EX-99.1 2 exhibit99pnt1feb909.htm EXHIBIT 99.1 exhibit99pnt1feb909.htm
 
 
Exhibit 99.1
 
 
 
 
5300 Town and Country Blvd., Suite 500
comstock resources, inc. logo
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
FOURTH QUARTER AND ANNUAL 2008
FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, February 9, 2009 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and year ended December 31, 2008.


Financial Results for the Three Months and Year Ended December 31, 2008
 
Comstock reported a net loss of $96.4 million or $2.15 per share for the three months ended December 31, 2008 as compared to 2007's fourth quarter net income of $21.7 million or $0.48 per diluted share.  Results for the fourth quarter of 2008 include impairment charges of $162.7 million ($105.8 million after income taxes or $2.33 per share) related to the Company's investment in Stone Energy Corporation ("Stone") and a $0.9 million ($0.6 million after tax or $.01 per diluted share) related to its oil and gas properties.  Excluding these impairment charges, net income for the fourth quarter of 2008 would be $10.0 million or $0.22 per diluted share.  Comstock's income from continuing operations in the fourth quarter of 2007 was $13.2 million or $0.30 per diluted share.

The fourth quarter operating results were impacted by continued production growth and declining market prices for crude oil and natural gas.  Comstock's production from its continuing onshore operations in the fourth quarter of 2008 increased 23% to 15.1 billion cubic feet equivalent of natural gas ("Bcfe") as compared to production of 12.2 Bcfe in the fourth quarter of 2007.  The fourth quarter average daily production rate of 164 million cubic feet of natural gas equivalent ("Mmcfe") was slightly higher than the third quarter 2008 production rate of 163 Mmcfe per day.  Comstock's realized oil prices in the fourth quarter of 2008 declined to $52.16 per barrel, 31% lower than the $76.10 per barrel in 2007's fourth quarter.  Oil prices in the fourth quarter of 2008 were substantially lower than the $105.15 per barrel realized during the third quarter of 2008.  Natural gas prices realized in the fourth quarter of 2008 averaged $6.44 per Mcf, 10% lower than the $7.15 per Mcf realized in 2007.  Natural gas prices in the fourth quarter of 2008 were also substantially less than the $10.16 per Mcf realized during the third quarter of 2008.  Oil and gas sales in the fourth quarter of 2008 of $100.2 million increased 5% from 2007's fourth quarter sales of $95.5 million as the 23% production increase was largely offset by lower crude oil and natural gas prices.  Operating cash flow (before changes in working capital accounts) generated by Comstock's continuing operations in 2008's fourth quarter of $79.5 million increased 26% over 2007's fourth quarter operating cash flow of $62.9 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses from continuing operations, of $71.5 million in 2008's fourth quarter was comparable to 2007's fourth quarter EBITDAX from continuing operations of $72.3 million.
 
 
 
 
 
 

 
 
 
Comstock reported net income of $252.0 million or $5.53 per diluted share for the year ended December 31, 2008 as compared to 2007's net income of $68.9 million or $1.54 per diluted share.  Income from continuing operations for 2008 was $58.2 million or $1.28 per diluted share as compared to income from continuing operations of $45.6 million or $1.03 per diluted share for 2007.  Excluding the impairment charges related to the investment in Stone and its oil and gas properties, and the $26.6 million gain recognized on sale of certain onshore oil and gas properties ($17.3 million after income taxes or $0.38 per diluted share), Comstock's income from continuing operations for 2008 was $147.6 million or $3.25 per diluted share.

The full year 2008 financial results reflect overall higher oil and natural gas prices combined with the Company's strong production growth in 2008.  Comstock's continuing onshore production in 2008 increased 32% to 59.9 Bcfe as compared to production of 45.3 Bcfe in 2007.  Realized oil prices in 2008 averaged $87.15 per barrel, 43% higher than the $60.96 per barrel realized in 2007.  Natural gas prices in 2008 averaged $8.83 per Mcf, 28% higher than the $6.89 per Mcf realized in 2007.  Oil and gas sales of $563.7 million during 2008 increased 70% from 2007's sales of $331.6 million.  Operating cash flow (before changes in working capital accounts) generated by Comstock's continuing operations in 2008 of $438.2 million increased 103% from 2007's cash flow from continuing operations of $215.5 million.  EBITDAX from continuing operations of $458.7 million in 2008 increased 83% over 2007's EBITDAX from continuing operations of $250.8 million.

Comstock's offshore operations represented by its ownership in Bois d'Arc Energy, Inc. ("Bois d'Arc") are reflected as discontinued operations in the 2008 financial results due to the sale of Bois d'Arc to Stone in August 2008.  For the year ended December 31, 2008, Bois d'Arc contributed $35.6 million or 77¢ per diluted share to net income as compared to $23.3 million or 51¢ per diluted share in 2007.  Comstock recognized a gain of $158.1 million after tax ( $3.48 per diluted share) in the third quarter in connection with the sale.  Comstock received $439.9 million in cash and 5,317,069 shares of Stone common stock for its stake in Bois d'Arc.

2008 Drilling Results

Comstock also announced the results of its 2008 onshore drilling program.  In 2008 Comstock drilled 136 wells (75.7 net).  132 (74.2 net) of the wells drilled were successful and four (1.5 net) were dry holes.

Comstock drilled 114 successful wells (61.5 net) in its East Texas / North Louisiana region which have been tested at an average per well initial production rate of 2.8 Mmcfe per day.  One well (.3 net) was unsuccessful.  Wells drilled in this region in 2008 include 37 wells (11.2 net) drilled in the Hico Knowles – Terryville area of North Louisiana.  All of these wells have been completed and had initial production rates which averaged 3.5 Mmcfe per day.  Comstock has also drilled 45 wells (34.2 net) in its Logansport field in North Louisiana.  Forty-one of these wells have been completed with initial production rates which averaged 2.1 Mmcfe per day.  Comstock's 2008 drilling program in this region includes seven successful horizontal Cotton Valley wells drilled in its Waskom and Blocker fields in Harrison County, Texas.  Five of these wells have been completed with a per well average initial production rate of 7.1 Mmcfe per day.  Comstock's average working interest in these wells is 83%.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
Other activity in the East Texas / North Louisiana region relates to the Company's emerging Haynesville shale play.  Comstock has 86,032 (70,504 net) acres that are prospective for Haynesville shale development in this region.  The Company has completed two horizontal wells and has an additional eight wells in progress.  The BSMC La 7 #1H well in the Toledo Bend North field was successfully completed in December 2008 with an initial production rate of approximately 9 Mmcfe per day.  Comstock has an 88% working interest in this well.  Comstock has a 22% interest in the successful R. F. Gamble 24 #1H, which was recently completed and with an initial production rate of approximately 14 Mmcfe per day.  Comstock is currently completing three Haynesville horizontal wells.  Comstock's second operated horizontal Haynesville well is the Collins La 15 #1H in the Logansport field.  This well was drilled to a total vertical depth of 11,350 feet with a 4,200 foot lateral.  This well's completion has been delayed due to mechanical problems.  The Company is completing the Bogue A #6H well in the Waskom field.  This well reached an 11,400 foot vertical depth with a 4,000 foot lateral extension.  The Company is also completing the Hart #1H in the Logansport field which reached an 11,500 foot vertical depth with a 4,000 foot horizontal extension.  The Company is currently drilling five Haynesville horizontal wells.  The Green #13H in the Blocker field reached an 11,650 foot vertical depth and the Company is currently drilling this well's 3,700 foot lateral.  The Headrick #1H in Bethany-Longstreet field has reached a vertical depth of 11,850 feet and its 4,000 foot lateral is currently being drilled.  The Holmes A #1H in Logansport field is currently drilling at a vertical depth of approximately 11,000 feet.  Comstock is also drilling the Moneyham #7H in Longwood field which is currently drilling at a vertical depth approaching 11,000 feet.  Comstock has also finished drilling the 11,730 foot vertical section of the BSMC La 12 #1H well in the Toledo Bend North field.

During 2008, in South Texas Comstock drilled 18 wells (13.4 net), 15 (12.2 net) of which were successful.  Fourteen of the successful wells had an average per well initial production rate of 4.3 Mmcfe per day.  Four of the successful wells were in the Las Hermanitas field in Duval County, Texas, six were in the Javelina Field in Hidalgo County, three were in the Ball Ranch field, and one was in the Lorenz Ranch field.  Comstock also had a successful well in the Fandango field in Zapata County, Texas.  The Leyendecker #10 well was drilled to a total depth of 16,200 feet in the Fandango field.  The Company has a 100% interest and is currently finishing this well's multiple stage completion.  Subsequent to the success of the Leyendecker #10, Comstock has two additional wells underway in the Fandango field.  Comstock has drilled the Muzza #13 to a 16,300 foot vertical depth and is currently drilling the Trevino #3 to a planned vertical depth of 14,900 feet.  Both of these wells appear to have encountered the targeted Wilcox sands and will be completed.
 
Comstock also had two (0.3 net) successful wells drilled in the San Juan Basin and one (0.2 net) successful well drilled in the Anadarko Basin during the year.


2009 Drilling Budget

Comstock also announced that it is reducing its 2009 drilling budget from $450 million to $366 million in response to weak natural gas prices.  The revised budget has Comstock drilling approximately 41 (34.8 net) wells in 2009.  The 2009 drilling program will continue to be focused on the Company's higher return opportunities, including its extensive acreage position in the Haynesville Shale.  Comstock's East Texas/North Louisiana operating region accounts for the largest portion of the revised 2009 budget with forecasted expenditures of $319 million. Comstock has budgeted to drill 36 (31.4 net) wells in this region in 2009, which includes thirty (25.8 net) Haynesville Shale horizontal wells and two (1.6 net) Cotton Valley horizontal wells.  Comstock expects to spend $47 million in its South Texas region to drill five (3.4 net) wells in 2009.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
Comstock Fourth Quarter and Annual 2008 Earnings Conference Call

Comstock has scheduled a conference call for Tuesday, February 10, 2009 at 9:30 a.m. CST (10:30 a.m. EST) to discuss fourth quarter and annual 2008 financial and operating results.  To access, dial (800) 599-9795 before the call begins.  Please reference Passcode 13456712.  International callers may also participate by dialing (617) 786-2905.  A replay of the call will be available approximately two hours after the live broadcast ends and will be accessible until Tuesday, February 17, 2009.  To access the replay, please dial (888) 286-8010 and reference Passcode 42281507.  International callers may listen to a playback by dialing (617) 801-6888.  In addition, the call will be webcast live on Comstock's website at http://www.comstockresources.com.  A replay of the call will also be available on that site.


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

 
 
 
 
 
 
 
 
 
 
 

 

 
 
 

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per share amounts)


   
Three Months Ended
December 31,
    
Year Ended
December 31,
  
   
2008
    
2007
    
2008
    
2007
  
                                 
Revenues:
                                
Oil and gas sales
  
$
100,154
    
$
95,519
    
$
563,749
    
$
331,613
  
Gain on sales of assets
    
—
      
—
      
26,560
      
—
  
                                 
Operating expenses:
                                
Oil and gas operating
    
20,610
      
16,082
      
86,730
      
64,791
  
Exploration   
    
—
      
3,388
      
5,032
      
7,039
  
Depreciation, depletion and amortization
    
50,309
      
34,328
      
182,179
      
125,349
  
Oil and gas property impairment
    
922
      
—
      
922
      
482
  
General and administrative, net
    
11,938
      
10,312
      
32,266
      
27,813
  
                                 
Total operating expenses
    
83,779
      
64,110
      
307,129
      
225,474
  
                                 
Operating income from continuing operations
    
16,375
      
31,409
      
283,180
      
106,139
  
                                 
Other income (expenses):
                                
Interest income
    
584
      
233
      
1,537
      
877
  
Other income
    
32
      
28
      
119
      
144
  
Interest expense
    
(2,088
)
    
(9,461
)
    
(25,336
)
    
(32,293
)
   Marketable securities impairment
    
(162,672
)
    
—
      
(162,672
)
    
—
  
                                 
Total other income (expenses)
    
(164,144
)
    
(9,200
)
    
(186,352
)
    
(31,272
)
                                 
Income (loss) from continuing operations
before income taxes
    
(147,769
)
    
22,209
      
96,828
      
74,867
  
Benefit from (provision for) income taxes
    
51,392
      
(9,043
)
    
(38,611
)
    
(29,223
)
                                 
Income (loss) from continuing operations
    
(96,377
)
    
13,166
      
58,217
      
45,644
  
                                 
Income from discontinued operations after
income taxes and minority interest
    
—
      
8,532
      
193,745
      
23,257
  
Net income (loss)
  
$
(96,377
)
  
$
21,698
    
$
251,962
    
$
68,901
  
                                 
Basic net income (loss) per share:
                                
Continuing operations
  
$
(2.15
)
  
$
0.30
    
$
1.31
    
$
1.05
  
Discontinued operations
    
—
      
0.20
      
4.35
      
0.54
  
   
$
(2.15
)
  
$
0.50
    
$
5.66
    
$
1.59
  
Diluted net income (loss) per share:
                                
Continuing operations
  
$
(2.15
)
  
$
0.30
    
$
1.28
    
$
1.03
  
Discontinued operations
    
—
      
0.18
      
4.25
      
0.51
  
   
$
(2.15
)
  
$
0.48
    
$
5.53
    
$
1.54
  
Weighted average shares outstanding:
                                
Basic
    
44,751
      
43,544
      
44,524
      
43,415
  
Diluted
    
44,751
 (1)
    
44,583
      
45,440
      
44,405
  

   
(1) Diluted shares outstanding are the same as basic due to the net loss.

 
 
 
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

   
Three Months Ended December 31,
    
Year Ended December 31,
  
   
2008
    
2007
    
2008
    
2007
  
                                 
                                 
OPERATING CASH FLOW:
                                
Income (loss) from continuing operations
  
$
(96,377
)
  
$
13,166
    
$
58,217
    
$
45,644
  
Reconciling items:
                                
    Deferred income taxes
    
(41,551
)
    
8,903
      
43,620
      
25,543
  
    Dry hole costs and lease impairments
    
—
      
3,388
      
4,113
      
6,846
  
    Depreciation, depletion and amortization
    
50,309
      
34,328
      
182,179
      
125,349
  
    Gain on sale of assets
    
—
      
—
      
(26,560
)
    
—
  
Marketable securities impairment
    
162,672
      
—
      
162,672
      
—
  
Oil and gas properties impairment
    
922
      
—
      
922
      
482
  
Debt issuance cost amortization
    
202
      
202
      
810
      
810
  
Stock-based compensation
    
3,295
      
2,884
      
12,263
      
10,789
  
Operating cash flow
    
79,472
      
62,871
      
438,236
      
215,463
  
Excess tax benefit from stock-based compensation
    
—
      
(5,920
)
    
(8,805
)
    
(6,522
)
Decrease (increase) in accounts receivable
    
21,156
      
(5,856
)
    
6,418
      
(11,605
)
Decrease (increase) in other current assets
    
(888
)
    
2,527
      
(9,646
)
    
(230
)
Increase (decrease) in accounts payable and accrued expenses
    
19,757
      
(942
)
    
24,330
      
4,433
  
Net cash provided by operating activities from continuing operations
  
$
119,497
    
$
52,680
    
$
450,533
    
$
201,539
  
                                 
EBITDAX:
                                
Income (loss) from continuing operations
  
$
(96,377
)
  
$
13,166
    
$
58,217
    
$
45,644
  
Gain on sales of assets
    
—
      
—
      
(26,560
)
    
—
  
Interest expense
    
2,088
      
9,461
      
25,336
      
32,293
  
Income tax expense
    
(51,392
)
    
9,043
      
38,611
      
29,223
  
Depreciation, depletion and amortization
    
50,309
      
34,328
      
182,179
      
125,349
  
Marketable securities impairment
    
162,672
      
—
      
162,672
      
—
  
Oil and gas properties impairment
    
922
      
—
      
922
      
482
  
Stock-based compensation
    
3,295
      
2,884
      
12,263
      
10,789
  
Exploration
    
—
      
3,388
      
5,032
      
7,039
  
EBITDAX from continuing operations
  
$
71,517
    
$
72,270
    
$
458,672
    
$
250,819
  

   
As of December 31,
  
   
2008
    
2007
  
                 
Balance Sheet Data:
                
Cash and cash equivalents
  
$
6,281
    
$
5,565
  
Other current assets
    
74,879
      
52,638
  
Marketable securities
    
48,868
      
—
  
Property and equipment, net
    
1,444,715
      
1,310,559
  
Assets of discontinued operations
    
—
      
981,682
  
Other
    
3,147
      
3,943
  
Total assets
  
$
1,577,890
    
$
2,354,387
  
                 
Accounts payable and accrued expenses
  
$
114,455
    
$
83,467
  
Long-term debt
    
210,000
      
680,000
  
Deferred income taxes
    
185,870
      
92,088
  
Asset retirement obligation
    
5,480
      
7,512
  
Liabilities and minority interest of discontinued operations
    
—
      
719,676
  
Stockholders' equity 
    
1,062,085
      
771,644
  
Total liabilities and stockholders' equity
  
$
1,577,890
    
$
2,354,387
  
 
 
 
 

COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

   
For the Three Months Ended December 31, 2008
    
For the Three Months Ended December 31, 2007
  
   
East Texas/
                      
East Texas/
                    
   
North
    
South
                
North
    
South
              
   
Louisiana
    
Texas
    
Other
    
Total
    
Louisiana
    
Texas
    
Other
    
Total
  
Oil production (thousand barrels)
    
73
      
37
      
124
      
234
      
40
      
56
      
146
      
242
  
Gas production (million cubic feet – Mmcf)
    
7,927
      
4,903
      
830
      
13,660
      
6,559
      
3,364
      
846
      
10,769
  
Total production (Mmcfe)
    
8,365
      
5,126
      
1,577
      
15,068
      
6,800
      
3,702
      
1,724
      
12,226
  
                                                                 
Oil sales
  
$
4,477
    
$
2,252
    
$
5,509
    
$
12,238
    
$
3,552
    
$
5,068
    
$
9,861
    
$
18,481
  
Gas sales
    
51,285
      
29,668
      
4,415
      
85,368
      
46,133
      
25,117
      
5,788
      
77,038
  
Gas hedging gains
    
—
      
2,548
      
—
      
2,548
      
—
      
—
      
—
      
—
  
 Total gas sales
    
51,285
      
32,216
      
4,415
      
87,916
      
46,133
      
25,117
      
5,788
      
77,038
  
Total oil and gas sales
  
$
55,762
    
$
34,468
    
$
9,924
    
$
100,154
    
$
49,685
    
$
30,185
    
$
15,649
    
$
95,519
  
                                                                 
Average oil price (per barrel)
  
$
61.30
    
$
60.68
    
$
44.26
    
$
52.16
    
$
88.80
    
$
90.50
    
$
67.54
    
$
76.10
  
Average gas price (per thousand cubic feet – Mcf)
  
$
6.47
    
$
6.05
    
$
5.32
    
$
6.25
    
$
7.03
    
$
7.47
    
$
6.84
    
$
7.15
  
Average gas price including hedging (per Mcf)
  
$
6.47
    
$
6.57
    
$
5.32
    
$
6.44
    
$
7.03
    
$
7.47
    
$
6.84
    
$
7.15
  
Average price (per Mcf equivalent)
  
$
6.67
    
$
6.23
    
$
6.29
    
$
6.48
    
$
7.31
    
$
8.15
    
$
9.08
    
$
7.81
  
Average price including hedging (per Mcf equivalent)
  
$
6.67
    
$
6.72
    
$
6.29
    
$
6.65
    
$
7.31
    
$
8.15
    
$
9.08
    
$
7.81
  
Lifting cost(1)
  
$
10,888
    
$
5,366
    
$
4,356
    
$
20,610
(1)
$
6,710
    
$
4,772
    
$
4,600
    
$
16,082
(1)
Lifting cost (per Mcf equivalent)
  
$
1.30
    
$
1.05
    
$
2.76
    
$
1.37
    
$
0.99
    
$
1.29
    
$
2.67
    
$
1.32
  
                                                                 
Oil and Gas Capital Expenditures:
                                                                
Acquisitions
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
160,101
    
$
—
    
$
160,101
  
Leasehold costs
    
7,711
      
547
      
67
      
8,325
      
576
      
789
      
71
      
1,436
  
Exploratory drilling
    
43,544
      
12,170
      
2,221
      
57,935
      
—
      
3,916
      
(51
)
    
3,865
  
Development drilling
    
33,269
      
14,922
      
31
      
48,222
      
56,454
      
11,922
      
2,111
      
70,487
  
Other development
    
3
      
1,320
      
97
      
1,420
      
798
      
1,710
      
515
      
3,023
  
Total
  
$
84,527
    
$
28,959
    
$
2,416
    
$
115,902
    
$
57,828
    
$
178,438
    
$
2,646
    
$
238,912
  
 
                                                                 
(1)  Includes production taxes of $1,755 and $3,319 for the three months ended December 31, 2008 and 2007, respectively.
  
 
 
 
 
 
 
 
 
 
 
 
 

 
   
For the Year Ended December 31, 2008
    
For the Year Ended December 31, 2007
  
   
East Texas/
                      
East Texas/
                    
   
North
    
South
                
North
    
South
              
   
Louisiana
    
Texas
    
Other
    
Total
    
Louisiana
    
Texas
    
Other
    
Total
  
Oil production (thousand barrels)
    
299
      
179
      
531
      
1,009
      
162
      
214
      
632
      
1,008
  
Gas production (million cubic feet – Mmcf)
    
29,322
      
21,536
      
3,009
      
53,867
      
24,407
      
11,790
      
3,034
      
39,231
  
Total production (Mmcfe)
    
31,117
      
22,611
      
6,195
      
59,923
      
25,378
      
13,077
      
6,827
      
45,282
  
                                                                 
Oil sales
  
$
29,690
    
$
18,264
    
$
40,003
    
$
87,957
    
$
11,052
    
$
15,189
    
$
35,233
    
$
61,474
  
Gas sales
    
263,740
      
192,661
      
24,201
      
480,602
      
164,926
      
85,427
      
19,786
      
270,139
  
Gas hedging losses
    
—
      
(4,810
)
    
—
      
(4,810
)
    
—
      
—
      
—
      
—
  
  Total gas sales
    
263,740
      
187,851
      
24,201
      
475,792
      
164,926
      
85,427
      
19,786
      
270,139
  
Total oil and gas sales
  
$
293,430
    
$
206,115
    
$
64,204
    
$
563,749
    
$
175,978
    
$
100,616
    
$
55,019
    
$
331,613
  
                                                                 
Average oil price (per barrel)
  
$
99.23
    
$
101.96
    
$
75.34
    
$
87.15
    
$
68.22
    
$
70.98
    
$
55.75
    
$
60.96
  
Average gas price (per thousand cubic feet – Mcf)
  
$
8.99
    
$
8.95
    
$
8.04
    
$
8.92
    
$
6.76
    
$
7.25
    
$
6.52
    
$
6.89
  
Average gas price including hedging (per Mcf)
  
$
8.99
    
$
8.72
    
$
8.04
    
$
8.83
    
$
6.76
    
$
7.25
    
$
6.52
    
$
6.89
  
Average price (per Mcf equivalent)
  
$
9.43
    
$
9.33
    
$
10.36
    
$
9.49
    
$
6.93
    
$
7.69
    
$
8.06
    
$
7.32
  
Average price including hedging (per Mcf equivalent)
  
$
9.43
    
$
9.12
    
$
10.36
    
$
9.41
    
$
6.93
    
$
7.69
    
$
8.06
    
$
7.32
  
Lifting cost(2)
  
$
39,021
    
$
27,678
    
$
20,031
    
$
86,730
(2)
$
29,527
    
$
16,832
    
$
18,432
    
$
64,791
(2)
Lifting cost (per Mcf equivalent)
  
$
1.25
    
$
1.22
    
$
3.23
    
$
1.45
    
$
1.16
    
$
1.29
    
$
2.70
    
$
1.43
  
                                                                 
Oil and Gas Capital Expenditures:
                                                                
Acquisitions
  
$
—
    
$
—
    
$
—
    
$
—
    
$
—
    
$
191,290
    
$
—
    
$
191,290
  
Leasehold costs
    
116,931
      
2,159
      
175
      
119,265
      
3,377
      
2,755
      
2,850
      
8,982
  
Exploratory drilling
    
43,544
      
14,953
      
2,616
      
61,113
      
—
      
11,910
      
2,379
      
14,289
  
Development drilling
    
170,612
      
57,955
      
2,037
      
230,604
      
215,593
      
61,738
      
25,024
      
302,355
  
Other development
    
1,454
      
9,388
      
3,406
      
14,248
      
2,620
      
3,337
      
2,841
      
8,798
  
Total
  
$
332,541
    
$
84,455
    
$
8,234
    
$
425,230
    
$
221,590
    
$
271,030
    
$
33,094
    
$
525,714
  

                                                                 
(2)  Includes production taxes of $20,648 and $13,830 for the year ended December 31, 2008 and 2007, respectively.