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CST: 14/11/2019 14:58:58   

COMSTOCK RESOURCES, INC. REPORTS THIRD QUARTER 2019 FINANCIAL AND OPERATING RESULTS

7 Days ago

Frisco, TX, Nov. 07, 2019 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the third quarter of 2019.  On July 16, 2019, Comstock completed the acquisition of Covey Park Energy, LLC ("Covey Park").  The Company's financial results include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 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").  Results for the three months and nine months ended September 30, 2019 and the period from August 14, 2018 through September 30, 2018 reflect the Jones Contribution, while results for the period from July 1, 2018 through August 13, 2018 and the period from January 1, 2018 through August 13, 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 September 30, 2019

For the third quarter of 2019, Comstock reported a net loss available to common stockholders of $1.3 million or $0.01 per diluted share.  Net income available to common stockholders for the third quarter of 2019 was $34.3 million or $0.17 per diluted share as adjusted to exclude certain items not related to normal operating activities partly due to the closing of the Covey Park acquisition.  These items, net of income taxes, include $28.7 million of transaction costs related to the Covey Park acquisition including professional fees, severance costs and other change of control payments; $2.9 million in interest amortization resulting from adjusting debt assumed in the acquisition to fair value; $3.2 million of hedging settlements related to July production that were received prior to closing; and $0.8 million in unrealized hedging gains. 

Comstock produced 97.2 billion cubic feet ("Bcf") of natural gas and 603,773 barrels of oil or 100.9 billion cubic feet of natural gas equivalent ("Bcfe") in the third quarter of 2019.  The Company's natural gas production averaged 1,057 million cubic feet ("MMcf") per day, an increase of 135% over the second quarter of 2019.  The growth in natural gas production was primarily attributable to the Covey Park acquisition which closed on July 16, 2019.  Oil production in the third quarter of 2019 averaged 6,563 barrels of oil per day.  Pro forma third quarter 2019 production including the operations of Covey Park from July 1, 2019 to July 15, 2019 was 111.5 Bcfe or 1,212 MMcfe per day. 

Comstock's average realized natural gas price, including hedging, was $2.26 per Mcf in the third quarter of 2019 ($2.30 including the July hedge receipts of Covey Park).  The Company's average realized oil price, including hedging, was $51.27 per barrel in the third quarter of 2019.  Oil and gas sales were $250.5 million (including realized hedging gains and losses) in the third quarter of 2019.  Adjusted EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense, transaction costs and other noncash expenses, was $188.6 million in the third quarter of 2019.  The Company's adjusted operating cash flow generated in the third quarter of 2019 (before working capital changes) was $143.3 million. 

Financial Results for the Nine Months Ended September 30, 2019

For the first nine months of 2019, Comstock reported net income available to common stock of $33.6 million or $0.26 per diluted share.  Net income available to common stockholders for the nine months ended September 30, 2019 is $71.2 million or $0.51 per diluted share as adjusted to exclude certain items not related to normal operations.  These items, net of income taxes, include $30.1 million in transaction costs related to the Covey Park acquisition; $3.0 million in interest amortization related to the Covey Park debt, $3.4 million for the Covey Park July hedging settlements and $1.1 million in unrealized hedging losses.

Comstock produced 171.3 Bcf of natural gas and 2.1 million barrels of oil or 184.0 Bcfe in the first nine months of 2019.  The Company's natural gas production averaged 628 MMcf per day.  Oil production in the first nine months of 2019 averaged 7,723 barrels of oil per day.  Pro forma production for the first nine months of 2019 including the operations of Covey Park was 325.7 Bcfe or 1,193 MMcfe per day.

Comstock's average realized natural gas price, including hedging, was $2.39 per Mcf in the first nine months of 2019 ($2.41 including the July hedge receipts of Covey Park).  The Company's average realized oil price, including hedging, was $49.44 per barrel in the first nine months of 2019.  Oil and gas sales were $512.8 million (including realized hedging gains and losses) in the first nine months of 2019.  Adjusted EBITDAX was $378.8 million in the first nine months of 2019.  The Company's operating cash flow generated in the first nine months of 2019 (before working capital changes) was $280.4 million. 

Drilling Results

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program.  During the first nine months of 2019, Comstock spent $355.6 million on its development activities including $323.3 million to drill and complete Haynesville shale wells.  Comstock drilled 46 (29.4 net) horizontal Haynesville/Bossier shale wells during the first nine months of 2019, which had an average lateral length of approximately 8,300 feet.  Comstock also completed 19 (5.2 net) wells that were drilled in 2018.  22 (17.4 net) of the Haynesville shale wells drilled in the first nine months of 2019 were also completed.  Comstock also spent $16.2 million drilling and completing four (2.2 net) Eagle Ford shale oil wells and an additional $16.1 million primarily on leasehold and other development activity.  Comstock estimates that it will spend approximately $145.0 million in the fourth quarter of 2019 on development activities.  In response to low natural gas prices, the Company plans to reduce the operating rigs that it employs in its Haynesville shale drilling program from nine operating rigs to six beginning in early 2020.  Comstock presently expects its 2020 preliminary capital budget will be $475.0 million.  The 2020 drilling program prioritizes free cash flow generation over production growth.  The Company is anticipating its 2020 drilling program will focus exclusively on the Haynesville shale and currently expects to drill 62 (44.4 net) wells and complete 18 (10.7 net) wells drilled in 2019.  The six rig drilling program will support production growth of 6% to 8% over pro forma 2019 production and will generate substantial free cash flow.

Since the last operational update, Comstock reported on 23 new Haynesville shale wells.  The average initial production rate of these wells was 25 MMcf per day.  The wells had completed lateral lengths ranging from 5,450 feet to 11,361 feet, with an average completed lateral length of 9,343 feet.  Each well was tested at initial production rates of 19 to 32 MMcf per day.  

Bolt-on Acquisition

Comstock also announced that it acquired a privately-held company with Haynesville shale properties located primarily in DeSoto Parish, Louisiana on November 1, 2019.  Comstock issued 4,500,000 shares of common stock in connection with the all-stock financed acquisition.  The properties acquired include approximately 3,000 net acres and 12.7 net future drilling locations.  The properties acquired have 75 (20.1 net) producing wells which are producing 12 MMcfe per day.  Comstock estimates that the proved oil and gas reserves attributable to the properties acquired are 89 Bcfe.




Other

Comstock has planned a conference call for 10:00 a.m. Central Time on November 7, 2019, to discuss the third 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 7814438 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 November 7, 2019 and will continue until 1:00 p.m. November 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 7814438.

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 September 30,     Nine Months Ended September 30,  
    2019   August 14
Through
September 30,

2018
    July 1
Through
August 13,

2018
    2019     August 14
Through
September 30, 2018
    January 1
Through
August 13,
2018
 
                    (Predecessor)                     (Predecessor)  
                                                 
Revenues:                                                
Natural gas sales........................................................................................................   $ 193,506     $ 36,393     $ 32,089     $ 375,589     $ 36,393     $ 147,897  
Oil sales.....................................................................................................................     30,938       33,730       499       103,852       33,730       18,733  
Total oil and gas sales......................................................................     224,444       70,123       32,588       479,441       70,123       166,630  
                                                 
Operating expenses:                                                
Production taxes........................................................................................................     6,966       4,051       707       18,732       4,051       3,659  
Gathering and transportation......................................................................................     23,414       3,450       3,109       41,346       3,450       11,841  
Lease operating..........................................................................................................     29,111       7,016       3,418       58,448       7,016       21,139  
Exploration................................................................................................................     241                   241              
Depreciation, depletion and amortization...................................................................     80,247       17,820       14,082       164,684       17,820       68,032  
General and administrative........................................................................................     8,105       3,303       3,044       22,760       3,303       15,699  
Loss (gain) on sale of oil and gas properties..............................................................           (98 )           25       (98 )     35,438  
                                                 
Total operating expenses.....................................................................................     148,084       35,542       24,360       306,236       35,542       155,808  
                                                 
Operating income...........................................................................................................     76,360       34,581       8,228       173,205       34,581       10,822  
                                                 
Other income (expenses):                                                
Gain (loss) from derivative financial instruments......................................................     24,858       (2,015 )     (83 )     31,945       (2,015 )     881  
Other income.............................................................................................................     92       42       284       340       42       677  
Interest expense.........................................................................................................     (51,015 )     (14,845 )     (22,140 )     (107,434 )     (14,845 )     (101,203 )
Transaction costs.......................................................................................................     (39,657 )           (2,549 )     (41,100 )           (2,866 )
                                                 
Total other income (expenses).............................................................................     (65,722 )     (16,818 )     (24,488 )     (116,249 )     (16,818 )     (102,511 )
                                                 
Income (loss) before income taxes................................................................................     10,638       17,763       (16,260 )     56,956       17,763       (91,689 )
Provision for income taxes............................................................................................     (3,847 )     (3,940 )     (605 )     (15,183 )     (3,940 )     (1,065 )
Net income (loss)..........................................................................................................     6,791       13,823       (16,865 )     41,773       13,823       (92,754 )
                                                 
Preferred stock dividends..............................................................................................     (8,128 )                 (8,128 )            
                                                 
Net income (loss) available to common stockholders....................................................   $ (1,337 )   $ 13,823     $ (16,865 )   $ 33,645     $ 13,823     $ (92,754 )
                                                 
Net income (loss) per share –
basic and diluted....................................................................................
  $ (0.01 )   $ 0.13     $ (1.09 )   $ 0.26     $ 0.13     $ (6.08 )
                                                 
Weighted average shares outstanding:                                                
Basic.......................................................................................................................     171,487       105,448       15,468       127,709       105,448       15,262  
Diluted....................................................................................................................     171,487       105,463       15,468       127,709       105,463       15,262  


COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2019     August 14 Through
September 30, 2018
    July 1 Through
August 13,
2018
    2019     August 14 Through September 30, 2018     January 1 Through
August 13,
2018
 
                    (Predecessor)                     (Predecessor)  
OPERATING CASH FLOW:                                                
                                                 
Net income (loss)......................................................................................................   $ 6,791     $ 13,823     $ (16,865 )   $ 41,773     $ 13,823     $ (92,754 )
Reconciling items:                                                 
Deferred income taxes...........................................................................................     3,775       3,883       626       15,205       3,883       1,052  
Depreciation, depletion and amortization...............................................................     80,247       17,820       14,082       164,684       17,820       68,032  
Unrealized loss from derivative financial instruments...........................................     1,189       2,206       413       1,437       2,206       1,961  
Amortization of debt discount...............................................................................     6,009       822       6,190       9,206       822       29,457  
Interest paid in-kind..............................................................................................                 4,990                   25,004  
Stock-based compensation....................................................................................     1,088       329       803       2,359       329       3,912  
Transaction costs...................................................................................................     39,657             2,549       41,100             2,866  
Covey Park July 2019 hedging settlements............................................................     4,574                   4,574              
Loss (gain) on sale of oil and gas properties..........................................................           (98 )           25       (98 )     35,438  
Operating cash flow...........................................................................................     143,330       38,785       12,788       280,363       38,785       74,968  
Transaction costs...........................................................................................     (39,657 )           (2,549 )     (41,100 )           (2,866 )
Covey Park July 2019 hedging settlements....................................................     (4,574 )                 (4,574 )            
Decrease (increase) in accounts receivable....................................................     27,670       (44,884 )     3,551       48,404       (44,884 )     2,834  
Decrease (increase) in other current assets....................................................     5,545       (1,326 )     (304 )     7,137       (1,326 )     337  
Increase (decrease) in accounts payable and accrued expenses.....................     (22,534 )     11,034       (14,749 )     (7,424 )     11,034       10,462  
Net cash provided by (used for) operating activities................................   $ 109,780     $ 3,609     $ (1,263 )   $ 282,806     $ 3,609     $ 85,735  
                                                 
ADJUSTED EBITDAX:                                                
                                                 
Net income (loss)......................................................................................................   $ 6,791     $ 13,823     $ (16,865 )   $ 41,773     $ 13,823     $ (92,754 )
Interest expense.........................................................................................................     51,015       14,845       22,140       107,434       14,845       101,203  
Income taxes.............................................................................................................     3,847       3,940       605       15,183       3,940       1,065  
Depreciation, depletion and amortization...................................................................     80,247       17,820       14,082       164,684       17,820       68,032  
Unrealized loss from derivative financial instruments...............................................     1,189       2,206       413       1,437       2,206       1,961  
Stock-based compensation........................................................................................     1,088       329       803       2,359       329       3,912  
Exploration expense..................................................................................................     241                   241              
Transaction costs.......................................................................................................     39,657             2,549       41,100             2,866  
Covey Park July 2019 hedging settlements................................................................     4,574                   4,574              
Loss (gain) on sale of oil and gas properties..............................................................           (98 )           25       (98 )     35,438  
Total Adjusted EBITDAX........................................................................   $ 188,649     $ 52,865     $ 23,727     $ 378,810     $ 52,865     $ 121,723  


    As of
September 30,

2019
    As of
December 31,

2018
                               
                                             
BALANCE SHEET DATA:                                                  
                                                   
Cash and cash equivalents...........................................................................................................   $ 53,243     $ 23,193                                    
Other current assets.....................................................................................................................     152,878       120,833                                    
Derivative financial instruments..................................................................................................     84,260       15,401                                    
Property and equipment, net........................................................................................................     3,917,010       1,667,979                                    
Other...........................................................................................................................................     344,918       360,434                                    
Total assets.............................................................................................................................   $ 4,552,309     $ 2,187,840                                    
                                                   
Current liabilities.........................................................................................................................   $ 389,460     $ 206,853                                    
Long-term debt............................................................................................................................     2,508,074       1,244,363                                    
Deferred income taxes.................................................................................................................     188,218       161,917                                    
Other non-current liabilities.........................................................................................................     10,264                                          
Asset retirement obligation..........................................................................................................     11,095       5,136                                    
Preferred stock............................................................................................................................     375,000                                          
Stockholders' equity....................................................................................................................     1,070,198       569,571                                    
Total liabilities and stockholders' equity.................................................................................   $ 4,552,309     $ 2,187,840                                    


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

                 
    For the Three Months Ended September 30, 2019  
    Haynesville/ Bossier     Cotton
Valley
  Bakken     Eagle Ford     Other   Total  
Gas production (MMcf)............................................................................     91,289       1,114     1,764       94       2,975     97,236  
Oil production (Mbbls).........................................................................     2       10     508       79       4     603  
Total production (MMcfe)........................................................................     91,304       1,175     4,818       565       2,997     100,859  
                                             
Natural gas sales.................................................................................   $ 186,010     $ 2,153   $ (1,018 )   $ 193     $ 6,168   $ 193,506  
Natural gas hedging settlements(1)....................................................................                               26,030  
Total natural gas including hedging..................................................................     186,010       2,153     (1,018 )     193       6,168     219,536  
Oil sales.................................................................................     198       556     25,717       4,213       254     30,938  
Oil hedging settlements(1)....................................................................                               17  
Total oil including hedging..................................................................     198       556     25,717       4,213       254     30,955  
Total oil and gas sales including hedging..................................................................   $ 186,208     $ 2,709   $ 24,699     $ 4,406     $ 6,422   $ 250,491  
                                             
Average gas price (per Mcf)...............................................................................   $ 2.04     $ 1.93   $ (0.58 )   $ 2.05     $ 2.07   $ 1.99  
Average gas price including hedging (per Mcf)...............................................................................                                       $ 2.26  
Average oil price (per barrel)............................................................................   $ 76.36     $ 55.47   $ 50.54     $ 53.65     $ 67.91   $ 51.24  
Average oil price including hedging (per barrel)............................................................................                                       $ 51.27  
Average price (per Mcfe).............................................................................   $ 2.04     $ 2.31   $ 5.13     $ 7.80     $ 2.14   $ 2.23  
Average price including hedging (per Mcfe).............................................................................                                       $ 2.48  
                                             
Production taxes.................................................................................   $ 3,918     $ 65   $ 2,554     $ 176     $ 253   $ 6,966  
Gathering and transportation.................................................................   $ 21,388     $ 237   $     $     $ 1,789   $ 23,414  
Lease operating..........................................................................   $ 17,112     $ 3,741   $ 5,940     $ 109     $ 2,209   $ 29,111  
                                             
Production taxes (per Mcfe).............................................................................   $ 0.04     $ 0.06   $ 0.53     $ 0.31     $ 0.08   $ 0.07  
Gathering and transportation (per Mcfe)............................................................................   $ 0.23     $ 0.20   $     $     $ 0.60   $ 0.23  
Lease operating (per Mcfe).............................................................................   $ 0.19     $ 3.18   $ 1.23     $ 0.19     $ 0.74   $ 0.29  
                                             
Oil and Gas Capital Expenditures:                                            
Acquisitions.................................................................   $ 2,055,623     $   $     $     $   $ 2,055,623  
Development leasehold....................................................................     2,392       15                     2,407  
Development drilling and completion.................................................................     167,443       11     1,982       311           169,747  
Other development.................................................................     1,502                           1,502  
Total...........................................................................   $ 2,226,960     $ 26   $ 1,982     $ 311     $   $ 2,229,279  

                                                           
(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 Period August 14, 2018 Through September 30, 2018  
    Haynesville/ Bossier     Cotton
Valley
    Bakken     Other     Total  
Gas production (MMcf)............................................................................     12,237       536       1,272       53       14,098  
Oil production (Mbbls).........................................................................           5       536       1       542  
Total production (MMcfe)........................................................................     12,237       566       4,487       61       17,351  
                                         
Natural gas sales.................................................................................   $ 32,995     $ 1,770     $ 1,466     $ 162     $ 36,393  
Natural gas hedging settlements(1)....................................................................                             191  
Total natural gas including hedging..................................................................     32,995       1,770       1,466       162       36,584  
Oil sales.................................................................................           320       33,240       170       33,730  
Total oil and gas sales including hedging..................................................................   $ 32,995       2,090       34,706       332     $ 70,314  
                                         
Average gas price (per Mcf)...............................................................................   $ 2.70     $ 3.30     $ 1.15     $ 3.07     $ 2.58  
Average gas price including hedging (per Mcf)...............................................................................                                   $ 2.59  
Average oil price (per barrel)............................................................................   $     $ 64.00     $ 62.01     $ 140.66     $ 62.21  
Average price (per Mcfe).............................................................................   $ 2.70     $ 3.69     $ 7.73     $ 5.44     $ 4.04  
Average price including hedging (per Mcfe).............................................................................                                   $ 4.05  
                                         
Production taxes.................................................................................   $ 776     $ 37     $ 3,214     $ 24     $ 4,051  
Gathering and transportation.................................................................   $ 3,231     $ 189     $     $ 30     $ 3,450  
Lease operating..........................................................................   $ 1,988     $ 1,627     $ 3,250     $ 151     $ 7,016  
                                         
Production taxes (per Mcfe).............................................................................   $ 0.06     $ 0.07     $ 0.72     $ 0.42     $ 0.23  
Gathering and transportation (per Mcfe)............................................................................   $ 0.26     $ 0.33     $     $ 0.50     $ 0.20  
Lease operating (per Mcfe).............................................................................   $ 0.17     $ 2.87     $ 0.72     $ 2.46     $ 0.41  
                                         
Oil and Gas Capital Expenditures:                                        
Acquisitions.................................................................   $ 17,905     $     $     $     $ 17,905  
Development leasehold....................................................................     475                         475  
Development drilling and completion.................................................................     33,404             15,615             49,019  
Other development.................................................................     7,810                         7,810  
Total...........................................................................   $ 59,594     $     $ 15,615     $     $ 75,209  

                                               
                        (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 Period July 1, 2018 Through August 13, 2018 (Predecessor)  
    Haynesville/ Bossier     Cotton
Valley
    Other     Total  
Gas production (MMcf)........................................................................................     11,342       464       70       11,876  
Oil production (Mbbls).....................................................................................           5       2       7  
Total production (MMcfe)....................................................................................     11,342       498       79       11,919  
                                 
Natural gas sales.............................................................................................   $ 30,533     $ 1,301     $ 255     $ 32,089  
Natural gas hedging settlements(1)................................................................................                       330  
Total natural gas including hedging..............................................................................     30,533       1,301       255       32,419  
Oil sales..............................................................................................           386       113       499  
Total oil and gas sales including hedging..............................................................................   $ 30,533     $ 1,687     $ 368     $ 32,918  
                                 
Average gas price (per Mcf)...........................................................................................   $ 2.69     $ 2.80     $ 3.64     $ 2.70  
Average gas price including hedging (per Mcf)...........................................................................................                           $ 2.73  
Average oil price (per barrel).........................................................................................   $     $ 68.87     $ 71.37     $ 69.42  
Average price (per Mcfe).........................................................................................   $ 2.69     $ 3.36     $ 4.66     $ 2.73  
Average price including hedging (per Mcfe).........................................................................................                           $ 2.76  
                                 
Production taxes.............................................................................................   $ 655     $ 29     $ 23     $ 707  
Gathering and transportation.............................................................................   $ 2,985     $ 97     $ 27     $ 3,109  
Lease operating.......................................................................................   $ 1,699     $ 1,545     $ 174     $ 3,418  
                                 
Production taxes (per Mcfe).........................................................................................   $ 0.06     $ 0.06     $ 0.29     $ 0.06  
Gathering and transportation (per Mcfe)........................................................................................   $ 0.26     $ 0.19     $ 0.34     $ 0.26  
Lease operating (per Mcfe).........................................................................................   $ 0.15     $ 3.10     $ 2.21     $ 0.29  
                                 
Oil and Gas Capital Expenditures:                                
Acquisitions.............................................................................   $ 39,323     $     $     $ 39,323  
Development leasehold................................................................................     504                   504  
Development drilling and completion..............................................................................     14,211                   14,211  
Other development.............................................................................     2,958                   2,958  
Total.......................................................................................   $ 56,996     $     $     $ 56,996  

                                                           
                        (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 Nine Months Ended September 30, 2019  
    Haynesville/ Bossier     Cotton
Valley
  Bakken     Eagle Ford     Other   Total  
Gas production (MMcf)............................................................................     160,500       2,941     4,577       94       3,201     171,313  
Oil production (Mbbls).........................................................................     3       28     1,987       79       11     2,108  
Total production (MMcfe)........................................................................     160,518       3,108     16,502       565       3,271     183,964  
                                             
Natural gas sales.................................................................................   $ 359,009     $ 6,826     2,839     $ 193     $ 6,722   $ 375,589  
Natural gas hedging settlements(1)....................................................................                               32,995  
Total natural gas including hedging..................................................................     359,009       6,826     2,839       193       6,722     408,584  
Oil sales.................................................................................     223       1,533     97,214       4,213       669     103,852  
Oil hedging settlements(1)....................................................................                               387  
Total oil including hedging..................................................................     223       1,533     97,214       4,213       669     104,239  
Total oil and gas sales including hedging..................................................................   $ 359,232     $ 8,359   $ 100,053     $ 4,406     $ 7,391   $ 512,823  
                                             
Average gas price (per Mcf)...............................................................................   $ 2.24     $ 2.32   $ 0.62     $ 2.05     $ 2.10   $ 2.19  
Average gas price including hedging (per Mcf)...............................................................................                                       $ 2.39  
Average oil price (per barrel)............................................................................   $ 71.60     $ 55.16   $ 48.91     $ 53.65     $ 57.79   $ 49.26  
Average oil price including hedging (per barrel)............................................................................                                       $ 49.44  
Average price (per Mcfe).............................................................................   $ 2.24     $ 2.69   $ 6.06     $ 7.80     $ 2.26   $ 2.61  
Average price including hedging (per Mcfe).............................................................................                                       $ 2.79  
                                             
Production taxes.................................................................................   $ 7,429     $ 272   $ 10,526     $ 176     $ 329   $ 18,732  
Gathering and transportation.................................................................   $ 38,980     $ 394   $     $     $ 1,972   $ 41,346  
Lease operating..........................................................................   $ 26,742     $ 10,347   $ 18,665     $ 109     $ 2,585   $ 58,448  
                                             
Production taxes (per Mcfe).............................................................................   $ 0.05     $ 0.09   $ 0.64     $ 0.31     $ 0.10   $ 0.10  
Gathering and transportation (per Mcfe)............................................................................   $ 0.24     $ 0.13   $     $     $ 0.60   $ 0.22  
Lease operating (per Mcfe).............................................................................   $ 0.17     $ 3.32   $ 1.13     $ 0.19     $ 0.79   $ 0.32  
                                             
Oil and Gas Capital Expenditures:                                            
Acquisitions.................................................................   $ 2,055,623     $   $     $     $   $ 2,055,623  
Development leasehold....................................................................     6,698       15                     6,713  
Development drilling and completion.................................................................     323,298       11     3,121       16,235           342,665  
Other development.................................................................     6,218                           6,218  
Total...........................................................................   $ 2,391,837     $ 26   $ 3,121     $ 16,235     $   $ 2,411,219  

                                                           
(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 Period January 1, 2018 Through August 13, 2018 (Predecessor)  
    Haynesville/ Bossier     Cotton
Valley
    Eagle Ford     Other   Total  
Gas production (MMcf)................................................................................     52,021       2,365       379       475     55,240  
Oil production (Mbbls).............................................................................           27       247       13     287  
Total production (MMcfe)............................................................................     52,021       2,528       1,860       554     56,963  
                                       
Natural gas sales.....................................................................................   $ 138,391     $ 6,527     $ 1,590     $ 1,389   $ 147,897  
Natural gas hedging settlements(1)........................................................................                           2,842  
Total natural gas including hedging......................................................................     138,391       6,527     $ 1,590     $ 1,389     150,739  
Oil sales.....................................................................................           1,760       16,157       816     18,733  
Total oil and gas sales including hedging......................................................................   $ 138,391     $ 8,287     $ 17,747     $ 2,205   $ 169,472  
                                       
Average gas price (per Mcf)...................................................................................   $ 2.66     $ 2.76     $ 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).................................................................................   $ 2.66     $ 3.28     $ 9.54     $ 3.98   $ 2.93  
Average price including hedging (per Mcfe).................................................................................                                 $ 2.98  
                                       
Production taxes.....................................................................................   $ 2,556     $ 124     $ 831     $ 148   $ 3,659  
Gathering and transportation.....................................................................   $ 10,728     $ 483     $ 463     $ 167   $ 11,841  
Lease operating..............................................................................   $ 7,675     $ 7,935     $ 4,829     $ 700   $ 21,139  
                                       
Production taxes (per Mcfe).................................................................................   $ 0.05     $ 0.05     $ 0.45     $ 0.27   $ 0.06  
Gathering and transportation (per Mcfe)................................................................................   $ 0.21     $ 0.19     $ 0.25     $ 0.30   $ 0.21  
Lease operating (per Mcfe).................................................................................   $ 0.14     $ 3.14     $ 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 (loss) from derivative financial instruments in operating results


PRO FORMA COMBINED OPERATING RESULTS

(In thousands, except per unit amounts)

                 
    For the Three Months Ended September 30, 2019   For the Nine Months Ended September 30, 2019  
    Comstock     Covey
Park 
  Pro Forma Combined     Comstock     Covey Park (2)   Pro Forma Combined  
Gas production (MMcf)......................................................................     97,236       10,654     107,890       171,313       141,610     312,923  
Oil production (Mbbls)...................................................................     603       2     605       2,108       22     2,130  
Total production (MMcfe)..................................................................     100,859       10,666     111,525       183,964       141,742     325,706  
                                             
Natural gas sales...........................................................................   $ 193,506     $ 22,680   $ 216,186     $ 375,589     $ 377,368   $ 752,957  
Natural gas hedging settlements(1)..............................................................     26,030       8,863     34,893       32,995       12,687     45,682  
Total natural gas including hedging............................................................     219,536       31,543     251,079       408,584       390,055     798,639  
Oil sales............................................................................     30,938       68     31,006       103,852       1,233     105,085  
Oil hedging settlements(1)..............................................................     17           17       387           387  
Total oil including hedging............................................................     30,955       68     31,023       104,239       1,233     105,472  
Total oil and gas sales including hedging............................................................   $ 250,491     $ 31,611   $ 282,102     $ 512,823     $ 391,288   $ 904,111  
                                             
Average gas price (per Mcf).........................................................................   $ 1.99     $ 2.13   $ 2.00     $ 2.19     $ 2.66   $ 2.41  
Average gas price including hedging (per Mcf).........................................................................   $ 2.26     $ 2.96   $ 2.33     $ 2.39     $ 2.75   $ 2.55  
Average oil price (per barrel).......................................................................   $ 51.24     $ 34.00   $ 51.18     $ 49.26     $ 56.05   $ 49.33  
Average oil price including hedging (per barrel).......................................................................   $ 51.27     $ 34.00   $ 51.21     $ 49.44     $ 56.05   $ 49.51  
Average price (per Mcfe).......................................................................   $ 2.23     $ 2.13   $ 2.22     $ 2.61     $ 2.67   $ 2.64  
Average price including hedging (per Mcfe).......................................................................   $ 2.48     $ 2.96   $ 2.53     $ 2.79     $ 2.76   $ 2.78  
                                             
Production taxes...........................................................................   $ 6,966     $ 588   $ 7,554     $ 18,732     $ 8,868   $ 27,600  
Gathering and transportation...........................................................   $ 23,414     $ 2,546   $ 25,960     $ 41,346     $ 35,188   $ 76,534  
Lease operating.....................................................................   $ 29,111     $ 2,782   $ 31,893     $ 58,448     $ 37,043   $ 95,491  
                                             
Production taxes (per Mcfe).......................................................................   $ 0.07     $ 0.06   $ 0.07     $ 0.10     $ 0.06   $ 0.08  
Gathering and transportation (per Mcfe)......................................................................   $ 0.23     $ 0.24   $ 0.23     $ 0.22     $ 0.25   $ 0.23  
Lease operating (per Mcfe).......................................................................   $ 0.29     $ 0.26   $ 0.29     $ 0.32     $ 0.26   $ 0.29  

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

                  

Ronald E. Mills
VP of Finance and Investor Relations
972-668-8834
rmills@comstockresources.com

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