EX-99.1 CHARTER 2 pressreleasecomstocknov22006.htm COMSTOCK RESOURCES, INC. PRESS RELEASE NOVEMBER 2, 2006 Comstock Resources, Inc. Press Release November 2, 2006
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
THIRD QUARTER 2006 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, November 2, 2006 - Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and nine months ended September 30, 2006. During the third quarter of 2006, Comstock increased its ownership in Bois d'Arc Energy, Inc. ("Bois d'Arc Energy" NYSE: BDE) by acquiring additional common shares of Bois d'Arc Energy and as a result changed its method of accounting for its ownership in Bois d'Arc Energy to consolidation from the equity method. Comstock has applied consolidation accounting for its ownership in Bois d'Arc Energy retroactively as of January 1, 2006. The inclusion of Bois d'Arc Energy as a consolidated subsidiary had no impact on Comstock's reported net income for the current or prior periods. Pro forma results for the three and nine months ended September 30, 2005 assuming Bois d'Arc Energy was included as a consolidated subsidiary have been provided to facilitate comparison of the 2006 results to 2005 results in this press release.

Financial Results for the Three Months and Nine Months Ended September 30, 2006

Comstock reported net income of $17.0 million or 39¢ per diluted share for the three months ended September 30, 2006 as compared to net income of $14.1 million or 33¢ per diluted share in the same quarter of 2005. Results for the third quarter of 2006 include a $1.2 million unrealized gain on derivative financial instruments and results for the third quarter of 2005 include an unrealized loss on derivatives of $17.7 million. Without these items Comstock would have reported net income of $16.3 million or 37¢ per diluted share in the third quarter of 2006 and $25.6 million or 60¢ per diluted share for the third quarter of 2005. Oil and gas sales increased by 12% to $129.3 million in the three months ended September 30, 2006 as compared to pro forma consolidated sales of $115.1 million in the same period last year. Comstock generated $89.3 million in operating cash flow (before changes in working capital accounts) in 2006's third quarter, which represents a 6% increase over 2005's third quarter pro forma consolidated cash flow of $84.3 million. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $98.8 million in 2006's third quarter as compared to 2005's pro forma consolidated third quarter EBITDAX of $93.5 million.

For the nine months ended September 30, 2006, Comstock's oil and gas sales of $385.2 million increased $78 million or 25% from pro forma consolidated sales of $307.0 million for the same period last year. Net income for the nine months ended September 30, 2006 was $62.3 million, or $1.42 per diluted share, as compared to net income of $19.1 million or 47¢ per diluted share in 2005. Net income for the nine months ended September 30, 2006 includes a loss on the pending sale of the Company's Kentucky properties, unrealized gains on derivative financial instruments of $11.3 million and the impact of the new Texas business tax of $1.1 million. Without these items, Comstock would have reported net income of $61.1 million or $1.40 per diluted share. Excluding the one time adjustments to reflect Bois d'Arc's conversion to a corporation and its initial public offering and unrealized losses on derivatives, Comstock's net income for the nine months ended September 30, 2005 would have been $78.6 million, or $1.94 per diluted share. Operating cash flow (before changes in working capital accounts) generated by Comstock was $267.7 million for the first nine months of 2006 as compared to pro forma consolidated cash flow of $214.4 million for the same period in 2005. For the nine months ended September 30, 2006, EBITDAX was $293.7 million as compared to pro forma consolidated EBITDAX of $244.7 million for the same period in 2005.
Production in the third quarter of 2006 totaled 17.1 Bcf equivalent of natural gas ("Bcfe"), a 28% increase from 2005's third quarter pro forma consolidated production of 13.4 Bcfe. For the first nine months of 2006, production totaled 49.1 Bcfe, an increase of 19%, as compared to pro forma consolidated production in the same period of 2005 of 41.3 Bcfe.

The Company's realized natural gas price averaged $6.63 per Mcf in 2006's third quarter as compared to $8.41 per Mcf in 2005's third quarter. Realized oil prices in the third quarter of 2006 averaged $65.95 per barrel as compared to $56.63 per barrel for the third quarter of 2005. For the first nine months of 2006, Comstock's realized natural gas price averaged $7.13 per Mcf as compared to $7.16 per Mcf in the same period in 2005. For the first nine months of 2006, Comstock's realized oil price was $63.06 per barrel as compared to $50.65 per barrel in the third quarter of 2005.

Nine Months 2006 Drilling Results

Comstock also announced the results to date of its 2006 onshore drilling program. In the first nine months of 2006 Comstock drilled 76 wells (52.2 net). Seventy-four of the 76 wells drilled were successful, resulting in a drilling success rate of 97%.

During the first nine months of 2006, Comstock drilled 50 wells (38.9 net) in its East Texas and North Louisiana region. All of these wells were successful development wells. These wells have been tested at an average per well initial production rate of 1.4 Mmcfe per day. At September 30, 2006 Comstock had eight additional wells in this region that were being drilled. These wells are part of Comstock's 96 well Cotton Valley drilling program planned in this region for 2006. Comstock plans to have eight drilling rigs working in this region during the fourth quarter.

In South Texas, Comstock drilled seven successful wells (2.1 net) during the first nine months of 2006, which had an average per well initial production rate of 4.8 Mmcfe per day. Comstock drilled six wells (4.4 net) in its Mid Continent region, five of which (3.4 net) were successful and one (1.0 net) was a dry hole. Comstock drilled six wells (5.7 net) in its Laurel field in Mississippi. Four of these wells were tested at an average initial production rate of 193 barrels per day. Seven wells (1.1 net) were drilled in the San Juan Basin in New Mexico. Six wells (0.9 net) were successful, and one well (0.2 net) was a dry hole.

 
Bois d'Arc has also had successful results from its exploration focused offshore drilling program to date in 2006. Since the beginning of 2006, Bois d'Arc has drilled nine (7.7 net) successful wells out of a total of twelve (10.2 net) drilled for a 75% success rate. During the third quarter two of Bois d'Arc's largest 2006 discoveries began producing. The OCS-G 18054 #54 ST, which was drilled to test the "Sockeye" prospect at South Pelto 22, began producing at 17.0 Mmcfe per day in August 2006 and the OCS-G 24924 No. 1 ST drilled to test the "Steelhead" prospect at Ship Shoal block 111 began producing at 6.5 Mmcfe per day in September 2006.


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 September 30,
    
Nine Months Ended September 30,
  
           
2005
            
2005
  
   
2006
    
As Reported
    
Pro Forma(1)
    
2006
    
As Reported
    
Pro Forma(1)
  
                                                 
Oil and gas sales
  
$
129,251
    
$
71,619
    
$
115,053
    
$
385,153
    
$
209,970
    
$
307,035
  
Operating expenses:
                                                
Oil and gas operating
    
26,904
      
10,803
      
19,146
      
78,220
      
36,869
      
54,494
  
Exploration
    
8,069
      
2,423
      
5,249
      
16,662
      
19,709
      
27,399
  
Depreciation, depletion and amortization
    
40,709
      
14,036
      
23,331
      
104,457
      
47,368
      
71,054
  
Impairment
    
1,389
      
3,400
      
3,400
      
2,235
      
3,400
      
3,400
  
Loss on disposal of assets
    
—
      
—
      
—
      
7,934
    
$
—
      
89
  
General and administrative, net
    
7,370
      
3,058
      
4,942
      
22,738
      
11,015
      
15,437
  
 
                                                
Total operating expenses
    
84,441
      
33,720
      
56,068
      
232,246
      
118,361
      
171,873
  
 
                                                
Income from operations
    
44,810
      
37,899
      
58,985
      
152,907
      
91,609
      
135,162
  
Other income (expenses):
                                                
Other income
    
187
      
37
      
(13
)
    
616
      
173
      
123
  
Interest income
    
258
      
242
      
221
      
724
      
1,449
      
407
  
Interest expense
    
(6,733
)
    
(4,982
)
    
(5,220
)
    
(18,322
)
    
(15,499
)
    
(15,904
)
Gain on sale of stock by Bois d'Arc
    
—
      
—
      
—
      
—
      
28,797
      
28,797
  
Gain (loss) on derivatives
    
1,180
      
(17,814
)
    
(17,814
)
    
10,608
      
(21,045
)
    
(21,045
)
 
                                                
Total other income (expenses)
    
(5,108
)
    
(22,517
)
    
(22,826
)
    
(6,374
)
    
(6,125
)
    
(7,622
)
 
                                                
Income before income taxes, minority interest
                                                
and equity in earnings of Bois d'Arc Energy
    
39,702
      
15,382
      
36,159
      
146,533
      
85,484
      
127,540
  
Provision for income taxes
    
(16,662
)
    
(7,602
)
    
(15,120
)
    
(61,847
)
    
(11,469
)
    
(131,112
)
Equity in earnings (loss) of Bois d'Arc
                                                
Energy
    
—
      
6,358
      
—
      
—
      
(54,867
)
    
—
  
Minority interest in earnings of Bois d'Arc
                                                
Energy
    
(6,004
)
    
—
      
(6,901
)
    
(22,433
)
    
—
      
22,720
  
 
                                                
Net income
  
$
17,036
    
$
14,138
    
$
14,138
    
$
62,253
    
$
19,148
    
$
19,148
  
                                                 
                                                 
Net income per share:
                                                
Basic
  
$
0.40
    
$
0.35
    
$
0.35
    
$
1.48
    
$
0.50
    
$
0.50
  
Diluted
  
$
0.39
    
$
0.33
    
$
0.33
    
$
1.42
    
$
0.47
    
$
0.47
  
                                                 
Weighted average common and common stock
                                                
equivalent shares outstanding:
                                                
Basic
    
42,243
      
40,432
      
40,432
      
42,128
      
38,417
      
38,417
  
Diluted
    
43,553
      
42,380
      
42,380
      
43,505
      
40,516
      
40,516
  
                                                   
(1) Pro forma amounts include Bois d'Arc Energy as a consolidated subsidiary.
  
 
 
COMSTOCK RESOURCES, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands)

   
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
           
2005
            
2005
  
   
2006
    
As Reported
    
Pro Forma(1)
    
2006
    
As Reported
    
Pro Forma(1)
  
Cash flow from operations:
                                                
Net cash provided by operating activities
  
$
98,236
    
$
55,657
    
$
92,243
    
$
274,300
    
$
155,254
    
$
228,997
  
Excess tax benefit from stock based compensation
    
—
      
—
      
—
      
922
      
—
      
—
  
Increase (decrease) in accounts receivable
    
2,366
      
7,460
      
(5,990
)
    
(10,774
)
    
4,741
      
8,403
  
Increase (decrease) in other current assets
    
(10,560
)
    
(1,663
)
    
2,227
      
139
      
(1,659
)
    
4,422
  
Decrease (increase) in accounts payable and
                                                
accrued expenses
    
(763
)
    
(8,076
)
    
(4,136
)
    
3,153
      
(11,085
)
    
(27,433
)
Cash flow from operations
  
$
89,279
    
$
53,378
    
$
84,344
    
$
267,740
    
$
147,251
    
$
214,389
  
                                                 
EBITDAX:
                                                
Net income
  
$
17,036
    
$
14,138
    
$
14,138
    
$
62,253
    
$
19,148
    
$
19,148
  
Interest expense
    
6,733
      
4,982
      
5,220
      
18,322
      
15,499
      
15,904
  
Income tax expense
    
16,662
      
7,602
      
15,120
      
61,847
    
11,469
      
131,112
  
Depreciation, depletion and amortization
    
40,709
      
14,036
      
23,331
      
104,457
      
47,368
      
71,054
  
Exploration expense
    
8,069
      
2,423
      
5,249
      
16,662
      
19,709
      
27,399
  
Other non-cash items:
                                                
Impairment
    
1,389
      
3,400
      
3,400
      
2,235
      
3,400
      
3,400
  
Loss on disposal of assets
    
—
      
—
      
—
      
7,934
      
—
      
89
  
Equity in earnings (loss) of Bois d'Arc Energy
    
—
      
(6,358
)
    
—
      
—
      
54,867
      
—
  
Minority interests in earnings of Bois d'Arc Energy
    
6,004
      
—
      
6,901
      
22,433
      
—
      
(22,720
)
Gain on sale of stock by Bois d'Arc Energy
    
—
      
—
      
—
      
—
      
(28,797
)
    
(28,797
)
Stock-based compensation
    
3,342
      
1,017
      
2,438
      
8,912
      
4,195
      
7,192
  
Unrealized (gain) loss on derivatives
    
(1,180
)
    
17,674
      
17,674
      
(11,311
)
    
20,905
      
20,905
  
EBITDAX
  
$
98,764
    
$
58,914
    
$
93,471
    
$
293,744
    
$
167,763
    
$
244,686
  
 
                                                
 
     
As of September 30,
  
             
2005
  
     
2006
    
As Reported
    
Pro Forma(1)
  
Balance Sheet Data:
                          
Cash and cash equivalents
    
$
27,084
    
$
1,847
    
$
4,905
  
Other current assets
      
78,089
      
38,911
      
64,828
  
Property and equipment, net
      
1,676,234
      
695,430
      
1,300,664
  
Investment in Bois d'Arc Energy
      
—
      
247,128
      
—
  
Other
      
11,477
      
5,071
      
5,955
  
Total assets
    
$
1,792,884
    
$
988,387
    
$
1,376,352
  
                           
Current liabilities
    
$
122,899
    
$
70,846
    
$
125,610
  
Long-term debt
      
455,000
      
282,000
      
306,000
  
Deferred income taxes
      
305,062
      
95,265
      
213,157
  
Asset retirement obligation
      
44,327
      
2,769
      
33,909
  
Other
      
—
      
4,245
      
4,245
  
Minority interest in Bois d'Arc Energy
      
212,683
      
—
      
160,169
  
Stockholders' equity
      
652,913
      
533,262
      
533,262
  
Total liabilities and stockholders' equity
    
$
1,792,884
    
$
988,387
    
$
1,376,352
  
 
     
(1) Pro forma amounts include Bois d'Arc Energy as a consolidated subsidiary.
 
 
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
($ In thousands, except per unit amounts)
 
   
For the Three Months Ended September 30, 2006
    
For the Three Months Ended September 30, 2005
  
         
Bois d'Arc
                
Bois d'Arc
    
Pro Forma
  
   
Onshore(1)
    
Energy
    
Total
    
Onshore(1)
    
Energy
    
Total(2)
  
Oil production (thousand barrels)
    
231
      
370
      
601
      
208
      
245
      
453
  
Gas production (million cubic
                                                
feet - Mmcf
    
7,409
      
6,106
      
13,515
      
7,328
      
3,306
      
10,634
  
Total production (Mmcfe)
    
8,792
      
8,328
      
17,120
      
8,575
      
4,775
      
13,350
  
                                                 
Oil sales
  
$
13,696
    
$
25,935
    
$
39,631
    
$
10,960
    
$
14,683
    
$
25,643
  
Gas sales
    
48,559
      
41,061
      
89,620
      
60,659
      
28,751
      
89,410
  
Total oil and gas sales
  
$
62,255
    
$
66,996
    
$
129,251
    
$
71,619
    
$
43,434
    
$
115,053
  
                                                 
Average oil price (per barrel)
  
$
59.42
    
$
70.01
    
$
65.95
    
$
52.71
    
$
59.96
    
$
56.63
  
Average gas price (per thousand
                                                
cubic feet - Mcf)
  
$
6.55
    
$
6.72
    
$
6.63
    
$
8.28
    
$
8.70
    
$
8.41
  
Average price (per Mcf equivalent)
  
$
7.08
    
$
8.04
    
$
7.75
    
$
8.35
    
$
9.10
    
$
8.62
  
Lifting cost
  
$
13,365
    
$
13,538
    
$
26,903
    
$
10,803
    
$
8,343
    
$
19,146
  
Lifting cost (per Mcf equivalent)
  
$
1.52
    
$
1.63
    
$
1.57
    
$
1.26
    
$
1.75
    
$
1.43
  
Oil and Gas Capital Expenditures 
  
$
120,656
    
$
77,500
    
$
198,156
    
$
47,714
    
$
53,364
    
$
101,078
  
 
 
For the Nine Months Ended September 30, 2006
    
For the Nine Months Ended September 30, 2005
  
         
Bois d'Arc
                
Bois d'Arc
    
Pro Forma
  
   
Onshore(1)
    
Energy
    
Total
    
Onshore(1)
    
Energy
    
Total(2)
  
Oil production (thousand barrels)
    
696
      
1,033
      
1,729
      
501
      
956
      
1,457
  
Gas production (million cubic
                                                
feet - Mmcf
    
22,327
      
16,388
      
38,715
      
20,874
      
11,718
      
32,592
  
Total production (Mmcfe)
    
26,501
      
22,587
      
49,088
      
23,881
      
17,457
      
41,338
  
                                                 
Oil sales
  
$
39,808
    
$
69,215
    
$
109,023
    
$
24,534
    
$
49,294
    
$
73,828
  
Gas sales
    
156,909
      
119,221
      
276,130
      
146,906
      
86,301
      
233,207
  
Total oil and gas sales
  
$
196,717
    
$
188,436
    
$
385,153
    
$
171,440
    
$
135,595
    
$
307,035
  
                                                 
Average oil price (per barrel)
  
$
57.22
    
$
67.00
    
$
63.06
    
$
48.96
    
$
51.54
    
$
50.65
  
Average gas price (per thousand
                                                
cubic feet - Mcf)
  
$
7.03
    
$
7.27
    
$
7.13
    
$
7.04
    
$
7.36
    
$
7.16
  
Average price (per Mcf equivalent)
  
$
7.42
    
$
8.34
    
$
7.85
    
$
7.18
    
$
7.77
    
$
7.43
  
Lifting cost
  
$
40,420
    
$
37,799
    
$
78,219
    
$
30,170
    
$
24,324
    
$
54,494
  
Lifting cost (per Mcf equivalent)
  
$
1.53
    
$
1.67
    
$
1.59
    
$
1.26
    
$
1.39
    
$
1.32
  
Oil and Gas Capital Expenditures 
  
$
212,938
    
$
191,798
    
$
404,736
    
$
296,398
    
$
123,723
    
$
420,121
  
 
                                                 
(1) Includes the onshore results of operations of Comstock Resources, Inc.
  
(2) Pro forma amounts include Bois d'Arc Energy as a consolidated subsidiary.
  
 
 
 
COMSTOCK RESOURCES, INC.
REGIONAL ONSHORE OPERATING RESULTS
($ In thousands, except per unit amounts)
 
   
For the Three Months ended September 30, 2006
    
For the Three Months Ended September 30, 2005
  
   
East Texas/
                            
East Texas/
                          
   
North
    
South
            
Total
    
North
    
South
            
Total
  
   
Louisiana
    
Texas
    
Other
    
Onshore
    
Louisiana
    
Texas
    
Other
    
Onshore
  
Oil production (thousand barrels)
    
29
      
51
      
151
      
231
      
23
      
50
      
135
      
208
  
Gas production (million cubic feet - Mmcf) 
    
4,507
      
2,065
      
837
      
7,409
      
3,930
      
2,412
      
986
      
7,328
  
Total production (Mmcfe)
    
4,679
      
2,371
      
1,742
      
8,792
      
4,069
      
2,711
      
1,795
      
8,575
  
                                                                 
Oil sales
  
$
1,906
    
$
3,498
    
$
8,292
    
$
13,696
    
$
1,230
    
$
3,683
    
$
6,047
    
$
10,960
  
Gas sales
    
28,737
      
14,625
      
5,197
      
48,559
      
32,226
      
20,557
      
7,876
      
60,659
  
Total oil and gas sales
  
$
30,643
    
$
18,123
    
$
13,489
    
$
62,255
    
$
33,456
    
$
24,240
    
$
13,923
    
$
71,619
  
                                                                 
Average oil price (per barrel)
  
$
65.72
    
$
68.59
    
$
54.91
    
$
59.42
    
$
53.48
    
$
73.66
    
$
44.79
    
$
52.71
  
Average gas price (per thousand
                                                                
cubic feet - Mcf)
  
$
6.38
    
$
7.08
    
$
6.21
    
$
6.55
    
$
8.20
    
$
8.52
    
$
7.99
    
$
8.28
  
Average price (per Mcf equivalent)
  
$
6.55
    
$
7.64
    
$
7.74
    
$
7.08
    
$
8.22
    
$
8.94
    
$
7.76
    
$
8.35
  
Lifting cost(1)
  
$
5,568
    
$
3,437
    
$
4,360
    
$
13,365
  
$
3,061
    
$
2,919
    
$
4,822
    
$
10,803
  
Lifting cost (per Mcf equivalent)
  
$
1.19
    
$
1.45
    
$
2.50
    
$
1.52
    
$
0.75
    
$
1.08
    
$
2.69
    
$
1.26
  
                                                                 
Oil and Gas Capital Expenditures:
                                                                
Acquisitions 
  
$
—
    
$
67,263
    
$
—
    
$
67,263
    
$
10,157
    
$
—
    
$
—
    
$
10,157
  
Leasehold costs
    
259
      
882
      
689
      
1,830
      
347
      
399
      
295
      
1,041
  
Exploratory drilling
    
—
      
—
      
—
      
—
      
—
      
1,832
      
43
      
1,875
  
Development drilling
    
39,066
      
6,296
      
732
      
46,094
      
24,735
      
1,615
      
4,364
      
30,714
  
Other development
    
3,149
      
353
      
1,967
      
5,469
      
1,806
      
162
      
1,959
      
3,927
  
Total
  
$
42,474
    
$
74,794
    
$
3,388
    
$
120,656
    
$
37,045
    
$
4,008
    
$
6,661
    
$
47,714
  
                                                               
(1) Includes production taxes of $2,487 and $2,575 for the three months ended September 30, 2006 and 2005, respectively.
 
   
For the Nine Months ended September 30, 2006
    
For the Nine Months Ended September 30, 2005
  
   
East Texas/
                            
East Texas/
                          
   
North
    
South
            
Total
    
North
    
South
            
Total
  
   
Louisiana
    
Texas
    
Other
    
Onshore
    
Louisiana
    
Texas
    
Other
    
Onshore
  
Oil production (thousand barrels)
    
89
      
164
      
443
      
696
      
63
      
178
      
260
      
501
  
Gas production (million cubic feet - Mmcf)
    
13,075
      
6,728
      
2,524
      
22,327
      
9,854
      
8,147
      
2,873
      
20,874
  
Total production (Mmcfe)
    
13,609
      
7,715
      
5,177
      
26,501
      
10,232
      
9,215
      
4,434
      
23,881
  
                                                                 
Oil sales
  
$
5,637
    
$
10,785
    
$
23,386
    
$
39,808
    
$
3,183
    
$
9,395
    
$
11,956
    
$
24,534
  
Gas sales
    
89,802
      
50,415
      
16,692
      
156,909
      
69,173
      
57,965
      
19,768
      
146,906
  
Total oil and gas sales
  
$
95,439
    
$
61,200
    
$
40,078
    
$
196,717
    
$
72,356
    
$
67,360
    
$
31,724
    
$
171,440
  
                                                                 
Average oil price (per barrel)
  
$
63.34
    
$
65.76
    
$
52.79
    
$
57.22
    
$
50.52
    
$
52.78
    
$
45.98
    
$
48.96
  
Average gas price (per thousand
                                                                
cubic feet - Mcf)
  
$
6.87
    
$
7.49
    
$
6.21
    
$
7.03
    
$
7.02
    
$
7.11
    
$
6.88
    
$
7.04
  
Average price (per Mcf equivalent) 
  
$
7.01
    
$
7.93
    
$
7.74
    
$
7.42
    
$
7.07
    
$
7.31
    
$
7.15
    
$
7.18
  
Lifting cost(2)
  
$
17,229
    
$
10,770
    
$
12,421
    
$
40,420
  
$
11,700
    
$
9,892
    
$
8,578
    
$
30,170
  
Lifting cost (per Mcf equivalent)
  
$
1.27
    
$
1.40
    
$
2.40
    
$
1.53
    
$
1.14
    
$
1.07
    
$
1.93
    
$
1.26
  
                                                                 
Oil and Gas Capital Expenditures:
                                                                
Acquisitions 
  
$
912
    
$
67,263
    
$
—
    
$
68,175
    
$
128,397
    
$
—
    
$
73,334
    
$
201,731
  
Leasehold costs
    
493
      
1,067
      
1,823
      
3,383
      
612
      
969
      
1,107
      
2,688
  
Exploratory drilling
    
—
      
75
      
—
      
75
      
—
      
14,913
      
276
      
15,189
  
Development drilling
    
91,525
      
11,903
      
20,488
      
123,916
      
52,056
      
6,814
      
7,234
      
66,104
  
Other development
    
11,320
      
996
      
5,073
      
17,389
      
6,911
      
1,143
      
2,632
      
10,686
  
Total
  
$
104,250
    
$
81,304
    
$
27,384
    
$
212,938
    
$
187,976
    
$
23,839
    
$
84,583
    
$
296,398
  
                                                               
(2) Includes production taxes of $8,793 and $7,448 for the nine months ended September 30, 2006 and 2005, respectively.