CRK - Earnings call 4 2023 | Comstock Resources, Inc.

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Operator

Thank you for standing by, and welcome to the Comstock Resources Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Jay Allison, Chairman and CEO. Please go ahead, sir.

Miles Allison

Our corporate team of 255 strong, I want to thank you for joining the call this morning, and we wish you a Happy Valentine's today. time, gas calls a weather growth for and the natural gas $X the in pure-play to at that Comstock in market decisive same future. natural a gas company the the sub in natural volatility benefit demand Being from positioning foreseeable longer-term continue actions to far under natural day to so the America will additional we an years. Actions per deliver as the XX billion few facilities the gas protect currently construction down need to cubic in next feet hatches of balance our batten LNG taken to sheet. January, a Number we one, crew. in released frac Number both notice to be two, end release will work we their month. they the by and several months finished of ago, X gave this rigs natural gas prices we three, Number improve. until suspended our dividend quarterly Number as evaluate our flow, four, to fund operating level program if possible. our plan activity drilling we within cash continually we be out partnership cash to five, Comstock. Haynesville midstream our allows Number formed flow we to us by joint venture that our the operating Western not year burden funded last the build at midstream assets and midstream Western very six, all plus rigs Comstock the positioned acres to few we've XXX,XXX our have the in corporate needed of to acres, Number including net hold Haynesville.

our for bullish its Valentine's to in Day allows natural we're long-term inventory Western to resource on persist [indiscernible] drilling market. grow our organically M&A Haynesville Gulf market. and on seven, Number our the Coast the are growing Number the through gas proximity outlook base advantaged X, the materially lastly, us

actions where in as provide helping hand recent U.S. our natural plane in to the cockpit approval our natural gas global the a all is future gas needed looking throttle fly this are XXX% clean steady protect also assure this into are markets on of well us the They counting market. on the with with balance energy. Jerry majority you our prior Jones our volatile can that family to sheet gas stockholder, I our moves of in as

goal the and this period on say, in point in value it to Our to natural for well in weak is continue corporate and time years handled future create look gas. back we a

group. Call. I'll Comstock Quarter Conference over to Welcome Results XXXX the Now Fourth and Financial to Operating go Resources corporate the

a during at can and quarterly call results downloading Quarter XXXX by our You There, find entitled presentation after to or slide going a Fourth this www.comstockresources.com presentation. view you will results. website presentation the

of Relations. I Operating our Chief Executive am and Harrison, Officer me Comstock. Roland Dan Ron Financial Chief Allison, of Officer; With Chief is Burns, Investor our Finance Officer; and our VP and Jay Mills, President

to refer include our securities the in and presentations laws. of X within that our Please Slide note discussions forward-looking will meaning today statements

expectations such that there While statements in correct. expectations can to we be such be believe will be the no to prove reasonable, assurance

and of financial operations the adjusted share we natural prices. quarter highlights $X.XX generated Slide highlights. summarize of EBITDAX results Fourth by in On Oil X, to fourth sales, $XXX or per XXXX cash gas The be million. hedging quarter, we million million continue the were continued heavily gas was including and $XXX weak impacted flow $XXX quarter. from the the

quarter. was Our the $X.XX income adjusted net for

wells We we feet. of of sales and XX length cubic connected average X,XXX drilled XX lateral million continue In XX an to average strong drilling or our average XX.X feet. net results successful shale have operated production program. the lateral wells rate fourth or Since Bossier net very an from conference per day horizontal with quarter, the Haynesville quarter last the XX,XXX with to XX.X initial call, length operated at have we feet in an of

reserves production with XXXX our adds. proved of XXX% replaced program drilling XXXX Our new

acreage fourth our in position quarter expensive in position net play. Western our play Haynesville added to our acres to make Haynesville the acreage over total XXX,XXX We continuing net exploratory acres. progress the are in We Western alone, to XX,XXX increasing

sales. at are first cubic Harrison We and the our end was in the quarter. of well come on additional Haynesville currently is the wells, expected completed million to by formation the to feet XX [indiscernible] [indiscernible] per production recently X producing turned day. Three

the will I have quarter the fourth results. now Roland? and financial Roland go over annual

Roland Burns

Jay. results. we cover Slide our Thanks, On fourth X, financial quarter

came and million We quarter. in or $XXX in Our income coming production cash flow quarter resulted for fourth XX% XXXX. and third and of from fourth third fourth at $X.XX quarter the a per in the we XXXX's the at in of day $XXX quarter gas of compared in prices Low gas from XXXX the million, of quarter generated of production for as of $XXX the X.X for million in million the level. reported per EBITDAX adjusted oil net fourth Bcfe X% and of quarter higher quarter. XXXX X% natural fourth the to the $XXX share sales income million $XX quarter, increased net fourth despite the quarter declining in in million, our the quarter $XX grew

show Slide the XXXX. full for the X, we financial year results

which increase Bcfe XXXX gas gas Our from $X.X to the prices and billion than totaled production prior our year. X% in averaged day, was we sales XX% were sales per due lower a XXXX and the in realized. X.X lower Oil

flow generated $X of compared for to as net million and was XXXX million income we in year. $XXX of income billion $XXX the XXXX for We XXXX. reported in EBITDAX cash net Our $XXX million, of

gas price quarter. X, in we we that the natural realizations had our show Slide

quarter price fourth higher During NYMEX of spot gas the $X.XX, Hub the than which the quarter, in settlement Henry average $X.XX was $X.XX. quarterly averaged price the

our $X.XX, fourth settlement a and the the during to price price a reference to reflecting differential $X.XX gas price. quarter differential $X.XX averaged realized Our

about that that October, price our We $X.XX. million price wider profits end occurs We've starting of in fourth were reach the been injection and In our we differentials hedged the realization XX% fourth we and $X.XX quarter improved the realized gas. the transportation quarter. in which the another in of the as some in normally of resell by The generated also $X.X using gas and in for gas quarter buy storage to improved the to were period. third-party excess quarter, our Haynesville quarter,

X, we Slide Mcfe and margin. cost operating per our On the EBITDAX detail

per in production than Our ad offset, Mcfe third Lower operating higher the costs averaged X% though, quarter. by $X.XX quarter, taxes. were lower the valorem gathering and cost fourth

Our third gathering costs $X.XX lower $X.XX. were were down the lifting rate our to costs the also than at quarter, and $X.XX during $X.XX quarter

from at lower third third production taxes per quarter. in level, ad and came $X.XX valorem G&A $X.XX than Our the which $X.XX Mcfe, was increased quarter the

up the previous EBITDAX Our margin hedging quarter, fourth from XX% level we after at XX% in in the the in quarter. came had

we Bossier million. XX on These drilling development net our total workovers, development development wells including other a wells XX or In other cubic drilling in other our our $XX Spending rate IP wells million net on $X.X on overall per spending installing XXXX, XX.X and average had and frac day tubing, we XX.X XXXX, activity. feet totaled we turn interest, activities, to of In X, to our or billion activity, wells On including an program. sales. of XX drilled protection and operated well. Shale per recap Slide Haynesville offset spent on billion $X.X production

reserves we On natural that prices. Slide gas SEC oil X, were and cover our [indiscernible]

gas Tcfe, $X.XX to per required XXXX Mcf, to to Our price low in XX% in from used X.X the the used that determination. $X.XX price XXXX XXXX. gas decreased the decreased in down XX% SEC due SEC was proved for reserves The

lower drill. and Our XXX the Tcfe of year-end revisions natural we to to of would reserves, XXXX caused proved our due negative price Bcfe reduction proved low also but was the drilling which to undrilled gas X.X locations drilling activity XXX% XXXX activity used determine we that which reserves by added of reserves replaced in production, our our had undeveloped

total of not SEC the that year, reserves time X-year included proved they the In addition have end expected required to aren't we SEC had drilled the X.X we rules. reserves at Tcfe be as by to required that are proved of Tcfe period the another the within undeveloped X.X

feet of total We all PX the Tcfe of and around for pricing. [indiscernible] possible SEC at basis, of XX.X Tcfe base reserves determined Tcfe reserves X.X also have another or kind on almost X of reserve low a

Mcf low similar On the Slide the this to would impact year-end Using reserves reserves. you a gas to $X.XX Tcfe. the at year we've the used to proved price per last have been of on of our determine show prices price, XX, reserves NYMEX X.X

have our for to basis. prices determined All XP a Tcfe which, the a gas. a XXX Tcfe X.X Tcfe gas additional price, for up overall another In future an total PX undeveloped reserves, view, on natural XX.X of the of reserves lined would we outside of had reserves would period. Tcfe of have probable proved addition, reserves And then X-year our another of XP of or base overall NYMEX reserve X that are that closer we X.X long-term in possible

end balance end facility, senior under quarter of in sheet On We our XXXX. borrowings total recap outstanding notes. we of Slide the a our XX, $XXX debt, giving our did billion of us $X.X the including million at credit with

Our of we borrowing amount. which have $X.X an currently $X of of base bank that elected our facility for billion, is at credit billion commitment

So financial liquidity we ended just of the year with over overall $X billion.

operations turn more to detail. over of now discuss our it kind in to I'll Dan

Daniel Harrison

on the stands inventory Slide the XX, shows into quarter. at Thank Roland. Over the just of you, drilling fourth our this current end year where

between Haynesville split our and Bossier is inventory locations. Our

buckets. divided We have up into X

to up Our X,XXX run short laterals feet.

feet. between Our X,XXX medium run X,XXX laterals and

extra our laterals X,XXX loan laterals out long our feet. beyond feet then extending and and have We XX,XXX between XX,XXX

locations. equates inventory total a and to XX% currently operated average operated stands across at inventory. working gross locations X,XXX This Our our X,XXX net interest

interest non-operated inventory. locations. inventory in non-operated locations This has XXX Our X,XXX working the XX% net across represents a average gross

XX% inventory operated and gross long XXX in Bossier. If short have the the laterals, medium laterals XXX gross split in operated you Haynesville XXX XXX break The linked is laterals. down extra XX% our we laterals, and inventory, long

XXX linked has gross exceeding end at The feet quarter. feet. gross XXXX the XX% inventory now up of our the laterals feet, stands locations is operated this third X,XXX X,XXX greater of or inventory to slightly the of and average lateral than operated our at and from inventory XX% have XX,XXX laterals

with inventory us of drilling Our locations. years provides XX future

on progress chart based date Slide XX, length the to on outlining On to sales. that a lateral wells as drilled turned average our we our

The feet while we sales to the and the XX,XXX continued average of X,XXX thanks long lateral program. up feet. still links of feet, this drilling longest lateral range quarter, XX,XXX fourth to from turned During our is at XX XX,XXX with stands feet, length to record wells our individual success an

quarter, XX,XXX XX of feet. feet, those including XX,XXX of sales exceeding [indiscernible] During total had long have wells XX XX,XXX date, wells laterals a over over wells than XX,XXX XX X we with laterals wells longer the and XX feet drilled with laterals the fourth of feet. To

in the Western wells quarter, the turned any sales quarter. X end in one our During on a wells date, by Haynesville, turn turned sales of to be sales we Western didn't XXXX, To the we the have to of fourth acreage. new first total and well we expect do Haynesville to

In lateral of XXXX, from X,XXX to we XX total our XX,XXX feet. of a length X% length feet is with an lateral wells up average and sales average this of XXXX turned

well Slide XX new activity. our outlines

suffered during ranging The Texas, the turned with this a new which of rate and of the XX,XXX-foot day. well million our XX XX,XXX The sales million lateral X X laterals producing XX completed in had only rates up a from lateral. Verhalen have rate cubic the to The East feet day a individual the day feet up day test call. average half IP failure B resulted was to a from located We length mechanical in million a tested since an lateral. from last well individual average which a X,XXX IP completion, range with of wells #X time million casing XX feet Hamilton

Haynesville, it's to the #X in is eighth X cubic placed our Western the turned rigs end wells we first have the in Haynesville In tested currently of XX day. X X still We and the XXXX, running process the of do we being drilled X at end the running additional Haynesville online. today, producing first Haynesville sales was The keep for million producing addition in wells recently the to the acreage, feet anticipate Western quarter. by and Western a well of to well year. the We currently in of our This planning remainder on are rigs up. Neyland and the cleaning currently being

and our feet this legacy for On costs lateral that acreage. the East This our located wells long laterals [indiscernible] Texas X,XXX summarizes our all on wells Slide are having quarter XX, long. D&C our fourth Louisiana through greater core North than covers

wells North Texas Louisiana our our During were we turned the wells. the that wells East sales acreage. and of quarter, were XX XX XX lateral benchmark to on core long

third and D&C decrease benchmark long a wells compared the on this a our In XX $X,XXX the to lateral quarter, the fourth cost reflects averaged X% foot quarter.

to quarter is was quarter. in quarter. we The Our that XXXX. pricing trend third cost downward a drilling throughout abnormally drilling cost drilling averaged XX% in a experienced cost on which foot, due to compared fourth a some drilling the decrease had higher slight And our the $XXX reflects lower third issues quarter also we've

Our X% the is third fourth a foot, $XXX a compared which quarter completion cost to at came quarter. increase in

The increase quarter laterals. in due some costs X to in rigs cost the plug were attributable We have higher completion currently slightly fourth longer running. to primarily the drill-out

the a month, rig. of End in second are We weekend. process We this run rigs be to for one XXXX. releasing next of the rig expect the we'll of currently releasing rest early month, X

X maintain year. for remainder do currently to of We frac X frac the running crews. one crews side, On running we to the completion expect are the

now hand Jay. the back over to call I'll

Miles Allison

Thank you, Roland. Thank Dan. you,

summarize remain of At the XXXX. turn to position end play exciting extensive over continuing Western outlook XXX,XXX net our Slide acres. you'll If to to focused XXXX, play. XX, proving our our very totaled acreage position our Western acreage Haynesville and this on in up we'll add for We Haynesville

venture to Following be Haynesville that will building cash in by midstream in the creation benefit is midstream we late half the next LNG of build-out by that begins on that our in year, burden horizon, substantial the Western on believe the will and asset positioned great not Haynesville the region be funded the driven will up in in with joint partnership are natural operating well of gas the flow. We growth from Western be capital for demand second our midstream in a the the the costs assets that a to of associated year. exports show growth our last

our prudently environment. actively activity to level are managing drilling the current to We price gas respond low

operated completion released said, which in rigs crews, Haynesville. are operated of one total of Haynesville on X count X bringing in to rig our already footprint, X of have Western our We the as our rigs, legacy X drilling our Dan

our to we flow. environment. sheet evaluate fund We as continue gas in activity focused are preserving program on operating to this cash We'll our our price plan within balance drilling level

gas prices We until improve. to are going suspend dividend our quarterly natural

substantially price cost our producers. asset current Our gas natural in other cost lower public structure industry-leading the an than lowest is natural the gas as environment, structure is

of And billion around lastly, continue to fourth very we'll our quarter. strong liquidity, financial maintain which totaled $X at the the end

guidance Ron? I'll specific now for provide have the to rest the Ron of some year.

Ronald Mills

provide Thanks, full of for Jay. this XX, quarter On guidance Slide the first financial and year. year we the the updated

year. improvement low year and lower an the Services pressures costs, CapEx stage. in gas million our the additional million including guidance in D&C expenditures per will to our last release by quarter of quarter on is CapEx of the $XX be service to million. the the of X midstream acquisitions million response $XX million course $XXX and to signs continued cost million million to $XXX Gas is spending anticipate to $XX for first to our see in [indiscernible] versus $XXX the full related are $XX Pinnacle rigs spending to last in drilling in prices. year. Capital and $XXX over the We $XX press million quarter first on to night total million $XXX release We've In completion million million D&C $XX $XXX partner funded expected First year, lease to million. The guidance to related announced to full

per to $X.XX our be per the the range expected to are $X.XX first LOE full For both average and $X.XX Mcfe the in $X.XX are [indiscernible] and is valorem to $X.XX expected to $X.XX per and expected year, Mcfe production, Mcfe. of to be quarter ad to taxes

DD&A to of million average $X to rate first year. $X.XX total our year. to expected the In million and expected million $X.XX $XX Mcfe this for is cash $XX is per million to full the G&A quarter, $X to

to quarter for $X million we'll full noncash $XX to G&A million $XX year. million have the the addition, In and million of in first $X.X

With first million quarter. to will taxes remain to XX% the XX% interest in tax remain year. the $XXX noncash while expected $XX to our XX% will quarter $XXX to the million total our approximately and increase interest million per levels, Effective in to is for of debt and million $X expense XXX% we continue to defer cash to the this year, $XX million current [indiscernible] now rate in reported range, expect

I'll now back from to turn call the the follow company. who the operator analysts questions answer over to

Operator

from question for Whitfield Our Stifel Derrick from line the Financial. today of first comes

Derrick Whitfield

you comment you capital take could view? underpins the likely gas decision on produce current additional depressed With respect your cash environment. deteriorate? the and spending to to gas your reduce to capital outlook, strong that Let if XXXX in me gas price average steps a outflows your price continues flow first within year-end to speak further to Any you'd

Roland Burns

and I a mean, where or was weeks that's gas target moving X ago in probably about prices price of that's I maybe are balance. that gas course, market, the Derrick, where in the X exactly where probably was think of kind Yes,

pull other creating that way on most far deal. things kind trending most expenditures going the happening that a a down I reduce flow. at service are think are as we to of continue capital are So the little another our That's the cash that a But it's to dropping we'll on monitor effective costs, can to the actions they volatile net operating kind be look what has are levers that of continue side. rig. to some bit But deflationary as impact

operating each kind the we wherever to the monitor that to we can tighten have. look up dollars activity of like year continue we'll do what ship and to that's to so the maximize And we

Derrick Whitfield

experiencing shift Haynesville efficiency I operational in to to my Western the improve your breakeven and with you're degree you meaningful the the time expecting expecting Could the over to if the as over difference wanted understanding you're the game Bossier that it's Haynesville between and you're speak a long follow-up, a And gains resource. to breakeven intervals? in

Daniel Harrison

is and faster up still wells. we're on This say going our the ground Haynesville Dan. I'd Western definitely gaining curve

still X-well we're there. our some got second on We things pad -- next. X-well pad drill [indiscernible] our that's first That's definitely going drilling currently. are front increasing our is the to We help to times. had going rig We actually still to we've that its drilling first have gained know efficiency

see -- more room there we So and to we still bit little a faster. running get

So I savings there build but there, increase there come X seeing Haynesville some probably not in I down just probably see really crews, on of Western moving been kind got time an we've down. In for as think vendor. pretty everything a needle streamlined, we to X the definitely much. rigs, costs are area, long and brought the really, in new we're core rigs. the solid seeing We as far as wells, performance. mean some good efficiencies, the the and We frac those same some new

have I better overall. So there, performance think we're some going just to just kind of

a like I -- [indiscernible] and but costs be last gets course, XX% so prices to and maybe So But come difficult that's I with at. think pretty come down where obviously, and lot higher probably we're the pretty of we'd we year. down. we of yes, or efficient down times, since everybody cost this year think levels streamlined see activity seeing the will, the savings And obviously, beginning we're the

Operator

Rice. question from line Johnson comes Charles And the our of Meade next from

Charles Meade

quick clarifying just I'm Dan, a question really start to with you. with going

comments one your between remainder I you're right? year. you crews that in completion Did planning say catch the think and heard I of X the running I prepared on for that

Daniel Harrison

right. That's

need sales, between. if if you full-time if one I the we've dedicated year. do like look and So what to to just turn running math some got out And us. fleets mean, X, -- then this to of with the frac is X to in crews number one you going you we're kind of gaps wells, X.X with we'll comes it math, But do the

Charles Meade

more of does. then it. Jay, a I to a my Got lot sitting a have recognize is recognize look follow-up, you in this, than that start a my and I kind at somebody chair lot maybe way simplistic And considerations guys this more but data

futures So but I July. look $X here, don't until my the and at in get curve chair, we

me be bridge And is the but X recognize bridge right to X.X for realistic so can the pieces guys for you several of or next at It X seat, and for from number now right to view. a the the to like several X, of kind the you right completion months I crews number my why X but it right running like least is not case, looks looks number to the next months? the that's

Miles Allison

that's I frac We've question. if proactive think going this Typically, think a call already we've like conference release a on at look crew. I you one, Well, how year a really to been. good Number that. done

Second mean, and to have to I and back conference X, notice. And in like year of X you you going have as we frac in contracts, X December release to them. proactive give thing rigs usually cost, and far as were well it any it's We well. contracted a by release call use just other those to rigs this months I takes X, that a have crew the don't all, maybe think have to

released Dan beginning has of we'll March of goal. by those as both said, the is our And have

kind question your question. operating So is then price natural save flow, asked the about was of cash [indiscernible] which of a in gas to

procurement we don't you I goal, on acreage that we think spending plan in tell the is is have what you on much we as that, as is to tell our that the Haynesville, that past. you core, It half acreage starved. tells tells that half and now own our is it we're not you right probably a inventory one is we that Western of money

in the are order where have inventory. or prices market to the low do buy don't we high gas to So deals in

deflation. come you then at So you look and look we cost, at the

completing some drilling far had the wells. of savings frac we've the that over had goes some so from we've the and the and of in Dan company mean, savings I cost cost

we've think do tell hedging. that [indiscernible]. production looked of our numbers, is XX% at about we all I We you we've to 'XX hedged looked can at those in

need in I to range. the be think we XX% that

Now goal of when a it and know the kind have. that we that use down to we hatches know. I market we think battened there? will a is And the reason don't But get because we I some you need corporate need optionality I theme to another month see in if If to do we have down to that we'll delay we then we needed think the so, or fracs, lay rig, that. can next the do that. the

and is to think your protect again, are I I minimum anybody you look answer this I say, protect trying you So reducing are major this, Family involved have you count the what the have commitments owns to reason do. or by and think if thing. then you goal not. to firm that's any of is And look going Jones is, transportation XX% one they're shareholder, if with rig the we we is it, agreements always how are the And at that we and at volume well impacted say, who

you to for have going while. question, you like too, a we've this but at look that things, when we're So those managed it ask all to just manage to continue

pain. because we we haven't We, haven't recognize I as they mean recognized a experienced groups some group, it, it do.

need indicator. this plan whatever we to good thing. It's And we do what ship, it's ride that's an a on to So doing.

a question. that's So great

Operator

Fernando Energy of from And Zavala Pickering our next Partners. from line comes the question

Fernando Zavala

it another core from Would would back or Where from? the going come come around evaluating rig. that rig your to of the Kind Western comments Haynesville? dropping Haynesville

Miles Allison

the If the would in we Western rig, not be would another dropped Haynesville. be core. it It

Fernando Zavala

of is first It quarter. like can then with my And as talk a follow-up, implied little trajectory XXXX. XXXX line the guidance in about you seems the bit production in --

So just little bit more there. a color

Ronald Mills

X Yes. From frame mentioned impacting he dropping rigs X the here if said. first Dan to production, a think starting were up second dropping time in rig of I we the X think to terms about of those show weekend you the next within and and rig the -- weeks, this related to

so it you X- lag you when timing like your X-month and to or through the And of there's when production. just rig, rig, having drop a add a changing level a minus plus or activity between flow

the feel the of fourth see remain the the X you running to to why of that's larger bit full as brunt a first little decline So flat in a you rigs. little the relatively of bit production and start a third half year decline quarter and should quarter start in

Operator

from Roberts our from question of And next comes & Jacob Company. line the TPH

Jacob Roberts

I think needed extensions provisions drilling HBP you've any plus? the in for on previously Can X and XXXX had commitments perhaps the about Haynesville. some be those Western to commentary running speak provisions of you impact rigs and cap to or needed XXXX

Roland Burns

of We that far taking originally we feel of term period rigs hold. to approach drill that have to by anticipated going like that's we this that that, 'XX, lot time, to we -- be not acres us the X like to not we won't behind. running plans to over And but the put year longer future this a really have to alter a acreage our little in bit a has slower have

extend changing year, that were not having have we keep know but really So but there's this these et -- actions to we all -- to have given kind of on leases, can track. still -- the -- we're taken cetera,

Miles Allison

In fact, most will in now of said a I be and pad. be think the the drilling as we'll wells Dan slowdown is wells X the positive Haynesville, per Western that earlier,

one have been pad. per well drilling We

a of because think 'XX little added window. within we for I small a now lets ahead have group lot and land acreage bit a it get 'XX our

think acreage with wells. position I better lets a in our us greater fewer it 'XX swath wells and of 'XX lot to derisk

group really land slowdown So -- been it well. served has the our has

Dan and themselves. other I the do rig not for said, 'XX. to think Roland 'XX add we in as will in And results has do speak impacted going you, drilling, really will But like tell we'll the were another it

said results have acreage northern the or far, to publicly. that stellar been They've derisked, that which heel of from We've for there. derisked well, our X area been probably so we the the probably X we really that And lot good. miles. got a is acreage and we've We've the have

good. environment And looks down. that for it us think to favorable I this is slow So

Jacob Roberts

some My caused if XXXX this pretty focused process have into in into of program to just second any remaining maybe you year. year? you transactions the question what those of become and sense heavily is Has that around of the provide then it's the can, to more scale fall And in on XXXX, bled leasing Can over competitive? first seems detail quarter from of the the the a pipeline. conversations the

Roland Burns

weak more price it's the competitive close there's working process just It's -- from different you're not -- with of The lots we're has environment actually reasons on. you why it's gas -- parties. something become don't definitely lots of leasing

think but it's we So prospective are a significant not the there, lot captured acreage there's areas I kind think of for the that -- the we've play. in don't of rounding we most where trend up are any the

so up. the that's finishing more really And driving we're anything, than so just program

Miles Allison

I at no since stated an we which are XXXX, can hadn't fact, acre. years. think I Spring where we which that that out now, we We've average don't $X.XX I competition of about been read is X there all. there's $XXX at promise $X.XX you And disclosed gas, at right in so

Operator

line of Bertrand comes Truist. the Our next from Donnes from question

Bertrand Donnes

mutual saying it's to This you be minimum not It necessary, volumes. little the at when kind in instead negotiate a just a curiosity. even Quantum have ability an bit one to on the of that number but is like weird, if hitting was revert But interest of it out become there's they with it guys I'm asset a of any And a inked XX%, managing properly seems and probably might price, purely gas different was interest. there did necessary.

Roland Burns

Well, so our even not forecast to to. thought now. far, level It's our a has and level that production lower far than just even question any give set much

Bertrand Donnes

maybe view just or if place don't dividend? just has know corporate the on not whether with I of variable place that Sounds And no very consideration kind there distinct. to dividend going just was good, -- bit then instead suspending one of or a keep view. has or it a them to another weird. doesn't the there any little mesh a management technically a Is instead

Miles Allison

we consider didn't that. No,

Operator

question Capital the next Our of One to Securities. line Johnston comes Phillips from

Phillips Johnston

At would is X.Xx be risk? reaching max model it how you easy a Would also that question would that ratio be to how that easy that get you close And prices, if first our -- from your see later leverage possible year. might waiver this strip shows so, to banks? covenant. on as current My the a

Roland Burns

We don't see that.

we don't Phillip. that, to close we that that come So think

not I So just continue the facility. of monitor think we spending and level use credit our to more

Phillips Johnston

sure And are our just make to models calibrated.

like think in year for sales. X-rig the well to you drilled wells would program, look As we the terms both what the and to net count about of wells expect turned

Miles Allison

Ron's got number? that

Roland Burns

[indiscernible] it's Yes, it in the press release. read Yes. there.

Just I have X detail the seconds. don't [indiscernible]

release, we turn XX wells and gross, XX about to it in drill So sales plan to and the as XX net. gross press says net XX that's

Operator

our line next And question comes of from the Leo Mariani from ROTH.

Leo Mariani

to the in of production to of of the sure obvious kind course, first I you prepared up clearly, expected as is get that of 'XX. where on are in what here quarter decline. inverse just more prices quarter decline. answers higher I'm wanted pretty folks, towards And and that's little curve bit in third 'XX about year, to you early you and the then bit winter suggesting futures a some of it's here. had flattish those fourth of talked a a be follow quickly a to months guys given half lower And Ron, you the the

flexible that you sort the want what maximize and you the flows. do can of So of expressed kind kind belief you be of to certainly to cash

to pushing those lines bit. is there of thought a shift out to quarters towards and the those perhaps turn-in later some production trying some So

winter? little time. there have are next that. summer, do maybe reasons you to bit certain this point couldn't lower or any color operational a why you there Maybe maybe higher Haynesville And a the But provisions at any stuff great. it's online has would wells have of come So some in Western be

Roland Burns

on spot can I consideration consideration the is when and low the to something you get not way the definitely. understand wells mean think could that that day, says timing that shale And within be have can prices if Well, to drilled, turn in production try all it's it we you are different be mean, we curve on there. I difficult field give that be bring I the which to production well futures super it. the it give that -- obviously we a precise now, and to could what of

assumptions and around So all resources of lot a plus level these precise of on day. you turned could kind be you on don't available it manage takes can to don't you can't that you because and -- [indiscernible] wrong a bring can it all -- direct to -- wells snap have preparation it that, and fingers but could know your in I get your takes the one think you can you real these those that

And all the you the have with time. so it's what at balancing balancing and that you facts really just have,

happen budget, because just plan we that means So present going exactly a to that and way. it's

as spot in cetera. what's going the index adjust or and through the we the market to what's we'll So the go markets on available et year in market,

Daniel Harrison

are to our crews wells Haynesville. I'll And XX in Haynesville, specifically Yes. frac Western add the Western there, actually fracking the now

of So right only earlier, else because both end we coming well in really year I to that ago, rig have wells one days other X rig don't other drill. got behind the like we Western the till Haynesville Haynesville more getting the pad of -- [indiscernible] mentioned And and is those, to just we anything X-well Western to there's on the got a and the obviously, couple move our pad. X-well started ready a weeks

they'll pads, drilling through X well all spring So and and be with the summer fall.

Leo Mariani

little like a And is can't kind sounds bit color, snap helpful it maybe very guys. on there all's sure watching end. year like the here. it I of said, you're fingers some going you your And but to you you progresses manage be flexibility That's I'm to as this know closely

on Maybe Western a Haynesville. the just follow-up

some reserves of Western were X,XXX want You booked feet per terms your present out. like had color in like getting report around guys any you give it maybe here? these reserve Haynesville at wells of me what to Can obviously you or however

Roland Burns

the not early, had the a X still because we as don't generally, wells only Western bookings as in Haynesville. direct offset have to play. lot producing in It's the get a we and anything And far total we're trying booking in beyond of

reserve report. the But of that limited a there's kind of in would reserve are say, average So lateral. X.X overall, bookings of number I Bcf in locations the per X,XXX completed feet

performance, upwardly of don't well under has with significant -- outperformed Only was track wells it's of the first rest near the it of one that. one, kind months number The a really and which the record have revised production. the [indiscernible] is pretty of

left the drilled. reserves the where wells play first that So kind other nicely of trending we've them but the they for are are, in

Leo Mariani

That's great And color, and appreciate just that. me here. lastly for certainly

guess, it here XXXX 'XX little there improve extent add you let's in reason, activity of or if just like maybe is year later I'm in don't a sounds kind call I it, it's and funding get I debt to some, to the will warm, of weaker the do have that to putting in and whatever I not Western bit obviously, to one holding is the is, debt say to don't think Haynesville you hopefully, of here. you [indiscernible] anyone position gas over markets the mean, and year, the winter where start that's expected maybe next plan but are 'XX. I'll want because more for Just Roland. a of like near-term kind kind consideration be a you any hearing really case, in -- until to some to out the have It from gap turned next still And add has not of

Miles Allison

balance allow I at just done that we us be production. think it positioned could wells ourselves and will sheet. we've I said, like if segregate look these we've Haynesville, things right mean the so to that Western now you you Dan our the slower reach to -- protect

we So mentioned, have midstream mean, rig, I to we're [indiscernible] didn't even though not our add issues third with quantities. a going

there. far much in we And see don't January, complete there. said, I December, proactive And any wells. -- we We drill to to very think obligations as even we So as the any less we were cut costs. very, obligations any in don't have issue have some February, as I then

we monitored that. think like So just I

to -- defer in down we things, There's need look that all those those the another to if do. are we'll we rig, completions, at of need lay hopper to all if

see just EURs Dan are a We have said, bottom so the said and the lot to I in have we of just we got the We still continue us we're protect costs is reach look what just coming the everybody Western inventory. So even the to we've switches tells to mean, line [indiscernible] else's in to we've have in tough of Roland It's a in very inventory acreage, that perform future. pull market, already a to we'll the to we captured solid. think lot I innings, And early Like storybook rich where down. just but what don't Haynesville. protect own. are. the

Operator

Brothers Our Investment of next question the Research. Parks Tuohy Noel from from comes line

Noel Parks

I just wanted to the touch again Haynesville. on Western

latest drilling little your like what just on next you Haynesville kind you for sort most doing a of what are practices the instance? learning So of wondered, just you're talk bit about science far about Western can as as in I wells, interested

Daniel Harrison

we've the probably so temperature -- -- little and deeper. think difference the biggest we depth. mean Haynesville our before, the we've Western I mean, they're the core and obviously, I Well, bit stated between I is a

comes If And the and ROPs, to stay perform the in less wells. [indiscernible] at that, manage longer, the at when the hole temperature. trips just just done to we've managing bottom course, of the and look out getting lateral say faster it, our of of really you get on that TVDs good temperature. with really I And a And drilled. job

longer casing a our lot of there. And drill. obviously got modifications a design. up section some to to gains made we've just made So vertical we've top, then We

penetration our up top pick rates seen We've up, also.

we So got down we don't bigger everything, and the maxed here you attack but mean thing you to core, X, we're those figuring have Western up all just totally you kind make out chunks of this the or and picking of in Haynesville kind do some we in I the there out. core. kind pick things just -- up a of here and in like little day just just tweaks a of bit

Noel Parks

anymore? a things at pretty is Or productivity there? are rock are a learning you not of And you still point the where surprise much

Daniel Harrison

the had I'd say There we're is still wells in everybody the like of But completions inferior that put knows had -- got back we X of on XXXX out. that, the very and a them. on. I all old with we still knew that problems, drilled were gas They there. amount kinds rocks turned data mean XXXX gas. decent

consistently. they go the It's of they higher when economics. it pressures was up frac obviously wells, gas don't make would the there. our matter at that and really but they very a go pressures more frac, just and also So The treat a knew lot do And we down all difficult. place,

easier frac very to consistently pressures. high them the they makes it which frac at So

So had we've good we've -- been there, cost pretty fluctuation. cost not

consistent also the cost completion side. mean on the I on

the with pipe. laterals few ago, using started these we years drilling a We also units -- long have out stick snubbing

basically You higher pressure tubing. than can handle that wells with with coiled

so these we've that helped with that us regard out wells. had And success in also great

these We'll everything clicking off just from really on good. some is there. wells. then vendor side, it's just cost savings really along I the days our we're just And get gains basically really, mean, So the drilling side, the shaving completion seeing

Operator

Our of Paul Diamond line next comes question Citi. from from the

Paul Diamond

quick, Slide some XX. on a of costs to on I D&C base touch Just want the

that get we your for forward? to completions? Or drilling about inverse that kind wanted we view of think to how an of that how How and should sticky much on as expect deflationary? idea sticky going Just be of [indiscernible] should much is much

Daniel Harrison

the on with I forward XX% get bit drilling a versus to It's we need this year, another see be deflation vendor going a everybody. going with completion Haynesville little savings maybe pricing coming mean the occurring. it's component [indiscernible] this to I to is the down. I be is side, of more the think -- going Western year. I more activity, the be year obviously from because the we're still drilling program say, seeing the less just our cost performance, so this year. days side predictable, side, the increased also process lower still going on to would for -- The to just into along going we're cost basically I big just still this are would think say last

Paul Diamond

just on And kind of Understood. that towards Western Haynesville. circle back the

of as trend? this operational like towards we the is and end towards improvement just far this drilling As -- Or view those improvements, days beginning? are guys of you the kind

Daniel Harrison

in wells them improvements, made those these we pretty today. at now, getting from right of of some still off days good even pipeline of got but the we a we've in Well, some and cut [indiscernible] we're definitely see the mean lot I a we're middle more where lot

wells try in of shaved of So I as couple things say first we've drilled, off days middle. see in XX the potential forward. that we I mean, maybe somewhere to going [indiscernible] as we since these middle, kind the and probably mean maybe far there probably still the off I'd say that's

Paul Diamond

it. Got

in XX another decline drilling potential the time? days So

Daniel Harrison

sir. Yes,

Operator

any This like to today's remarks. the does program the to question-and-answer session Allison conclude back I'd program. further Jay for hand of

Miles Allison

at We have been performance Hopefully, is in look area operations all, proactive wells operate. inventory we shown I'd of you think and everything and of to started corporately our promising. we've down denominator managers. proactive Those First arena underlying And your to make our protect I the our area to in stellar look rigs, X of all mean, and that sheet. you Haynesville. we've of Western They the questions. balance and crew release were very batten very the our that is hatch Haynesville, like frac I you us Western the stellar better the for very thank core almost to we footprint half on drilling

continue So to know you we're you Valentine's all that hand it's want to company to but do steady time, want we stressful again, with a a that today. to a we wish this Happy and assure we going manage

your thank you for time. So

Operator

program. conference. This for the Thank you, ladies participation in gentlemen, today's conclude and does your

Good disconnect. now day. may You

Comstock Resources (CRK) 14 Feb 242023 Q4 Earnings call transcript