EX-99.1 2 comstockpressreleaseaug306.htm

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

SECOND QUARTER 2006 FINANCIAL AND OPERATING RESULTS

 

FRISCO, TEXAS, August 3, 2006 — Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and six months ended June 30, 2006. As of June 30, 2006, Comstock owns 29,935,761 shares of Bois d'Arc Energy, Inc. (NYSE: BDE) ("Bois d'Arc"), which represents 48% of the shares that Bois d'Arc has outstanding. The Company accounts for its investment in Bois d'Arc in 2006 using the equity method. Financial results for 2005 include proportionate consolidation of Comstock's 60% ownership in Bois d'Arc Energy, LLC, the predecessor to Bois d'Arc through May 9, 2005 and Comstock's equity in the earnings of Bois d'Arc based upon its 48% share ownership following Bois d'Arc's initial public offering.

 

Financial Results for the Three Months and Six Months Ended June 30, 2006

 

Comstock reported net income of $15.6 million or 36¢ per diluted share for the three months ended June 30, 2006 as compared to a net loss of $10.9 million or 27¢ per diluted share in the same quarter of 2005. Results for the second quarter of 2006 include a $7.9 million loss on the pending sale of the Company's Kentucky properties, a $1.3 million unrealized gain on derivative financial instruments and a $1.1 million increase in the quarter's tax provision to reflect deferred income taxes related to a recently enacted business tax in Texas. Without these items Comstock would have reported net income of $21.0 million or 48¢ per diluted share in the second quarter. Excluding the one time adjustments to reflect Bois d'Arc's conversion to a corporation and initial public offering, Comstock's 2005 net income would have been $12.7 million or 30¢ per diluted share for the three months ended June 30, 2005. Sales from Comstock's onshore operations increased by 15% to $64.6 million in the three months ended June 30, 2006 from $56.0 million in the same period last year. Comstock generated $43.2 million in operating cash flow (before changes in working capital accounts) in 2006's second quarter, which represents a 9% decrease over 2005's second quarter cash flow of $47.3 million. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $48.1 million in 2006's second quarter as compared to 2005's second quarter EBITDAX of $53.8 million. On May 10, 2005, Comstock began accounting for its interest in Bois d'Arc under the equity method and subsequent to that date no longer is including its share of Bois d'Arc's revenues, EBITDAX and cash flow in its consolidated results.


 

For the six months ended June 30, 2006, Comstock's onshore oil and gas sales of $134.5 million increased $34.6 million or 35% from onshore oil and gas sales of $99.8 million for the same period last year. Net income for the six months ended June 30, 2006 was $45.2 million, or $1.04 per diluted share, as compared to net income of $5.0 million or 12¢ per diluted share in 2005. Net income for the six months ended June 30, 2006 includes the loss on the pending sale of the Kentucky properties, an unrealized gain of $10.1 million on derivative financial instruments and the impact of the new Texas business tax. Without these items, Comstock would have reported net income of $44.9 million or $1.03 per diluted share. Excluding the one time adjustments to reflect Bois d'Arc's conversion to a corporation and its initial public offering, Comstock's net income for the six months ended June 30, 2005 would have been $28.6 million, or 72¢ per diluted share. Operating cash flow (before changes in working capital accounts) generated by Comstock was $90.4 million for the first six months of 2006 as compared to cash flow of $93.9 million for the same period in 2005. For the six months ended June 30, 2006, EBITDAX was $100.2 million as compared to EBITDAX of $108.8 million for the same period in 2005.

 

Production from Comstock's onshore properties in the second quarter of 2006 totaled 9.0 Bcf equivalent of natural gas ("Bcfe"), a 7% increase from 2005's second quarter production of 8.4 Bcfe. For the first six months of 2006, Comstock produced 17.7 Bcfe from its onshore operations, an increase of 16% as compared to production in the same period of 2005 of 15.3 Bcfe. During the second quarter of 2006, the Company's share of offshore production from its ownership interest in Bois d'Arc of 3.5 Bcfe was unchanged from last year's production.

 

The Company's realized natural gas price from its onshore operations averaged $6.72 per Mcf in 2006's second quarter as compared to $6.55 per Mcf in 2005's second quarter. Realized oil prices from its onshore operations in the second quarter of 2006 averaged $58.47 per barrel as compared to $45.63 per barrel for 2005. For the first six months of 2006, Comstock's realized natural gas price from its onshore operations averaged $7.26 per Mcf as compared to $6.37 per Mcf in the same period in 2005. For the first six months of 2006, Comstock's realized oil price from its onshore operations was $56.12 per barrel as compared to $46.30 per barrel in 2005.

 

As of June 30, 2006, Comstock's total debt remained unchanged from year end 2005 at $243.0 million. Comstock's total stockholders equity has increased from $380.9 million at the end of 2005 first quarter to $634.2 million at June 30, 2006.

 

Six Months 2006 Drilling Results

 

Comstock also announced the results to date of its 2006 drilling program. In the first half of 2006 Comstock has drilled 50 wells (32.3 net). Forty-eight of the fifty wells drilled which were successful, resulting in a drilling success rate of 96%. At June 30, 2006 Comstock had six wells which were drilling.

 

During the first six months of 2006, Comstock drilled 30 wells (21.8 net) in its 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 1.5 Mmcfe per day. Four additional wells were drilling at June 30, 2006. These wells are part of Comstock's 96 well Cotton Valley drilling program planned in this region for 2006. Comstock is ramping up activity in this region by adding additional drilling rigs. Comstock currently has six operated rigs drilling in its East Texas/North Louisiana region and expects delivery of an additional three rigs over the next several months.


 

In South Texas, Comstock drilled four successful wells (1.3 net) which had an average per well initial production rate of 5.9 Mmcfe per day. Comstock had two wells drilling in South Texas at June 30, 2006. Comstock drilled six wells, (4.4 net) in its Mid Continent region, five (3.4 net) were successful, one (1.0 net) was a dry hole. Comstock drilled four wells (3.8 net) in its Laurel field in Mississippi. Three of these wells were completed at an average initial production rate of 86 barrels per day. Six wells (1.0 net) were drilled in the San Juan Basin in New Mexico. Five wells (.8 net) were successful, and one well (.2 net) was a dry hole.

 

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 June 30,

 

 

Six Months Ended June 30,

 

 

 

2006

 

 

2005

 

 

2006

 

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas sales

 

$

64,571

 

 

$

68,529

 

 

$

134,462

 

 

$

138,351

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas operating

 

 

13,200

 

 

 

12,879

 

 

 

27,055

 

 

 

26,066

 

Exploration

 

 

—

 

 

 

15,201

 

 

 

344

 

 

 

17,286

 

Depreciation, depletion and amortization

 

 

16,568

 

 

 

15,979

 

 

 

32,860

 

 

 

33,332

 

Loss on disposal of assets

 

 

7,934

 

 

 

—

 

 

 

7,934

 

 

 

—

 

General and administrative, net

 

 

4,592

 

 

 

3,769

 

 

 

9,486

 

 

 

7,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

42,294

 

 

 

47,828

 

 

 

77,679

 

 

 

84,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

22,277

 

 

 

20,701

 

 

 

56,783

 

 

 

53,710

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income

 

 

48

 

 

 

32

 

 

 

102

 

 

 

136

 

Interest income

 

 

172

 

 

 

459

 

 

 

340

 

 

 

1,207

 

Interest expense

 

 

(4,537

)

 

 

(4,719

)

 

 

(8,943

)

 

 

(10,517

)

Equity in earnings (loss) of Bois d'Arc

 

 

7,088

 

 

 

(61,225

)

 

 

15,315

 

 

 

(61,225

)

Gain on sale of stock by Bois d'Arc

 

 

—

 

 

 

28,797

 

 

 

—

 

 

 

28,797

 

Gain (loss) on derivatives

 

 

1,303

 

 

 

7

 

 

 

9,428

 

 

 

(3,231

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other income (expenses)

 

 

4,074

 

 

 

(36,649

)

 

 

16,062

 

 

 

(44,833

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

26,351

 

 

 

(15,948

)

 

 

72,845

 

 

 

8,877

 

Provision for income taxes

 

 

(10,768

)

 

 

5,070

 

 

 

(27,628

)

 

 

(3,867

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,583

 

 

$

(10,878

)

 

$

45,217

 

 

$

5,010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.37

 

 

$

(0.27

)

 

$

1.07

 

 

$

0.13

 

Diluted

 

$

0.36

 

 

$

(0.27

)(1)

 

$

1.04

 

 

$

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common and common stock

equivalent shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

42,077

 

 

 

39,762

 

 

 

42,070

 

 

 

37,393

 

Diluted

 

 

43,521

 

 

 

39,762

(1)

 

 

43,481

 

 

 

39,570

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)  Basic and diluted are the same due to the net loss.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED OPERATING RESULTS

(In thousands)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2006

 

 

2005

 

 

2006

 

 

2005

 

Cash flow from operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities

 

$

39,230

 

 

$

59,130

 

 

$

92,037

 

 

$

98,833

 

Excess tax benefit from stock based compensation

 

 

725

 

 

 

—

 

 

 

922

 

 

 

—

 

Increase (decrease) in accounts receivable

 

 

720

 

 

 

1,128

 

 

 

(8,668

)

 

 

(2,719

)

Increase (decrease) in other current assets

 

 

2,925

 

 

 

(966

)

 

 

142

 

 

 

4

 

Decrease (increase) in accounts payable and
      accrued expenses

 

 

(424

)

 

 

(11,957

)

 

 

5,961

 

 

 

(2,245

)

Cash flow from operations

 

$

43,176

 

 

$

47,335

 

 

$

90,394

 

 

$

93,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDAX:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

15,583

 

 

$

(10,878

)

 

$

45,217

 

 

$

5,010

 

Interest expense

 

 

4,537

 

 

 

4,719

 

 

 

8,943

 

 

 

10,517

 

Income tax expense

 

 

10,768

 

 

 

(5,070

)

 

 

27,628

 

 

 

3,867

 

Depreciation, depletion and amortization

 

 

16,568

 

 

 

15,979

 

 

 

32,860

 

 

 

33,332

 

Loss on disposal of assets

 

 

7,934

 

 

 

—

 

 

 

7,934

 

 

 

—

 

Equity in earnings (loss) of Bois d'Arc Energy

 

 

(7,088

)

 

 

61,225

 

 

 

(15,135

)

 

 

61,225

 

Gain on sale of stock by Bois d'Arc Energy

 

 

—

 

 

 

(28,797

)

 

 

—

 

 

 

(28,797

)

Stock-based compensation

 

 

1,067

 

 

 

1,383

 

 

 

2,551

 

 

 

3,178

 

Exploration expense

 

 

—

 

 

 

15,201

 

 

 

344

 

 

 

17,286

 

Unrealized (gain) loss on derivatives

 

 

(1,303

)

 

 

(7

)

 

 

(10,131

)

 

 

3,231

 

EBITDAX

 

$

48,066

 

 

$

53,755

 

 

$

100,211

 

 

$

108,849

 

 

 

 

 

 

As of June 30,

 

 

 

2006

 

 

2005

 

Balance Sheet Data:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

671

 

 

$

3,034

 

Other current assets

 

 

40,052

 

 

 

33,032

 

Property and equipment, net

 

 

752,181

 

 

 

666,616

 

Investment in Bois d'Arc Energy

 

 

267,269

 

 

 

240,770

 

Other

 

 

10,858

 

 

 

5,382

 

Total assets

 

$

1,071,031

 

 

$

948,834

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

51,086

 

 

$

49,191

 

Long-term debt

 

 

243,000

 

 

 

307,000

 

Other

 

 

142,732

 

 

 

100,455

 

Stockholders' equity

 

 

634,213

 

 

 

492,188

 

Total liabilities and stockholders' equity

 

$

1,071,031

 

 

$

948,834

 

 

COMSTOCK RESOURCES, INC.

OPERATING RESULTS

($ In thousands, except per unit amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended June 30, 2006

 

 

For the Three Months ended June 30, 2005

 

 

 

Onshore(1)

 

 

Offshore(2)

 

 

Combined(3)

 

 

Onshore(1)

 

 

Offshore(2)

 

 

Combined(3)

 

Oil production (thousand barrels)

 

 

237

 

 

 

166

 

 

 

403

 

 

 

204

 

 

 

192

 

 

 

396

 

Gas production (million cubic
feet — Mmcf)

 

 

7,549

 

 

 

2,502

 

 

 

10,051

 

 

 

7,135

 

 

 

2,316

 

 

 

9,451

 

Total production (Mmcfe)

 

 

8,969

 

 

 

3,496

 

 

 

12,465

 

 

 

8,356

 

 

 

3,468

 

 

 

11,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

13,847

 

 

$

11,481

 

 

$

25,328

 

 

$

9,286

 

 

$

9,528

 

 

$

18,814

 

Gas sales

 

 

50,724

 

 

 

17,101

 

 

 

67,825

 

 

 

46,743

 

 

 

16,398

 

 

 

63,141

 

Total oil and gas sales

 

$

64,571

 

 

$

28,582

 

 

$

93,153

 

 

$

56,029

 

 

$

25,926

 

 

$

81,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

58.47

 

 

$

69.31

 

 

$

62.85

 

 

$

45.63

 

 

$

49.63

 

 

$

47.51

 

Average gas price (per
thousand cubic feet — Mcf)

 

$

6.72

 

 

$

6.84

 

 

$

6.75

 

 

$

6.55

 

 

$

7.08

 

 

$

6.68

 

Average price (per Mcf
equivalent)

 

$

7.20

 

 

$

8.18

 

 

$

7.47

 

 

$

6.70

 

 

$

7.48

 

 

$

6.93

 

Lifting cost

 

$

13,200

 

 

$

5,668

 

 

$

18,868

 

 

$

10,795

 

 

$

4,397

 

 

$

15,192

 

Lifting cost (per Mcf equivalent)

 

$

1.47

 

 

$

1.62

 

 

$

1.51

 

 

$

1.29

 

 

$

1.27

 

 

$

1.28

 

Oil and Gas Capital Expenditures

 

$

43,126

 

 

$

32,530

 

 

$

75,656

 

 

$

224,259

 

 

$

17,500

 

 

$

241,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Six Months Ended June 30, 2006

 

 

For the Six Months ended June 30, 2005

 

 

 

Onshore(1)

 

 

Offshore(2)

 

 

Combined(3)

 

 

Onshore(1)

 

 

Offshore(2)

 

 

Combined(3)

 

Oil production (thousand barrels)

 

 

465

 

 

 

318

 

 

 

783

 

 

 

293

 

 

 

402

 

 

 

695

 

Gas production (million cubic
feet — Mmcf)

 

 

14,918

 

 

 

4,931

 

 

 

19,849

 

 

 

13,547

 

 

 

4,741

 

 

 

18,288

 

Total production (Mmcfe)

 

 

17,709

 

 

 

6,837

 

 

 

24,546

 

 

 

15,306

 

 

 

7,153

 

 

 

22,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

26,112

 

 

$

20,753

 

 

$

46,865

 

 

$

13,574

 

 

$

19,526

 

 

$

33,100

 

Gas sales

 

 

108,350

 

 

 

37,479

 

 

 

145,829

 

 

 

86,248

 

 

 

32,429

 

 

 

118,677

 

Total oil and gas sales

 

$

134,462

 

 

$

58,232

 

 

$

192,694

 

 

$

99,822

 

 

$

51,955

 

 

$

151,777

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

56.12

 

 

$

65.31

 

 

$

59.85

 

 

$

46.30

 

 

$

48.58

 

 

$

47.63

 

Average gas price (per thousand cubic feet — Mcf)

 

$

7.26

 

 

$

7.60

 

 

$

7.35

 

 

$

6.37

 

 

$

6.84

 

 

$

6.49

 

Average price (per Mcf equivalent)

 

$

7.59

 

 

$

8.52

 

 

$

7.85

 

 

$

6.52

 

 

$

7.26

 

 

$

6.76

 

Lifting cost

 

$

27,055

 

 

$

11,633

 

 

$

38,688

 

 

$

19,367

 

 

$

9,012

 

 

$

28,379

 

Lifting cost (per Mcf equivalent)

 

$

1.53

 

 

$

1.70

 

 

$

1.58

 

 

$

1.27

 

 

$

1.26

 

 

$

1.26

 

Oil and Gas Capital Expenditures

 

$

92,282

 

 

$

54,806

 

 

$

147,088

 

 

$

247,848

 

 

$

39,982

 

 

$

287,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes the onshore results of operations of Comstock Resources, Inc.

 

(2) Includes Comstock's proportionate share of Bois d'Arc Energy, Inc.'s financial and operating results which we account for under the equity method after May 10, 2005.

 

(3) Includes the combined results of Comstock's onshore and Comstock's share of Bois d'Arc Energy, Inc.'s operations.

 


COMSTOCK RESOURCES, INC.

REGIONAL ONSHORE OPERATING RESULTS

($ In thousands, except per unit amounts)

 

 

 

For the Three Months ended June 30, 2006

 

 

For the Three Months Ended June 30, 2005

 

 

 

East Texas/
North
Louisiana

 

 

Southeast
Texas

 

 

Other

 

 

Total
Onshore

 

 

East Texas/
North
Louisiana

 

 

Southeast
Texas

 

 

Other

 

 

Total
Onshore

 

Oil production (thousand barrels)

 

 

31

 

 

 

33

 

 

 

173

 

 

 

237

 

 

 

22

 

 

 

43

 

 

 

139

 

 

 

204

 

Gas production (million cubic feet — Mmcf)

 

 

4,325

 

 

 

1,102

 

 

 

2,122

 

 

 

7,549

 

 

 

3,314

 

 

 

1,678

 

 

 

2,143

 

 

 

7,135

 

Total production (Mmcfe)

 

 

4,513

 

 

 

1,302

 

 

 

3,154

 

 

 

8,969

 

 

 

3,443

 

 

 

1,938

 

 

 

2,975

 

 

 

8,356

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

1,991

 

 

$

2,274

 

 

$

9,582

 

 

$

13,847

 

 

$

1,120

 

 

$

2,192

 

 

$

5,974

 

 

$

9,286

 

Gas sales

 

 

28,299

 

 

 

7,954

 

 

 

14,471

 

 

 

50,724

 

 

 

21,425

 

 

 

11,915

 

 

 

13,403

 

 

 

46,743

 

Total oil and gas sales

 

$

30,290

 

 

$

10,228

 

 

$

24,053

 

 

$

64,571

 

 

$

22,545

 

 

$

14,107

 

 

$

19,377

 

 

$

56,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

64.23

 

 

$

68.91

 

 

$

55.39

 

 

$

58.47

 

 

$

50.91

 

 

$

50.98

 

 

$

42.98

 

 

$

45.63

 

Average gas price (per thousand cubic feet — Mcf)

 

$

6.54

 

 

$

7.22

 

 

$

6.82

 

 

$

6.72

 

 

$

6.46

 

 

$

7.10

 

 

$

6.25

 

 

$

6.55

 

Average price (per Mcf equivalent)

 

$

6.71

 

 

$

7.86

 

 

$

7.63

 

 

$

7.20

 

 

$

6.55

 

 

$

7.28

 

 

$

6.51

 

 

$

6.70

 

Lifting cost(1)

 

$

5,758

 

 

$

2,124

 

 

$

5,318

 

 

$

13,200

(1)

$

5,056

 

 

$

1,983

 

 

$

3,756

 

 

$

10,795

(1)

Lifting cost (per Mcf equivalent)

 

$

1.28

 

 

$

1.63

 

 

$

1.69

 

 

$

1.47

 

 

$

1.47

 

 

$

1.02

 

 

$

1.26

 

 

$

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

850

 

 

$

—

 

 

$

—

 

 

$

850

 

 

$

118,240

 

 

$

—

 

 

$

73,333

 

 

$

191,573

 

Leasehold costs

 

 

47

 

 

 

5

 

 

 

557

 

 

 

609

 

 

 

265

 

 

 

283

 

 

 

220

 

 

 

768

 

Exploratory drilling

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,717

 

 

 

525

 

 

 

5,242

 

Development drilling

 

 

26,557

 

 

 

—

 

 

 

11,814

 

 

 

38,371

 

 

 

18,080

 

 

 

34

 

 

 

5,561

 

 

 

23,675

 

Other development

 

 

1,676

 

 

 

90

 

 

 

1,530

 

 

 

3,296

 

 

 

2,773

 

 

 

(166

)

 

 

395

 

 

 

3,002

 

Total

 

$

29,130

 

 

$

95

 

 

$

13,901

 

 

$

43,126

 

 

$

139,358

 

 

$

4,868

 

 

$

80,034

 

 

$

224,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes production taxes of $2,847 and $2,997 for the three months ended June 30, 2006 and 2005, respectively.

 



 

 

For the Six Months ended June 30, 2006

 

 

For the Six Months Ended June 30, 2005

 

 

 

East Texas/
North
Louisiana

 

 

Southeast
Texas

 

 

Other

 

 

Total
Onshore

 

 

East Texas/
North
Louisiana

 

 

Southeast
Texas

 

 

Other

 

 

Total
Onshore

 

Oil production (thousand barrels)

 

 

60

 

 

 

70

 

 

 

335

 

 

 

465

 

 

 

40

 

 

 

86

 

 

 

167

 

 

 

293

 

Gas production (million cubic feet — Mmcf)

 

 

8,568

 

 

 

2,353

 

 

 

3,997

 

 

 

14,918

 

 

 

5,924

 

 

 

3,535

 

 

 

4,088

 

 

 

13,547

 

Total production (Mmcfe)

 

 

8,930

 

 

 

2,774

 

 

 

6,005

 

 

 

17,709

 

 

 

6,163

 

 

 

4,052

 

 

 

5,091

 

 

 

15,306

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil sales

 

$

3,731

 

 

$

4,529

 

 

$

17,852

 

 

$

26,112

 

 

$

1,953

 

 

$

4,243

 

 

$

7,378

 

 

$

13,574

 

Gas sales

 

 

61,065

 

 

 

18,119

 

 

 

29,166

 

 

 

108,350

 

 

 

36,947

 

 

 

23,587

 

 

 

25,714

 

 

 

86,248

 

Total oil and gas sales

 

$

64,796

 

 

$

22,648

 

 

$

47,018

 

 

$

134,462

 

 

$

38,900

 

 

$

27,830

 

 

$

33,092

 

 

$

99,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average oil price (per barrel)

 

$

62.18

 

 

$

64.70

 

 

$

53.29

 

 

$

56.12

 

 

$

48.83

 

 

$

49.34

 

 

$

44.18

 

 

$

46.30

 

Average gas price (per thousand cubic feet — Mcf)

 

$

7.13

 

 

$

7.70

 

 

$

7.30

 

 

$

7.26

 

 

$

6.24

 

 

$

6.67

 

 

$

6.29

 

 

$

6.37

 

Average price (per Mcf equivalent)

 

$

7.26

 

 

$

8.16

 

 

$

7.83

 

 

$

7.59

 

 

$

6.31

 

 

$

6.87

 

 

$

6.50

 

 

$

6.52

 

Lifting cost(2)

 

$

11,684

 

 

$

4,262

 

 

$

11,109

 

 

$

27,055

(2)

$

8,639

 

 

$

4,082

 

 

$

6,647

 

 

$

19,367

(2)

Lifting cost (per Mcf equivalent)

 

$

1.31

 

 

$

1.54

 

 

$

1.85

 

 

$

1.53

 

 

$

1.40

 

 

$

1.01

 

 

$

1.31

 

 

$

1.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and Gas Capital Expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisitions

 

$

912

 

 

$

—

 

 

$

—

 

 

$

912

 

 

$

118,240

 

 

$

—

 

 

$

73,333

 

 

$

191,573

 

Leasehold costs

 

 

234

 

 

 

5

 

 

 

1,314

 

 

 

1,553

 

 

 

265

 

 

 

294

 

 

 

942

 

 

 

1,501

 

Exploratory drilling

 

 

—

 

 

 

75

 

 

 

—

 

 

 

75

 

 

 

—

 

 

 

11,280

 

 

 

1,343

 

 

 

12,623

 

Development drilling

 

 

48,657

 

 

 

—

 

 

 

29,165

 

 

 

77,822

 

 

 

27,321

 

 

 

413

 

 

 

7,656

 

 

 

35,390

 

Other development

 

 

8,317

 

 

 

90

 

 

 

3,513

 

 

 

11,920

 

 

 

5,105

 

 

 

140

 

 

1,516

 

 

 

6,761

 

Total

 

$

58,120

 

 

$

170

 

 

$

33,992

 

 

$

92,282

 

 

$

150,931

 

 

$

12,127

 

 

$

84,790

 

 

$

247,848

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2) Includes production taxes of $6,306 and $4,872 for the six months ended June 30, 2006 and 2005, respectively.