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

Frisco, Texas, UNITED STATES


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

                  


        

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