crk-8k_20191107.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):  November 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 November 7, 2019, Comstock Resources, Inc. ("Comstock" or the "Company") announced financial results for the three months and nine months ended September 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 November 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: November 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: Ron Mills

VP of Finance and Investor Relations

Web Site:  www.comstockresources.com

 

NEWS RELEASE

 

For Immediate Release

 

COMSTOCK RESOURCES, INC. REPORTS

THIRD QUARTER 2019 FINANCIAL AND OPERATING RESULTS

 

FRISCO, TEXAS, November 7, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the third quarter of 2019. On July 16, 2019, Comstock completed the acquisition of Covey Park Energy, LLC ("Covey Park").  The Company's financial results include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 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").  Results for the three months and nine months ended September 30, 2019 and the period from August 14, 2018 through September 30, 2018 reflect the Jones Contribution, while results for the period from July 1, 2018 through August 13, 2018 and the period from January 1, 2018 through August 13, 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 September 30, 2019

For the third quarter of 2019, Comstock reported a net loss available to common stockholders of $1.3 million or $0.01 per diluted share.  Net income available to common stockholders for the third quarter of 2019 was $34.3 million or $0.17 per diluted share as adjusted to exclude certain items not related to normal operating activities partly due to the closing of the Covey Park acquisition.  These items, net of income taxes, include $28.7 million of transaction costs related to the Covey Park acquisition including professional fees, severance costs and other change of control payments; $2.9 million in interest amortization resulting from adjusting debt assumed in the acquisition to fair value; $3.2 million of hedging settlements related to July production that were received prior to closing; and $0.8 million in unrealized hedging gains.  

Comstock produced 97.2 billion cubic feet ("Bcf") of natural gas and 603,773 barrels of oil or 100.9 billion cubic feet of natural gas equivalent ("Bcfe") in the third quarter of 2019.  The Company's natural gas production averaged 1,057 million cubic feet ("MMcf") per day, an increase of 135% over the second quarter of 2019.  The growth in natural gas production was primarily attributable to the Covey Park acquisition which closed on July 16, 2019.  Oil production in the third quarter of 2019 averaged 6,563 barrels of oil per day.  Pro forma third quarter 2019 production including the operations of Covey Park from July 1, 2019 to July 15, 2019 was 111.5 Bcfe or 1,212 MMcfe per day.  


Comstock's average realized natural gas price, including hedging, was $2.26 per Mcf in the third quarter of 2019 ($2.30 including the July hedge receipts of Covey Park).  The Company's average realized oil price, including hedging, was $51.27 per barrel in the third quarter of 2019.  Oil and gas sales were $250.5 million (including realized hedging gains and losses) in the third quarter of 2019.  Adjusted EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense, transaction costs and other noncash expenses, was $188.6 million in the third quarter of 2019.  The Company's adjusted operating cash flow generated in the third quarter of 2019 (before working capital changes) was $143.3 million.  

Financial Results for the Nine Months Ended September 30, 2019

For the first nine months of 2019, Comstock reported net income available to common stock of $33.6 million or $0.26 per diluted share.  Net income available to common stockholders for the nine months ended September 30, 2019 is $71.2 million or $0.51 per diluted share as adjusted to exclude certain items not related to normal operations.  These items, net of income taxes, include $30.1 million in transaction costs related to the Covey Park acquisition; $3.0 million in interest amortization related to the Covey Park debt, $3.4 million for the Covey Park July hedging settlements and $1.1 million in unrealized hedging losses.

Comstock produced 171.3 Bcf of natural gas and 2.1 million barrels of oil or 184.0 Bcfe in the first nine months of 2019.  The Company's natural gas production averaged 628 MMcf per day.  Oil production in the first nine months of 2019 averaged 7,723 barrels of oil per day.  Pro forma production for the first nine months of 2019 including the operations of Covey Park was 325.7 Bcfe or 1,193 MMcfe per day.

Comstock's average realized natural gas price, including hedging, was $2.39 per Mcf in the first nine months of 2019 ($2.41 including the July hedge receipts of Covey Park).  The Company's average realized oil price, including hedging, was $49.44 per barrel in the first nine months of 2019.  Oil and gas sales were $512.8 million (including realized hedging gains and losses) in the first nine months of 2019.  Adjusted EBITDAX was $378.8 million in the first nine months of 2019.  The Company's operating cash flow generated in the first nine months of 2019 (before working capital changes) was $280.4 million.  

Drilling Results

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program.  During the first nine months of 2019, Comstock spent $355.6 million on its development activities including $323.3 million to drill and complete Haynesville shale wells.  Comstock drilled 46 (29.4 net) horizontal Haynesville/Bossier shale wells during the first nine months of 2019, which had an average lateral length of approximately 8,300 feet.  Comstock also completed 19 (5.2 net) wells that were drilled in 2018.  22 (17.4 net) of the Haynesville shale wells drilled in the first nine months of 2019 were also completed.  Comstock also spent $16.2 million drilling and completing four (2.2 net) Eagle Ford shale oil wells and an additional $16.1 million primarily on leasehold and other development activity.  Comstock estimates that it will spend approximately $145.0 million in the fourth quarter of 2019 on development activities.  In response to low natural gas prices, the Company plans to reduce the operating rigs that it employs in its Haynesville shale drilling program from nine operating rigs to six beginning in early 2020.  Comstock presently expects its 2020 preliminary capital budget will be $475.0 million.  The 2020 drilling program prioritizes free cash flow generation over production growth.  The Company is anticipating its 2020 drilling program will focus exclusively on the Haynesville shale and currently expects to drill 62 (44.4 net) wells and complete 18 (10.7 net) wells drilled in 2019.  The six rig drilling program will support production growth of 6% to 8% over pro forma 2019 production and will generate substantial free cash flow.


Since the last operational update, Comstock reported on 23 new Haynesville shale wells.  The average initial production rate of these wells was 25 MMcf per day. The wells had completed lateral lengths ranging from 5,450 feet to 11,361 feet, with an average completed lateral length of 9,343 feet.  Each well was tested at initial production rates of 19 to 32 MMcf per day.  

Bolt-on Acquisition

Comstock also announced that it acquired a privately-held company with Haynesville shale properties located primarily in DeSoto Parish, Louisiana on November 1, 2019.  Comstock issued 4,500,000 shares of common stock in connection with the all-stock financed acquisition.  The properties acquired include approximately 3,000 net acres and 12.7 net future drilling locations.  The properties acquired have 75 (20.1 net) producing wells which are producing 12 MMcfe per day.  Comstock estimates that the proved oil and gas reserves attributable to the properties acquired are 89 Bcfe.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on November 7, 2019, to discuss the third 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 7814438 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 November 7, 2019 and will continue until 1:00 p.m. November 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 7814438.

 

 

 

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 September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

August 14
Through
September 30,

2018

 

 

July 1
Through
August 13,

2018

 

 

2019

 

 

August 14
Through
September 30, 2018

 

 

January 1
Through
August 13,
2018

 

 

 

 

 

 

 

 

 

 

 

(Predecessor)

 

 

 

 

 

 

 

 

 

 

(Predecessor)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

193,506

 

 

$

36,393

 

 

$

32,089

 

 

$

375,589

 

 

$

36,393

 

 

$

147,897

 

Oil sales

 

 

30,938

 

 

 

33,730

 

 

 

499

 

 

 

103,852

 

 

 

33,730

 

 

 

18,733

 

Total oil and gas sales

 

 

224,444

 

 

 

70,123

 

 

 

32,588

 

 

 

479,441

 

 

 

70,123

 

 

 

166,630

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

 

6,966

 

 

 

4,051

 

 

 

707

 

 

 

18,732

 

 

 

4,051

 

 

 

3,659

 

Gathering and transportation

 

 

23,414

 

 

 

3,450

 

 

 

3,109

 

 

 

41,346

 

 

 

3,450

 

 

 

11,841

 

Lease operating

 

 

29,111

 

 

 

7,016

 

 

 

3,418

 

 

 

58,448

 

 

 

7,016

 

 

 

21,139

 

Exploration

 

 

241

 

 

 

 

 

 

 

 

 

241

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

80,247

 

 

 

17,820

 

 

 

14,082

 

 

 

164,684

 

 

 

17,820

 

 

 

68,032

 

General and administrative

 

 

8,105

 

 

 

3,303

 

 

 

3,044

 

 

 

22,760

 

 

 

3,303

 

 

 

15,699

 

Loss (gain) on sale of oil and gas properties

 

 

 

 

 

(98

)

 

 

 

 

 

25

 

 

 

(98

)

 

 

35,438

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

148,084

 

 

 

35,542

 

 

 

24,360

 

 

 

306,236

 

 

 

35,542

 

 

 

155,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

 

76,360

 

 

 

34,581

 

 

 

8,228

 

 

 

173,205

 

 

 

34,581

 

 

 

10,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain (loss) from derivative financial instruments

 

 

24,858

 

 

 

(2,015

)

 

 

(83

)

 

 

31,945

 

 

 

(2,015

)

 

 

881

 

Other income

 

 

92

 

 

 

42

 

 

 

284

 

 

 

340

 

 

 

42

 

 

 

677

 

Interest expense

 

 

(51,015

)

 

 

(14,845

)

 

 

(22,140

)

 

 

(107,434

)

 

 

(14,845

)

 

 

(101,203

)

Transaction costs

 

 

(39,657

)

 

 

 

 

 

(2,549

)

 

 

(41,100

)

 

 

 

 

 

(2,866

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

(65,722

)

 

 

(16,818

)

 

 

(24,488

)

 

 

(116,249

)

 

 

(16,818

)

 

 

(102,511

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

10,638

 

 

 

17,763

 

 

 

(16,260

)

 

 

56,956

 

 

 

17,763

 

 

 

(91,689

)

Provision for income taxes

 

 

(3,847

)

 

 

(3,940

)

 

 

(605

)

 

 

(15,183

)

 

 

(3,940

)

 

 

(1,065

)

Net income (loss)

 

 

6,791

 

 

 

13,823

 

 

 

(16,865

)

 

 

41,773

 

 

 

13,823

 

 

 

(92,754

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

 

(8,128

)

 

 

 

 

 

 

 

 

(8,128

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

 

$

(1,337

)

 

$

13,823

 

 

$

(16,865

)

 

$

33,645

 

 

$

13,823

 

 

$

(92,754

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share –
basic and diluted

 

$

(0.01

)

 

$

0.13

 

 

$

(1.09

)

 

$

0.26

 

 

$

0.13

 

 

$

(6.08

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

171,487

 

 

 

105,448

 

 

 

15,468

 

 

 

127,709

 

 

 

105,448

 

 

 

15,262

 

Diluted

 

 

171,487

 

 

 

105,463

 

 

 

15,468

 

 

 

127,709

 

 

 

105,463

 

 

 

15,262

 

 

 

 



COMSTOCK RESOURCES, INC.
OPERATING RESULTS

(In thousands)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2019

 

 

August 14 Through

September 30, 2018

 

 

July 1 Through

August 13,

2018

 

 

2019

 

 

August 14 Through September 30, 2018

 

 

January 1 Through

August 13,

2018

 

 

 

 

 

 

 

 

 

 

 

(Predecessor)

 

 

 

 

 

 

 

 

 

 

(Predecessor)

 

OPERATING CASH FLOW:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

6,791

 

 

$

13,823

 

 

$

(16,865

)

 

$

41,773

 

 

$

13,823

 

 

$

(92,754

)

Reconciling items:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

3,775

 

 

 

3,883

 

 

 

626

 

 

 

15,205

 

 

 

3,883

 

 

 

1,052

 

Depreciation, depletion and amortization

 

 

80,247

 

 

 

17,820

 

 

 

14,082

 

 

 

164,684

 

 

 

17,820

 

 

 

68,032

 

Unrealized loss from derivative financial instruments

 

 

1,189

 

 

 

2,206

 

 

 

413

 

 

 

1,437

 

 

 

2,206

 

 

 

1,961

 

Amortization of debt discount

 

 

6,009

 

 

 

822

 

 

 

6,190

 

 

 

9,206

 

 

 

822

 

 

 

29,457

 

Interest paid in-kind

 

 

 

 

 

 

 

 

4,990

 

 

 

 

 

 

 

 

 

25,004

 

Stock-based compensation

 

 

1,088

 

 

 

329

 

 

 

803

 

 

 

2,359

 

 

 

329

 

 

 

3,912

 

Transaction costs

 

 

39,657

 

 

 

 

 

 

2,549

 

 

 

41,100

 

 

 

 

 

 

2,866

 

Covey Park July 2019 hedging settlements

 

 

4,574

 

 

 

 

 

 

 

 

 

4,574

 

 

 

 

 

 

 

Loss (gain) on sale of oil and gas properties

 

 

 

 

 

(98

)

 

 

 

 

 

25

 

 

 

(98

)

 

 

35,438

 

Operating cash flow

 

 

143,330

 

 

 

38,785

 

 

 

12,788

 

 

 

280,363

 

 

 

38,785

 

 

 

74,968

 

Transaction costs

 

 

(39,657

)

 

 

 

 

 

(2,549

)

 

 

(41,100

)

 

 

 

 

 

(2,866

)

Covey Park July 2019 hedging settlements

 

 

(4,574

)

 

 

 

 

 

 

 

 

(4,574

)

 

 

 

 

 

 

Decrease (increase) in accounts receivable

 

 

27,670

 

 

 

(44,884

)

 

 

3,551

 

 

 

48,404

 

 

 

(44,884

)

 

 

2,834

 

Decrease (increase) in other current assets

 

 

5,545

 

 

 

(1,326

)

 

 

(304

)

 

 

7,137

 

 

 

(1,326

)

 

 

337

 

Increase (decrease) in accounts payable and accrued expenses

 

 

(22,534

)

 

 

11,034

 

 

 

(14,749

)

 

 

(7,424

)

 

 

11,034

 

 

 

10,462

 

Net cash provided by (used for) operating activities

 

$

109,780

 

 

$

3,609

 

 

$

(1,263

)

 

$

282,806

 

 

$

3,609

 

 

$

85,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

6,791

 

 

$

13,823

 

 

$

(16,865

)

 

$

41,773

 

 

$

13,823

 

 

$

(92,754

)

Interest expense

 

 

51,015

 

 

 

14,845

 

 

 

22,140

 

 

 

107,434

 

 

 

14,845

 

 

 

101,203

 

Income taxes

 

 

3,847

 

 

 

3,940

 

 

 

605

 

 

 

15,183

 

 

 

3,940

 

 

 

1,065

 

Depreciation, depletion and amortization

 

 

80,247

 

 

 

17,820

 

 

 

14,082

 

 

 

164,684

 

 

 

17,820

 

 

 

68,032

 

Unrealized loss from derivative financial instruments

 

 

1,189

 

 

 

2,206

 

 

 

413

 

 

 

1,437

 

 

 

2,206

 

 

 

1,961

 

Stock-based compensation

 

 

1,088

 

 

 

329

 

 

 

803

 

 

 

2,359

 

 

 

329

 

 

 

3,912

 

Exploration expense

 

 

241

 

 

 

 

 

 

 

 

 

241

 

 

 

 

 

 

 

Transaction costs

 

 

39,657

 

 

 

 

 

 

2,549

 

 

 

41,100

 

 

 

 

 

 

2,866

 

Covey Park July 2019 hedging settlements

 

 

4,574

 

 

 

 

 

 

 

 

 

4,574

 

 

 

 

 

 

 

Loss (gain) on sale of oil and gas properties

 

 

 

 

 

(98

)

 

 

 

 

 

25

 

 

 

(98

)

 

 

35,438

 

Total Adjusted EBITDAX

 

$

188,649

 

 

$

52,865

 

 

$

23,727

 

 

$

378,810

 

 

$

52,865

 

 

$

121,723

 

 

 

 

As of
September 30,

2019

 

 

As of
December 31,

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET DATA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,243

 

 

$

23,193

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other current assets

 

 

152,878

 

 

 

120,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments

 

 

84,260

 

 

 

15,401

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

3,917,010

 

 

 

1,667,979

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

344,918

 

 

 

360,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

4,552,309

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

389,460

 

 

$

206,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

 

 

2,508,074

 

 

 

1,244,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deferred income taxes

 

 

188,218

 

 

 

161,917

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current liabilities

 

 

10,264

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset retirement obligation

 

 

11,095

 

 

 

5,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

375,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

1,070,198

 

 

 

569,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

4,552,309

 

 

$

2,187,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30, 2019

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

Bakken

 

 

Eagle Ford

 

 

Other

 

Total

 

Gas production (MMcf)

 

 

91,289

 

 

 

1,114

 

 

1,764

 

 

 

94

 

 

 

2,975

 

 

97,236

 

Oil production (Mbbls)

 

 

2

 

 

 

10

 

 

508

 

 

 

79

 

 

 

4

 

 

603

 

Total production (MMcfe)

 

 

91,304

 

 

 

1,175

 

 

4,818

 

 

 

565

 

 

 

2,997

 

 

100,859

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

186,010

 

 

$

2,153

 

$

(1,018

)

 

$

193

 

 

$

6,168

 

$

193,506

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26,030

 

Total natural gas including hedging

 

 

186,010

 

 

 

2,153

 

 

(1,018

)

 

 

193

 

 

 

6,168

 

 

219,536

 

Oil sales

 

 

198

 

 

 

556

 

 

25,717

 

 

 

4,213

 

 

 

254

 

 

30,938

 

Oil hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17

 

Total oil including hedging

 

 

198

 

 

 

556

 

 

25,717

 

 

 

4,213

 

 

 

254

 

 

30,955

 

Total oil and gas sales including hedging

 

$

186,208

 

 

$

2,709

 

$

24,699

 

 

$

4,406

 

 

$

6,422

 

$

250,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.04

 

 

$

1.93

 

$

(0.58

)

 

$

2.05

 

 

$

2.07

 

$

1.99

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.26

 

Average oil price (per barrel)

 

$

76.36

 

 

$

55.47

 

$

50.54

 

 

$

53.65

 

 

$

67.91

 

$

51.24

 

Average oil price including hedging (per barrel)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

51.27

 

Average price (per Mcfe)

 

$

2.04

 

 

$

2.31

 

$

5.13

 

 

$

7.80

 

 

$

2.14

 

$

2.23

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

3,918

 

 

$

65

 

$

2,554

 

 

$

176

 

 

$

253

 

$

6,966

 

Gathering and transportation

 

$

21,388

 

 

$

237

 

$

 

 

$

 

 

$

1,789

 

$

23,414

 

Lease operating

 

$

17,112

 

 

$

3,741

 

$

5,940

 

 

$

109

 

 

$

2,209

 

$

29,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.04

 

 

$

0.06

 

$

0.53

 

 

$

0.31

 

 

$

0.08

 

$

0.07

 

Gathering and transportation (per Mcfe)

 

$

0.23

 

 

$

0.20

 

$

 

 

$

 

 

$

0.60

 

$

0.23

 

Lease operating (per Mcfe)

 

$

0.19

 

 

$

3.18

 

$

1.23

 

 

$

0.19

 

 

$

0.74

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

2,055,623

 

 

$

 

$

 

 

$

 

 

$

 

$

2,055,623

 

Development leasehold

 

 

2,392

 

 

 

15

 

 

 

 

 

 

 

 

 

 

2,407

 

Development drilling and completion

 

 

167,443

 

 

 

11

 

 

1,982

 

 

 

311

 

 

 

 

 

169,747

 

Other development

 

 

1,502

 

 

 

 

 

 

 

 

 

 

 

 

 

1,502

 

Total

 

$

2,226,960

 

 

$

26

 

$

1,982

 

 

$

311

 

 

$

 

$

2,229,279

 

 

 

 

(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 Period August 14, 2018 Through September 30, 2018

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

 

Bakken

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

12,237

 

 

 

536

 

 

 

1,272

 

 

 

53

 

 

 

14,098

 

Oil production (Mbbls)

 

 

 

 

 

5

 

 

 

536

 

 

 

1

 

 

 

542

 

Total production (MMcfe)

 

 

12,237

 

 

 

566

 

 

 

4,487

 

 

 

61

 

 

 

17,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

32,995

 

 

$

1,770

 

 

$

1,466

 

 

$

162

 

 

$

36,393

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

191

 

Total natural gas including hedging

 

 

32,995

 

 

 

1,770

 

 

 

1,466

 

 

 

162

 

 

 

36,584

 

Oil sales

 

 

 

 

 

320

 

 

 

33,240

 

 

 

170

 

 

 

33,730

 

Total oil and gas sales including hedging

 

$

32,995

 

 

 

2,090

 

 

 

34,706

 

 

 

332

 

 

$

70,314

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.70

 

 

$

3.30

 

 

$

1.15

 

 

$

3.07

 

 

$

2.58

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.59

 

Average oil price (per barrel)

 

$

 

 

$

64.00

 

 

$

62.01

 

 

$

140.66

 

 

$

62.21

 

Average price (per Mcfe)

 

$

2.70

 

 

$

3.69

 

 

$

7.73

 

 

$

5.44

 

 

$

4.04

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4.05

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

776

 

 

$

37

 

 

$

3,214

 

 

$

24

 

 

$

4,051

 

Gathering and transportation

 

$

3,231

 

 

$

189

 

 

$

 

 

$

30

 

 

$

3,450

 

Lease operating

 

$

1,988

 

 

$

1,627

 

 

$

3,250

 

 

$

151

 

 

$

7,016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.06

 

 

$

0.07

 

 

$

0.72

 

 

$

0.42

 

 

$

0.23

 

Gathering and transportation (per Mcfe)

 

$

0.26

 

 

$

0.33

 

 

$

 

 

$

0.50

 

 

$

0.20

 

Lease operating (per Mcfe)

 

$

0.17

 

 

$

2.87

 

 

$

0.72

 

 

$

2.46

 

 

$

0.41

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

17,905

 

 

$

 

 

$

 

 

$

 

 

$

17,905

 

Development leasehold

 

 

475

 

 

 

 

 

 

 

 

 

 

 

 

475

 

Development drilling and completion

 

 

33,404

 

 

 

 

 

 

15,615

 

 

 

 

 

 

49,019

 

Other development

 

 

7,810

 

 

 

 

 

 

 

 

 

 

 

 

7,810

 

Total

 

$

59,594

 

 

$

 

 

$

15,615

 

 

$

 

 

$

75,209

 

 

 

 

(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 Period July 1, 2018 Through August 13, 2018 (Predecessor)

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

 

Other

 

 

Total

 

Gas production (MMcf)

 

 

11,342

 

 

 

464

 

 

 

70

 

 

 

11,876

 

Oil production (Mbbls)

 

 

 

 

 

5

 

 

 

2

 

 

 

7

 

Total production (MMcfe)

 

 

11,342

 

 

 

498

 

 

 

79

 

 

 

11,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

30,533

 

 

$

1,301

 

 

$

255

 

 

$

32,089

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

330

 

Total natural gas including hedging

 

 

30,533

 

 

 

1,301

 

 

 

255

 

 

 

32,419

 

Oil sales

 

 

 

 

 

386

 

 

 

113

 

 

 

499

 

Total oil and gas sales including hedging

 

$

30,533

 

 

$

1,687

 

 

$

368

 

 

$

32,918

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

 

$

2.69

 

 

$

2.80

 

 

$

3.64

 

 

$

2.70

 

Average gas price including hedging (per Mcf)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.73

 

Average oil price (per barrel)

 

$

 

 

$

68.87

 

 

$

71.37

 

 

$

69.42

 

Average price (per Mcfe)

 

$

2.69

 

 

$

3.36

 

 

$

4.66

 

 

$

2.73

 

Average price including hedging (per Mcfe)

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes

 

$

655

 

 

$

29

 

 

$

23

 

 

$

707

 

Gathering and transportation

 

$

2,985

 

 

$

97

 

 

$

27

 

 

$

3,109

 

Lease operating

 

$

1,699

 

 

$

1,545

 

 

$

174

 

 

$

3,418

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Production taxes (per Mcfe)

 

$

0.06

 

 

$

0.06

 

 

$

0.29

 

 

$

0.06

 

Gathering and transportation (per Mcfe)

 

$

0.26

 

 

$

0.19

 

 

$

0.34

 

 

$

0.26

 

Lease operating (per Mcfe)

 

$

0.15

 

 

$

3.10

 

 

$

2.21

 

 

$

0.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

39,323

 

 

$

 

 

$

 

 

$

39,323

 

Development leasehold

 

 

504

 

 

 

 

 

 

 

 

 

504

 

Development drilling and completion

 

 

14,211

 

 

 

 

 

 

 

 

 

14,211

 

Other development

 

 

2,958

 

 

 

 

 

 

 

 

 

2,958

 

Total

 

$

56,996

 

 

$

 

 

$

 

 

$

56,996

 

 

 

 

 

(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 Nine Months Ended September 30, 2019

 

 

 

Haynesville/ Bossier

 

 

Cotton
Valley

 

Bakken

 

 

Eagle Ford

 

 

Other

 

Total

 

Gas production (MMcf)

 

 

160,500

 

 

 

2,941

 

 

4,577

 

 

 

94

 

 

 

3,201

 

 

171,313

 

Oil production (Mbbls)

 

 

3

 

 

 

28

 

 

1,987

 

 

 

79

 

 

 

11

 

 

2,108

 

Total production (MMcfe)

 

 

160,518

 

 

 

3,108

 

 

16,502

 

 

 

565

 

 

 

3,271

 

 

183,964

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

 

$

359,009

 

 

$

6,826

 

 

2,839

 

 

$

193

 

 

$

6,722

 

$

375,589

 

Natural gas hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

32,995

 

Total natural gas including hedging

 

 

359,009

 

 

 

6,826

 

 

2,839

 

 

 

193

 

 

 

6,722

 

 

408,584

 

Oil sales

 

 

223

 

 

 

1,533

 

 

97,214

 

 

 

4,213

 

 

 

669

 

 

103,852

 

Oil hedging settlements(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

387

 

Total oil including hedging

 

 

223

 

 

 

1,533

 

 

97,214

 

 

 

4,213