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COMSTOCK RESOURCES, INC. REPORTS THIRD QUARTER 2019 FINANCIAL AND OPERATING RESULTS


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Source: Comstock Resources, Inc.

Frisco, TX, Nov. 07, 2019 (GLOBE NEWSWIRE) — 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 4,213 669 104,239
Total oil and gas sales including hedging………………………………………………………… $ 359,232 $ 8,359 $ 100,053 $ 4,406 $ 7,391 $ 512,823
Average gas price (per Mcf)……………………………………………………………………. $ 2.24 $ 2.32 $ 0.62 $ 2.05 $ 2.10 $ 2.19
Average gas price including hedging (per Mcf)……………………………………………………………………. $ 2.39
Average oil price (per barrel)…………………………………………………………………. $ 71.60 $ 55.16 $ 48.91 $ 53.65 $ 57.79 $ 49.26
Average oil price including hedging (per barrel)…………………………………………………………………. $ 49.44
Average price (per Mcfe)………………………………………………………………….. $ 2.24 $ 2.69 $ 6.06 $ 7.80 $ 2.26 $ 2.61
Average price including hedging (per Mcfe)………………………………………………………………….. $ 2.79
Production taxes……………………………………………………………………… $ 7,429 $ 272 $ 10,526 $ 176 $ 329 $ 18,732
Gathering and transportation……………………………………………………….. $ 38,980 $ 394 $ $ $ 1,972 $ 41,346
Lease operating……………………………………………………………….. $ 26,742 $ 10,347 $ 18,665 $ 109 $ 2,585 $ 58,448
Production taxes (per Mcfe)………………………………………………………………….. $ 0.05 $ 0.09 $ 0.64 $ 0.31 $ 0.10 $ 0.10
Gathering and transportation (per Mcfe)…………………………………………………………………. $ 0.24 $ 0.13 $ $ $ 0.60 $ 0.22
Lease operating (per Mcfe)………………………………………………………………….. $ 0.17 $ 3.32 $ 1.13 $ 0.19 $ 0.79 $ 0.32
Oil and Gas Capital Expenditures:
Acquisitions……………………………………………………….. $ 2,055,623 $ $ $ $ $ 2,055,623
Development leasehold………………………………………………………….. 6,698 15 6,713
Development drilling and completion……………………………………………………….. 323,298 11 3,121 16,235 342,665
Other development……………………………………………………….. 6,218 6,218
Total………………………………………………………………… $ 2,391,837 $ 26 $ 3,121 $ 16,235 $ $ 2,411,219

                                                           
(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 January 1, 2018 Through August 13, 2018 (Predecessor)
Haynesville/ Bossier     Cotton
Valley
  Eagle Ford     Other   Total
Gas production (MMcf)…………………………………………………………………….. 52,021 2,365 379 475 55,240
Oil production (Mbbls)………………………………………………………………….. 27 247 13 287
Total production (MMcfe)…………………………………………………………………. 52,021 2,528 1,860 554 56,963
Natural gas sales…………………………………………………………………………. $ 138,391 $ 6,527 $ 1,590 $ 1,389 $ 147,897
Natural gas hedging settlements(1)……………………………………………………………… 2,842
Total natural gas including hedging……………………………………………………………. 138,391 6,527 $ 1,590 $ 1,389 150,739
Oil sales…………………………………………………………………………. 1,760 16,157 816 18,733
Total oil and gas sales including hedging……………………………………………………………. $ 138,391 $ 8,287 $ 17,747 $ 2,205 $ 169,472
Average gas price (per Mcf)……………………………………………………………………….. $ 2.66 $ 2.76 $ 4.20 $ 2.92 $ 2.68
Average gas price including hedging (per Mcf)……………………………………………………………………….. $ 2.73
Average oil price (per barrel)…………………………………………………………………….. $ $ 64.71 $ 65.46 $ 62.00 $ 65.23
Average price (per Mcfe)……………………………………………………………………… $ 2.66 $ 3.28 $ 9.54 $ 3.98 $ 2.93
Average price including hedging (per Mcfe)……………………………………………………………………… $ 2.98
Production taxes…………………………………………………………………………. $ 2,556 $ 124 $ 831 $ 148 $ 3,659
Gathering and transportation…………………………………………………………… $ 10,728 $ 483 $ 463 $ 167 $ 11,841
Lease operating…………………………………………………………………… $ 7,675 $ 7,935 $ 4,829 $ 700 $ 21,139
Production taxes (per Mcfe)……………………………………………………………………… $ 0.05 $ 0.05 $ 0.45 $ 0.27 $ 0.06
Gathering and transportation (per Mcfe)…………………………………………………………………….. $ 0.21 $ 0.19 $ 0.25 $ 0.30 $ 0.21
Lease operating (per Mcfe)……………………………………………………………………… $ 0.14 $ 3.14 $ 2.59 $ 1.26 $ 0.37
Oil and Gas Capital Expenditures:
Acquisitions…………………………………………………………… $ 39,323 $ $ $ $ 39,323
Development leasehold……………………………………………………………… 2,848 2,848
Development drilling and completion…………………………………………………………… 90,840 90,840
Other development…………………………………………………………… 13,205 393 273 13,871
Total……………………………………………………………………. $ 146,216 $ $ 393 $ 273 $ 146,882

                                               
(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 September 30, 2019   For the Nine Months Ended September 30, 2019  
Comstock     Covey
Park 
  Pro Forma Combined Comstock     Covey Park(2)   Pro Forma Combined
Gas production (MMcf)……………………………………………………………. 97,236 10,654 107,890 171,313 141,610 312,923
Oil production (Mbbls)…………………………………………………………. 603 2 605 2,108 22 2,130
Total production (MMcfe)………………………………………………………… 100,859 10,666 111,525 183,964 141,742 325,706
Natural gas sales………………………………………………………………… $ 193,506 $ 22,680 $ 216,186 $ 375,589 $ 377,368 $ 752,957
Natural gas hedging settlements(1)…………………………………………………….. 26,030 8,863 34,893 32,995 12,687 45,682
Total natural gas including hedging…………………………………………………… 219,536 31,543 251,079 408,584 390,055 798,639
Oil sales…………………………………………………………………. 30,938 68 31,006 103,852 1,233 105,085
Oil hedging settlements(1)…………………………………………………….. 17 17 387 387
Total oil including hedging…………………………………………………… 30,955 68 31,023 104,239 1,233 105,472
Total oil and gas sales including hedging…………………………………………………… $ 250,491 $ 31,611 $ 282,102 $ 512,823 $ 391,288 $ 904,111
Average gas price (per Mcf)………………………………………………………………. $ 1.99 $ 2.13 $ 2.00 $ 2.19 $ 2.66 $ 2.41
Average gas price including hedging (per Mcf)………………………………………………………………. $ 2.26 $ 2.96 $ 2.33 $ 2.39 $ 2.75 $ 2.55
Average oil price (per barrel)…………………………………………………………….. $ 51.24 $ 34.00 $ 51.18 $ 49.26 $ 56.05 $ 49.33
Average oil price including hedging (per barrel)…………………………………………………………….. $ 51.27 $ 34.00 $ 51.21 $ 49.44 $ 56.05 $ 49.51
Average price (per Mcfe)…………………………………………………………….. $ 2.23 $ 2.13 $ 2.22 $ 2.61 $ 2.67 $ 2.64
Average price including hedging (per Mcfe)…………………………………………………………….. $ 2.48 $ 2.96 $ 2.53 $ 2.79 $ 2.76 $ 2.78
Production taxes………………………………………………………………… $ 6,966 $ 588 $ 7,554 $ 18,732 $ 8,868 $ 27,600
Gathering and transportation………………………………………………….. $ 23,414 $ 2,546 $ 25,960 $ 41,346 $ 35,188 $ 76,534
Lease operating…………………………………………………………… $ 29,111 $ 2,782 $ 31,893 $ 58,448 $ 37,043 $ 95,491
Production taxes (per Mcfe)…………………………………………………………….. $ 0.07 $ 0.06 $ 0.07 $ 0.10 $ 0.06 $ 0.08
Gathering and transportation (per Mcfe)……………………………………………………………. $ 0.23 $ 0.24 $ 0.23 $ 0.22 $ 0.25 $ 0.23
Lease operating (per Mcfe)…………………………………………………………….. $ 0.29 $ 0.26 $ 0.29 $ 0.32 $ 0.26 $ 0.29

                                                           
(1)    Included in gain (loss) from derivative financial instruments in operating results
(2)    Pro forma for an acquisition which completed on March 5, 2019

 

Ronald E. Mills
VP of Finance and Investor Relations
972-668-8834
[email protected]


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