crk-8k_20190807.htm

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):  August 7, 2019

 

COMSTOCK RESOURCES, INC.

 

(Exact Name of Registrant as Specified in Charter)

 

STATE OF NEVADA

001-03262

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:

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.50 (per share)

CRK

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


 

Item 2.02

Results of Operations and Financial Condition

 

 

On August 7, 2019, Comstock Resources, Inc. ("Comstock" or the "Company") announced financial results for the three months and six months ended June 30, 2019.  A copy of the press release announcing Comstock's earnings and operating results and other matters 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 as a common alternative measure of cash flows. Adjusted EBITDAX is presented in the earnings release because management believes that adjusted 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.

 

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, as amended (the "Exchange Act") or otherwise subject to the liability of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

 

Item 9.01

Financial Statements and Exhibits

 

Exhibit 99.1

Press Release dated August 7,2019.

 



 

 

 

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, hereunto duly authorized.

 

 

 

COMSTOCK RESOURCES, INC.

 

 

 

 

 

 

Dated: August 7, 2019

By:

/s/ ROLAND O. BURNS

 

 

Roland O. Burns

 

 

President and Chief Financial Officer

 

crk-ex991_6.htm

Exhibit 99.1

5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8834

Contact: Gary H. Guyton

Director of Planning and Investor Relations

Web Site:  www.comstockresources.com

 

NEWS RELEASE

 

For Immediate Release

 

COMSTOCK RESOURCES, INC. REPORTS

SECOND QUARTER 2019 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, August 7, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the second quarter of 2019. On August 14, 2018, the Company completed transactions in which entities controlled by Dallas businessman Jerry Jones contributed Bakken Shale properties to the Company in exchange for a controlling interest in the Company (the "Jones Contribution") and the Company refinanced its long-term debt.  Results for the three months and six months ended June 30, 2019 reflect the Jones Contribution, while results for the three months and six months ended June 30, 2018 (the "Predecessor") reflect the historical results of Comstock for that period. The Company's consolidated financial results are being presented with a blackline division which delineates the lack of comparability between amounts presented for these periods.

Financial Results for the Three Months Ended June 30, 2019

For the second quarter of 2019, Comstock reported net income of $21.4 million or $0.20 per diluted share as compared to a net loss of $34.0 million or $2.22 per share for the Predecessor second quarter of 2018.  The second quarter 2019 results included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $12.8 million and Covey Park merger related transaction costs of $1.4 million.  Excluding these items, the net income for the second quarter of 2019 would have been $12.7 million or $0.12 per diluted share.  

Comstock produced 40.9 billion cubic feet ("Bcf") of natural gas and 695,000 barrels of oil or 45.1 billion cubic feet of natural gas equivalent ("Bcfe") in the second quarter of 2019.  The Company's natural gas production averaged 450 million cubic feet ("MMcf") per day, an increase of 88% over natural gas production in the Predecessor second quarter of 2018 and 22% higher than the first quarter of 2019.  The growth in natural gas production was primarily attributable to Comstock's Haynesville shale drilling program.  Oil production in the second quarter of 2019, which averaged 7,628 barrels of oil per day, increased from the 990 barrels per day produced in the Predecessor second quarter of 2018 due to production from the Bakken Shale properties.  Oil production in the second quarter of 2018 was primarily attributable to the Company's Eagle Ford shale properties which were sold on April 30, 2018.

Comstock's average realized natural gas price, including hedging gains, decreased 13% to $2.29 per Mcf in the second quarter of 2019 as compared to $2.64 per Mcf realized in the Predecessor second quarter of 2018.  The Company's average realized oil price, including hedging gains, decreased by 9% to $52.12 per barrel in the second quarter of 2019 as compared to $57.56 per barrel in the Predecessor second quarter of 2018.  Oil and gas sales were $130.1 million (including realized hedging gains and losses) in the second quarter of 2019 as compared to the Predecessor 2018 second quarter sales of $62.6 million.  


EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $93.2 million in the second quarter of 2019 increased by 110% over EBITDAX of $44.3 million for the Predecessor second quarter of 2018.  The Company's operating cash flow generated in the second quarter of 2019 (before working capital changes and the merger related costs) of $66.3 million increased 151% over operating cash flow of $26.4 million in the Predecessor second quarter of 2018.  

Financial Results for the Six Months Ended June 30, 2019

For the first six months of 2019, Comstock reported net income of $35.0 million or $0.33 per diluted share as compared to a net loss of $75.9 million or $4.99 per share for the Predecessor first six months of 2018.  The first six months of 2019 results included an unrealized loss from derivative financial instruments held to manage oil and gas price risks of $0.2 million and the merger related transaction costs of $1.4 million.  Excluding these items, the net income for the first six months of 2019 would have been $36.3 million or $0.34 per share.

Comstock produced 74.1 billion cubic feet of natural gas and 1.5 million barrels of oil or 83.1 Bcfe in the first six months of 2019.  The Company's natural gas production averaged 409 MMcf per day, an increase of 71% over natural gas production in the Predecessor first six months of 2018.  Oil production in the first six months of 2019, which averaged 8,313 barrels of oil per day, increased from the 1,547 barrels per day produced in the Predecessor first six months of 2018 due to production from the contributed Bakken Shale properties.  

Comstock's average realized natural gas price, including hedging gains, decreased 7% to $2.55 per Mcf in the first six months of 2019 as compared to $2.73 per Mcf realized in the Predecessor first six months of 2018.  The Company's average realized oil price, including hedging gains, decreased by 25% to $48.71 per barrel in the first six months of 2019 as compared to $65.12 per barrel in the Predecessor first six months of 2018.  Oil and gas sales were $262.3 million (including realized hedging gains and losses) in the first six months of 2019 as compared to the Predecessor first six months of 2018 sales of $136.6 million.  EBITDAX of $190.2 million in the first six months of 2019 increased by 94% over EBITDAX of $98.0 million for the Predecessor first six months of 2018.  The Company's operating cash flow generated in the first six months of 2019 (before working capital changes and the merger related costs) of $137.0 million increased 120% over operating cash flow of $62.2 million in the Predecessor first six months of 2018.

Drilling Results

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program which is driving the strong production growth in 2019.  During the first six months of 2019, Comstock spent $181.9 million on its development activities.  Comstock spent $155.9 million on drilling and completing Haynesville shale wells.  Comstock drilled 21 (14.2 net) horizontal Haynesville/Bossier shale wells during the first six months of 2019, which had an average lateral length of approximately 8,016 feet.  Comstock also completed 19 (5.2 net) wells that were drilled in 2018.  Twelve (9.4 net) of the wells drilled in the first six months of 2019 were also completed.  Comstock also spent $15.9 million drilling four (2.2 net) Eagle Ford shale oil wells and an additional $10.1 million primarily on leasehold and other development activity.  

Since the last operational update, Comstock reported on ten new Haynesville shale wells.  The average initial production rate of these wells was 24 MMcf per day. The wells had completed lateral lengths ranging from 4,426 feet to 11,319 feet, with an average completed lateral length of 6,970 feet.  Each well was tested at initial production rates of 22 to 28 MMcf per day. The four Eagle Ford shale wells in South


Texas drilled in 2019 have been completed and had an average initial production rate of 1,034 barrels of oil equivalent (85% oil) per well.

Covey Park 2019 Results

On July 16, 2019 Comstock completed the previously announced acquisition of Covey Park Energy, LLC ("Covey Park") pursuant to a merger in which the Company was the surviving entity.  The Company's financial results will include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 2019.

For the three months ended June 30, 2019, Covey Park produced 67.6 Bcf of natural gas and 11,000 barrels of oil or 68 Bcfe.  Covey Park's average realized sales price (including hedging gains) was $2.68 per Mcf for natural gas and $59.94 per barrel for oil.  Total oil and gas sales for the second quarter of 2019 (including hedging gains) were $182.1 million.  

For the six months ended June 30, 2019, Covey Park produced 131.0 Bcf of natural gas and 20,000 barrels of oil or 131 Bcfe.  The average realized sales price (including hedging gains) was $2.74 per Mcf for natural gas and $58.25 per barrel for oil.  Total oil and gas sales for the six months ended June 30, 2019 (including realized hedging gains) were $359.7 million.  

During the first six months of 2019, Covey Park drilled 17 Haynesville shale wells (15.5 net) and completed 19 wells (17.7 net).  The average per well initial production rate of these wells was 20 MMcf per day. The wells had completed lateral lengths ranging from 4,200 feet to 9,492 feet, with an average completed lateral length of 7,403 feet.  Each well was tested at initial production rates of 12 to 30 MMcf per day.  

With completion of the Covey Park acquisition, Comstock's 2019 annual drilling and completion budget will be $538 million which includes drilling activity on Covey Park properties subsequent to the closing of the merger.  Activity planned for 2019 includes completing 19 (5.2 net) wells drilled by Comstock in 2018 and drilling 78 (57.4 net) Haynesville/Bossier shale wells in 2019.  Comstock is also spending $21.2 million in 2019 on its Eagle Ford shale and Bakken shale oil properties.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on August 7, 2019, to discuss the second quarter of 2019 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 6057864 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. CT August 7, 2019 and will continue until 1:00 p.m. August 14, 2019.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 6057864.

 

 



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)

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(Predecessor)

 

 

 

 

 

 

(Predecessor)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

91,951

 

 

$

56,265

 

 

$

182,083

 

 

$

115,808

 

Oil sales

 

 

36,165

 

 

 

5,184

 

 

 

72,914

 

 

 

18,234

 

Total oil and gas sales

 

 

128,116

 

 

 

61,449

 

 

 

254,997

 

 

 

134,042

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

 

5,827

 

 

 

1,112

 

 

 

11,766

 

 

 

2,952

 

Gathering and transportation

 

 

10,502

 

 

 

4,398

 

 

 

17,932

 

 

 

8,732

 

Lease operating

 

 

14,452

 

 

 

7,948

 

 

 

29,337

 

 

 

17,721

 

Depreciation, depletion and amortization

 

 

46,847

 

 

 

26,798

 

 

 

84,437

 

 

 

53,950

 

General and administrative

 

 

6,841

 

 

 

6,639

 

 

 

14,655

 

 

 

12,655

 

Loss on sale of oil and gas properties

 

 

26

 

 

 

6,838

 

 

 

25

 

 

 

35,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

84,495

 

 

 

53,733

 

 

 

158,152

 

 

 

131,448

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

43,621

 

 

 

7,716

 

 

 

96,845

 

 

 

2,594

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) from derivative financial instruments

 

 

14,744

 

 

 

(1,638

)

 

 

7,087

 

 

 

964

 

Other income

 

 

155

 

 

 

327

 

 

 

248

 

 

 

393

 

Interest expense

 

 

(28,568

)

 

 

(40,213

)

 

 

(56,419

)

 

 

(79,063

)

Transaction costs

 

 

(1,443

)

 

 

(317

)

 

 

(1,443

)

 

 

(317

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

(15,112

)

 

 

(41,841

)

 

 

(50,527

)

 

 

(78,023

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

28,509

 

 

 

(34,125

)

 

 

46,318

 

 

 

(75,429

)

Benefit from (provision for) income taxes

 

 

(7,102

)

 

 

122

 

 

 

(11,336

)

 

 

(460

)

Net income (loss)

 

$

21,407

 

 

$

(34,003

)

 

$

34,982

 

 

$

(75,889

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share –
basic and diluted

 

$

0.20

 

 

$

(2.22

)

 

$

0.33

 

 

$

(4.99

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding –
basic and diluted

 

 

105,457

 

 

 

15,340

 

 

 

105,457

 

 

 

15,212

 

 

 

 

 

 

 

 

 

 

 

 

 



COMSTOCK RESOURCES, INC.
OPERATING RESULTS

(In thousands)

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

 

 

 

 

 

(Predecessor)

 

 

 

 

 

 

(Predecessor)

 

OPERATING CASH FLOW:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

21,407

 

 

$

(34,003

)

 

$

34,982

 

 

$

(75,889

)

Reconciling items:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

7,078

 

 

 

(146

)

 

 

11,430

 

 

 

426

 

Depreciation, depletion and amortization

 

 

46,847

 

 

 

26,798

 

 

 

84,437

 

 

 

53,950

 

Unrealized (gain) loss from derivative financial instruments

 

 

(12,797

)

 

 

2,746

 

 

 

248

 

 

 

1,548

 

Amortization of debt discount and
issuance costs

 

 

1,623

 

 

 

12,211

 

 

 

3,197

 

 

 

23,267

 

Interest paid in-kind

 

 

 

 

 

10,169

 

 

 

 

 

 

20,014

 

Stock-based compensation

 

 

623

 

 

 

1,508

 

 

 

1,271

 

 

 

3,109

 

Transaction costs

 

 

1,443

 

 

 

317

 

 

 

1,443

 

 

 

317

 

Loss on sale of oil and gas properties

 

 

26

 

 

 

6,838

 

 

 

25

 

 

 

35,438

 

Operating cash flow

 

 

66,250

 

 

 

26,438

 

 

 

137,033

 

 

 

62,180

 

Transaction costs

 

 

(1,443

)

 

 

(317

)

 

 

(1,443

)

 

 

(317

)

Decrease (increase) in accounts receivable

 

 

9,951

 

 

 

(2,172

)

 

 

20,734

 

 

 

(717

)

Decrease in other current assets

 

 

15

 

 

 

169

 

 

 

1,592

 

 

 

641

 

Increase in accounts payable and
accrued expenses

 

 

23,538

 

 

 

41,324

 

 

 

15,110

 

 

 

25,211

 

Net cash provided by operating activities

 

$

98,311

 

 

$

65,442

 

 

$

173,026

 

 

$

86,998

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

21,407

 

 

$

(34,003

)

 

$

34,982

 

 

$

(75,889

)

Interest expense

 

 

28,568

 

 

 

40,213

 

 

 

56,419

 

 

 

79,063

 

Income taxes

 

 

7,102

 

 

 

(122

)

 

 

11,336

 

 

 

460

 

Depreciation, depletion and amortization

 

 

46,847

 

 

 

26,798

 

 

 

84,437

 

 

 

53,950

 

Unrealized (gain) loss from derivative financial instruments

 

 

(12,797

)

 

 

2,746

 

 

 

248

 

 

 

1,548

 

Transaction costs

 

 

1,443

 

 

 

317

 

 

 

1,443

 

 

 

317

 

Stock-based compensation

 

 

623

 

 

 

1,508

 

 

 

1,271

 

 

 

3,109

 

Loss on sale of oil and gas properties

 

 

26

 

 

 

6,838

 

 

 

25

 

 

 

35,438

 

Total Adjusted EBITDAX

 

$

93,219

 

 

$

44,295

 

 

$

190,161

 

 

$

97,996

 

 

 

 

 

As of
June 30,

2019

 

 

As of
December 31,

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

46,747

 

 

$

23,193

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

14,284

 

 

 

15,401

 

 

 

 

 

 

 

 

 

Other current assets

 

 

90,410

 

 

 

120,833

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

1,765,445

 

 

 

1,667,979

 

 

 

 

 

 

 

 

 

Other

 

 

366,010

 

 

 

360,434

 

 

 

 

 

 

 

 

 

Total assets

 

$

2,282,896

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

228,625

 

 

$

206,853

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

1,267,390

 

 

 

1,244,363

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

173,253

 

 

 

161,917

 

 

 

 

 

 

 

 

 

Other non-current liabilities

 

 

2,348

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligation

 

 

5,456

 

 

 

5,136

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

605,824

 

 

 

569,571

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

2,282,896

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2019

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

Bakken

 

 

Eagle Ford

 

 

Other

 

Total

 

Gas production (MMcf)

 

 

37,847

 

 

 

924

 

 

2,045

 

 

 

 

 

 

112

 

 

40,928

 

Oil production (Mbbls)

 

 

1

 

 

 

11

 

 

680

 

 

 

 

 

 

3

 

 

695

 

Total production (MMcfe)

 

 

37,850

 

 

 

986

 

 

6,122

 

 

 

 

 

 

135

 

 

45,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

87,261

 

 

$

2,102

 

$

2,357

 

 

$

 

 

$

231

 

$

91,951

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,932

 

Total natural gas including hedging

 

 

87,261

 

 

 

2,102

 

 

2,357

 

 

 

 

 

 

231

 

 

93,883

 

Oil sales

 

 

21

 

 

 

614

 

 

35,350

 

 

 

 

 

 

180

 

 

36,165

 

Oil hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15

 

Total oil including hedging

 

 

21

 

 

 

614

 

 

35,350

 

 

 

 

 

 

180

 

 

36,180

 

Total oil and gas sales including hedging

 

$

87,282

 

 

$

2,716

 

$

37,707

 

 

$

 

 

$

411

 

$

130,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.31

 

 

$

2.28

 

$

1.15

 

 

$

 

 

$

2.05

 

$

2.25

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.29

 

Average oil price (per barrel)

 

$

48.01

 

 

$

58.87

 

$

52.02

 

 

$

 

 

$

47.24

 

$

52.10

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

52.12

 

Average price (per Mcfe)

 

$

2.31

 

 

$

2.75

 

$

6.16

 

 

$

 

 

$

3.03

 

$

2.84

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

1,779

 

 

$

112

 

$

3,899

 

 

$

 

 

$

37

 

$

5,827

 

Gathering and transportation

 

$

10,319

 

 

$

94

 

$

 

 

$

 

 

$

89

 

$

10,502

 

Lease operating

 

$

4,697

 

 

$

3,371

 

$

6,206

 

 

$

 

 

$

178

 

$

14,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

0.11

 

$

0.64

 

 

$

 

 

$

0.28

 

$

0.13

 

Gathering and transportation (per Mcfe)

 

$

0.27

 

 

$

0.10

 

$

 

 

$

 

 

$

0.66

 

$

0.23

 

Lease operating (per Mcfe)

 

$

0.12

 

 

$

3.42

 

$

1.01

 

 

$

 

 

$

1.31

 

$

0.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

2,449

 

 

$

 

$

 

 

$

 

 

$

 

$

2,449

 

Development drilling and completion

 

 

73,217

 

 

 

 

 

2,092

 

 

 

10,276

 

 

 

 

 

85,585

 

Other development

 

 

1,437

 

 

 

 

 

 

 

 

 

 

 

 

 

1,437

 

Total

 

$

77,103

 

 

$

 

$

2,092

 

 

$

10,276

 

 

$

 

$

89,471

 

 

 

 

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



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

For the Three Months ended June 30, 2018 (Predecessor)

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

 

Eagle Ford

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

20,682

 

 

 

838

 

 

 

97

 

 

 

101

 

 

 

21,718

 

Oil production (Mbbls)

 

 

 

 

 

11

 

 

 

74

 

 

 

5

 

 

 

90

 

Total production (MMcfe)

 

 

20,682

 

 

 

904

 

 

 

537

 

 

 

135

 

 

 

22,258

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

53,294

 

 

$

2,313

 

 

$

399

 

 

$

259

 

 

$

56,265

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,108

 

Total natural gas including hedging

 

 

53,294

 

 

 

2,313

 

 

 

399

 

 

 

259

 

 

 

57,373

 

Oil sales

 

 

 

 

 

728

 

 

 

4,136

 

 

 

320

 

 

 

5,184

 

Total oil and gas sales including hedging

 

$

53,294

 

 

$

3,041

 

 

$

4,535

 

 

$

579

 

 

$

62,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.58

 

 

$

2.76

 

 

$

4.11

 

 

$

2.61

 

 

$

2.59

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.64

 

Average oil price (per barrel)

 

$

 

 

$

66.39

 

 

$

56.38

 

 

$

55.73

 

 

$

57.56

 

Average price (per Mcfe)

 

$

2.58

 

 

$

3.36

 

 

$

8.44

 

 

$

4.33

 

 

$

2.76

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

833

 

 

$

35

 

 

$

201

 

 

$

43

 

 

$

1,112

 

Gathering and transportation

 

$

4,037

 

 

$

177

 

 

$

119

 

 

$

65

 

 

$

4,398

 

Lease operating

 

$

3,081

 

 

$

3,191

 

 

$

1,412

 

 

$

264

 

 

$

7,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.04

 

 

$

0.04

 

 

$

0.37

 

 

$

0.32

 

 

$

0.05

 

Gathering and transportation (per Mcfe)

 

$

0.20

 

 

$

0.20

 

 

$

0.22

 

 

$

0.48

 

 

$

0.20

 

Lease operating (per Mcfe)

 

$

0.14

 

 

$

3.52

 

 

$

2.64

 

 

$

1.96

 

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

1,191

 

 

$

 

 

$

 

 

$

 

 

$

1,191

 

Development drilling and completion

 

 

38,090

 

 

 

 

 

 

 

 

 

 

 

 

38,090

 

Other development

 

 

3,920

 

 

 

 

 

 

153

 

 

 

20

 

 

 

4,093

 

Total

 

$

43,201

 

 

$

 

 

$

153

 

 

$

20

 

 

$

43,374

 

 

 

 

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



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2019

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

Bakken

 

 

Eagle Ford

 

 

Other

 

Total

 

Gas production (MMcf)

 

 

69,211

 

 

 

1,827

 

 

2,813

 

 

 

 

 

 

226

 

 

74,077

 

Oil production (Mbbls)

 

 

1

 

 

 

18

 

 

1,479

 

 

 

 

 

 

7

 

 

1,505

 

Total production (MMcfe)

 

 

69,214

 

 

 

1,933

 

 

11,684

 

 

 

 

 

 

274

 

 

83,105

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

172,999

 

 

$

4,673

 

 

3,857

 

 

$

 

 

$

554

 

$

182,083

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,965

 

Total natural gas including hedging

 

 

172,999

 

 

 

4,673

 

 

3,857

 

 

 

 

 

 

554

 

 

189,048

 

Oil sales

 

 

25

 

 

 

977

 

 

71,497

 

 

 

 

 

 

415

 

 

72,914

 

Oil hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

Total oil including hedging

 

 

25

 

 

 

977

 

 

71,497

 

 

 

 

 

 

415

 

 

73,284

 

Total oil and gas sales including hedging

 

$

173,024

 

 

$

5,650

 

$

75,354

 

 

$

 

 

$

969

 

$

262,332

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.50

 

 

$

2.56

 

$

1.37

 

 

$

 

 

$

2.44

 

$

2.46

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.55

 

Average oil price (per barrel)

 

$

48.21

 

 

$

54.99

 

$

48.36

 

 

$

 

 

$

52.95

 

$

48.46

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

48.71

 

Average price (per Mcfe)

 

$

2.50

 

 

$

2.92

 

$

6.45

 

 

$

 

 

$

3.54

 

$

3.07

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.16

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

3,511

 

 

$

207

 

$

7,972

 

 

$

 

 

$

76

 

$

11,766

 

Gathering and transportation

 

$

17,592

 

 

$

157

 

$

 

 

$

 

 

$

183

 

$

17,932

 

Lease operating

 

$

9,630

 

 

$

6,606

 

$

12,725

 

 

$

 

 

$

376

 

$

29,337

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

0.11

 

$

0.68

 

 

$

 

 

$

0.28

 

$

0.14

 

Gathering and transportation (per Mcfe)

 

$

0.25

 

 

$

0.08

 

$

 

 

$

 

 

$

0.67

 

$

0.22

 

Lease operating (per Mcfe)

 

$

0.14

 

 

$

3.42

 

$

1.09

 

 

$

 

 

$

1.37

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

4,306

 

 

$

 

$

 

 

$

 

 

$

 

$

4,306

 

Development drilling and completion

 

 

155,855

 

 

 

 

 

1,139

 

 

 

15,924

 

 

 

 

 

172,918

 

Other development

 

 

4,716

 

 

 

 

 

 

 

 

 

 

 

 

 

4,716

 

Total

 

$

164,877

 

 

$

 

$

1,139

 

 

$

15,924

 

 

$

 

$

181,940

 

 

 

 

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



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

For the Six Months ended June 30, 2018 (Predecessor)

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

 

Eagle Ford

 

 

Other

 

Total

 

Gas production (MMcf)

 

 

40,679

 

 

 

1,900

 

 

 

379

 

 

 

406

 

 

43,364

 

Oil production (Mbbls)

 

 

 

 

 

22

 

 

 

247

 

 

 

11

 

 

280

 

Total production (MMcfe)

 

 

40,679

 

 

 

2,030

 

 

 

1,860

 

 

 

475

 

 

45,044

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

107,858

 

 

$

5,226

 

 

$

1,590

 

 

$

1,134

 

$

115,808

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

2,512

 

Total natural gas including hedging

 

 

107,858

 

 

 

5,226

 

 

 

1,590

 

 

 

1,134

 

 

118,320

 

Oil sales

 

 

 

 

 

1,374

 

 

 

16,157

 

 

 

703

 

 

18,234

 

Total oil and gas sales including hedging

 

$

107,858

 

 

$

6,600

 

 

$

17,747

 

 

$

1,837

 

$

136,554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.65

 

 

$

2.75

 

 

$

4.19

 

 

$

2.80

 

$

2.67

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.73

 

Average oil price (per barrel)

 

$

 

 

$

63.63

 

 

$

65.46

 

 

$

60.72

 

$

65.12

 

Average price (per Mcfe)

 

$

2.65

 

 

$

3.25

 

 

$

9.54

 

 

$

3.87

 

$

2.98

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

1,901

 

 

$

95

 

 

$

831

 

 

$

125

 

$

2,952

 

Gathering and transportation

 

$

7,743

 

 

$

386

 

 

$

463

 

 

$

140

 

$

8,732

 

Lease operating

 

$

5,976

 

 

$

6,389

 

 

$

4,829

 

 

$

527

 

$

17,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.05

 

 

$

0.05

 

 

$

0.45

 

 

$

0.26

 

$

0.07

 

Gathering and transportation (per Mcfe)

 

$

0.19

 

 

$

0.19

 

 

$

0.25

 

 

$

0.30

 

$

0.19

 

Lease operating (per Mcfe)

 

$

0.14

 

 

$

3.14

 

 

$

2.59

 

 

$

1.11

 

$

0.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

 

$

2,344

 

 

$

 

 

$

 

 

$

 

$

2,344

 

Development drilling and completion

 

 

76,629

 

 

 

 

 

 

 

 

 

 

 

76,629

 

Other development

 

 

10,247

 

 

 

 

 

 

393

 

 

 

273

 

 

10,913

 

Total

 

$

89,220

 

 

$

 

 

$

393

 

 

$

273

 

$

89,886

 

 

 

 

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



PRO FORMA COMBINED OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2019

 

For the Six Months Ended June 30, 2019

 

 

 

Comstock

 

 

Covey
Park  

 

Pro Forma Combined

 

 

Comstock

 

 

Covey Park(2)

 

Pro Forma Combined

 

Gas production (MMcf)

 

 

40,928

 

 

 

67,639

 

 

108,567

 

 

 

74,077

 

 

 

130,956

 

 

205,033

 

Oil production (Mbbls)

 

 

695

 

 

 

11

 

 

706

 

 

 

1,505

 

 

 

20

 

 

1,525

 

Total production (MMcfe)

 

 

45,093

 

 

 

67,705

 

 

112,798

 

 

 

83,105

 

 

 

131,076

 

 

214,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

91,951

 

 

$

166,772

 

$

258,723

 

 

$

182,083

 

 

$

354,688

 

$

536,771

 

Natural gas hedging settlements(1)

 

 

1,932

 

 

 

14,668

 

 

16,600

 

 

 

6,965

 

 

 

3,824

 

 

10,789

 

Total natural gas including hedging

 

 

93,883

 

 

 

181,440

 

 

275,323

 

 

 

189,048

 

 

 

358,512

 

 

547,560

 

Oil sales

 

 

36,165

 

 

 

659

 

 

36,824

 

 

 

72,914

 

 

 

1,165

 

 

74,079

 

Oil hedging settlements(1)

 

 

15

 

 

 

 

 

15

 

 

 

370

 

 

 

 

 

370

 

Total oil including hedging

 

 

36,180

 

 

 

659

 

 

36,839

 

 

 

73,284

 

 

 

1,165

 

 

74,449

 

Total oil and gas sales including hedging

 

$

130,063

 

 

$

182,099

 

$

312,162

 

 

$

262,332

 

 

$

359,677

 

$

622,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.25

 

 

$

2.47

 

$

2.38

 

 

$

2.46

 

 

$

2.71

 

$

2.62

 

Average gas price including hedging (per Mcf)

 

$

2.29

 

 

$

2.68

 

$

2.54

 

 

$

2.55

 

 

$

2.74

 

$

2.67

 

Average oil price (per barrel)

 

$

52.10

 

 

$

59.94

 

$

52.20

 

 

$

48.46

 

 

$

58.25

 

$