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
FIRST QUARTER 2007 FINANCIAL AND OPERATING RESULTS
FRISCO, TEXAS, May 7, 2007 - Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2007.
First Quarter 2007 Financial Results
Comstock reported net income of $12.6 million or 28¢ per diluted share for the three months ended March 31, 2007 as compared to 2006's first quarter net income of $29.6 million or 68¢ per diluted share. The 2006 results include an $8.2 million unrealized gain on derivatives held for price risk management. Without the unrealized gain, net income for the first quarter of 2006 would have been approximately $23.9 million or 55¢ per diluted share.
The first quarter results reflect the success that the Company's onshore development drilling program and offshore exploration activities have had in growing production. Comstock's production in the first quarter of 2007 increased 28% to 20.0 billion cubic feet equivalent of natural gas ("Bcfe") as compared to production of 15.7 Bcfe in the first quarter of 2006. Onshore production has increased 16% and offshore production was up 42% from the first quarter of 2006. The first quarter average daily production rate of 223 million cubic feet of natural gas equivalent ("Mmcfe") also has increased 13% from the fourth quarter production rate of 198 Mmcfe per day. The production gains were offset in part by lower oil and natural gas prices. The Company's realized natural gas price averaged $6.89 per Mcf in 2007's first quarter, 14% lower than the $8.05 per Mcf in 2006's first quarter. Realized oil prices in the first quarter of 2007 averaged $54.15 per barrel, 6% lower than the $57.91 per barrel for 2006. First quarter 2007's oil and gas sales of $146.0 million increased 11% from 2006's first quarter sales of $131.7 million. Operating cash flow (before changes in working capital accounts) generated by Comstock in 2007's first quarter of $100.5 million was 10% higher than 2006's first quarter cash flow of $91.5 million. EBITDAX or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses was $114.0 million in 2007's first quarter, a 14% increase from 2006's first quarter EBITDAX of $100.0 million.
First Quarter 2007 Drilling Results
Comstock also announced the results to date of its 2007 drilling program. In the first three months of 2007 Comstock drilled 48 wells (38.3 net). Forty-five of the wells drilled were successful and three were dry holes.
Onshore, Comstock drilled 44 (35.7 net) successful development wells in the first quarter of 2007. Comstock drilled 34 wells (27.4 net) in its East Texas and North Louisiana region which have been tested at an average per well initial production rate of 1.3 Mmcfe per day. At March 31, 2007 Comstock had six additional wells in this region that were being drilled which are part of Comstock's 115 well Cotton Valley drilling program planned in this region for 2007.
In South Texas, Comstock drilled four successful wells (2.7 net) during the first quarter of 2007, which had an average per well initial production rate of 7.5 Mmcfe per day. Two of the wells were in the Las Hermanitas field in Duval County, Texas and one well was drilled in each of the Company's Ball Ranch and Javelina fields. Comstock had two rigs drilling in this region on March 31, 2007. Comstock drilled six wells (5.6 net) in its Laurel and Maxie fields in Mississippi during the quarter. Three of these wells were tested at an average per well initial production rate of 185 barrels of oil per day and one well tested at 1.5 Mmcf of natural gas per day. Comstock had one rig drilling in the Laurel field at the end of the first quarter.
Comstock's offshore operations are conducted by its 49% owned subsidiary, Bois d'Arc Energy, Inc. (NYSE: BDE) ("Bois d'Arc"). Bois d'Arc has drilled three exploratory wells, 1.8 net to Bois d'Arc's interest and one development well (0.8 net). Bois d'Arc's OCS-G 22738 #3 well at South Timbalier block 75 is its second well to test the "Doc Holliday" prospect. To date this well has been drilled to a depth of 16,236 feet and has encountered pay in several new reservoirs. Bois d'Arc has set protective casing and is deepening the well to test additional prospective targets. Bois d'Arc's OCS-G 22648 #2 well drilled at South Marsh Island block 220 and a well drilled at Vermillion Block 50 were unsuccessful. Bois d'Arc also participated in another operator's deepwater exploratory prospect which was not successful. In addition to the deepening of the second "Doc Holliday" well, Bois d'Arc is currently drilling an exploratory well to test its "Dogbone" prospect at South Pelto block 7 and is participating in a second, non-operated deepwater test.
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, 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 March 31, | |||||||||
2007 | 2006 | ||||||||
Oil and gas sales | $ | 146,029 | $ | 131,724 | |||||
Operating expenses: | |||||||||
Oil and gas operating | 27,083 | 26,295 | |||||||
Exploration | 11,133 | 4,875 | |||||||
Depreciation, depletion and amortization | 56,707 | 30,685 | |||||||
General and administrative | 9,702 | 8,135 | |||||||
Total operating expenses | 104,625 | 69,990 | |||||||
Income from operations | 41,404 | 61,734 | |||||||
Other income (expenses): | |||||||||
Interest income | 296 | 237 | |||||||
Other income | 130 | 54 | |||||||
Interest expense | (8,449 | ) | (5,483 | ) | |||||
Gain (loss) on derivatives | — | 8,125 | |||||||
Total other income (expenses) | (8,023 | ) | 2,933 | ||||||
Income before income taxes and minority interest | 33,381 | 64,667 | |||||||
Provision for income taxes | (14,824 | ) | (26,299 | ) | |||||
Minority interest in earnings of Bois d'Arc Energy | (5,999 | ) | (8,734 | ) | |||||
Net income | $ | 12,558 | $ | 29,634 | |||||
Net income per share: | |||||||||
Basic | $ | 0.29 | $ | 0.70 | |||||
Diluted | $ | 0.28 | $ | 0.68 | |||||
Weighted average common and common stock equivalent shares outstanding: | |||||||||
Basic | 43,364 | 42,051 | |||||||
Diluted | 44,238 | 43,429 |
COMSTOCK RESOURCES, INC.
CONSOLIDATED OPERATING RESULTS
(In thousands)
Three Months Ended March 31, | |||||||||
2007 | 2006 | ||||||||
Cash flow from operations: | |||||||||
Net cash provided by operating activities | $ | 78,746 | $ | 85,539 | |||||
Excess tax benefit from stock based compensation | 166 | 197 | |||||||
Increase (decrease) in accounts receivable | 4,874 | (13,685 | ) | ||||||
Decrease in other current assets | (2,013 | ) | (4,512 | ) | |||||
Decrease in accounts payable and accrued expenses | 18,771 | 23,953 | |||||||
Cash flow from operations | $ | 100,544 | $ | 91,492 | |||||
EBITDAX: | |||||||||
Net income | $ | 12,558 | $ | 29,634 | |||||
Interest expense | 8,449 | 5,483 | |||||||
Income tax expense | 14,824 | 26,299 | |||||||
Depreciation, depletion and amortization | 56,707 | 30,685 | |||||||
Minority interest in earnings of Bois d'Arc Energy | 5,999 | 8,734 | |||||||
Stock-based compensation | 4,312 | 3,144 | |||||||
Exploration expense | 11,133 | 4,875 | |||||||
Unrealized gain on derivatives | — | (8,828 | ) | ||||||
EBITDAX | $ | 113,982 | $ | 100,026 | |||||
As of March 31, | ||||||||
2007 | 2006 | |||||||
Balance Sheet Data: | ||||||||
Cash and cash equivalents | $ | 12,003 | $ | 10,913 | ||||
Other current assets | 90,974 | 68,895 | ||||||
Property and equipment, net | 1,857,521 | 1,431,289 | ||||||
Other | 5,361 | 5,295 | ||||||
Total assets | $ | 1,965,859 | $ | 1,516,392 | ||||
Current liabilities | $ | 147,153 | $ | 103,896 | ||||
Long-term debt | 511,000 | 319,000 | ||||||
Deferred income taxes | 323,507 | 262,670 | ||||||
Asset retirement obligation | 58,113 | 39,069 | ||||||
Minority interest in Bois d'Arc Energy | 228,006 | 177,269 | ||||||
Stockholders' equity | 698,080 | 614,488 | ||||||
Total liabilities and stockholders' equity | $ | 1,965,859 | $ | 1,516,392 |
COMSTOCK RESOURCES, INC.
CONSOLIDATED OPERATING RESULTS
($ In thousands, except per unit amounts)
For the Three Months ended March 31, 2007 | |||||||||||
Onshore(1) | Bois d'Arc Energy | Total | |||||||||
Oil production (thousand barrels) | 251 | 368 | 619 | ||||||||
Gas production (million cubic feet - Mmcf) | 8,635 | 7,701 | 16,336 | ||||||||
Total production (Mmcfe) | 10,140 | 9,909 | 20,049 | ||||||||
Oil sales | $ | 12,054 | $ | 21,468 | $ | 33,522 | |||||
Gas sales | 57,793 | 54,714 | 112,507 | ||||||||
Total oil and gas sales | $ | 69,847 | $ | 76,182 | $ | 146,029 | |||||
Average oil price (per barrel) | $ | 48.03 | $ | 58.33 | $ | 54.15 | |||||
Average gas price (per thousand cubic feet - Mcf) | $ | 6.69 | $ | 7.10 | $ | 6.89 | |||||
Average price (per Mcf equivalent) | $ | 6.89 | $ | 7.69 | $ | 7.28 | |||||
Lifting cost | $ | 14,055 | $ | 13,028 | $ | 27,083 | |||||
Lifting cost (per Mcf equivalent) | $ | 1.39 | $ | 1.31 | $ | 1.35 | |||||
Oil and gas capital expenditures | $ | 84,251 | $ | 62,753 | $ | 147,004 | |||||
(1) Includes the onshore results of operations of Comstock Resources, Inc. |
For the Three Months ended March 31, 2006 | |||||||||||
Onshore(1) | Bois d'Arc Energy | Total | |||||||||
Oil production (thousand barrels) | 228 | 317 | 545 | ||||||||
Gas production (million cubic feet - Mmcf) | 7,369 | 5,065 | 12,434 | ||||||||
Total production (Mmcfe) | 8,740 | 6,968 | 15,708 | ||||||||
Oil sales | $ | 12,265 | $ | 19,337 | $ | 31,602 | |||||
Gas sales | 57,626 | 42,496 | 100,122 | ||||||||
Total oil and gas sales | $ | 69,891 | $ | 61,833 | $ | 131,724 | |||||
Average oil price (per barrel) | $ | 53.69 | $ | 60.95 | $ | 57.91 | |||||
Average gas price (per thousand cubic feet - Mcf) | $ | 7.82 | $ | 8.39 | $ | 8.05 | |||||
Average price (per Mcf equivalent) | $ | 8.00 | $ | 8.87 | $ | 8.39 | |||||
Lifting cost | $ | 13,855 | $ | 12,440 | $ | 26,295 | |||||
Lifting cost (per Mcf equivalent) | $ | 1.59 | $ | 1.79 | $ | 1.67 | |||||
Oil and gas capital expenditures | $ | 49,157 | $ | 46,457 | $ | 95,614 | |||||
(1) Includes the onshore results of operations of Comstock Resources, Inc. |
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
($ In thousands, except per unit amounts)
For the Three Months ended March 31, 2007
East Texas/ North Louisiana | South Texas | Other | Total Onshore | |||||||||||||
Oil production (thousand barrels) | 46 | 53 | 152 | 251 | ||||||||||||
Gas production (million cubic feet - Mmcf) | 5,381 | 2,577 | 677 | 8,635 | ||||||||||||
Total production (Mmcfe) | 5,657 | 2,896 | 1,587 | 10,140 | ||||||||||||
Oil sales | $ | 2,492 | $ | 2,958 | $ | 6,604 | $ | 12,054 | ||||||||
Gas sales | 35,501 | 18,101 | 4,191 | 57,793 | ||||||||||||
Total oil and gas sales | $ | 37,993 | $ | 21,059 | $ | 10,795 | $ | 69,847 | ||||||||
Average oil price (per barrel) | $ | 54.17 | $ | 55.81 | $ | 43.45 | $ | 48.02 | ||||||||
Average gas price (per thousand cubic feet - Mcf) | $ | 6.60 | $ | 7.02 | $ | 6.19 | $ | 6.69 | ||||||||
Average price (per Mcf equivalent) | $ | 6.72 | $ | 7.27 | $ | 6.80 | $ | 6.89 | ||||||||
Lifting cost | $ | 6,684 | $ | 3,322 | $ | 4,049 | $ | 14,055 | ||||||||
Lifting cost (per Mcf equivalent) | $ | 1.18 | $ | 1.15 | $ | 2.55 | $ | 1.39 | ||||||||
Oil and Gas Capital Expenditures: | ||||||||||||||||
Leasehold costs | $ | 398 | $ | 816 | $ | 2,400 | $ | 3,614 | ||||||||
Exploratory drilling | — | 2,255 | 442 | 2,697 | ||||||||||||
Development drilling | 54,707 | 11,677 | 10,009 | 76,393 | ||||||||||||
Other development | 242 | 483 | 822 | 1,547 | ||||||||||||
Total | $ | 55,347 | $ | 15,231 | $ | 13,673 | $ | 84,251 | ||||||||
For the Three Months ended March 31, 2006
East Texas/ North Louisiana | South Texas | Other | Total Onshore | |||||||||||||
Oil production (thousand barrels) | 29 | 56 | 143 | 228 | ||||||||||||
Gas production (million cubic feet - Mmcf) | 4,243 | 2,285 | 841 | 7,369 | ||||||||||||
Total production (Mmcfe) | 4,417 | 2,623 | 1,700 | 8,740 | ||||||||||||
Oil sales | $ | 1,740 | $ | 3,474 | $ | 7,051 | $ | 12,265 | ||||||||
Gas sales | 32,766 | 18,198 | 6,662 | 57,626 | ||||||||||||
Total oil and gas sales | $ | 34,506 | $ | 21,672 | $ | 13,713 | $ | 69,891 | ||||||||
Average oil price (per barrel) | $ | 60.00 | $ | 62.04 | $ | 49.31 | $ | 53.68 | ||||||||
Average gas price (per thousand cubic feet - Mcf) | $ | 7.72 | $ | 7.96 | $ | 7.92 | $ | 7.82 | ||||||||
Average price (per Mcf equivalent) | $ | 6.02 | $ | 8.26 | $ | 8.07 | $ | 8.00 | ||||||||
Lifting cost | $ | 5,926 | $ | 3,649 | $ | 4,280 | $ | 13,855 | ||||||||
Lifting cost (per Mcf equivalent) | $ | 1.34 | $ | 1.39 | $ | 2.52 | $ | 1.59 | ||||||||
Oil and Gas Capital Expenditures: | ||||||||||||||||
Leasehold costs | $ | 1,294 | $ | — | $ | 757 | $ | 2,051 | ||||||||
Exploratory drilling | — | 75 | — | 75 | ||||||||||||
Development drilling | 21,056 | — | 17,351 | 38,407 | ||||||||||||
Other development | 6,641 | — | 1,983 | 8,624 | ||||||||||||
Total | $ | 28,991 | $ | 75 | $ | 20,091 | $ | 49,157 |