EX-99.1 2 pressreleasecomstockmay406.htm PRESS RELEASE COMSTOCK RESOURCES, INC. MAY 4

Exhibit 99.1




5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8800

Contact: Roland O. Burns

Sr. Vice President and Chief Financial Officer

Web Site: www.comstockresources.com

 


NEWS RELEASE

 


For Immediate Release

 

COMSTOCK RESOURCES, INC. REPORTS

FIRST QUARTER 2006 FINANCIAL AND OPERATING RESULTS

 

FRISCO, TEXAS, May 4, 2006 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2006. As of March 31, 2006, Comstock owns 29,935,761 shares of Bois d'Arc Energy, Inc. (NYSE: BDE), which represents 48% of the shares that Bois d'Arc Energy, Inc. has outstanding. The Company accounts for its investment in Bois d'Arc Energy, Inc. in 2006 using the equity method. The 2005 financial results include proportionate consolidation of Comstock's 60% ownership in Bois d'Arc Energy, LLC, the predecessor to Bois d'Arc Energy, Inc.

 

First Quarter 2006 Financial Results

 

Comstock reported net income of $29.6 million or 68¢ per diluted share for the three months ended March 31, 2006 as compared to 2005's first quarter net income of $15.9 million or 43¢ per diluted share. First quarter 2006's oil and gas sales of $69.9 million were increased slightly from 2005's first quarter sales of $69.8 million despite the inclusion of $26.0 million in sales related to Comstock's 60% ownership of Bois d'Arc Energy in the first quarter 2005 results. Oil and gas sales from Comstock's onshore operations of $69.9 million in the first quarter of 2006 increased 60% from onshore oil and gas sales of $43.8 million in 2005's first quarter. Operating cash flow (before changes in working capital accounts) generated by Comstock in 2006's first quarter of $47.2 million was 1% higher than 2005's first quarter cash flow of $46.5 million. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $52.3 million in 2006's first quarter, a 5% decrease from 2005's first quarter EBITDAX of $55.1 million. The 2006 results no longer include the Company's share of the operating cash flow or EBITDAX related to Bois d'Arc Energy's operations. The 2006 results include a $8.8 million unrealized gain on derivatives held for price risk management and the 2005 results includes a $3.2 million unrealized loss related to derivatives. Without the unrealized gain and loss, net income for the first quarter of 2006 would have been approximately $24.0 million or 55¢ per diluted share as compared to $18.0 million or 48¢ per diluted share for the first quarter of 2005.

 

Comstock's onshore production in the first quarter of 2006 increased 26% to 8.7 billion cubic feet equivalent of natural gas ("Bcfe") as compared to onshore production of 7.0 Bcfe in the first quarter of 2005. The Company's onshore realized natural gas price averaged $7.82 per Mcf in 2006's first quarter as compared to $6.16 per Mcf in 2005's first quarter. Realized oil prices for onshore operations in the first quarter of 2006 averaged $53.69 per barrel as compared to $47.81 per barrel for 2005.

 


 

 

First Quarter 2006 Drilling Results

 

Comstock also announced the results to date of its 2006 drilling program. Thirty of the 32 wells drilled in 2006 have been completed as producing wells with only two dry holes for a success rate of 94%.

 

In the first quarter of 2006, Comstock drilled 17 wells (11.2 net) in the East Texas and North Louisiana region. All of these wells were successful development wells. These wells have been tested at a per well average rate of 1.4 Mmcfe per day. These wells are part of Comstock's 96 well drilling program planned in this region for 2006. Comstock also drilled 15 wells (8.6 net) in South Texas and in its other regions in the first quarter of 2006. All but two of these wells were successful.

 

In South Texas, Comstock drilled two successful wells (.7 net) which had an average per well initial production rate of 3.2 Mmcfe per day. Comstock drilled six wells, (4.4 net) in the Mid Continent region, five (3.4 net) were successful and one (1.0 net) was a dry hole. The initial production rate for the successful wells averaged 0.4 Mmcfe per day per well. Comstock drilled three successful wells (2.9 net) in its Laurel field in Mississippi. These wells are in the process of completion. Four wells (.7 net) were drilled in the San Juan Basin in New Mexico. Three (.5 net) were successful and one (.2 net) was a dry hole. The successful wells are in the process of completion.

 

Comstock currently has four rigs drilling in East Texas/North Louisiana, one rig drilling in the Laurel field in Mississippi and two rigs drilling in South Texas. Three additional rigs are expected to be added in East Texas/North Louisiana in June.

 

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 that 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 a growing independent energy company based in Frisco, Texas and is engaged in oil and gas acquisitions, exploration and development primarily in Texas, Louisiana and the Gulf of Mexico. The company's stock is traded on the New York Stock Exchange under the symbol CRK.

 

 


 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED OPERATING RESULTS

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2006

 

 

2005

 

 

Oil and gas sales

 

$

69,891

 

 

$

69,822

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Oil and gas operating

 

 

13,855

 

 

 

13,187

 

 

Exploration

 

 

344

 

 

 

2,085

 

 

Depreciation, depletion and amortization

 

 

16,292

 

 

 

17,353

 

 

General and administrative

 

 

4,894

 

 

 

4,188

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

35,385

 

 

 

36,813

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

34,506

 

 

 

33,009

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

Interest income

 

 

168

 

 

 

748

 

 

Other income

 

 

54

 

 

 

104

 

 

Interest expense

 

 

(4,406

)

 

 

(5,798

)

 

Equity in earnings of Bois d'Arc Energy

 

 

8,047

 

 

 

—

 

 

Gain (loss) on derivatives

 

 

8,125

 

 

 

(3,238

)

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

11,988

 

 

 

(8,184

)

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

46,494

 

 

 

24,825

 

 

Provision for income taxes

 

 

(16,860

)

 

 

(8,937

)

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

29,634

 

 

$

15,888

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

0.70

 

 

$

0.45

 

 

Diluted

 

$

0.68

 

 

$

0.43

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common and common stock equivalent shares
outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

42,051

 

 

 

34,999

 

 

Diluted

 

 

43,429

 

 

 

37,356

 

 

 

 

 

 

 

 


 

 

 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED OPERATING RESULTS

(In thousands)

 

 

 

 

Three Months Ended March 31,

 

 

 

 

2006

 

 

2005

 

 

Cash flow from operations:

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

53,004

 

 

$

39,703

 

 

Decrease in accounts receivable

 

 

(9,388

)

 

 

(3,847

)

 

Increase (decrease) in other current assets

 

 

(2,783

)

 

 

970

 

 

Decrease in accounts payable and accrued expenses

 

 

6,385

 

 

 

9,712

 

 

Cash flow from operations

 

$

47,218

 

 

$

46,538

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

Net income

 

$

29,634

 

 

$

15,888

 

 

Interest expense

 

 

4,406

 

 

 

5,798

 

 

Income tax expense

 

 

16,860

 

 

 

8,937

 

 

Depreciation, depletion and amortization

 

 

16,292

 

 

 

17,353

 

 

Equity in earnings of Bois d'Arc Energy

 

 

(8,047

)

 

 

—

 

 

Stock-based compensation

 

 

1,681

 

 

 

1,795

 

 

Exploration expense

 

 

344

 

 

 

2,085

 

 

Unrealized (gain) loss on derivatives

 

 

(8,828

)

 

 

3,238

 

 

EBITDAX

 

$

52,342

 

 

$

55,094

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31,

 

 

 

2006

 

 

2005

 

 

 

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

Current assets

 

$

40,236

 

 

$

53,244

 

Property and equipment, net

 

 

739,853

 

 

 

857,030

 

Investment in Bois d'Arc Energy

 

 

260,181

 

 

 

—

 

Receivable from Bois d'Arc Energy

 

 

—

 

 

 

65,849

 

Other

 

 

4,575

 

 

 

15,669

 

Total assets

 

$

1,044,845

 

 

$

991,792

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

52,904

 

 

$

58,139

 

Long-term debt

 

 

243,000

 

 

 

429,000

 

Other

 

 

134,453

 

 

 

123,802

 

Stockholders' equity

 

 

614,488

 

 

 

380,851

 

Total liabilities and stockholders' equity

 

$

1,044,845

 

 

$

991,792

 

 

 


 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED OPERATING RESULTS

($ In thousands, except per unit amounts)

 

For the Three Months ended March 31, 2006

 

 

 

 

 

 

 

 

 

 

Equity Share

 

 

 

 

 

 

 

 

 

of Investee

 

 

 

 

 

 

Comstock

 

Bois d'Arc

 

 

 

 

 

 

Resources(1)

 

Energy(2)

 

 

 

 

 

 

 

 

 

 

 

 

Oil production (thousand barrels)

 

 

228

 

 

152

 

Gas production (million cubic feet – Mmcf)

 

 

7,369

 

 

2,429

 

Total production (Mmcfe)

 

 

8,740

 

 

3,341

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

12,265

 

$

9,272

 

Gas sales

 

 

57,626

 

 

20,378

 

Total oil and gas sales

 

$

69,891

 

$

29,650

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

53.69

 

$

60.95

 

Average gas price (per thousand cubic feet – Mcf)

 

$

7.82

 

$

8.39

 

Average price (per Mcf equivalent)

 

$

8.00

 

$

8.87

 

Lifting cost

 

$

13,855

 

$

5,965

 

Lifting cost (per Mcf equivalent)

 

$

1.59

 

$

1.79

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas capital expenditures

 

$

49,157

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)     Excludes Bois d'Arc Energy, Inc.

 

 

 

 

 

 

 

 

 

 

(2)     Includes Comstock's 48% share of Bois d'Arc Energy, Inc.'s financial and operating results which we account for under the equity method.

 

 

 

 

 

 

 

 

 

 

 


For the Three Months ended March 31, 2005

 

 

 

 

 

 

 

 

 

 

Comstock Resources(1)

 

Bois d'Arc Energy(2)

 

Total

 

Oil production (thousand barrels)

 

 

90

 

 

210

 

 

300

 

Gas production (million cubic feet – Mmcf)

 

 

6,411

 

 

2,425

 

 

8,836

 

Total production (Mmcfe)

 

 

6,950

 

 

3,685

 

 

10,635

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

4,288

 

$

9,998

 

$

14,286

 

Gas sales

 

 

39,505

 

 

16,031

 

 

55,536

 

Total oil and gas sales

 

$

43,793

 

$

26,029

 

$

69,822

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

47.81

 

$

47.63

 

$

47.68

 

Average gas price (per thousand cubic feet – Mcf)

 

$

6.16

 

$

6.61

 

$

6.28

 

Average price (per Mcf equivalent)

 

$

6.30

 

$

7.06

 

$

6.57

 

Lifting cost

 

$

8,572

 

$

4,615

 

$

13,187

 

Lifting cost (per Mcf equivalent)

 

$

1.23

 

$

1.25

 

$

1.24

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas capital expenditures

 

$

23,589

 

$

22,642

 

$

46,231

 

 

 

 

 

 

 

 

 

 

 

 

(1)     Excludes Bois d'Arc Energy, LLC.

 

 

 

 

 

 

 

 

 

 

(2)     Includes Comstock's 60% of Bois d'Arc Energy's production.

 

 

 

 

 

 

 

 

 

 

 


COMSTOCK RESOURCES, INC.

REGIONAL OPERATING RESULTS

($ In thousands, except per unit amounts)

 

For the Three Months ended March 31, 2006

 

 

 

East Texas/

North Louisiana

 

 

Southeast
Texas

 

 

Other

 

 

Total
Onshore

 

Oil production (thousand barrels)

 

 

29

 

 

 

37

 

 

 

162

 

 

 

228

 

Gas production (million cubic feet – Mmcf)

 

 

4,243

 

 

 

1,251

 

 

 

1,875

 

 

 

7,369

 

Total production (Mmcfe)

 

 

4,417

 

 

 

1,472

 

 

 

2,851

 

 

 

8,740

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

1,740

 

 

$

2,255

 

 

$

8,270

 

 

$

12,265

 

Gas sales

 

 

32,766

 

 

 

10,165

 

 

 

14,695

 

 

 

57,626

 

Total oil and gas sales

 

$

34,506

 

 

$

12,420

 

 

$

22,965

 

 

$

69,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

60.00

 

 

$

60.95

 

 

$

51.05

 

 

$

53.69

 

Average gas price (per thousand
cubic feet – Mcf)

 

$

7.72

 

 

$

8.13

 

 

$

7.84

 

 

$

7.82

 

Average price (per Mcf equivalent)

 

$

6.02

 

 

$

8.44

 

 

$

8.06

 

 

$

8.00

 

Lifting cost

 

$

5,926

 

 

$

2,138

 

 

$

5,791

 

 

$

13,855

 

Lifting cost (per Mcf equivalent)

 

$

1.34

 

 

$

1.45

 

 

$

2.03

 

 

$

1.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leasehold costs

 

$

1,294

 

 

$

—

 

 

$

757

 

 

$

2,051

 

Exploratory drilling

 

 

—

 

 

 

75

 

 

 

—

 

 

 

75

 

Development drilling

 

 

21,056

 

 

 

—

 

 

 

17,351

 

 

 

38,407

 

Other development

 

 

6,641

 

 

 

—

 

 

 

1,983

 

 

 

8,624

 

Total

 

$

28,991

 

 

$

75

 

 

$

20,091

 

 

$

49,157