EX-99.1 2 exhibit99pnt1april13.htm EXHIBIT 99.1 exhibit99pnt1april13.htm
Exhibit 99.1
 
 
5300 Town and Country Blvd., Suite 500
comstock resources, inc. logo
Frisco, Texas 75034
Telephone: (972) 668-8800
Contact: Gary H. Guyton
Director of Planning and Investor Relations
 
Web Site: www.comstockresources.com

NEWS RELEASE
For Immediate Release
 
COMSTOCK RESOURCES, INC. REPORTS
FIRST QUARTER 2013 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, April 29, 2013 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the three months ended March 31, 2013.

Financial Results for the Three Months Ended March 31, 2013

Comstock reported a net loss from continuing operations of $24.5 million or 52¢ per share for the first quarter of 2013 as compared to net income from continuing operations of $1.4 million or 3¢ per diluted share for the three months ended March 31, 2012.  As previously announced, Comstock entered into an agreement on March 14, 2013 to sell its West Texas properties for $768.0 million.  The sale is expected to close on or about May 14, 2013 with an effective date of January 1, 2013.  The West Texas properties have been classified as “Discontinued Operations” as a result of the pending sale.  Including discontinued operations in the first quarter financial results, Comstock reported a net loss of $27.1 million or 58¢ per share for the first quarter of 2013 as compared to net income of $1.4 million or 3¢ per share for the first quarter of 2012.
 
The first quarter of 2013 results include an unrealized loss from derivative financial instruments of $8.8 million ($5.7 million after tax or 12¢ per share), a gain of $7.9 million ($5.1 million after tax, or 11¢ per share) from sales of marketable securities and an impairment on unevaluated acreage of $2.4 million ($1.6 million after tax or 3¢ per share).  Results for the three months ended March 31, 2012 include an unrealized loss from derivative financial instruments of $10.2 million ($6.6 million after tax or 14¢ per share), a gain on sale of marketable securities of $26.6 million ($17.3 million after tax or 37¢ per share), a gain of $6.7 million ($4.4 million after tax or 9¢ per share) from the sale of oil and gas properties and impairments of unevaluated acreage of $1.3 million ($0.9 million after tax or 2¢ per share).

Comstock's production from continuing operations in the first quarter of 2013 of 432,000 barrels of oil and 15.6 billion cubic feet of natural gas or 18.2 billion cubic feet of natural gas equivalent ("Bcfe") decreased 27% from the 24.9 Bcfe produced in the first quarter of 2012 due to production declines from the Company's Haynesville shale properties and due to divestitures completed in 2012.  Oil production in the first quarter, which averaged 4,800 barrels of oil per day, grew 7% from the 4,500 barrels per day produced in the fourth quarter of 2012.

Comstock's average realized natural gas price increased 21% to $3.15 per Mcf for the first quarter of 2013 as compared to $2.61 per Mcf realized in the first quarter of 2012.  The Company's average realized oil price, including hedging gains, improved by 9% to $111.19 per barrel for the first quarter of 2013 as compared to $102.06 per barrel for the first quarter of 2012.  Oil and gas sales from continuing operations (including realized gains or losses from hedging) of $97.3 million decreased by 5% as compared to 2012's first quarter sales of $102.4 million.  Operating cash flow from continuing operations (before changes in working capital accounts) was $56.3 million in the first quarter of 2013 as compared to operating cash flow from continuing operations of $61.7 million for the first quarter of 2012.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, from continuing operations was $72.5 million in the first quarter of 2013 as compared to EBITDAX from continuing operations of $73.0 million in the first quarter of 2012.
 
 
 
 
 

2013 Drilling Results

Comstock reported on the results to date of its 2013 drilling program related to its continuing operations which is focused on developing its Eagle Ford oil shale properties in South Texas.  During the first three months of 2013, Comstock spent $56.1 million on its continuing development and exploration activities and $2.1 million on acreage and other acquisition costs.  Comstock drilled 11 horizontal oil wells (7.2 net) and had three wells (2.3 net) drilling at March 31, 2013.

Since the beginning of 2013, the Company has completed ten (6.4 net) horizontal Eagle Ford shale wells including six (3.8 net) wells drilled in 2012.  The ten Eagle Ford shale wells that were completed had an average per well initial production rate of 854 barrels of oil equivalent ("BOE") per day.  The 2013 completions have an average initial rate that is 32% higher than the average initial rate in 2012.  The four wells with the highest initial production rates were the Swenson A #1H, the Gloria Wheeler C #1H, the Gloria Wheeler A #3H, and the Rancho Tres Hijos B #1H.  These wells are located in McMullen County and had initial production rates of 1,222, 1,032, 978 and 968 BOE per day, respectively.
 
Comstock has planned a conference call for 9:30 a.m. Central Time on April 30, 2013, to discuss the operational and financial results for the first quarter of 2013.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 1-877-546-5021 (international dial-in use 857-244-7553) and provide access code 62393735 when prompted.  If you are unable to participate in the original conference call, a web replay will be available approximately 24 hours following the completion of the call on Comstock's website at www.comstockresources.com.  The web replay will be available for approximately one week.  A replay of the conference call will be available beginning at 12:30 p.m. ET April 30, 2013 and will continue until 11:59 p.m. May 7, 2013.  To hear the replay, call 888-286-8010 (617-801-6888 if calling from outside the US).  The conference call ID number is 62248208.


This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein.  Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

Comstock Resources, Inc. is an independent energy company based in Frisco, Texas 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 March 31, 2013
    
Three Months Ended March 31, 2012
  
   
Continuing Operations
    
Discontinued Operations
    
Total
    
Continuing Operations
      
Discontinued Operations
      
Total
  
                                                 
Revenues:
                                                
Oil and gas sales
  
$
95,020
    
$
16,299
    
$
111,319
    
$
103,772
    
$
7,917
    
$
111,689
  
Gain on sale of oil and gas properties
    
—
      
—
      
—
      
6,727
      
—
      
6,727
  
Total revenues
    
95,020
      
16,299
      
111,319
      
110,499
      
7,917
      
118,416
  
                                                 
Operating expenses:
                                                
Production taxes
    
2,121
      
693
      
2,814
      
3,247
      
390
      
3,637
  
Gathering and transportation
    
4,202
      
331
      
4,533
      
7,715
      
177
      
7,892
  
Lease operating
    
13,206
      
6,308
      
19,514
      
13,458
      
1,291
      
14,749
  
Exploration(1) 
    
2,593
      
—
      
2,593
      
1,353
      
—
      
1,353
  
Depreciation, depletion and amortization
    
84,967
      
8,649
      
93,616
      
77,311
      
1,786
      
79,097
  
General and administrative
    
8,787
      
—
      
8,787
      
8,798
      
—
      
8,798
  
Impairment of oil and gas properties
    
—
      
—
      
—
      
49
      
—
      
49
  
Total operating expenses
    
115,876
      
15,981
      
131,857
      
111,931
      
3,644
      
115,575
  
                                                 
Operating income (loss)
    
(20,856
)
    
318
      
(20,538
)
    
(1,432
)
    
4,273
      
2,841
  
                                                 
Other income (expenses):
                                                
Gain on sale of marketable securities
    
7,877
      
—
      
7,877
      
26,621
      
—
      
26,621
  
Realized gain (loss) from derivatives
    
2,320
      
—
      
2,320
      
(1,354
)
    
—
      
(1,354
)
Unrealized loss from derivatives
    
(8,767
)
    
—
      
(8,767
)
    
(10,187
)
    
—
      
(10,187
)
Other income
    
245
      
—
      
245
      
239
      
—
      
239
  
Interest expense
    
(17,578
)
    
(3,499
)
    
(21,077
)(2)
  
(12,303
)
    
(934
)
    
(13,237
)(2)
Total other income (expenses)
    
(15,903
)
    
(3,499
)
    
(19,402
)
    
3,016
      
(934
)
    
2,082
  
                                                 
Income (loss) before income taxes
    
(36,759
)
    
(3,181
)
    
(39,940
)
    
1,584
      
3,339
      
4,923
  
Benefit from (provision for) income taxes
    
12,242
      
554
      
12,796
      
(167
)
    
(3,381
)
    
(3,548
)
Income (loss) from continuing operations
    
(24,517
)
    
—
      
(24,517
)
    
1,417
      
—
      
1,417
  
Loss from discontinued operations, net of taxes
    
—
      
(2,627
)
    
(2,627
)
    
—
      
(42
 )     
(42
 ) 
Net income (loss)
  
$
(24,517
)
  
$
(2,627
)
  
$
(27,144
)
  
$
1,417
    
$
(42
 )  
$
1,375
  
                                                 
Net income (loss) per share:
                                                
Basic 
— income (loss) from continuing operations
  
$
(0.52
)
  
$
—
    
$
(0.52
)
  
$
0.03
    
$
—
    
$
0.03
  
 
— loss from discontinued operations
    
—
      
(0.06
)
    
(0.06
)
    
—
      
—
      
—
  
 
— net income (loss)
  
$
(0.52
)
  
$
(0.06
)
  
$
(0.58
)
  
$
0.03
    
$
—
    
$
0.03
  
Diluted 
— income (loss) from continuing operations
  
$
(0.52
)
  
$
—
    
$
(0.52
)
  
$
0.03
    
$
—
    
$
0.03
  
 
— loss from discontinued operations
    
—
      
(0.06
)
    
(0.06
)
    
—
      
—
      
—
  
 
— net income (loss)
  
$
(0.52
)
  
$
(0.06
)
  
$
(0.58
)
  
$
0.03
    
$
—
    
$
0.03
  
                                                 
Weighted average shares outstanding:
                                            
Basic
    
46,730
      
46,730
      
46,730
      
46,372
      
46,372
      
46,372
  
Diluted
    
46,730
      
46,730
      
46,730
      
46,372
      
46,372
      
46,372
  
      
(1)   Includes impairments of unevaluated leases of $2.4 million and $1.3 million in the three months ended March 31, 2013 and 2012, respectively.
(2)   $3.0 million and $5.2 million of interest expense was capitalized for the three months ended March 31, 2013 and 2012, respectivley.
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)
   
Three Months Ended March 31,
  
   
2013
    
2012
  
                 
OPERATING CASH FLOW:
                
                 
Net income (loss)
  
$
(27,144
)
  
$
1,375
  
Reconciling items:
                
Loss from discontinued operations
    
2,627
      
42
 
Deferred income taxes
    
(12,245
)
    
250
  
Depreciation, depletion and amortization
    
84,967
      
77,311
  
Impairment of oil and gas properties
    
—
      
49
  
Dry hole costs and lease impairments
    
2,443
      
1,315
  
Gain on sale of assets
    
(7,877
)
    
(33,348
)
Unrealized loss on derivatives
    
8,767
      
10,187
  
Debt issuance cost and discount amortization
    
1,587
      
944
  
Stock-based compensation
    
3,218
      
3,535
  
Operating cash flow from continuing operations
    
56,343
      
61,660
  
Excess income taxes from stock-based compensation
    
1,742
      
1,405
  
(Increase) decrease in accounts receivable
    
(19,724
)
    
5,070
  
Decrease in other current assets
    
480
      
110
  
Increase in accounts payable and accrued expenses
    
34,981
      
48,328
  
Net cash provided by continuing operations
    
73,822
      
116,573
  
Net cash provided by discontinuing operations(1)
    
23,530
      
16,607
  
Net cash provided by operating activities
  
$
97,352
    
$
133,180
  
                            
(1)  $5.5 million and $5.1 million for the three months ended March 31, 2013 and 2012, respectively, excluding working capital changes.                 
                 
EBITDAX:
                
                 
Net income (loss) from continuing operations
  
$
(24,517
)
  
$
1,417
  
Interest expense
    
17,578
      
12,303
  
Provision for (benefit from) income taxes
    
(12,242
)
    
167
  
Depreciation, depletion and amortization
    
84,967
      
77,311
  
Exploration
    
2,593
      
1,353
  
Impairments of oil and gas properties
    
—
      
49
  
Gain on sale of assets
    
(7,877
)
    
(33,348
)
Unrealized loss from derivatives
    
8,767
      
10,187
  
Stock-based compensation
    
3,218
      
3,535
  
EBITDAX from continuing operations
    
72,487
      
72,974
  
EBITDAX from discontinued operations
    
8,967
      
6,059
  
Total EBITDAX
  
$
81,454
    
$
79,033
  
 
   
As of
  
   
March 31, 2013
    
December 31, 2012
  
BALANCE SHEET DATA:
                
                 
Cash and cash equivalents
  
$
6,844
    
$
4,471
  
Restricted cash
    
38,400
      
—
  
Marketable securities
    
—
      
12,312
  
Derivative financial instruments
    
2,884
      
11,651
  
Other current assets     63,144       43,898  
Assets of discontinued operations     562,453       518,934  
Property and equipment, net
    
1,929,840
      
1,958,687
  
Other
    
18,942
      
19,944
  
Total assets
  
$
2,622,507
    
$
2,569,897
  
                 
Current liabilities
  
$
175,335
    
$
110,139
  
Liabilities of discontinued operations     50,516       33,280  
Long-term debt
    
1,334,957
      
1,324,383
  
Deferred income taxes
    
140,798
      
149,901
  
Other non-current liabilities
    
19,019
      
18,660
  
Stockholders' equity
    
901,882
      
933,534
  
Total liabilities and stockholders' equity
  
$
2,622,507
    
$
2,569,897
  
 
 
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

 


   
For the Three Months Ended March 31, 2013
  
   
East Texas/
North
Louisiana
    
South Texas
    
Other
    
Continuing
Operations
      
Discontinued
Operations
      
Total
  
Oil production (Mbbls)
    
16
      
410
      
6
      
432
      
174
      
606
  
Gas production (MMcf)
    
13,399
      
1,781
      
448
      
15,628
      
269
      
15,897
  
Total production (MMcfe)
    
13,495
      
4,242
      
484
      
18,221
      
1,311
      
19,532
  
                                                 
Oil sales
  
$
1,504
    
$
43,546
    
$
690
    
$
45,740
    
$
14,734
    
$
60,474
  
Oil hedging gains(1) 
    
—
      
—
      
—
      
2,320
      
—
      
2,320
  
Total oil including hedging
    
1,504
      
43,546
      
690
      
48,060
      
14,734
      
62,794
  
Natural gas sales
    
41,157
      
6,471
      
1,652
      
49,280
      
1,565
      
50,845
  
Total oil and gas sales and realized gain from derivatives
  
$
42,661
    
$
50,017
    
$
2,342
    
$
97,340
    
$
16,299
    
$
113,639
  
                                                 
Average oil price (per barrel)
  
$
93.58
    
$
106.19
    
$
113.69
    
$
105.82
    
$
84.84
    
$
99.81
  
Average oil price including hedging (per barrel)
  
$
93.58
    
$
106.19
    
$
113.69
    
$
111.19
    
$
84.84
    
$
103.64
  
Average gas price (per Mcf)
  
$
3.07
    
$
3.63
    
$
3.69
    
$
3.15
    
$
5.82
    
$
3.20
  
Average price (per Mcfe)
  
$
3.16
    
$
11.79
    
$
4.84
    
$
5.21
    
$
12.43
    
$
5.70
  
Average price including hedging (per Mcfe)
  
$
3.16
    
$
11.79
    
$
4.84
    
$
5.34
    
$
12.43
    
$
5.82
  
                                                 
Production taxes
  
$
(231
)
  
$
2,220
    
$
132
    
$
2,121
    
$
693
    
$
2,814
  
Gathering and transportation
  
$
3,557
    
$
612
    
$
33
    
$
4,202
    
$
331
    
$
4,533
  
Lease operating
  
$
7,493
    
$
4,712
    
$
1,001
    
$
13,206
    
$
6,308
    
$
19,514
  
                                                 
Production taxes (per Mcfe)
  
$
(0.02
)
  
$
0.52
    
$
0.27
    
$
0.12
    
$
0.53
    
$
0.14
  
Gathering and transportation (per Mcfe)
  
$
0.26
    
$
0.14
    
$
0.07
    
$
0.23
    
$
0.25
    
$
0.23
  
Lease operating (per Mcfe)
  
$
0.56
    
$
1.12
    
$
2.07
    
$
0.72
    
$
4.81
    
$
1.01
  
                                                 
Oil and Gas Capital Expenditures:
                                                
Exploratory leasehold
  
$
—
    
$
1,939
    
$
—
    
$
1,939
    
$
6,203
    
$
8,142
  
Development leasehold
    
—
      
184
      
—
      
184
      
—
      
184
  
Exploratory drilling
    
—
      
—
      
—
      
—
      
—
      
—
  
Development drilling
    
3,047
      
50,741
      
—
      
53,788
      
49,658
      
103,446
  
Other development
    
1,076
      
1,137
      
55
      
2,268
      
180
      
2,448
  
Total
  
$
4,123
    
$
54,001
 (2)  
$
55
    
$
58,179
    
$
56,041
    
$
114,220
 
                   
(1)  
Reported as realized gain from derivatives in operating results.
(2)  
Net of reimbursements received of $8.1 million under the Company's Eagle Ford shale joint venture.

 
 

 


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




   
For the Three Months Ended March 31, 2012
  
   
East Texas/
North
Louisiana
    
South Texas
    
Other
    
Continuing
Operations
      
Discontinued
Operations
      
Total
  
Oil production (Mbbls)
    
27
      
403
      
3
      
433
      
73
      
506
  
Gas production (MMcf)
    
19,100
      
2,660
      
535
      
22,295
      
127
      
22,422
  
Total production (MMcfe)
    
19,263
      
5,075
      
554
      
24,892
      
566
      
25,458
  
                                                 
Oil sales
  
$
2,751
    
$
42,474
    
$
303
    
$
45,528
    
$
7,113
    
$
52,641
  
Oil hedging losses(1) 
    
—
      
—
      
—
      
(1,354
)
    
—
      
(1,354
)
Total oil including hedging
    
2,751
      
42,474
      
303
      
44,174
      
7,113
      
51,287
  
Natural gas sales
    
47,502
      
9,136
      
1,606
      
58,244
      
804
      
59,048
  
Total oil and gas sales and realized loss from derivatives
  
$
50,253
    
$
51,610
    
$
1,909
    
$
102,418
    
$
7,917
    
$
110,335
  
                                                 
Average oil price (per barrel)
  
$
101.49
    
$
105.52
    
$
94.88
    
$
105.19
    
$
97.12
    
$
104.02
  
Average oil price including hedging (per barrel)
  
$
101.49
    
$
105.52
    
$
94.88
    
$
102.06
    
$
97.12
    
$
101.35
  
Average gas price (per Mcf)
  
$
2.49
    
$
3.43
    
$
3.00
    
$
2.61
    
$
6.33
    
$
2.63
  
Average price (per Mcfe)
  
$
2.61
    
$
10.17
    
$
3.45
    
$
4.17
    
$
13.99
    
$
4.39
  
Average price including hedging (per Mcfe)
  
$
2.61
    
$
10.17
    
$
3.45
    
$
4.11
    
$
13.99
    
$
4.33
  
                                                 
Production taxes
  
$
801
    
$
2,291
    
$
155
    
$
3,247
    
$
390
    
$
3,637
  
Gathering and transportation
  
$
6,833
    
$
772
    
$
110
    
$
7,715
    
$
177
    
$
7,892
  
Lease operating
  
$
8,661
    
$
3,719
    
$
1,078
    
$
13,458
    
$
1,291
    
$
14,749
  
                                                 
Production taxes (per Mcfe)
  
$
0.04
    
$
0.45
    
$
0.28
    
$
0.13
    
$
0.69
    
$
0.14
  
Gathering and transportation (per Mcfe)
  
$
0.35
    
$
0.15
    
$
0.20
    
$
0.31
    
$
0.31
    
$
0.31
  
Lease operating (per Mcfe)
  
$
0.46
    
$
0.74
    
$
1.94
    
$
0.54
    
$
2.28
    
$
0.58
  
                                                 
Oil and Gas Capital Expenditures:
                                                
Acquisitions
  
$
—
    
$
—
    
$
—
    
$
—
    
$
3,333
    
$
3,333
  
Exploratory leasehold
    
1,595
      
1,488
      
—
      
3,083
      
3,543
      
6,626
  
Development leasehold
    
345
      
1,216
      
—
      
1,561
      
—
      
1,561
  
Exploratory drilling
    
368
      
405
      
—
      
773
      
—
      
773
  
Development drilling
    
68,208
      
64,438
      
—
      
132,646
      
34,516
      
167,162
  
Other development
    
1,026
      
607
      
149
      
1,782
      
336
      
2,118
  
Total
  
$
71,542
    
$
68,154
    
$
149
    
$
139,845
    
$
41,728
    
$
181,573
  
                  
(1)  
Reported as realized loss from derivatives in operating results.