Comstock Resources, Inc. Reports Second Quarter 2019

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, Inc. Reports Second Quarter 2019 Financials and Operating Results

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