One of the best laggards left, selling at 2.6 times annualized cash flow, 100% drilling success and a good balance sheet.
Comstock Resources, Inc. Announces 2000 First Quarter Financial and Operating Results
FRISCO, Texas, May 8, 2000 /PRNewswire via COMTEX/ -- Comstock Resources, Inc.
(NYSE: CRK) ("Comstock" or the "Company") today announced financial results for
the quarter ended March 31, 2000 and the year to date results of its 2000
drilling program where Comstock has had a 100% success rate with 11 successful
wells drilled to date.
First Quarter Financial Results
Comstock reported revenues of $33.1 million for the first quarter of 2000, an
increase of 69% over first quarter 1999 revenues of $19.6 million. Comstock
generated a profit of $4.1 million in 2000's first quarter, a complete
turnaround from a net loss of $4.1 million for the first quarter of 1999. Net
income per share for the first quarter of 2000 was 14 cents as compared to a net
loss per share of 17 cents for the first quarter of 1999 on weighted average
shares outstanding of 33.2 million and 24.4 million for 2000 and 1999,
respectively. Comstock generated $19.1 million in operating cash flow (cash flow
before changes in working capital accounts) in 2000's first quarter, an increase
of 133% over 1999's first quarter cash flow of $8.2 million. Earnings before
interest, taxes and depreciation, depletion and amortization ("EBITDA") of $25.3
million in 2000's first quarter were 90% higher than 1999's first quarter EBITDA
of $13.3 million.
Comstock produced 9.8 billion cubic feet equivalent ("Bcfe") of natural gas in
the first quarter of 2000, a decrease of 4% from 1999's first quarter production
of 10.2 Bcfe, but an increase of 11 % from 1999's fourth quarter production of
8.8 Bcfe. Comstock's average oil and gas prices for the first quarter of 2000
were $29.00 per barrel for oil and $2.75 per thousand cubic feet ("Mcf") for
natural gas, a substantial improvement from 1999's first quarter's oil price of
$11.90 per barrel and gas price of $1.89 per Mcf
East Texas / North Louisiana Region
During the first quarter of 2000, Comstock drilled two wells (1.0 net) in its
East Texas and North Louisiana region. Both were successful with a combined
initial production rate of 0.7 million cubic feet of natural gas equivalent
("mmcfe") per day (net to Comstock's revenue interest). In response to higher
natural gas prices, Comstock plans to drill 12 additional wells in this region
beginning in June 2000.
Gulf of Mexico Region
The Company's Gulf of Mexico drilling program is primarily focused on drilling
offshore exploration wells which have been delinated by 3-D seismic data. Since
the beginning of the year, Comstock has drilled 7 wells (2.0 net) in federal and
Louisiana state waters in the Gulf of Mexico. All of the wells were successful.
Five of the seven wells were development wells drilled at Main Pass and West
Cameron. The remaining two were exploratory wells drilled in the Company's
exploratory venture with Bois d' Arc Offshore Ltd. The two exploratory wells
were the OCS-G 12027 #6 at South Pelto Block 5 and the OCS-G 9652 #5 at South
Pelto Block 15. The OCS-G 12027 #6 well was drilled to a total depth of 15,099
feet and encountered 153 net feet of productive pay in three zones. This well is
expected to begin producing in the third quarter of this year at an estimated
rate of 24 mmcfe per day and represents Comstock's most significant discovery to
date in its Gulf of Mexico exploratory program. Comstock has a 25% working
interest in this well. The OCS-G 9652 #5 well was drilled to a total depth of
11,583 feet and encountered 53 feet of productive pay in two zones. This well
was recently tested at 403 barrels of oil per day and 837 mcf of natural gas per
day with a flowing tubing pressure of 2,570 psi. Comstock has a 33% working
interest in this well. Comstock is currently drilling two wells with Bois d'
Arc, a 14,750 foot exploratory well at South Timbalier Block 11 and a 12,600
foot development offset well at Eugene Island Block 57.
Southeast Texas Region
Comstock continues to have very successful results in its redevelopment and
exploratory program in its Double A Wells field in Polk County, Texas. The new
program is based on the evaluation of a 3-D seismic survey completed in this
field in early 1999. Comstock is currently drilling the Champion C #3
development well, the fourth well of a planned 14 well drilling program in this
region in 2000. Comstock drilled two successful wells (1.0 net) in this region
in the first quarter. The W. T. Carter & Bro. #14 and the H. Jackson #4 wells
had a combined initial test production rate of 7.8 mmcfe per day (net to
Comstock's revenue interest). Comstock is currently undergoing completion
operations on the Vastar Fee #1, the 17,006 foot exploratory well. It is too
early to determine if the well will be commercial. Comstock has a 100% working
interest in this well.
Bank Credit Facility
Comstock also announced that on May 5, 2000 its commercial bank group has
increased the Company's revolving bank credit facility from $175 million to $250
million. Advances under the revolving credit facility are limited to a borrowing
base which was increased from $175 million to $190 million.
Certain statements in this news release regarding future expectations, plans for
drilling, estimates of oil and gas reserves and production and pricing may be
regarded as "forward looking statements" within the meaning of the Securities
Litigation Reform Act. They are subject to various risks, such as operating
hazards, drilling risks, and the inherent uncertainties in interpreting
engineering data relating to underground accumulations of oil and gas. Actual
results may vary materially.
Comstock Resources, Inc. is a growing independent energy company based in
Frisco, Texas and is engaged in oil and gas acquisitions, exploration and
development primarily in Texas, Louisiana and the Gulf of Mexico.
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per share amounts)
Quarter Ended March 31,
Income Statement Data: 2000 1999
Revenues:
Oil and gas sales $33,071 $19,604
Other income 72 30
33,143 19,634
Expenses:
Oil and gas operating 7,386 5,894
Exploration --- 664
Depreciation, depletion and amortization 11,712 13,441
General and administrative, net 495 434
Interest 6,215 5,098
25,808 25,531
Net income (loss) before income taxes 7,335 (5,897)
Provision for income taxes (2,567) 1,778
Net income (loss) 4,768 (4,119)
Preferred stock dividends (683) ---
Net income (loss) attributable to
common stock $4,085 ($4,119)
Net income (loss) per share:
Basic $0.16 ($0.17)
Diluted $0.14
Weighted average common and common stock
equivalent shares outstanding:
Basic 25,375 24,350
Diluted 33,153 24,502
Cash flow from operations (A) $19,104 $8,210
Cash flow from operations per share (A):
Basic $0.75 $0.34
Diluted $0.58 $0.34
EBITDA $25,262 $13,306
Balance Sheet Data:
Current Assets $27,970 $18,390
Property and Equipment, net 414,282 392,991
Other 6,669 1,286
Total Assets $448,921 $412,667
Current Liabilities $36,459 $24,237
Long-term Debt 260,000 277,000
Other 10,649 5,884
Stockholders' Equity 141,813 105,546
Total Liabilities and Stockholders' Equity $448,921 $412,667
(A) Before changes in working capital accounts
COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
For the Three Months ended March 31, 2000
East Texas /
North Gulf of Southeast
Louisiana Mexico Texas Total
Oil production
(thousand barrels) 24 327 143 494
Gas production (million
cubic feet) 2,240 1,445 3,125 6,810
Total production (mmcfe) 2,384 3,407 3,983 9,774
Oil Sales $714 $9,534 $4,079 $14,327
Gas Sales 6,470 3,977 8,297 18,744
Total Oil & Gas Sales $7,184 $13,511 $l2,376 $33,071
Average oil price
(per barrel) $29.75 $29.16 $28.52 $29.00
Average gas price (per
thousand cubic feet
- Mcf) $2.89 $2.75 $2.66 $2.75
Average price (per Mcf
equivalent) $3.01 $3.97 $3.11 $3.38
Lifting Costs $2,116 $3,298 $1,972 $7,386
Lifting Costs (per Mcf
equivalent) $0.89 $0.97 $0.50 $0.76
Capital Expenditures $2,864 $13,715 $12,732 $29,311 |
