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CST: 10/12/2019 20:49:29   

Comstock Resources, Inc. Reports Second Quarter 2019 Financials and Operating Results

125 Days ago

Frisco, TX, Aug. 07, 2019 (GLOBE NEWSWIRE) -- COMSTOCK RESOURCES, INC. REPORTS
SECOND QUARTER 2019 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, August 7, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the second quarter of 2019.  On August 14, 2018, the Company completed transactions in which entities controlled by Dallas businessman Jerry Jones contributed Bakken Shale properties to the Company in exchange for a controlling interest in the Company (the "Jones Contribution") and the Company refinanced its long-term debt.  Results for the three months and six months ended June 30, 2019 reflect the Jones Contribution, while results for the three months and six months ended June 30, 2018 (the "Predecessor") reflect the historical results of Comstock for that period.  The Company's consolidated financial results are being presented with a blackline division which delineates the lack of comparability between amounts presented for these periods.

Financial Results for the Three Months Ended June 30, 2019

For the second quarter of 2019, Comstock reported net income of $21.4 million or $0.20 per diluted share as compared to a net loss of $34.0 million or $2.22 per share for the Predecessor second quarter of 2018.  The second quarter 2019 results included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $12.8 million and Covey Park merger related transaction costs of $1.4 million.  Excluding these items, the net income for the second quarter of 2019 would have been $12.7 million or $0.12 per diluted share. 

Comstock produced 40.9 billion cubic feet ("Bcf") of natural gas and 695,000 barrels of oil or 45.1 billion cubic feet of natural gas equivalent ("Bcfe") in the second quarter of 2019.  The Company's natural gas production averaged 450 million cubic feet ("MMcf") per day, an increase of 88% over natural gas production in the Predecessor second quarter of 2018 and 22% higher than the first quarter of 2019.  The growth in natural gas production was primarily attributable to Comstock's Haynesville shale drilling program.  Oil production in the second quarter of 2019, which averaged 7,628 barrels of oil per day, increased from the 990 barrels per day produced in the Predecessor second quarter of 2018 due to production from the Bakken Shale properties.  Oil production in the second quarter of 2018 was primarily attributable to the Company's Eagle Ford shale properties which were sold on April 30, 2018.

Comstock's average realized natural gas price, including hedging gains, decreased 13% to $2.29 per Mcf in the second quarter of 2019 as compared to $2.64 per Mcf realized in the Predecessor second quarter of 2018.  The Company's average realized oil price, including hedging gains, decreased by 9% to $52.12 per barrel in the second quarter of 2019 as compared to $57.56 per barrel in the Predecessor second quarter of 2018.  Oil and gas sales were $130.1 million (including realized hedging gains and losses) in the second quarter of 2019 as compared to the Predecessor 2018 second quarter sales of $62.6 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $93.2 million in the second quarter of 2019 increased by 110% over EBITDAX of $44.3 million for the Predecessor second quarter of 2018.  The Company's operating cash flow generated in the second quarter of 2019 (before working capital changes and the merger related costs) of $66.3 million increased 151% over operating cash flow of $26.4 million in the Predecessor second quarter of 2018. 

Financial Results for the Six Months Ended June 30, 2019

For the first six months of 2019, Comstock reported net income of $35.0 million or $0.33 per diluted share as compared to a net loss of $75.9 million or $4.99 per share for the Predecessor first six months of 2018.  The first six months of 2019 results included an unrealized loss from derivative financial instruments held to manage oil and gas price risks of $0.2 million and the merger related transaction costs of $1.4 million.  Excluding these items, the net income for the first six months of 2019 would have been $36.3 million or $0.34 per share.

Comstock produced 74.1 billion cubic feet of natural gas and 1.5 million barrels of oil or 83.1 Bcfe in the first six months of 2019.  The Company's natural gas production averaged 409 MMcf per day, an increase of 71% over natural gas production in the Predecessor first six months of 2018.  Oil production in the first six months of 2019, which averaged 8,313 barrels of oil per day, increased from the 1,547 barrels per day produced in the Predecessor first six months of 2018 due to production from the contributed Bakken Shale properties. 

Comstock's average realized natural gas price, including hedging gains, decreased 7% to $2.55 per Mcf in the first six months of 2019 as compared to $2.73 per Mcf realized in the Predecessor first six months of 2018.  The Company's average realized oil price, including hedging gains, decreased by 25% to $48.71 per barrel in the first six months of 2019 as compared to $65.12 per barrel in the Predecessor first six months of 2018.  Oil and gas sales were $262.3 million (including realized hedging gains and losses) in the first six months of 2019 as compared to the Predecessor first six months of 2018 sales of $136.6 million.  EBITDAX of $190.2 million in the first six months of 2019 increased by 94% over EBITDAX of $98.0 million for the Predecessor first six months of 2018.  The Company's operating cash flow generated in the first six months of 2019 (before working capital changes and the merger related costs) of $137.0 million increased 120% over operating cash flow of $62.2 million in the Predecessor first six months of 2018.

Drilling Results

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program which is driving the strong production growth in 2019.  During the first six months of 2019, Comstock spent $181.9 million on its development activities.  Comstock spent $155.9 million on drilling and completing Haynesville shale wells.  Comstock drilled 21 (14.2 net) horizontal Haynesville/Bossier shale wells during the first six months of 2019, which had an average lateral length of approximately 8,016 feet.  Comstock also completed 19 (5.2 net) wells that were drilled in 2018.  Twelve (9.4 net) of the wells drilled in the first six months of 2019 were also completed.  Comstock also spent $15.9 million drilling four (2.2 net) Eagle Ford shale oil wells and an additional $10.1 million primarily on leasehold and other development activity. 

Since the last operational update, Comstock reported on ten new Haynesville shale wells.  The average initial production rate of these wells was 24 MMcf per day. The wells had completed lateral lengths ranging from 4,426 feet to 11,319 feet, with an average completed lateral length of 6,970 feet.  Each well was tested at initial production rates of 22 to 28 MMcf per day. The four Eagle Ford shale wells in South Texas drilled in 2019 have been completed and had an average initial production rate of 1,034 barrels of oil equivalent (85% oil) per well.

Covey Park 2019 Results

On July 16, 2019 Comstock completed the previously announced acquisition of Covey Park Energy, LLC ("Covey Park") pursuant to a merger in which the Company was the surviving entity.  The Company's financial results will include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 2019.

For the three months ended June 30, 2019, Covey Park produced 67.6 Bcf of natural gas and 11,000 barrels of oil or 68 Bcfe.  Covey Park's average realized sales price (including hedging gains) was $2.68 per Mcf for natural gas and $59.94 per barrel for oil.  Total oil and gas sales for the second quarter of 2019 (including hedging gains) were $182.1 million. 

For the six months ended June 30, 2019, Covey Park produced 131.0 Bcf of natural gas and 20,000 barrels of oil or 131 Bcfe.  The average realized sales price (including hedging gains) was $2.74 per Mcf for natural gas and $58.25 per barrel for oil.  Total oil and gas sales for the six months ended June 30, 2019 (including realized hedging gains) were $359.7 million. 

During the first six months of 2019, Covey Park drilled 17 Haynesville shale wells (15.5 net) and completed 19 wells (17.7 net).  The average per well initial production rate of these wells was 20 MMcf per day. The wells had completed lateral lengths ranging from 4,200 feet to 9,492 feet, with an average completed lateral length of 7,403 feet.  Each well was tested at initial production rates of 12 to 30 MMcf per day. 

With completion of the Covey Park acquisition, Comstock's 2019 annual drilling and completion budget will be $538 million which includes drilling activity on Covey Park properties subsequent to the closing of the merger.  Activity planned for 2019 includes completing 19 (5.2 net) wells drilled by Comstock in 2018 and drilling 78 (57.4 net) Haynesville/Bossier shale wells in 2019.  Comstock is also spending $21.2 million in 2019 on its Eagle Ford shale and Bakken shale oil properties.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on August 7, 2019, to discuss the second quarter of 2019 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 6057864 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 August 7, 2019 and will continue until 1:00 p.m. August 14, 2019.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 6057864.


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 June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
            (Predecessor)             (Predecessor)  
Revenues:                                
Natural gas sales.....................................................................................   $ 91,951     $ 56,265     $ 182,083     $ 115,808  
Oil sales....................................................................................................     36,165       5,184       72,914       18,234  
Total oil and gas sales.................................................................     128,116       61,449       254,997       134,042  
                                 
Operating expenses:                                
Production taxes.....................................................................................     5,827       1,112       11,766       2,952  
Gathering and transportation...............................................................     10,502       4,398       17,932       8,732  
Lease operating......................................................................................     14,452       7,948       29,337       17,721  
Depreciation, depletion and amortization.........................................     46,847       26,798       84,437       53,950  
General and administrative..................................................................     6,841       6,639       14,655       12,655  
Loss on sale of oil and gas properties.................................................     26       6,838       25       35,438  
                                 
Total operating expenses................................................................     84,495       53,733       158,152       131,448  
                                 
Operating income.......................................................................................     43,621       7,716       96,845       2,594  
                                 
Other income (expenses):                                
Gain (loss) from derivative financial instruments............................     14,744       (1,638 )     7,087       964  
Other income...........................................................................................     155       327       248       393  
Interest expense......................................................................................     (28,568 )     (40,213 )     (56,419 )     (79,063 )
Transaction costs...................................................................................     (1,443 )     (317 )     (1,443 )     (317 )
                                 
Total other income (expenses).......................................................     (15,112 )     (41,841 )     (50,527 )     (78,023 )
                                 
Income (loss) before income taxes.........................................................     28,509       (34,125 )     46,318       (75,429 )
Benefit from (provision for) income taxes............................................     (7,102 )     122       (11,336 )     (460 )
Net income (loss)........................................................................................   $ 21,407     $ (34,003 )   $ 34,982     $ (75,889 )
                                 
Net income (loss) per share –
basic and diluted................................................................................
  $ 0.20     $ (2.22 )   $ 0.33     $ (4.99 )
                                 
Weighted average shares outstanding –
basic and diluted....................................................................................
    105,457       15,340       105,457       15,212  


COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

    Three Months Ended June 30,     Six Months Ended June 30,  
    2019     2018     2019     2018  
            (Predecessor)             (Predecessor)  
OPERATING CASH FLOW:                                
                                 
Net income (loss).....................................................................................................   $ 21,407     $ (34,003 )   $ 34,982     $ (75,889 )
Reconciling items:                                 
Deferred income taxes..........................................................................................     7,078       (146 )     11,430       426  
Depreciation, depletion and amortization..............................................................     46,847       26,798       84,437       53,950  
Unrealized (gain) loss from derivative financial instruments................................     (12,797 )     2,746       248       1,548  
Amortization of debt discount and
issuance costs.....................................................................................................
    1,623       12,211       3,197       23,267  
Interest paid in-kind..............................................................................................           10,169             20,014  
Stock-based compensation...................................................................................     623       1,508       1,271       3,109  
Transaction costs..................................................................................................     1,443       317       1,443       317  
Loss on sale of oil and gas properties...................................................................     26       6,838       25       35,438  
Operating cash flow.........................................................................................     66,250       26,438       137,033       62,180  
Transaction costs........................................................................................     (1,443 )     (317 )     (1,443 )     (317 )
Decrease (increase) in accounts receivable.................................................     9,951       (2,172 )     20,734       (717 )
Decrease in other current assets..................................................................     15       169       1,592       641  
Increase in accounts payable and
accrued expenses......................................................................................
    23,538       41,324       15,110       25,211  
Net cash provided by operating activities.............................................   $ 98,311     $ 65,442     $ 173,026     $ 86,998  
                                 
EBITDAX:                                
                                 
Net income (loss).....................................................................................................   $ 21,407     $ (34,003 )   $ 34,982     $ (75,889 )
Interest expense........................................................................................................     28,568       40,213       56,419       79,063  
Income taxes.............................................................................................................     7,102       (122 )     11,336       460  
Depreciation, depletion and amortization..................................................................     46,847       26,798       84,437       53,950  
Unrealized (gain) loss from derivative financial instruments....................................     (12,797 )     2,746       248       1,548  
Transaction costs......................................................................................................     1,443       317       1,443       317  
Stock-based compensation.......................................................................................     623       1,508       1,271       3,109  
Loss on sale of oil and gas properties.......................................................................     26       6,838       25       35,438  
Total Adjusted EBITDAX...................................................................   $ 93,219     $ 44,295     $ 190,161     $ 97,996  


    As of
June 30,

2019
    As of
December 31,

2018
                 
                                 
BALANCE SHEET DATA:                                
                                 
Cash and cash equivalents..........................................................................................................   $ 46,747     $ 23,193                  
Derivative financial instruments..................................................................................................     14,284       15,401                  
Other current assets....................................................................................................................     90,410       120,833                  
Property and equipment, net.......................................................................................................     1,765,445       1,667,979                  
Other..........................................................................................................................................     366,010       360,434                  
Total assets..........................................................................................................................   $ 2,282,896     $ 2,187,840                  
                                 
Current liabilities........................................................................................................................   $ 228,625     $ 206,853                  
Long-term debt...........................................................................................................................     1,267,390       1,244,363                  
Deferred income taxes................................................................................................................     173,253       161,917                  
Other non-current liabilities........................................................................................................     2,348                        
Asset retirement obligation.........................................................................................................     5,456       5,136                  
Stockholders' equity...................................................................................................................     605,824       569,571                  
Total liabilities and stockholders' equity..............................................................................   $ 2,282,896     $ 2,187,840                  


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

                 
    For the Three Months Ended June 30, 2019  
    Haynesville/ Bossier     Cotton
Valley
  Bakken     Eagle Ford     Other   Total  
Gas production (MMcf)............................................................................     37,847       924     2,045             112     40,928  
Oil production (Mbbls).........................................................................     1       11     680             3     695  
Total production (MMcfe)........................................................................     37,850       986     6,122             135     45,093  
                                             
Natural gas sales.................................................................................   $ 87,261     $ 2,102   $ 2,357     $     $ 231   $ 91,951  
Natural gas hedging settlements(1)....................................................................                               1,932  
Total natural gas including hedging..................................................................     87,261       2,102     2,357             231     93,883  
Oil sales.................................................................................     21       614     35,350             180     36,165  
Oil hedging settlements(1)....................................................................                               15  
Total oil including hedging..................................................................     21       614     35,350             180     36,180  
Total oil and gas sales including hedging..................................................................   $ 87,282     $ 2,716   $ 37,707     $     $ 411   $ 130,063  
                                             
Average gas price (per Mcf)...............................................................................   $ 2.31     $ 2.28   $ 1.15     $     $ 2.05   $ 2.25  
Average gas price including hedging (per Mcf)...............................................................................                                       $ 2.29  
Average oil price (per barrel)............................................................................   $ 48.01     $ 58.87   $ 52.02     $     $ 47.24   $ 52.10  
Average oil price including hedging (per barrel)............................................................................                                       $ 52.12  
Average price (per Mcfe).............................................................................   $ 2.31     $ 2.75   $ 6.16     $     $ 3.03   $ 2.84  
Average price including hedging (per Mcfe).............................................................................                                       $ 2.88  
                                             
Production taxes.................................................................................   $ 1,779     $ 112   $ 3,899     $     $ 37   $ 5,827  
Gathering and transportation.................................................................   $ 10,319     $ 94   $     $     $ 89   $ 10,502  
Lease operating..........................................................................   $ 4,697     $ 3,371   $ 6,206     $     $ 178   $ 14,452  
                                             
Production taxes (per Mcfe).............................................................................   $ 0.05     $ 0.11   $ 0.64     $     $ 0.28   $ 0.13  
Gathering and transportation (per Mcfe)............................................................................   $ 0.27     $ 0.10   $     $     $ 0.66   $ 0.23  
Lease operating (per Mcfe).............................................................................   $ 0.12     $ 3.42   $ 1.01     $     $ 1.31   $ 0.32  
                                             
Oil and Gas Capital Expenditures:                                            
Development leasehold....................................................................   $ 2,449     $   $     $     $   $ 2,449  
Development drilling and completion.................................................................     73,217           2,092       10,276           85,585  
Other development.................................................................     1,437                           1,437  
Total...........................................................................   $ 77,103     $   $ 2,092     $ 10,276     $   $ 89,471  

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


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

      For the Three Months ended June 30, 2018 (Predecessor)  
    Haynesville/ Bossier     Cotton
Valley
    Eagle Ford     Other     Total  
Gas production (MMcf)............................................................................     20,682       838       97       101       21,718  
Oil production (Mbbls).........................................................................           11       74       5       90  
Total production (MMcfe)........................................................................     20,682       904       537       135       22,258  
                                         
Natural gas sales.................................................................................   $ 53,294     $ 2,313     $ 399     $ 259     $ 56,265  
Natural gas hedging settlements(1)....................................................................                             1,108  
Total natural gas including hedging..................................................................     53,294       2,313       399       259       57,373  
Oil sales.................................................................................           728       4,136       320       5,184  
Total oil and gas sales including hedging..................................................................   $ 53,294     $ 3,041     $ 4,535     $ 579     $ 62,557  
                                         
Average gas price (per Mcf)...............................................................................   $ 2.58     $ 2.76     $ 4.11     $ 2.61     $ 2.59  
Average gas price including hedging (per Mcf)...............................................................................                                   $ 2.64  
Average oil price (per barrel)............................................................................   $     $ 66.39     $ 56.38     $ 55.73     $ 57.56  
Average price (per Mcfe).............................................................................   $ 2.58     $ 3.36     $ 8.44     $ 4.33     $ 2.76  
Average price including hedging (per Mcfe).............................................................................                                   $ 2.81  
                                         
Production taxes.................................................................................   $ 833     $ 35     $ 201     $ 43     $ 1,112  
Gathering and transportation.................................................................   $ 4,037     $ 177     $ 119     $ 65     $ 4,398  
Lease operating..........................................................................   $ 3,081     $ 3,191     $ 1,412     $ 264     $ 7,948  
                                         
Production taxes (per Mcfe).............................................................................   $ 0.04     $ 0.04     $ 0.37     $ 0.32     $ 0.05  
Gathering and transportation (per Mcfe)............................................................................   $ 0.20     $ 0.20     $ 0.22     $ 0.48     $ 0.20  
Lease operating (per Mcfe).............................................................................   $ 0.14     $ 3.52     $ 2.64     $ 1.96     $ 0.35  
                                         
Oil and Gas Capital Expenditures:                                        
Development leasehold....................................................................   $ 1,191     $     $     $     $ 1,191  
Development drilling and completion.................................................................     38,090                         38,090  
Other development.................................................................     3,920             153       20       4,093  
Total...........................................................................   $ 43,201     $     $ 153     $ 20     $ 43,374  

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


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

                 
    For the Six Months Ended June 30, 2019  
    Haynesville/ Bossier     Cotton
Valley
  Bakken     Eagle Ford     Other   Total  
Gas production (MMcf)............................................................................     69,211       1,827     2,813             226     74,077  
Oil production (Mbbls).........................................................................     1       18     1,479             7     1,505  
Total production (MMcfe)........................................................................     69,214       1,933     11,684             274     83,105  
                                             
Natural gas sales.................................................................................   $ 172,999     $ 4,673     3,857     $     $ 554   $ 182,083  
Natural gas hedging settlements(1)....................................................................                               6,965  
Total natural gas including hedging..................................................................     172,999       4,673     3,857             554     189,048  
Oil sales.................................................................................     25       977     71,497             415     72,914  
Oil hedging settlements(1)....................................................................                               370  
Total oil including hedging..................................................................     25       977     71,497             415     73,284  
Total oil and gas sales including hedging..................................................................   $ 173,024     $ 5,650   $ 75,354     $     $ 969   $ 262,332  
                                             
Average gas price (per Mcf)...............................................................................   $ 2.50     $ 2.56   $ 1.37     $     $ 2.44   $ 2.46  
Average gas price including hedging (per Mcf)...............................................................................                                       $ 2.55  
Average oil price (per barrel)............................................................................   $ 48.21     $ 54.99   $ 48.36     $     $ 52.95   $ 48.46  
Average oil price including hedging (per barrel)............................................................................                                       $ 48.71  
Average price (per Mcfe).............................................................................   $ 2.50     $ 2.92   $ 6.45     $     $ 3.54   $ 3.07  
Average price including hedging (per Mcfe).............................................................................                                       $ 3.16  
                                             
Production taxes.................................................................................   $ 3,511     $ 207   $ 7,972     $     $ 76   $ 11,766  
Gathering and transportation.................................................................   $ 17,592     $ 157   $     $     $ 183   $ 17,932  
Lease operating..........................................................................   $ 9,630     $ 6,606   $ 12,725     $     $ 376   $ 29,337  
                                             
Production taxes (per Mcfe).............................................................................   $ 0.05     $ 0.11   $ 0.68     $     $ 0.28   $ 0.14  
Gathering and transportation (per Mcfe)............................................................................   $ 0.25     $ 0.08   $     $     $ 0.67   $ 0.22  
Lease operating (per Mcfe).............................................................................   $ 0.14     $ 3.42   $ 1.09     $     $ 1.37   $ 0.35  
                                             
Oil and Gas Capital Expenditures:                                            
Development leasehold....................................................................   $ 4,306     $   $     $     $   $ 4,306  
Development drilling and completion.................................................................     155,855           1,139       15,924           172,918  
Other development.................................................................     4,716                           4,716  
Total...........................................................................   $ 164,877     $   $ 1,139     $ 15,924     $   $ 181,940  

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


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

    For the Six Months ended June 30, 2018 (Predecessor)  
    Haynesville/ Bossier     Cotton
Valley
    Eagle Ford     Other   Total  
Gas production (MMcf)................................................................................     40,679       1,900       379       406     43,364  
Oil production (Mbbls).............................................................................           22       247       11     280  
Total production (MMcfe)............................................................................     40,679       2,030       1,860       475     45,044  
                                       
Natural gas sales.....................................................................................   $ 107,858     $ 5,226     $ 1,590     $ 1,134   $ 115,808  
Natural gas hedging settlements(1)........................................................................                           2,512  
Total natural gas including hedging......................................................................     107,858       5,226       1,590       1,134     118,320  
Oil sales.....................................................................................           1,374       16,157       703     18,234  
Total oil and gas sales including hedging......................................................................   $ 107,858     $ 6,600     $ 17,747     $ 1,837   $ 136,554  
                                       
Average gas price (per Mcf)...................................................................................   $ 2.65     $ 2.75     $ 4.19     $ 2.80   $ 2.67  
Average gas price including hedging (per Mcf)...................................................................................                                 $ 2.73  
Average oil price (per barrel)................................................................................   $     $ 63.63     $ 65.46     $ 60.72   $ 65.12  
Average price (per Mcfe).................................................................................   $ 2.65     $ 3.25     $ 9.54     $ 3.87   $ 2.98  
Average price including hedging (per Mcfe).................................................................................                                 $ 3.03  
                                       
Production taxes.....................................................................................   $ 1,901     $ 95     $ 831     $ 125   $ 2,952  
Gathering and transportation.....................................................................   $ 7,743     $ 386     $ 463     $ 140   $ 8,732  
Lease operating..............................................................................   $ 5,976     $ 6,389     $ 4,829     $ 527   $ 17,721  
                                       
Production taxes (per Mcfe).................................................................................   $ 0.05     $ 0.05     $ 0.45     $ 0.26   $ 0.07  
Gathering and transportation (per Mcfe)................................................................................   $ 0.19     $ 0.19     $ 0.25     $ 0.30   $ 0.19  
Lease operating (per Mcfe).................................................................................   $ 0.14     $ 3.14     $ 2.59     $ 1.11   $ 0.39  
                                       
Oil and Gas Capital Expenditures:                                      
Development leasehold........................................................................   $ 2,344     $     $     $   $ 2,344  
Development drilling and completion.....................................................................     76,629                       76,629  
Other development.....................................................................     10,247             393       273     10,913  
Total...............................................................................   $ 89,220     $     $ 393     $ 273   $ 89,886  

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


PRO FORMA COMBINED OPERATING RESULTS

 (In thousands, except per unit amounts)

                 
    For the Three Months Ended June 30, 2019   For the Six Months Ended June 30, 2019  
    Comstock     Covey
Park 
  Pro Forma Combined     Comstock     Covey Park (2)   Pro Forma Combined  
Gas production (MMcf)......................................................................     40,928       67,639     108,567       74,077       130,956     205,033  
Oil production (Mbbls)...................................................................     695       11     706       1,505       20     1,525  
Total production (MMcfe)..................................................................     45,093       67,705     112,798       83,105       131,076     214,181  
                                             
Natural gas sales...........................................................................   $ 91,951     $ 166,772   $ 258,723     $ 182,083     $ 354,688   $ 536,771  
Natural gas hedging settlements(1)..............................................................     1,932       14,668     16,600       6,965       3,824     10,789  
Total natural gas including hedging............................................................     93,883       181,440     275,323       189,048       358,512     547,560  
Oil sales............................................................................     36,165       659     36,824       72,914       1,165     74,079  
Oil hedging settlements(1)..............................................................     15           15       370           370  
Total oil including hedging............................................................     36,180       659     36,839       73,284       1,165     74,449  
Total oil and gas sales including hedging............................................................   $ 130,063     $ 182,099   $ 312,162     $ 262,332     $ 359,677   $ 622,009  
                                             
Average gas price (per Mcf).........................................................................   $ 2.25     $ 2.47   $ 2.38     $ 2.46     $ 2.71   $ 2.62  
Average gas price including hedging (per Mcf).........................................................................   $ 2.29     $ 2.68   $ 2.54     $ 2.55     $ 2.74   $ 2.67  
Average oil price (per barrel).......................................................................   $ 52.10     $ 59.94   $ 52.20     $ 48.46     $ 58.25   $ 48.58  
Average oil price including hedging (per barrel).......................................................................   $ 52.12     $ 59.94   $ 52.22     $ 48.71     $ 58.25   $ 48.82  
Average price (per Mcfe).......................................................................   $ 2.84     $ 2.47   $ 2.62     $ 3.07     $ 2.71   $ 2.85  
Average price including hedging (per Mcfe).......................................................................   $ 2.88     $ 2.69   $ 2.77     $ 3.16     $ 2.74   $ 2.90  
                                             
Production taxes...........................................................................   $ 5,827     $ 3,356   $ 9,183     $ 11,766     $ 8,280   $ 20,046  
Gathering and transportation...........................................................   $ 10,502     $ 20,015   $ 30,517     $ 17,932     $ 38,811   $ 56,743  
Lease operating.....................................................................   $ 14,452     $ 18,789   $ 33,241     $ 29,337     $ 34,261   $ 63,598  
                                             
Production taxes (per Mcfe).......................................................................   $ 0.13     $ 0.05   $ 0.08     $ 0.14     $ 0.06   $ 0.09  
Gathering and transportation (per Mcfe)......................................................................   $ 0.23     $ 0.30   $ 0.27     $ 0.22     $ 0.30   $ 0.26  
Lease operating (per Mcfe).......................................................................   $ 0.32     $ 0.28   $ 0.30     $ 0.35     $ 0.26   $ 0.31  

                                                           
(1)    Included in gain (loss) from derivative financial instruments in operating results
(2)    Pro forma for an acquisition which completed on March 5, 2019

                  

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

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