in operating results.
      

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

(1)    Included in gain from derivative financial instruments in operating results.

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

(1)    Included in gain from derivative financial instruments in operating results.

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

(1)    Included in gain from derivative financial instruments in operating results.

Comstock ResourcesGary H. Guyton
Director of Planning and Investor Relations
972-668-8834