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CST: 23/07/2019 20:05:06   

Comstock Resources, Inc. Reports Fourth Quarter 2018 Financial and Operating Results

152 Days ago

Frisco, TX, Feb. 21, 2019 (GLOBE NEWSWIRE) --

COMSTOCK RESOURCES, INC. REPORTS
FOURTH QUARTER 2018 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, February 21, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results.  As a result of the transactions that were completed on August 14, 2018 in which entities controlled by Dallas businessman Jerry Jones and his children contributed their Bakken Shale properties to the Company in exchange for approximately 88.6 million shares of Comstock common stock (the "Jones Contribution") and the Company refinanced its long-term debt, the Company is presenting its 2018 results as two separate periods.  References to "Successor" relate to the financial position and results of operations of the Company subsequent to August 13, 2018, and references to "Predecessor" relate to the financial position and results of operations of the Company on or prior to August 13, 2018.  The Company's consolidated financial results are being presented with a blackline division which delineates the lack of comparability between amounts presented before and after August 13, 2018.

Financial Results for the Three Months Ended December 31, 2018

In the first full quarter following the closing of the Jones Contribution, Comstock reported net income of $50.3 million or $0.48 per diluted share for the fourth quarter of 2018 as compared to a net loss of $42.3 million or $2.86 per share for the Predecessor fourth quarter of 2017.  The fourth quarter 2018 results included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $18.3 million.  Excluding the unrealized gain, the net income for the fourth quarter of 2018 would have been $36.6 million or $0.35 per share.

Comstock produced 30.9 billion cubic feet of natural gas and 843,000 barrels of oil or 36.0 billion cubic feet of natural gas equivalent ("Bcfe") in the fourth quarter of 2018.  The Company's natural gas production averaged 336 million cubic feet ("MMcf") per day, an increase of 39% over natural gas production in the Predecessor fourth quarter of 2017.  The growth in natural gas production was primarily attributable to the continuing successful results from Comstock's Haynesville shale drilling program.  Oil production in the fourth quarter of 2018, which averaged 9,155 barrels of oil per day, increased from the 2,319 barrels per day produced in the Predecessor fourth quarter of 2017 due to production from the Bakken Shale properties acquired in the Jones Contribution.  The fourth quarter 2018 oil production was revised from what was previously reported to account for oil production shut-in for completions and workovers.  Oil production during the month of December 2018 averaged 10,820 barrels of oil per day.

Comstock's average realized natural gas price, including hedging losses, increased 12% to $3.28 per Mcf in the fourth quarter of 2018 as compared to $2.94 per Mcf realized in the Predecessor fourth quarter of 2017.  The Company's average realized oil price, including hedging gains, decreased by 3% to $54.96 per barrel in the fourth quarter of 2018 as compared to $56.48 per barrel in the Predecessor fourth quarter of 2017.  Oil and gas sales were $147.7 million (including realized hedging gains and losses) in the fourth quarter of 2018 as compared to the Predecessor 2017 fourth quarter sales of $77.3 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $112.5 million in the fourth quarter of 2018 increased by 117% over EBITDAX of $56.0 million for the Predecessor fourth quarter of 2017.  The Company's operating cash flow generated in the fourth quarter of 2018 of $95.6 million increased 154% over operating cash flow of $37.6 million in the Predecessor fourth quarter of 2017. 

Financial Results for the Period August 14, 2018 through December 31, 2018

Financial results subsequent to the Jones Contribution are for the 140 day period from August 14, 2018 through December 31, 2018 (the "Successor Period").  Comstock reported net income of $64.1 million or $0.61 per diluted share for the Successor Period.  The results for this period included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $16.0 million.  Excluding the unrealized gain, the net income for the Successor period would have been $52.0 million or $0.49 per share.

Comstock produced 1.4 million barrels of oil and 45.0 billion cubic feet ("Bcf") of natural gas or 53.3 Bcfe in the Successor Period.  Oil production averaged 9,889 barrels of oil per day and natural gas production averaged 322 MMcf per day.  Comstock's average realized oil price after hedging was $57.80 per barrel and the average realized gas price after hedging was $3.07 per Mcf during the Successor Period.  Oil and gas sales for the Successor Period were $218.0 million (including realized hedging gains and losses), EBITDAX was $165.4 million and operating cash flow generated was $134.3 million.

Drilling Results

Comstock reported the results from its 2018 Haynesville/Bossier shale drilling program.  During 2018, Comstock spent $267.1 million on its development activities.  Comstock spent $224.4 million in the Haynesville and Bossier shale, including $197.2 million on drilling and completing wells and an additional $27.2 million on refrac and other development activity.  Comstock drilled 49 (17.0 net) horizontal Haynesville or Bossier shale wells in 2018, which had an average lateral length of approximately 8,300 feet.  Comstock also completed 16 (4.2 net) wells that were drilled in 2017.  Thirty (11.9 net) of the wells drilled in 2018 were also completed in 2018.  The Company currently expects the remaining 19 (5.1 net) wells drilled in 2018 will be completed in 2019.  Comstock also spent $42.7 million of development costs on its other properties primarily on completing 24 (7.0 net) Bakken shale wells. 
     
Since the last operational update, Comstock reported on an additional thirteen Haynesville shale wells, eight of which were operated by Comstock.  Comstock has a 30% working interest in the five non-operated wells.  The average initial production rate of these wells was 28 MMcf per day. The wells had completed lateral lengths ranging from 5,239 feet to 10,964 feet, with an average completed lateral length of 9,470 feet.  Each well was tested at initial production rates of 17 to 40 MMcf per day.  Comstock currently has five (3.5 net) operated Haynesville shale wells that are in the process of being completed.

2019 Drilling Budget

The Company also announced its current drilling plans for 2019.  Comstock's planned capital expenditures for 2019 are $364.0 million.  Haynesville/Bossier shale drilling and completion activities comprise $339.8 million of the activity in 2019 to drill 58 (36.4 net) horizontal wells including spending $25.0 million to complete 16 (5.7 net) wells drilled in 2018.  Comstock expects to spend an additional $24.2 million on its Bakken shale and Eagle Ford shale properties.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on February 21, 2019, to discuss the 2018 operational and financial results.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 844-776-7840 (international dial-in use 661-378-9538) and provide access code 5897118 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 1:00 p.m. CT February 21, 2019 and will continue until 1:00 p.m. February 28, 2019.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 5897118.

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 engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota.  The Company 's stock is traded on the New York Stock Exchange under the symbol CRK.

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

    Three Months Ended December 31,     Twelve Months Ended December 31,  
                    Successor     Predecessor     Predecessor  
                August 14
through
December 31,
2018
    January 1
through
August 13,
2018
    2017  
Successor Predecessor
2018 2017
    (In thousands, except per share amounts)  
Revenues:                                        
Natural gas sales...................................................................................................   $ 107,843     $ 61,200     $ 144,236     $ 147,897     $ 208,741  
Oil sales................................................................................................................     45,655       12,048       79,385       18,733       46,590  
Total oil and gas sales......................................................................     153,498       73,248       223,621       166,630       255,331  
                                         
Operating expenses:                                        
Production taxes...................................................................................................     7,104       1,643       11,155       3,659       5,373  
Gathering and transportation.................................................................................     7,061       5,110       10,511       11,841       17,538  
Lease operating.....................................................................................................     13,720       9,178       20,736       21,139       37,859  
Depreciation, depletion and amortization..............................................................     36,124       30,548       53,944       68,032       123,557  
General and administrative....................................................................................     8,096       7,003       11,399       15,699       26,137  
Impairment of oil and gas properties.....................................................................           43,990                   43,990  
Loss (gain) on sale of oil and gas properties.........................................................     (57 )           (155 )     35,438       1,060  
                                         
Total operating expenses.................................................................................     72,048       97,472       107,590       155,808       255,514  
                                         
Operating income (loss)............................................................................................     81,450       (24,224 )     116,031       10,822       (183 )
                                         
Other income (expenses):                                        
Gain from derivative financial instruments...........................................................     12,480       2,168       10,465       881       16,753  
Other income........................................................................................................     131       132       173       677       530  
Interest expense....................................................................................................     (28,758 )     (39,199 )     (43,603 )     (101,203 )     (146,449 )
Transaction costs..................................................................................................                       (2,866 )      
                                         
Total other income (expenses)........................................................................     (16,147 )     (36,899 )     (32,965 )     (102,511 )     (129,166 )
                                         
Income (loss) before income taxes...........................................................................     65,303       (61,123 )     83,066       (91,689 )     (129,349 )
Benefit from (provision for) income taxes................................................................     (15,004 )     18,827       (18,944 )     (1,065 )     17,944  
Net income (loss)......................................................................................................   $ 50,299     $ (42,296 )   $ 64,122     $ (92,754 )   $ (111,405 )
                                         
Net income (loss) per share – basic and diluted.........................................   $ 0.48     $ (2.86 )   $ 0.61     $ (6.08 )   $ (7.61 )
                                         
Weighted average shares outstanding:                                        
Basic.....................................................................................................................     105,457       14,808       105,453       15,262       14,644  
Diluted..................................................................................................................     105,457       14,808       105,459       15,262       14,644  


COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

    Three Months Ended December 31,     Twelve Months Ended December 31,  
                Successor     Predecessor     Predecessor  
                August 14
through
December  31,
2018
    January 1
through
August 13,
2018
   
2017
 
    Successor     Predecessor              

2018
2017
                                         
OPERATING CASH FLOW:                                        
                                         
Net income (loss)......................................................................................................   $ 50,299     $ (42,296 )   $ 64,122     $ (92,754 )   $ (111,405 )
Reconciling items:                                         
Deferred and non-current income taxes................................................................     25,196       (18,848 )     29,079       1,052       (18,080 )
Depreciation, depletion and amortization..............................................................     36,124       30,548       53,944       68,032       123,557  
Unrealized loss (gain) from derivative financial instruments.................................     (18,250 )     1,885       (16,044 )     1,961       (7,348 )
Amortization of debt discount, premium and
 issuance costs....................................................................................................
    1,582       10,966       2,404       29,457       35,880  
Interest paid in-kind..............................................................................................           9,879             25,004       38,073  
Stock-based compensation....................................................................................     665       1,468       994       3,912       5,923  
Impairment of oil and gas properties.....................................................................           43,990                   43,990  
Loss (gain) on sale of oil and gas properties.........................................................     (57 )           (155 )     35,438       1,060  
Operating cash flow..........................................................................................     95,559       37,592       134,344       72,102       111,650  
(Increase) decrease in accounts receivable..................................................     (16,164 )     (4,176 )     (61,048 )     2,834       (16,128 )
(Increase) decrease in other current assets..................................................     (11,201 )     (251 )     (12,527 )     337       (921 )
Increase in accounts payable and
accrued expenses......................................................................................
    30,499       50,686       41,533       10,462       80,013  
Net cash provided by operating activities..............................................   $ 98,693     $ 83,851     $ 102,302     $ 85,735     $ 174,614  
                                         
EBITDAX:                                        
                                         
Net income (loss)......................................................................................................   $ 50,299     $ (42,296 )   $ 64,122     $ (92,754 )   $ (111,405 )
Interest expense........................................................................................................     28,758       39,199       43,603       101,203       146,449  
Income taxes.............................................................................................................     15,004       (18,827 )     18,944       1,065       (17,944 )
Depreciation, depletion and amortization..................................................................     36,124       30,548       53,944       68,032       123,557  
Unrealized loss (gain) from derivative financial instruments.....................................     (18,250 )     1,885       (16,044 )     1,961       (7,348 )
Stock-based compensation........................................................................................     665       1,468       994       3,912       5,923  
Transaction costs......................................................................................................                       2,866        
Impairment of oil and gas properties.........................................................................           43,990                   43,990  
Loss (gain) on sale of oil and gas properties.............................................................     (57 )           (155 )     35,438       1,060  
Total EBITDAX....................................................................................   $ 112,543     $ 55,967     $ 165,408     $ 121,723     $ 184,282  


    Successor     Predecessor  
    As of
December 31, 2018
    As of
December 31, 2017
 
BALANCE SHEET DATA:                
                 
Cash and cash equivalents...........................................................................................................   $ 23,193     $ 61,255  
Derivative financial instruments..................................................................................................     15,401       1,318  
Other current assets.....................................................................................................................     120,833       239,932  
Property and equipment, net........................................................................................................     1,667,979       607,929  
Other...........................................................................................................................................     360,434       19,985  
Total assets...........................................................................................................................   $ 2,187,840     $ 930,419  
                 
Current liabilities.........................................................................................................................   $ 206,853     $ 168,489  
Long-term debt............................................................................................................................     1,244,363       1,110,529  
Deferred income taxes.................................................................................................................     161,917       10,266  
Asset retirement obligation..........................................................................................................     5,136       10,407  
Stockholders' equity (deficit).......................................................................................................     569,571       (369,272 )
Total liabilities and stockholders' equity (deficit).................................................................   $ 2,187,840     $ 930,419  



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

    Successor
    For the Three Months Ended December 31, 2018
    Haynesville / Cotton Valley     Bakken     Other     Total  
Gas production (MMcf)............................................................................     28,261       2,583       89       30,933  
Oil production (Mbbls).........................................................................     9       828       6       843  
Total production (MMcfe)........................................................................     28,316       7,550       121       35,987  
                                 
Natural gas sales.................................................................................   $ 100,125     $ 7,447     $ 271     $ 107,843  
Natural gas hedging settlements(1)....................................................................                       (6,402 )
Total natural gas including hedging..................................................................     100,125       7,447       271       101,441  
Oil sales.................................................................................     524       44,810       321       45,655  
Oil hedging settlements(1)....................................................................                       632  
Total oil including hedging..................................................................     524       44,810       321       46,287  
Total oil and gas sales including hedging..................................................................   $ 100,649     $ 52,257     $ 592     $ 147,728  
                                 
Average gas price (per Mcf)...............................................................................   $ 3.54     $ 2.88     $ 3.06     $ 3.49  
Average gas price including hedging
(per Mcf)...............................................................................
  $ 3.54     $ 2.88     $ 3.06     $ 3.28  
Average oil price (per barrel)............................................................................   $ 56.77     $ 54.13     $ 61.90     $ 54.21  
Average oil price including hedging
(per barrel)............................................................................
                          $ 54.96  
Average price (per Mcfe).............................................................................   $ 3.55     $ 6.92     $ 4.89     $ 4.27  
Average price including hedging
(per Mcfe).............................................................................
                          $ 4.11  
                                 
Production taxes.................................................................................   $ 2,062     $ 5,001     $ 41     $ 7,104  
Gathering and transportation.................................................................   $ 7,008     $     $ 53     $ 7,061  
Lease operating..........................................................................   $ 7,629     $ 5,820     $ 272     $ 13,721  
                                 
Production taxes (per Mcfe).............................................................................   $ 0.07     $ 0.66     $ 0.34     $ 0.20  
Gathering and transportation (per Mcfe)............................................................................   $ 0.25     $     $ 0.44     $ 0.20  
Lease operating (per Mcfe).............................................................................   $ 0.27     $ 0.77     $ 2.24     $ 0.37  
                                 
Oil and Gas Capital Expenditures:                                
Acquisitions.................................................................   $ 3,108     $     $     $ 3,108  
Development leasehold....................................................................     1,240                   1,240  
Development drilling and completion.................................................................     72,962       26,764             99,726  
Other development.................................................................     5,802                   5,802  
Total...........................................................................   $ 83,112     $ 26,764     $     $ 109,876  

                                               

(1)    Included in gain from derivative financial instruments in operating results.
      


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

    Predecessor  
    For the Three Months Ended December 31, 2017  
    Haynesville / Cotton Valley     South Texas     Other     Total  
Gas production (MMcf)...................................     21,750       301       163       22,214  
Oil production (Mbbls)....................................     14       194       6       214  
Total production (MMcfe)................................     21,834       1,464       196       23,494  
                                 
Natural gas sales...............................................   $ 59,317     $ 1,424     $ 459     $ 61,200  
Natural gas hedging settlements(1)....................                       4,053  
Total natural gas including hedging............     59,317       1,424       459       65,253  
Oil sales............................................................     737       11,008       303       12,048  
Total oil and gas sales including
hedging..................................................
  $ 60,054     $ 12,432     $ 762     $ 77,301  
                                 
                                 
Average gas price (per Mcf)............................   $ 2.73     $ 4.73     $ 2.82     $ 2.76  
Average gas price including hedging
(per Mcf)........................................................
                          $ 2.94  
Average oil price (per barrel)...........................   $ 52.47     $ 56.80     $ 55.74     $ 56.48  
Average price (per Mcfe).................................   $ 2.75     $ 8.49     $ 3.89     $ 3.12  
Average price including hedging
(per Mcfe)......................................................
                          $ 3.29  
                                 
Production taxes...............................................   $ 1,013     $ 584     $ 46     $ 1,643  
Gathering and transportation............................   $ 4,692     $ 369     $ 49     $ 5,110  
Lease operating.................................................   $ 5,484     $ 3,367     $ 327     $ 9,178  
                                 
Production taxes (per Mcfe).............................   $ 0.05     $ 0.40     $ 0.23     $ 0.07  
Gathering and transportation (per Mcfe)..........   $ 0.21     $ 0.25     $ 0.25     $ 0.22  
Lease operating (per Mcfe)...............................   $ 0.25     $ 2.30     $ 1.67     $ 0.39  
                                 
Oil and Gas Capital Expenditures:                                
Development leasehold................................   $ 2,751     $     $     $ 2,751  
Development drilling and completion...........     42,899       12             42,911  
Other development.......................................     2,805       514       23       3,342  
Total...........................................................   $ 48,455     $ 526   $ 23     $ 49,004  

                                               

(1)    Included in gain from derivative financial instruments in operating results.
      


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

    Successor  
    For the Period August 14, 2018 through December 31, 2018  
    Haynesville / Cotton Valley     Bakken     Other     Total  
Gas production (MMcf)............................................................................     41,035       3,855       141       45,031  
Oil production (Mbbls).........................................................................     14       1,364       7       1,385  
Total production (MMcfe)........................................................................     41,119       12,037       182       53,338  
                                 
Natural gas sales.................................................................................   $ 134,890     $ 8,913     $ 433     $ 144,236  
Natural gas hedging settlements(1)....................................................................                         (6,211 )
Total natural gas including hedging..................................................................     134,890       8,913       433       138,025  
Oil sales.................................................................................     844       78,050       491       79,385  
Oil hedging settlements(1)....................................................................                       632  
Total oil including hedging..................................................................     844       78,050       491       80,017  
Total oil and gas sales including hedging..................................................................   $ 135,734     $ 86,963     $ 924     $ 218,042  
                                 
Average gas price (per Mcf)...............................................................................   $ 3.29     $ 2.31     $ 3.06     $ 3.20  
Average gas price including hedging
(per Mcf)...............................................................................
                          $ 3.07  
Average oil price (per barrel)............................................................................   $ 59.52     $ 57.24     $ 74.72     $ 57.34  
Average oil price including hedging
(per barrel)............................................................................
                          $ 57.80  
Average price (per Mcfe).............................................................................   $ 3.30     $ 7.22     $ 5.09     $ 4.19  
Average price including hedging
(per Mcfe).............................................................................
                          $ 4.09  
                                 
Production taxes.................................................................................   $ 2,874     $ 8,215     $ 66     $ 11,155  
Gathering and transportation.................................................................   $ 10,428     $     $ 83     $ 10,511  
Lease operating..........................................................................   $ 11,244     $ 9,070     $ 422     $ 20,736  
                                 
Production taxes (per Mcfe).............................................................................   $ 0.07     $ 0.68     $ 0.36     $ 0.21  
Gathering and transportation (per Mcfe)............................................................................   $ 0.25     $     $ 0.46     $ 0.20  
Lease operating (per Mcfe).............................................................................   $ 0.28     $ 0.76     $ 2.33     $ 0.38  
                                 
Oil and Gas Capital Expenditures:                                
Acquisitions.................................................................   $ 21,013     $     $     $ 21,013  
Development leasehold....................................................................     1,715                   1,715  
Development drilling and completion.................................................................     106,366       42,379             148,745  
Other development.................................................................     13,612                   13,612  
Total...........................................................................   $ 142,706     $ 42,379   $     $ 185,085  

                                               

(1)    Included in gain from derivative financial instruments in operating results.


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

    Predecessor  
    For the Period January 1, 2018 through August 13, 2018  
    Haynesville / Cotton Valley     South Texas     Other     Total  
Gas production (MMcf)...................................     54,386       379       475       55,240  
Oil production (Mbbls)....................................     27       247       13       287  
Total production (MMcfe)................................     54,549       1,860       554       56,963  
                                 
Natural gas sales...............................................   $ 144,918     $ 1,590     $ 1,389     $ 147,897  
Natural gas hedging settlements(1)....................                       2,842  
Total natural gas including hedging............     144,918       1,590       1,389       150,739  
Oil sales............................................................     1,760       16,157       816       18,733  
Total oil and gas sales including
hedging..................................................
  $ 146,678     $ 17,747     $ 2,205     $ 169,472  
                                 
                                 
Average gas price (per Mcf)............................   $ 2.66     $ 4.20     $ 2.92     $ 2.68  
Average gas price including hedging
(per Mcf)........................................................
                          $ 2.73  
Average oil price (per barrel)...........................   $ 64.71     $ 65.46     $ 62.00     $ 65.23  
Average price (per Mcfe).................................   $ 2.69     $ 9.54     $ 3.98     $ 2.93  
Average price including hedging
(per Mcfe)......................................................
                          $ 2.98  
                                 
Production taxes...............................................   $ 2,680     $ 831     $ 148     $ 3,659  
Gathering and transportation............................   $ 11,211     $ 463     $ 167     $ 11,841  
Lease operating.................................................   $ 15,610     $ 4,829     $ 700     $ 21,139  
                                 
Production taxes (per Mcfe).............................   $ 0.05     $ 0.45     $ 0.27     $ 0.06  
Gathering and transportation (per Mcfe)..........   $ 0.21     $ 0.25     $ 0.30     $ 0.21  
Lease operating (per Mcfe)...............................   $ 0.28     $ 2.59     $ 1.26     $ 0.37  
                                 
Oil and Gas Capital Expenditures:                                
Acquisitions.................................................   $ 39,323     $     $     $ 39,323  
Development leasehold................................     2,848                   2,848  
Development drilling and completion...........     90,840                   90,840  
Other development.......................................     13,205       393       273       13,871  
Total...........................................................   $ 146,216     $ 393   $ 273     $ 146,882  

                                               

(1)    Included in gain from derivative financial instruments in operating results.


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

    Predecessor  
    For the Year Ended December 31, 2017  
    Haynesville / Cotton Valley     South Texas     Other     Total  
Gas production (MMcf)..............................     71,550       1,372       599       73,521  
Oil production (Mbbls)...............................     53       876       22       951  
Total production (MMcfe)..........................     71,868       6,626       730       79,224  
                                 
Natural gas sales.........................................   $ 201,534     $ 5,574     $ 1,633     $ 208,741  
Natural gas hedging settlements(1)...............                       9,405  
Total natural gas including hedging......     201,534       5,574       1,633       218,146  
Oil sales......................................................     2,557       42,961       1,072       46,590  
Total oil and gas sales including
hedging.............................................
  $ 204,091     $ 48,535     $ 2,705     $ 264,736  
                                 
                                 
Average gas price (per Mcf).......................   $ 2.82     $ 4.06     $ 2.73     $ 2.84  
Average gas price including hedging
(per Mcf)..................................................
                          $ 2.97  
Average oil price (per barrel)......................   $ 48.21     $ 49.06     $ 49.10     $ 49.02  
Average price (per Mcfe)............................   $ 2.84     $ 7.32     $ 3.71     $ 3.22  
Average price including hedging
(per Mcfe).................................................
                          $ 3.34  
                                 
Production taxes..........................................   $ 2,941     $ 2,248     $ 184     $ 5,373  
Gathering and transportation.......................   $ 15,654     $ 1,648     $ 236     $ 17,538  
Lease operating...........................................   $ 22,232     $ 14,323     $ 1,304     $ 37,859  
                                 
Production taxes (per Mcfe).......................   $ 0.04     $ 0.34     $ 0.25     $ 0.07  
Gathering and transportation (per Mcfe).....   $ 0.22     $ 0.25     $ 0.32     $ 0.22  
Lease operating (per Mcfe).........................   $ 0.31     $ 2.16     $ 1.79     $ 0.48  
                                 
Oil and Gas Capital Expenditures:                                
Development leasehold...........................   $ 4,177     $ 521     $     $ 4,698  
Development drilling and completion.....     163,755       717             164,472  
Other development..................................     7,187       1,999       458       9,644  
Total......................................................   $ 175,119     $ 3,237   $ 458     $ 178,814  

                                               

(1)    Included in gain from derivative financial instruments in operating results.

Comstock Resources
Gary H. Guyton
Director of Planning and Investor Relations
972-668-8834

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