exhibit99pnt1aug13.htm

FRISCO, TEXAS, July 29, 2013 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and six months ended June 30, 2013. As previously reported, Comstock completed the divestiture of its West Texas operations on May 14, 2013, receiving proceeds of $823.7 million. A gain on the sale of $230.6 million ($149.9 million after tax or $3.21 per share) was recognized in the quarter. This gain and the operating results of the West Texas properties are reflected as discontinued operations in the Company's financial statements.

The second quarter of 2013 results from continuing operations include an impairment of oil and gas properties and unevaluated leases of $10.1 million ($6.6 million after tax or 14¢ per share) and an unrealized gain from derivative financial instruments of $0.6 million ($0.4 million after tax or 1¢ per share). Results for the three months ended June 30, 2012 also include an unrealized gain from derivative financial instruments of $34.8 million ($22.6 million after tax or 49¢ per share), a gain of $20.3 million ($13.2 million after tax or 28¢ per share) from the sale of oil and gas properties and impairments of $5.3 million ($3.4 million after tax or 7¢ per share).

Comstock's production from continuing operations in the second quarter of 2013 was 551,000 barrels of oil and 14.2 billion cubic feet of natural gas or 17.5 billion cubic feet of natural gas equivalent ("Bcfe") as compared to the 24.5 Bcfe produced in the second quarter of 2012. Oil production in the second quarter, which averaged 6,048 barrels of oil per day, grew 26% from the 4,803 barrels per day produced in the first quarter of 2013 and increased 20% from oil production in the second quarter of 2012. Gas production declined 35% from 2012 due to the lack of drilling activity in the Company's Haynesville shale natural gas properties.

Comstock's average realized natural gas price improved by 86% to $3.71 per Mcf for the second quarter of 2013 as compared to $2.00 per Mcf realized in the second quarter of 2012. The Company's average realized oil price, including hedging gains, decreased by 2% to $105.30 per barrel for the second quarter of 2013 as compared to $107.71 per barrel for the second quarter of 2012. Oil and gas sales from continuing operations (including realized gains or losses from hedging) of $110.7 million for the second quarter increased by 19% as compared to 2012's second quarter sales of $93.0 million. Operating cash flow from continuing operations (before changes in working capital accounts) was $66.0 million in the second quarter of 2013, which represented a 24% increase as compared to $53.4 million in the second quarter of 2012. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, from continuing operations of $83.9 million in the second quarter of 2013, increased 28% over EBITDAX from continuing operations of $65.5 million in the second quarter of 2012.

The 2013 results include an unrealized loss from derivative financial instruments of $8.1 million ($5.3 million after tax or 11¢ per diluted share), a gain of $7.9 million ($5.1 million or 11¢ per diluted share) on the sale of marketable securities and impairments of oil and gas properties and unevaluated leases of $12.6 million ($8.2 million after tax, or 17¢ per diluted share). Results for the six months ended June 30, 2012 included an unrealized gain on derivatives of $24.6 million ($16.0 million after tax or 34¢ per diluted share), a gain of $27.1 million ($17.6 million after tax or 38¢ per diluted share) from the sale of oil and gas properties, a gain on sale of marketable securities of $26.6 million ($17.3 million after tax or 37¢ per diluted share), and impairments of oil and gas properties and unevaluated leases of $6.7 million ($4.4 million or 9¢ per diluted share).

Oil production related to continuing operations for the six months ended June 30, 2013 increased 10% to 983,000 barrels as compared to 892,000 barrels for the same period in 2012. Gas production decreased 32% to 29.8 Bcf for the first half of 2013 as compared to 44.0 Bcf for the same period 2012. Comstock's average realized natural gas price increased 48% to $3.42 per Mcf for the first six months of 2013 as compared to $2.31 per Mcf for the first six months of 2012. The Company's average realized oil price for the first six months of 2013 of $107.89 per barrel, including hedging gains, was 3% above 2012's average realized price of $104.97 per barrel. Oil and gas sales increased by 6% to $208.0 million in the first six months of 2013 as compared to the sales in the first six months of 2012 of $195.5 million. Operating cash flow (before changes in working capital accounts) of $122.3 million in the first six months of 2013 increased 6% from 2012's first six months operating cash flow of $115.0 million. EBITDAX increased 13% to $156.4 million for the first six months of 2013 from the first six months of 2012 of $138.4 million.

The operations of the Company's West Texas operations are reflected as discontinued operations due to the sale of such properties, which was completed on May 14, 2013. The Company's income attributable to the discontinued operations including the gain recognized on the sale was $151.2 million or $3.13 per diluted share in the second quarter of 2013 as compared to a loss of $9.5 million (20¢ per share) in the second quarter of 2012. For the six months ended June 30, 2013, the income from discontinued operations including the gain on the sale was $148.6 million or $3.07 per share as compared to a net loss of $9.6 million or 20¢ per share for the same period in 2012. Comstock received $823.7 million in cash proceeds for its West Texas properties and had a gain on the sale of $230.6 million ($149.9 million after tax or $3.21 per share).

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 six months of 2013, Comstock spent $128.7 million on its continuing development and exploration activities and $4.8 million on acreage and other acquisition costs. Comstock drilled 25 horizontal oil wells (15.2 net) and two horizontal natural gas wells (2.0 net) and had six oil wells (3.7 net) drilling at June 30, 2013.

Since the beginning of 2013, the Company has completed 25 (15.4 net) horizontal Eagle Ford shale wells including six (3.8 net) wells drilled in 2012. The 25 Eagle Ford shale wells that were completed had an average per well initial production rate of 796 barrels of oil equivalent ("BOE") per day. The four wells with the highest initial production rates were Forrest Wheeler C #1H, Swenson B #1H, Swenson A #1H and Swenson B #2H. These wells are located in McMullen County and had initial production rates of 1,337, 1,322, 1,222 and 1,143 BOE per day, respectively. Beginning in June, the Company had six operated rigs drilling in the Eagle Ford shale program, an increase from the three rigs that were drilling in the first quarter.

Comstock has planned a conference call for 9:30 a.m. Central Time on July 30, 2013, to discuss the operational and financial results for the second quarter of 2013. Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 1-866-318-8614 (international dial-in use 617-399-5133) and provide access code 42675964 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 July 30, 2013 and will continue until 11:59 p.m. August 6, 2013. To hear the replay, call 888-286-8010 (617-801-6888 if calling from outside the US). The conference call ID number is 58926292.

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.

		Three Months Ended June 30,						Six Months Ended June 30,
		2013			2012			2013			2012

Revenues:
Oil and gas sales		$	107,820		$	90,329		$	202,840		$	194,101
Gain on sale of oil and gas properties			81			20,338			81			27,065
Total revenues			107,901			110,667			202,921			221,166

Operating expenses:
Production taxes			3,883			2,861			6,004			6,108
Gathering and transportation			4,354			7,106			8,556			14,821
Lease operating			12,962			12,193			26,168			25,651
Exploration(1)			9,754			37			12,347			1,390
Depreciation, depletion and amortization			85,244			85,675			170,211			162,986
General and administrative			9,056			9,033			17,843			17,831
Impairment of oil and gas properties			652			5,301			652			5,350
Total operating expenses			125,905			122,206			241,781			234,137

Operating loss			(18,004	)		(11,539	)		(38,860	)		(12,971	)

Other income (expenses):
Gain on sale of marketable securities			—			—			7,877			26,621
Realized gain from derivatives			2,881			2,719			5,201			1,365
Unrealized gain (loss) from derivatives			640			34,797			(8,127	)		24,610
Other income			196			283			441			522
Interest expense(2)			(19,240	)		(13,351	)		(36,818	)		(25,654	)
Total other income (expenses)			(15,523	)		24,448			(31,426	)		27,464

Income (loss) before income taxes			(33,527	)		12,909			(70,286	)		14,493
Benefit from income taxes			11,996			3,801			24,238			3,634
Income (loss) from continuing operations			(21,531	)		16,710			(46,048	)		18,127
Income (loss) from discontinued operations, net of income taxes			151,236			(9,545	)		148,609			(9,587	)
Net income		$	129,705		$	7,165		$	102,561		$	8,540

Net income (loss) per share:
Basic	— income (loss) from continuing operations	$	(0.45	)	$	0.35		$	(0.95	)	$	0.38
	— income (loss) from discontinued operations		3.13			(0.20	)		3.07			(0.20	)
	— net income	$	2.68		$	0.15		$	2.12		$	0.18

Diluted	— income (loss) from continuing operations	$	(0.45	)	$	0.35		$	(0.95	)	$	0.38
	— income (loss) from discontinued operations		3.13			(0.20	)		3.07			(0.20	)
	— net income	$	2.68		$	0.15		$	2.12		$	0.18

Dividends per common share		$	0.125		$	—		$	0.125		$	—

Weighted average shares outstanding:
Basic			46,754			46,426			46,742			46,399
Diluted			46,754			46,426			46,742			46,399

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012

OPERATING CASH FLOW:

Net income	$	129,705		$	7,165		$	102,561		$	8,540
Reconciling items:
Income from discontinued operations		(151,236	)		9,545			(148,609	)		9,587
Deferred income taxes		(11,993	)		(3,685	)		(24,238	)		(3,435	)
Depreciation, depletion and amortization		85,244			85,675			170,211			162,986
Impairment of oil and gas properties		652			5,301			652			5,350
Dry hole costs and lease impairments		9,465			—			11,908			1,315
Gain on sale of assets		(81	)		(20,338	)		(7,958	)		(53,686	)
Unrealized (gain) loss on derivatives		(640	)		(34,797	)		8,127			(24,610	)
Debt issuance cost and discount amortization		1,631			1,159			3,218			2,103
Stock-based compensation		3,222			3,325			6,440			6,860
Operating cash flow from continuing operations		65,969			53,350			122,312			115,010
Excess income taxes from stock-based compensation		273			265			2,015			1,670
Decrease (increase) in accounts receivable		(3,790	)		12,810			(20,760	)		17,880
Decrease (increase) in other current assets		(237	)		(2,999	)		243			(2,889	)
(Decrease) increase in accounts payable and accrued expenses		(20,310	)		(62,611	)		11,917			(14,283	)
Net cash provided by continuing operations		41,905			815			115,727			117,338
Net cash provided by discontinued operations(1)		(31,244	)		7,903			(7,715	)		24,510
Net cash provided by operating activities	$	10,661		$	8,718		$	108,012		$	141,898

(1) $1.2 million, $6.7 million, $6.7 million and $11.8 million for the three months and six months ended June 30, 2013 and 2012, respectively, excluding working capital changes.

EBITDAX:

Net income (loss) from continuing operations	$	(21,531	)	$	16,710		$	(46,048	)	$	18,127
Interest expense		19,240			13,351			36,818			25,654
Benefit from income taxes		(11,996	)		(3,801	)		(24,238	)		(3,634	)
Depreciation, depletion and amortization		85,244			85,675			170,211			162,986
Exploration		9,754			37			12,347			1,390
Impairments of oil and gas properties		652			5,301			652			5,350
Gain on sale of assets		(81	)		(20,338	)		(7,958	)		(53,686	)
Unrealized (gain) loss from derivatives		(640	)		(34,797	)		8,127			(24,610	)
Stock-based compensation		3,222			3,325			6,440			6,860
EBITDAX from continuing operations		83,864			65,463			156,351			138,437
EBITDAX from discontinued operations		4,684			7,901			13,651			13,960
Total EBITDAX	$	88,548		$	73,364		$	170,002		$	152,397

	As of
	June 30, 2013		December 31, 2012

BALANCE SHEET DATA:

Cash and cash equivalents	$	263,737	$	4,471
Marketable securities		—		12,312
Derivative financial instruments		3,524		11,651
Other current assets		67,245		46,652
Assets of discontinued operations		—		518,934
Property and equipment, net		1,909,809		1,958,687
Other		17,907		19,944
Total assets	$	2,262,222	$	2,572,651

Current liabilities	$	122,126	$	112,893
Liabilities of discontinued operations		—		33,280
Long-term debt		883,324		1,324,383
Deferred income taxes		209,529		149,901
Other non-current liabilities		18,862		18,660
Stockholders' equity		1,028,381		933,534
Total liabilities and stockholders' equity	$	2,262,222	$	2,572,651

	For the Three Months Ended June 30, 2013
	East Texas/ North Louisiana		South Texas			Other		Continuing Operations			Discontinued Operations		Total
Oil production (Mbbls)		16		530			5		551		96		647
Gas production (MMcf)		12,038		1,782			386		14,206		141		14,347
Total production (MMcfe)		12,132		4,962			415		17,509		720		18,229

Oil sales	$	1,453	$	53,128		$	492	$	55,073	$	8,043	$	63,116
Oil hedging gains(1)		—		—			—		2,881		—		2,881
Total oil sales including hedging		1,453		53,128			492		57,954		8,043		65,997
Natural gas sales		43,145		7,969			1,633		52,747		783		53,530
Total oil and gas sales and realized gains from derivatives	$	44,598	$	61,097		$	2,125	$	110,701	$	8,826	$	119,527

Average oil price (per barrel)	$	94.00	$	100.23		$	101.36	$	100.06	$	83.34	$	97.57
Average oil price including hedging (per barrel)	$	94.00	$	100.23		$	101.36	$	105.30	$	83.34	$	102.02
Average gas price (per Mcf)	$	3.58	$	4.47		$	4.23	$	3.71	$	5.55	$	3.73
Average price (per Mcfe)	$	3.68	$	12.31		$	5.12	$	6.16	$	12.26	$	6.40
Average price including hedging (per Mcfe)	$	3.68	$	12.31		$	5.12	$	6.32	$	12.26	$	6.56

Production taxes	$	929	$	2,810		$	144	$	3,883	$	427	$	4,310
Gathering and transportation	$	3,479	$	782		$	93	$	4,354	$	170	$	4,524
Lease operating	$	6,755	$	5,482		$	725	$	12,962	$	3,545	$	16,507

Production taxes (per Mcfe)	$	0.08	$	0.57		$	0.35	$	0.22	$	0.59	$	0.24
Gathering and transportation (per Mcfe)	$	0.29	$	0.16		$	0.22	$	0.25	$	0.24	$	0.25
Lease operating (per Mcfe)	$	0.55	$	1.10		$	1.75	$	0.74	$	4.92	$	0.90

Oil and Gas Capital Expenditures:
Exploratory leasehold	$	—	$	2,600		$	—	$	2,600	$	2,653	$	5,253
Development leasehold		49		50			—		99		—		99
Development drilling		9,259		62,461			—		71,720		32,077		103,797
Other development		196		692			9		897		700		1,597
Total	$	9,504	$	65,803	(2)	$	9	$	75,316	$	35,430	$	110,746

	For the Three Months Ended June 30, 2012
	East Texas/ North Louisiana			South Texas		Other			Continuing Operations			Discontinued Operations			Total
Oil production (Mbbls)		20			425		14			459		124			583
Gas production (MMcf)		19,012			2,210		526			21,748		145			21,893
Total production (MMcfe)		19,129			4,762		613			24,504		885			25,389

Oil sales	$	1,860		$	43,385	$	1,502		$	46,747	$	9,520		$	56,267
Oil hedging gains(1)		—			—		—			2,719		—			2,719
Total oil sales including hedging		1,860			43,385		1,502			49,466		9,520			58,986
Natural gas sales		36,594			5,656		1,332			43,582		887			44,469
Total oil and gas sales and realized gains from derivatives	$	38,454		$	49,041	$	2,834		$	93,048	$	10,407		$	103,455

Average oil price (per barrel)	$	95.33		$	101.98	$	104.92		$	101.79	$	77.19		$	96.58
Average oil price including hedging (per barrel)	$	95.33		$	101.98	$	104.92		$	107.71	$	77.19		$	101.25
Average gas price (per Mcf)	$	1.92		$	2.56	$	2.53		$	2.00	$	6.12		$	2.03
Average price (per Mcfe)	$	2.01		$	10.30	$	4.62		$	3.69	$	11.76		$	3.97
Average price including hedging (per Mcfe)	$	2.01		$	10.30	$	4.62		$	3.80	$	11.76		$	4.07

Production taxes	$	606		$	1,992	$	263		$	2,861	$	519		$	3,380
Gathering and transportation	$	6,244		$	735	$	127		$	7,106	$	232		$	7,338
Lease operating	$	7,977		$	3,135	$	1,081		$	12,193	$	1,755		$	13,948

Production taxes (per Mcfe)	$	0.03		$	0.42	$	0.43		$	0.12	$	0.59		$	0.13
Gathering and transportation (per Mcfe)	$	0.33		$	0.15	$	0.21		$	0.29	$	0.26		$	0.29
Lease operating (per Mcfe)	$	0.42		$	0.66	$	1.76		$	0.49	$	1.98		$	0.55

Oil and Gas Capital Expenditures:
Exploratory leasehold	$	1,774		$	1,611	$	—		$	3,385	$	4,373		$	7,758
Development leasehold		84			—		—			84		—			84
Exploratory drilling		200			1,923		—			2,123		—			2,123
Development drilling		22,336			72,124		—			94,460		44,541			139,001
Other development		(42	)		218		(18	)		158		(336	)		(178	)
Total	$	24,352		$	75,876	$	(18	)	$	100,210	$	48,578		$	148,788

	For the Six Months Ended June 30, 2013
	East Texas/ North Louisiana		South Texas			Other		Continuing Operations			Discontinued Operations		Total
Oil production (Mbbls)		32		940			11		983		270		1,253
Gas production (MMcf)		25,437		3,563			834		29,834		410		30,244
Total production (MMcfe)		25,627		9,204			899		35,730		2,031		37,761

Oil sales	$	2,957	$	96,674		$	1,182	$	100,813	$	22,777	$	123,590
Oil hedging gains(1)		—		—			—		5,201		—		5,201
Total oil sales including hedging		2,957		96,674			1,182		106,014		22,777		128,791
Natural gas sales		84,302		14,440			3,285		102,027		2,348		104,375
Total oil and gas sales and realized gains from derivatives	$	87,259	$	111,114		$	4,467	$	208,041	$	25,125	$	233,166

Average oil price (per barrel)	$	93.79	$	102.83		$	108.22	$	102.60	$	84.30	$	98.65
Average oil price including hedging (per barrel)	$	93.79	$	102.83		$	108.22	$	107.89	$	84.30	$	102.80
Average gas price (per Mcf)	$	3.31	$	4.05		$	3.94	$	3.42	$	5.73	$	3.45
Average price (per Mcfe)	$	3.40	$	12.07		$	4.97	$	5.68	$	12.37	$	6.04
Average price including hedging (per Mcfe)	$	3.40	$	12.07		$	4.97	$	5.82	$	12.37	$	6.17

Production taxes	$	698	$	5,030		$	276	$	6,004	$	1,120	$	7,124
Gathering and transportation	$	7,036	$	1,394		$	126	$	8,556	$	501	$	9,057
Lease operating	$	14,248	$	10,194		$	1,726	$	26,168	$	9,853	$	36,021

Production taxes (per Mcfe)	$	0.03	$	0.55		$	0.31	$	0.17	$	0.55	$	0.19
Gathering and transportation (per Mcfe)	$	0.27	$	0.15		$	0.14	$	0.24	$	0.25	$	0.24
Lease operating (per Mcfe)	$	0.56	$	1.11		$	1.92	$	0.73	$	4.85	$	0.95

Oil and Gas Capital Expenditures:
Exploratory leasehold	$	—	$	4,539		$	—	$	4,539	$	8,856	$	13,395
Development leasehold		49		234			—		283		—		283
Development drilling		12,306		113,202			—		125,508		81,735		207,243
Other development		1,272		1,829			64		3,165		880		4,045
Total	$	13,627	$	119,804	(2)	$	64	$	133,495	$	91,471	$	224,966

	For the Six Months Ended June 30, 2012
	East Texas/ North Louisiana		South Texas		Other		Continuing Operations			Discontinued Operations		Total
Oil production (Mbbls)		47		828		17		892		197		1,089
Gas production (MMcf)		38,112		4,870		1,061		44,043		272		44,315
Total production (MMcfe)		38,392		9,837		1,167		49,396		1,451		50,847

Oil sales	$	4,611	$	85,859	$	1,805	$	92,275	$	16,633	$	108,908
Oil hedging gains(1)		—		—		—		1,365		—		1,365
Total oil sales including hedging		4,611		85,859		1,805		93,640		16,633		110,273
Natural gas sales		84,096		14,792		2,938		101,826		1,691		103,517
Total oil and gas sales and realized gains from derivatives	$	88,707	$	100,651	$	4,743	$	195,466	$	18,324	$	213,790

Average oil price (per barrel)	$	98.91	$	103.70	$	103.10	$	103.44	$	84.61	$	100.04
Average oil price including hedging (per barrel)	$	98.91	$	103.70	$	103.10	$	104.97	$	84.61	$	101.29
Average gas price (per Mcf)	$	2.21	$	3.04	$	2.77	$	2.31	$	6.22	$	2.34
Average price (per Mcfe)	$	2.31	$	10.23	$	4.06	$	3.93	$	12.63	$	4.18
Average price including hedging (per Mcfe)	$	2.31	$	10.23	$	4.06	$	3.96	$	12.63	$	4.20

Production taxes	$	1,407	$	4,283	$	418	$	6,108	$	909	$	7,017
Gathering and transportation	$	13,077	$	1,507	$	237	$	14,821	$	409	$	15,230
Lease operating	$	16,638	$	6,854	$	2,159	$	25,651	$	3,046	$	28,697

Production taxes (per Mcfe)	$	0.04	$	0.44	$	0.36	$	0.12	$	0.63	$	0.14
Gathering and transportation (per Mcfe)	$	0.34	$	0.15	$	0.20	$	0.30	$	0.28	$	0.30
Lease operating (per Mcfe)	$	0.43	$	0.70	$	1.85	$	0.52	$	2.10	$	0.56

Oil and Gas Capital Expenditures:
Acquisitions	$	—	$	—	$	—	$	—	$	3,235	$	3,235
Exploratory leasehold		3,369		3,099		—		6,468		8,014		14,482
Development leasehold		429		1,216		—		1,645		—		1,645
Exploratory drilling		568		2,328		—		2,896		—		2,896
Development drilling		90,544		136,562		—		227,106		79,057		306,163
Other development		984		825		131		1,940		—		1,940
Total	$	95,894	$	144,030	$	131	$	240,055	$	90,306	$	330,361

	5300 Town and Country Blvd., Suite 500
	Frisco, Texas 75034
	Telephone: (972) 668-8834
	Contact: Gary H. Guyton
	Director of Planning and Investor Relations
	Web Site: www.comstockresources.com