Comstock Resources, Inc. Reports Fourth Quarter and Annual 2009 Financial and Operating Results
FRISCO, Texas, Feb. 8 /PRNewswire-FirstCall/ -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the three months and year ended December 31, 2009. Reported results for the year ended December 31, 2008 reflect the Company's offshore operations, which were sold during 2008, as discontinued operations.
Financial Results for the Three Months Ended December 31, 2009
Comstock reported a net loss of $6.8 million or 15 cents per share for the fourth quarter of 2009 as compared to 2008's fourth quarter net loss of $96.4 million or $2.09 per diluted share. The loss in the fourth quarter of 2009 is primarily attributable to the low natural gas prices in 2009. The loss in 2008 was primarily due to a $162.7 million ($105.8 million after tax) impairment to the value of the Company's marketable securities. Comstock averaged $4.34 per Mcf for sales of its natural gas production in the fourth quarter of 2009, 33% less than the $6.44 per Mcf realized in the fourth quarter of 2008. Realized oil prices in the fourth quarter of 2009 improved to $64.76 per barrel from $52.16 per barrel in the fourth quarter of 2008.
Comstock's production in the fourth quarter of 2009 increased 27% to 19.1 billion cubic feet of natural gas equivalent ("Bcfe") as compared to 15.1 Bcfe produced in the fourth quarter of 2008. The 2009 fourth quarter average daily production rate of 207.5 million cubic feet of natural gas equivalent ("MMcfe") also increased 13% from the 2009 third quarter production rate of 184.3 MMcfe per day. The increase in production is primarily attributable to Comstock's successful Haynesville shale drilling program. Production from the Company's Haynesville shale wells comprised 83.6 MMcfe per day of the total 207.5 MMcfe per day production rate in the fourth quarter of 2009. The Haynesville shale wells comprised only 1.5 MMcfe per day of the production during the fourth quarter of 2008.
The lower natural gas prices caused oil and gas sales to decrease 10% to $90.2 million in the fourth quarter of 2009 as compared to 2008's fourth quarter sales of $100.2 million, despite the significant increase in production. Comstock's operating cash flow (before changes in working capital accounts) in the fourth quarter of 2009 was $67.5 million as compared to 2008's fourth quarter operating cash flow of $79.5 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, was $64.4 million in 2009's fourth quarter as compared to 2008's fourth quarter EBITDAX of $71.5 million.
Financial Results for the Year Ended December 31, 2009
Comstock reported a net loss of $36.5 million or 81 cents per share for the year ended December 31, 2009 as compared to net income from continuing operations of $58.2 million or $1.26 per diluted share for the year ended December 31, 2008. The loss for 2009 is primarily attributable to the low natural gas prices realized during 2009. Comstock averaged $4.13 per Mcf for sales of its natural gas production in 2009, 53% lower than the $8.83 per Mcf realized in 2008. Realized oil prices in 2009 averaged $50.94 per barrel, 42% lower than the $87.15 per barrel realized in 2008. Comstock's production for the year increased 13% to 65.5 Bcfe as compared to pro forma production of 58.2 Bcfe in 2008, which excludes production from properties sold during 2008.
Oil and gas sales for 2009 decreased 48% to $290.9 million from $563.7 million in 2008. Operating cash flow (before changes in working capital accounts) generated in 2009 was $224.4 million as compared to operating cash flow from continuing operations of $438.2 million in 2008. EBITDAX was $198.7 million in 2009 as compared to EBITDAX from continuing operations of $458.7 million in 2008.
2009 Drilling Results
During 2009, Comstock drilled 54 wells (38.6 net), all of which were successful. 46 of the 54 wells drilled were horizontal wells. The Company's 2009 drilling program was primarily focused on developing its Haynesville shale properties in East Texas and North Louisiana. During 2009, Comstock drilled 43 horizontal wells (30.7 net) in the Haynesville or Bossier shale. Forty of the 43 horizontal Haynesville wells have been successfully completed and were tested at an average per well initial production rate of 13.2 MMcfe per day. Included in the 40 wells are eight (1.1 net) non-operated wells drilled in DeSoto Parish in North Louisiana. These wells have an average per well initial production of 13.6 MMcfe per day.
Since the Company's last operational update, Comstock has completed nine additional successful operated Haynesville shale horizontal wells in DeSoto Parish in North Louisiana. Three wells are in the Company's Toledo Bend North field, five are in the Logansport field and one is in its Mansfield field.
In the Toledo Bend North field, the BSMC 11 #1H was drilled to a vertical depth of 11,488 feet with a 4,431 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 7.3 MMcfe per day. Comstock has an 88% working interest in this well. The BSMC 13 #1H was drilled to a vertical depth of 11,585 feet with a 4,501 foot horizontal lateral. The well was completed with 12 frac stages and was tested with an initial production rate of 11.0 MMcfe per day. Comstock has a 76% working interest in this well. The BSMC 5 #2H was drilled to a vertical depth of 11,467 feet with a 4,571 foot horizontal lateral. The well was completed with 12 frac stages and was tested with an initial production rate of 8.7 MMcfe per day. Comstock has an 88% working interest in this well.
In the Logansport field, the Caraway 29 #1H well was drilled to a vertical depth of 11,080 feet with a 4,461 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 18.9 MMcfe per day. Comstock has an 88% working interest in this well. The Collins 10 #1H well was drilled to a vertical depth of 11,460 feet with a 4,452 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 17.0 MMcfe per day. Comstock has a 70% working interest in this well. The Horn 8 #1H well was drilled to a vertical depth of 11,228 feet with a 4,371 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 17.5 MMcfe per day. Comstock has a 98% working interest in this well. The Lackey 21 #1H well was drilled to a vertical depth of 11,465 feet with a 4,436 foot horizontal lateral. The well was completed with 12 frac stages and was tested at an initial production rate of 14.7 MMcfe per day. Comstock has a 100% working interest in this well. The Whitehead 9 #1H well was drilled to a vertical depth of 11,421 feet with a 4,403 foot horizontal lateral. The well was completed with 18 frac stages and was tested at an initial production rate of 20.3 MMcfe per day. Comstock has a 59% working interest in this well.
In the Mansfield field, the Calhoun #1H well was drilled to a vertical depth of 12,306 feet with a 3,723 foot horizontal lateral. The well was completed with 10 frac stages and was tested at an initial production rate of 17.5 MMcfe per day. Comstock has a 68% working interest in this well.
In its South Texas region, Comstock drilled five successful wells (3.4 net) in 2009. These wells were drilled in the Ball Ranch and Fandango fields and have an average per well initial production rate of 9.5 MMcfe per day.
Comstock has planned a conference call for 9:30 a.m. Central Time on Tuesday, February 9, 2010, to discuss the operational and financial results for the fourth quarter of 2010. Investors wishing to participate should visit our website at www.comstockresources.com for a live web cast or dial 1-866-800-8651 (international dial-in use 617-614-2704) and provide access code 91062875 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.
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 and is engaged in oil and gas acquisitions, exploration and development primarily in Texas and Louisiana. 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 Year Ended
December 31, December 31,
----------------- -----------------
2009 2008 2009 2008
-------- -------- -------- --------
Revenues:
Oil and gas sales $90,201 $100,154 $290,863 $563,749
Gain on sale of assets 213 - 213 26,560
Operating expenses:
Oil and gas operating 18,716 20,610 69,179 86,730
Exploration 536 - 907 5,032
Depreciation, depletion and
amortization 61,237 50,309 213,238 182,179
Impairment of oil and gas
properties - 922 115 922
General and administrative 11,613 11,938 39,172 32,266
------ ------ ------ ------
Total operating expenses 92,102 83,779 322,611 307,129
------ ------ ------- -------
Operating income (loss) from
continuing operations (1,688) 16,375 (31,535) 283,180
Other income (expenses):
Interest income 210 584 245 1,537
Other income 18 32 133 119
Interest expense (7,779) (2,088) (16,086) (25,336)
Marketable securities
impairment - (162,672) - (162,672)
------ ------ ------ ------
Total other income
(expenses) (7,551) (164,144) (15,708) (186,352)
------ ------ ------ ------
Income (loss) from continuing
operations before income taxes ( 9,239) (147,769) (47,243) 96,828
Benefit from (provision for)
income taxes 2,472 51,392 10,772 (38,611)
------ ------ ------ ------
Income (loss) from continuing
operations (6,767) (96,377) (36,471) 58,217
------ ------ ------ ------
Income from discontinued
operations after income taxes
and minority interest - - - 193,745
------ ------ ------ ------
Net income (loss) $(6,767) $(96,377) $(36,471) $251,962
======= ======== ======== ========
Basic net income (loss)
per share:
Continuing operations $(0.15) $(2.09) $(0.81) $1.27
Discontinued operations - - - 4.23
------ ------ ------ -----
$(0.15) $(2.09) $(0.81) $5.50
====== ====== ====== =====
Diluted net income (loss)
per share:
Continuing operations $(0.15) $(2.09) $(0.81) $1.26
Discontinued operations - - - 4.20
------ ------ ------ -----
$(0.15) $(2.09) $(0.81) $5.46
====== ====== ====== =====
Weighted average shares
outstanding:
Basic 45,042 44,751 45,004 44,524
====== ====== ====== ======
Diluted(1) 45,042 44,751 45,004 44,813
====== ====== ====== ======
(1) For 2009 and the three months ended December 31, 2008, basic and
diluted shares are the same due to the net loss.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
------------------- ------------------
2009 2008 2009 2008
-------- -------- -------- --------
OPERATING CASH FLOW:
Net income (loss) from
continuing operations $(6,767) $(96,377) $(36,471) $58,217
Reconciling items:
Deferred income taxes 8,478 (41,551) 30,796 43,620
Dry hole costs and
lease impairments - - - 4,113
Depreciation, depletion
and amortization 61,237 50,309 213,238 182,179
Gain on sale of assets (213) - (213) (26,560)
Impairment of oil and
gas properties - 922 115 922
Marketable securities
impairment - 162,672 - 162,672
Debt issuance cost and
discount amortization 554 202 1,162 810
Stock-based compensation 4,250 3,295 15,783 12,263
----- ----- ------ ------
Operating cash flow 67,539 79,472 224,410 438,236
Excess tax benefit
from stock-based
compensation (123) - (1,097) (8,805)
(Increase) decrease
in accounts receivable (10,046) 21,156 1,997 6,418
Increase in other
current assets (4,549) (888) (27,927) (9,646)
Increase (decrease) in
accounts payable and
accrued expenses 5,586 19,757 (21,126) 24,330
----- ------ ------ ------
Net cash provided by
operating activities
from continuing
operations $58,407 $119,497 $176,257 $450,533
======= ======== ======== ========
EBITDAX:
Income (loss) from
continuing operations $(6,767) $(96,377) $(36,471) $58,217
Gain on sale of assets (213) - (213) (26,560)
Interest expense 7,779 2,088 16,086 25,336
Income tax expense (benefit) (2,472) (51,392) (10,772) 38,611
Depreciation, depletion and
amortization 61,237 50,309 213,238 182,179
Impairment of oil and gas
properties - 922 115 922
Marketable securities
impairment - 162,672 - 162,672
Stock-based compensation 4,250 3,295 15,783 12,263
Exploration 536 - 907 5,032
--- --- --- -----
EBITDAX from
continuing
operations $64,350 $71,517 $198,673 $458,672
======= ======= ======== ========
As of December 31,
--------------------
2009 2008
--------- ---------
Balance Sheet Data:
Cash and cash equivalents $90,472 $6,281
Derivative financial instruments - 13,974
Income taxes receivable 42,402 1,824
Deferred income taxes receivable - 4,995
Marketable securities 95,973 48,868
Other current assets 44,539 54,086
Property and equipment, net 1,576,287 1,444,715
Other 9,288 3,147
----- -----
Total assets $1,858,961 $1,577,890
========== ==========
Accounts payable and accrued expenses $88,183 $114,455
Current deferred income taxes payable 6,588 -
Long-term debt 470,836 210,000
Deferred income taxes 220,682 185,870
Asset retirement obligation 6,561 5,480
Stockholders' equity 1,066,111 1,062,085
--------- ---------
Total liabilities and
stockholders' equity $1,858,961 $1,577,890
========== ==========
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months Ended
December 31, 2009
---------------------------------------
East Texas/
North South
Louisiana Texas Other Total
---------- ------- ------- -------
Oil production (thousand
barrels) 43 42 106 191
Gas production (Mmcf) 12,770 4,356 817 17,943
Total production (Mmcfe) 13,031 4,603 1,454 19,088
Oil sales $3,125 $3,034 $6,199 $12,358
Gas sales 48,903 19,279 3,671 71,853
Gas hedging gains - 5,990 - 5,990
--- ----- --- -----
Total gas sales 48,903 25,269 3,671 77,843
------ ------ ----- ------
Total oil and gas sales $52,028 $28,303 $9,870 $90,201
======= ======= ====== ========
Average oil price (per barrel) $72.04 $73.78 $58.31 $64.76
Average gas price (per Mcf) $3.83 $4.43 $4.49 $4.00
Average gas price including
hedging (per Mcf) $3.83 $5.80 $4.49 $4.34
Average price (per Mcfe) $3.99 $4.85 $6.79 $4.41
Average price including hedging
(per Mcfe) $3.99 $6.15 $6.79 $4.73
Production taxes $2,906 $(329) $580 $3,157
Lifting cost $8,518 $4,065 $2,976 $15,559
Production taxes (per Mcfe) $0.22 $(0.07) $0.40 $0.17
Lifting cost (per Mcfe) $0.66 $0.88 $2.05 $0.81
Oil and Gas Capital
Expenditures:
Leasehold costs $17,343 $173 $79 $17,595
Exploratory drilling 10,196 4 - 10,200
Development drilling 61,162 846 152 62,160
Other development 538 430 17 985
--- ----- --- -----
Total $89,239 $1,453 $248 $90,940
======= ====== ==== =======
For the Three Months Ended
December 31, 2008
---------------------------------------
East Texas/
North South
Louisiana Texas Other Total
---------- ------- ------- -------
Oil production (thousand
barrels) 73 37 124 234
Gas production (Mmcf) 7,927 4,903 830 13,660
Total production (Mmcfe) 8,365 5,126 1,577 15,068
Oil sales $4,477 $2,252 $5,509 $12,238
Gas sales 51,285 29,668 4,415 85,368
Gas hedging gains - 2,548 - 2,548
--- ----- --- -----
Total gas sales 51,285 32,216 4,415 87,916
------ ------ ----- ------
Total oil and gas sales $55,762 $34,468 $9,924 $100,154
======= ======= ====== ========
Average oil price (per barrel) $61.30 $60.68 $44.26 $52.16
Average gas price (per Mcf) $6.47 $6.05 $5.32 $6.25
Average gas price including
hedging (per Mcf) $6.47 $6.57 $5.32 $6.44
Average price (per Mcfe) $6.67 $6.23 $6.29 $6.48
Average price including hedging
(per Mcfe) $6.67 $6.72 $6.29 $6.65
Production taxes $1,964 $(823) $615 $1,756
Lifting cost $8,924 $6,189 $3,741 $18,854
Production taxes (per Mcfe) $0.23 $(0.16) $0.39 $0.12
Lifting cost (per Mcfe) $1.07 $1.21 $2.37 $1.25
Oil and Gas Capital
Expenditures:
Leasehold costs $7,711 $547 $67 $8,325
Exploratory drilling 43,544 12,170 2,221 57,935
Development drilling 33,269 14,922 31 48,222
Other development 3 1,320 97 1,420
--- ----- --- -----
Total $84,527 $28,959 $2,416 $115,902
======= ======= ====== ========
For the Year Ended
December 31, 2009
---------------------------------------
East Texas/
North South
Louisiana Texas Other Total
---------- ------- ------- -------
Oil production (thousand
barrels) 210 164 401 775
Gas production (Mmcf) 39,048 18,921 2,851 60,820
Total production (Mmcfe) 40,309 19,902 5,257 65,468
Oil sales $11,310 $9,344 $18,802 $39,456
Gas sales 139,912 74,572 10,601 225,085
Gas hedging gains (losses) - 26,322 - 26,322
--- ------ --- ------
Total gas sales 139,912 100,894 10,601 251,407
------- ------- ------ -------
Total oil and gas sales $151,222 $110,238 $29,403 $290,863
======== ======== ======= ========
Average oil price (per barrel) $53.83 $57.19 $46.88 $50.94
Average gas price (per Mcf) $3.58 $3.94 $3.72 $3.70
Average gas price including
hedging (per Mcf) $3.58 $5.33 $3.72 $4.13
Average price (per Mcfe) $3.75 $4.22 $5.59 $4.04
Average price including hedging
(per Mcfe) $3.75 $5.54 $5.59 $4.44
Production taxes $4,862 $2,041 $1,740 $8,643
Lifting cost $30,451 $17,309 $12,776 $60,536
Production taxes (per Mcfe) $0.12 $0.10 $0.33 $0.13
Lifting cost (per Mcfe) $0.76 $0.87 $2.43 $0.93
Oil and Gas Capital
Expenditures:
Leasehold costs $26,887 $817 $234 $27,938
Exploratory drilling 99,113 1,936 - 101,049
Development drilling 178,349 27,279 273 205,901
Other development 4,574 4,662 343 9,579
----- ----- --- -----
Total $308,923 $34,694 $850 $344,467
======== ======== ==== ========
For the Year Ended
December 31, 2008
---------------------------------------
East Texas/
North South
Louisiana Texas Other Total
---------- ------- ------- -------
Oil production (thousand
barrels) 299 179 531 1,009
Gas production (Mmcf) 29,322 21,536 3,009 53,867
Total production (Mmcfe) 31,117 22,611 6,195 59,923
Oil sales $29,690 $18,264 $40,003 $87,957
Gas sales 263,740 192,661 24,201 480,602
Gas hedging gains (losses) - (4,810) - (4,810)
--- ----- --- -----
Total gas sales 263,740 187,851 24,201 475,792
------- ------- ------ -------
Total oil and gas sales $293,430 $206,115 $64,204 $563,749
======== ========= ======= ========
Average oil price (per barrel) $99.23 $101.96 $75.34 $87.15
Average gas price (per Mcf) $8.99 $8.95 $8.04 $8.92
Average gas price including
hedging (per Mcf) $8.99 $8.72 $8.04 $8.83
Average price (per Mcfe) $9.43 $9.33 $10.36 $9.49
Average price including hedging
(per Mcfe) $9.43 $9.12 $10.36 $9.41
Production taxes $9,608 $7,270 $3,770 $20,648
Lifting cost $29,413 $20,408 $16,261 $66,082
Production taxes (per Mcfe) $0.31 $0.32 $0.61 $0.34
Lifting cost (per Mcfe) $0.94 $0.90 $2.62 $1.11
Oil and Gas Capital
Expenditures:
Leasehold costs $116,931 $2,159 $175 $119,265
Exploratory drilling 43,544 14,953 2,616 61,113
Development drilling 170,612 57,955 2,037 230,604
Other development 1,454 9,388 3,406 14,248
----- ----- ----- ------
Total $332,541 $84,455 $8,234 $425,230
======== ======= ====== ========
SOURCE Comstock Resources, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article