Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK)
today reported financial and operating results for the quarter and
year ended December 31, 2023.
Highlights of
2023's Fourth
Quarter
- Continued weak natural gas prices weighed heavily on the fourth
quarter results.
- Natural gas and oil sales, including realized hedging gains,
were $354 million.
- Adjusted EBITDAX for the quarter was $244 million.
- Operating cash flow was $207 million or $0.75 per share.
- Solid results from the Haynesville shale drilling program with
22 (16.5 net) operated wells turned to sales since the Company's
last update with an average initial production rate of 24 MMcf per
day.
- Added 23,000 net acres in the Western Haynesville, increasing
our acreage in the play to over 250,000 net acres.
- Latest Western Haynesville successful well is currently
producing at a rate of 31 MMcf per day.
Financial Results for the Three Months
Ended December 31, 2023
Comstock's natural gas and oil sales in the
fourth quarter of 2023 totaled $353.5 million (including realized
hedging gains of $4.1 million). Operating cash flow (excluding
changes in working capital) generated in the fourth quarter of 2023
was $206.9 million, and net income available to common stockholders
for the fourth quarter was $108.4 million or $0.39 per share. Net
income in the quarter included a pre-tax $107.3 million unrealized
gain on hedging contracts held for natural gas price risk
management. Excluding this item, adjusted net income for the fourth
quarter of 2023 was $27.9 million, or $0.10 per share.
Comstock's production cost per Mcfe in the
fourth quarter averaged $0.81 per Mcfe, which was comprised of
$0.33 for gathering and transportation costs, $0.23 for lease
operating costs, $0.23 for production and other taxes and $0.02 for
cash general and administrative expenses. Comstock's unhedged
operating margin was 67% in the fourth quarter of 2023 and 68%
after hedging.
Financial Results for the Year Ended
December 31, 2023
Natural gas and oil sales for the year ended
December 31, 2023 totaled $1.3 billion (including realized
hedging gains of $80.3 million). Operating cash flow (excluding
changes in working capital) generated during the year was $774.5
million, and net income available to common stockholders was $211.9
million or $0.76 per share. Adjusted net income excluding
unrealized gain on hedging contracts for the year ended
December 31, 2023 was $132.7 million or $0.47 per share.
Comstock's production cost per Mcfe during the
year ended December 31, 2023 averaged $0.83 per Mcfe, which
was comprised of $0.35 for gathering and transportation costs,
$0.25 for lease operating costs, $0.18 for production and other
taxes and $0.05 for cash general and administrative expenses.
Comstock's unhedged operating margin was 65% during 2023 and 68%
after hedging.
2023 Drilling Results
Comstock drilled 67 (55.5 net) operated
horizontal Haynesville/Bossier shale wells in 2023, which had an
average lateral length of 10,796 feet. Comstock also turned 74
(55.7 net) operated wells to sales in 2023, which had an average
initial production rate of 25 MMcf per day.
Since its last operational update in November,
Comstock has turned an additional 22 (16.5 net) operated
Haynesville/Bossier shale wells to sales. These wells had initial
daily production rates that averaged 24 MMcf per day. The completed
lateral length of these wells averaged 11,966 feet. Included in the
wells turned to sales since the last operational update was the
eighth successful Western Haynesville well – the Neyland MMM #1,
which was drilled to a total vertical depth of 16,752 feet with a
10,438 foot completed lateral. The well is currently producing 31
MMcf per day and has not reached its maximum initial production
rate.
2023 Proved Oil and Gas
Reserves
Comstock also announced that proved natural gas
and oil reserves as of December 31, 2023 were estimated at 4.9
trillion cubic feet equivalent ("Tcfe") as compared to 6.7 Tcfe as
of December 31, 2022. The reserve estimates were determined under
SEC guidelines and were audited by the Company's independent
reserve engineering firm. The 4.9 Tcfe of proved reserves at
December 31, 2023 were substantially all natural gas, 56% developed
and 98% operated by Comstock. The decrease is the result of lower
natural gas prices used in the determination. The present value,
using a 10% discount rate, of the future net cash flows before
income taxes of the proved reserves (the "PV-10 Value"), was
approximately $2.5 billion using the Company's average first of
month 2023 prices of $2.39 per thousand cubic feet of natural gas
and $72.63 per barrel of oil. The natural gas and oil prices used
in determining the December 31, 2023 proved reserve estimates were
56% lower for natural gas and 14% lower for oil as compared to
prices used at December 31, 2022. Comstock's proved reserves would
have been 6.6 Tcfe with a PV-10 Value of $5.2 billion using NYMEX
reference prices of $3.50 per Mcf for natural gas and $75.00 per
barrel of oil less the Company's differentials.
The following table reflects the changes in the
SEC proved reserve estimates since the end of 2022:
|
Total (Bcfe) |
|
Proved Reserves: |
|
|
Proved Reserves at December 31, 2022 |
|
6,700.9 |
|
Production |
|
(524.9 |
) |
Extensions and discoveries |
|
571.4 |
|
Revisions |
|
(1,803.9 |
) |
Proved
Reserves at December 31, 2023 |
|
4,943.5 |
|
Despite the lower prices used in determining
proved reserves, Comstock replaced 109% of its 2023 production
excluding revisions, which were related to the lower prices used in
the determination.
2024 Budget
In response to weak natural gas prices, Comstock
plans to suspend its quarterly dividend until natural gas prices
improve. In addition, the Company plans to reduce the number of
operating drilling rigs it is running from seven to five. Two of
the five drilling rigs will continue to be deployed in the
Company's Western Haynesville play. As a result, Comstock plans to
spend approximately $750 million to $850 million in 2024 on its
development and exploration projects to drill 46 (35.9 net)
operated horizontal wells and to turn 44 (38.2 net) operated wells
to sales in 2024. Comstock expects to spend $125 million to $150
million on its Western Haynesville midstream system, which will be
funded by its midstream partnership.
Earnings Call Information
Comstock has planned a conference call for 10:00
a.m. Central Time on February 14, 2024, to discuss the fourth
quarter 2024 operational and financial results. Investors wishing
to listen should visit the Company's website at
www.comstockresources.com for a live webcast. Investors wishing to
participate in the conference call telephonically will need to
register at:
https://register.vevent.com/register/BI9aed23e8af74454f89bd226e82af31c9
Upon registering to participate in the
conference call, participants will receive the dial-in number and a
personal PIN number to access the conference call. On the day of
the call, please dial in at least 15 minutes in advance to ensure a
timely connection to the call. The conference call will also be
broadcast live in listen-only mode and can be accessed via the
website URL: https://edge.media-server.com/mmc/p/jx7owzgq.
If you are unable to participate in the original
conference call, a web replay will be available for twelve months
beginning at 1:00 p.m. CT on February 14, 2024. The replay of the
conference can be accessed using the webcast link:
https://edge.media-server.com/mmc/p/jx7owzgq.
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. Information concerning the assumptions, uncertainties and
risks that may affect the actual results can be found in the
Company's filings with the Securities and Exchange Commission
("SEC") available on the Company's website or the SEC's website at
sec.gov.
Comstock Resources, Inc. is a leading
independent natural gas producer with operations focused on the
development of the Haynesville shale in North Louisiana and East
Texas. The Company's stock is traded on the New York Stock Exchange
under the symbol CRK.
COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share amounts)
|
|
Three Months Ended
December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas sales |
|
$ |
348,385 |
|
|
$ |
740,320 |
|
|
$ |
1,259,450 |
|
|
$ |
3,117,094 |
|
Oil sales |
|
|
1,050 |
|
|
|
1,273 |
|
|
|
5,161 |
|
|
|
7,597 |
|
Total natural gas and oil sales |
|
|
349,435 |
|
|
|
741,593 |
|
|
|
1,264,611 |
|
|
|
3,124,691 |
|
Gas services |
|
|
61,148 |
|
|
|
180,791 |
|
|
|
300,498 |
|
|
|
503,366 |
|
Total revenues |
|
|
410,583 |
|
|
|
922,384 |
|
|
|
1,565,109 |
|
|
|
3,628,057 |
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Production and ad valorem taxes |
|
|
31,912 |
|
|
|
17,837 |
|
|
|
91,803 |
|
|
|
77,917 |
|
Gathering and transportation |
|
|
46,925 |
|
|
|
41,882 |
|
|
|
184,906 |
|
|
|
155,679 |
|
Lease operating |
|
|
31,678 |
|
|
|
31,261 |
|
|
|
132,203 |
|
|
|
111,134 |
|
Exploration |
|
|
— |
|
|
|
4,924 |
|
|
|
1,775 |
|
|
|
8,287 |
|
Depreciation, depletion and amortization |
|
|
185,558 |
|
|
|
134,456 |
|
|
|
607,908 |
|
|
|
489,450 |
|
Gas services |
|
|
57,733 |
|
|
|
159,773 |
|
|
|
282,050 |
|
|
|
465,044 |
|
General and administrative |
|
|
6,000 |
|
|
|
11,954 |
|
|
|
37,992 |
|
|
|
39,405 |
|
Gain on sale of assets |
|
|
— |
|
|
|
(319 |
) |
|
|
(125 |
) |
|
|
(340 |
) |
Total operating expenses |
|
|
359,806 |
|
|
|
401,768 |
|
|
|
1,338,512 |
|
|
|
1,346,576 |
|
Operating
income |
|
|
50,777 |
|
|
|
520,616 |
|
|
|
226,597 |
|
|
|
2,281,481 |
|
Other income
(expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) from derivative financial instruments |
|
|
111,449 |
|
|
|
119,132 |
|
|
|
187,639 |
|
|
|
(662,522 |
) |
Other income |
|
|
304 |
|
|
|
410 |
|
|
|
1,771 |
|
|
|
916 |
|
Interest expense |
|
|
(47,936 |
) |
|
|
(38,888 |
) |
|
|
(169,018 |
) |
|
|
(171,092 |
) |
Loss on early retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(46,840 |
) |
Total other income (expenses) |
|
|
63,817 |
|
|
|
80,654 |
|
|
|
20,392 |
|
|
|
(879,538 |
) |
Income
before income taxes |
|
|
114,594 |
|
|
|
601,270 |
|
|
|
246,989 |
|
|
|
1,401,943 |
|
Provision
for income taxes |
|
|
(6,217 |
) |
|
|
(81,451 |
) |
|
|
(35,095 |
) |
|
|
(261,061 |
) |
Net
income |
|
|
108,377 |
|
|
|
519,819 |
|
|
|
211,894 |
|
|
|
1,140,882 |
|
Preferred
stock dividends |
|
|
— |
|
|
|
(2,925 |
) |
|
|
— |
|
|
|
(16,014 |
) |
Net income
available to common stockholders |
|
|
108,377 |
|
|
|
516,894 |
|
|
|
211,894 |
|
|
|
1,124,868 |
|
Net income
attributable to noncontrolling interest |
|
|
(777 |
) |
|
|
— |
|
|
|
(777 |
) |
|
|
— |
|
Net income
attributable to Comstock |
|
$ |
107,600 |
|
|
$ |
516,894 |
|
|
$ |
211,117 |
|
|
$ |
1,124,868 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.39 |
|
|
$ |
2.08 |
|
|
$ |
0.76 |
|
|
$ |
4.75 |
|
Diluted |
|
$ |
0.39 |
|
|
$ |
1.87 |
|
|
$ |
0.76 |
|
|
$ |
4.11 |
|
Weighted
average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
276,999 |
|
|
|
247,543 |
|
|
|
276,806 |
|
|
|
236,045 |
|
Diluted |
|
|
276,999 |
|
|
|
277,032 |
|
|
|
276,806 |
|
|
|
277,465 |
|
Dividends
per share |
|
$ |
0.125 |
|
|
$ |
0.125 |
|
|
$ |
0.50 |
|
|
$ |
0.125 |
|
COMSTOCK RESOURCES, INC.
OPERATING RESULTS (In thousands, except per unit
amounts)
|
|
Three Months Ended December
31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Natural gas
production (MMcf) |
|
|
140,565 |
|
|
|
132,858 |
|
|
|
524,467 |
|
|
|
500,616 |
|
Oil
production (Mbbls) |
|
|
13 |
|
|
|
16 |
|
|
|
70 |
|
|
|
82 |
|
Total
production (MMcfe) |
|
|
140,649 |
|
|
|
132,955 |
|
|
|
524,890 |
|
|
|
501,107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural gas
sales |
|
$ |
348,385 |
|
|
$ |
740,320 |
|
|
$ |
1,259,450 |
|
|
$ |
3,117,094 |
|
Natural gas
hedging settlements (1) |
|
|
4,107 |
|
|
|
(183,677 |
) |
|
|
80,328 |
|
|
|
(862,715 |
) |
Total natural gas including hedging |
|
|
352,492 |
|
|
|
556,643 |
|
|
|
1,339,778 |
|
|
|
2,254,379 |
|
Oil
sales |
|
|
1,050 |
|
|
|
1,273 |
|
|
|
5,161 |
|
|
|
7,597 |
|
Total natural gas and oil sales including hedging |
|
$ |
353,542 |
|
|
$ |
557,916 |
|
|
$ |
1,344,939 |
|
|
$ |
2,261,976 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
natural gas price (per Mcf) |
|
$ |
2.48 |
|
|
$ |
5.57 |
|
|
$ |
2.40 |
|
|
$ |
6.23 |
|
Average
natural gas price including hedging (per Mcf) |
|
$ |
2.51 |
|
|
$ |
4.19 |
|
|
$ |
2.55 |
|
|
$ |
4.50 |
|
Average oil
price (per barrel) |
|
$ |
80.77 |
|
|
$ |
79.56 |
|
|
$ |
73.73 |
|
|
$ |
92.65 |
|
Average
price (per Mcfe) |
|
$ |
2.48 |
|
|
$ |
5.58 |
|
|
$ |
2.41 |
|
|
$ |
6.24 |
|
Average
price including hedging (per Mcfe) |
|
$ |
2.51 |
|
|
$ |
4.20 |
|
|
$ |
2.56 |
|
|
$ |
4.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
and ad valorem taxes |
|
$ |
31,912 |
|
|
$ |
17,837 |
|
|
$ |
91,803 |
|
|
$ |
77,917 |
|
Gathering
and transportation |
|
|
46,925 |
|
|
|
41,882 |
|
|
|
184,906 |
|
|
|
155,679 |
|
Lease
operating |
|
|
31,678 |
|
|
|
31,261 |
|
|
|
132,203 |
|
|
|
111,134 |
|
Cash general
and administrative (2) |
|
|
3,141 |
|
|
|
10,262 |
|
|
|
28,125 |
|
|
|
32,795 |
|
Total production costs |
|
$ |
113,656 |
|
|
$ |
101,242 |
|
|
$ |
437,037 |
|
|
$ |
377,525 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production
and ad valorem taxes (per Mcfe) |
|
$ |
0.23 |
|
|
$ |
0.12 |
|
|
$ |
0.18 |
|
|
$ |
0.16 |
|
Gathering
and transportation (per Mcfe) |
|
|
0.33 |
|
|
|
0.32 |
|
|
|
0.35 |
|
|
|
0.31 |
|
Lease
operating (per Mcfe) |
|
|
0.23 |
|
|
|
0.24 |
|
|
|
0.25 |
|
|
|
0.22 |
|
Cash general
and administrative (per Mcfe) |
|
|
0.02 |
|
|
|
0.08 |
|
|
|
0.05 |
|
|
|
0.07 |
|
Total production costs (per Mcfe) |
|
$ |
0.81 |
|
|
$ |
0.76 |
|
|
$ |
0.83 |
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unhedged
operating margin |
|
|
67 |
% |
|
|
86 |
% |
|
|
65 |
% |
|
|
88 |
% |
Hedged
operating margin |
|
|
68 |
% |
|
|
82 |
% |
|
|
68 |
% |
|
|
83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas services
revenues |
|
$ |
61,148 |
|
|
$ |
180,791 |
|
|
$ |
300,498 |
|
|
$ |
503,366 |
|
Gas services
expenses |
|
|
57,733 |
|
|
|
159,773 |
|
|
|
282,050 |
|
|
|
465,044 |
|
Gas services margin |
|
$ |
3,415 |
|
|
$ |
21,018 |
|
|
$ |
18,448 |
|
|
$ |
38,322 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas
and Oil Capital Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
Proved property acquisitions |
|
$ |
— |
|
|
$ |
295 |
|
|
$ |
— |
|
|
$ |
500 |
|
Unproved property acquisitions |
|
|
21,907 |
|
|
|
16,724 |
|
|
|
98,553 |
|
|
|
54,120 |
|
Total natural gas and oil properties acquisitions |
|
$ |
21,907 |
|
|
$ |
17,019 |
|
|
$ |
98,553 |
|
|
$ |
54,620 |
|
Exploration and Development: |
|
|
|
|
|
|
|
|
|
|
|
|
Development leasehold |
|
$ |
8,818 |
|
|
$ |
5,429 |
|
|
$ |
27,905 |
|
|
$ |
13,727 |
|
Exploratory drilling and completion |
|
|
65,079 |
|
|
|
14,517 |
|
|
|
244,129 |
|
|
|
63,520 |
|
Development drilling and completion |
|
|
233,856 |
|
|
|
281,653 |
|
|
|
974,664 |
|
|
|
901,026 |
|
Other development costs |
|
|
6,262 |
|
|
|
1,193 |
|
|
|
25,130 |
|
|
|
53,693 |
|
Total exploration and development capital expenditures |
|
$ |
314,015 |
|
|
$ |
302,792 |
|
|
$ |
1,271,828 |
|
|
$ |
1,031,966 |
|
- Included in gain (loss) from derivative financial instruments
in operating results.
- Excludes stock-based compensation.
COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES (In thousands, except
per share amounts)
|
|
Three Months Ended
December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
ADJUSTED NET INCOME: |
|
|
|
|
|
|
|
|
|
|
|
|
Net income
available to common stockholders |
|
$ |
108,377 |
|
|
$ |
516,894 |
|
|
$ |
211,894 |
|
|
$ |
1,124,868 |
|
Unrealized gain from derivative financial instruments |
|
|
(107,342 |
) |
|
|
(302,809 |
) |
|
|
(107,311 |
) |
|
|
(200,193 |
) |
Loss on early retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,840 |
|
Non-cash interest amortization from adjusting debt assumed in
acquisition to fair value |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,174 |
|
Exploration expense |
|
|
— |
|
|
|
4,924 |
|
|
|
1,775 |
|
|
|
8,287 |
|
Gain on sale of assets |
|
|
— |
|
|
|
(319 |
) |
|
|
(125 |
) |
|
|
(340 |
) |
Adjustment to income taxes |
|
|
26,868 |
|
|
|
68,970 |
|
|
|
26,450 |
|
|
|
39,011 |
|
Adjusted net
income (1) |
|
$ |
27,903 |
|
|
$ |
287,660 |
|
|
$ |
132,683 |
|
|
$ |
1,022,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income per share (2) |
|
$ |
0.10 |
|
|
$ |
1.05 |
|
|
$ |
0.47 |
|
|
$ |
3.73 |
|
Diluted
shares outstanding |
|
|
276,999 |
|
|
|
277,032 |
|
|
|
276,806 |
|
|
|
277,464 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDAX: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income |
|
$ |
108,377 |
|
|
$ |
519,819 |
|
|
$ |
211,894 |
|
|
$ |
1,140,882 |
|
Interest expense |
|
|
47,936 |
|
|
|
38,888 |
|
|
|
169,018 |
|
|
|
171,092 |
|
Income taxes |
|
|
6,217 |
|
|
|
81,451 |
|
|
|
35,095 |
|
|
|
261,061 |
|
Depreciation, depletion, and amortization |
|
|
185,558 |
|
|
|
134,456 |
|
|
|
607,908 |
|
|
|
489,450 |
|
Exploration |
|
|
— |
|
|
|
4,924 |
|
|
|
1,775 |
|
|
|
8,287 |
|
Unrealized gain from derivative financial instruments |
|
|
(107,342 |
) |
|
|
(302,809 |
) |
|
|
(107,311 |
) |
|
|
(200,193 |
) |
Stock-based compensation |
|
|
2,861 |
|
|
|
1,692 |
|
|
|
9,867 |
|
|
|
6,610 |
|
Loss on early extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,840 |
|
Gain on sale of assets |
|
|
— |
|
|
|
(319 |
) |
|
|
(125 |
) |
|
|
(340 |
) |
Total
Adjusted EBITDAX (3) |
|
$ |
243,607 |
|
|
$ |
478,102 |
|
|
$ |
928,121 |
|
|
$ |
1,923,689 |
|
- Adjusted net income is presented because of its acceptance by
investors and by Comstock management as an indicator of the
Company's profitability excluding loss on early retirement of debt,
non-cash unrealized gains and losses on derivative financial
instruments, gains and losses on sales of assets and other unusual
items.
- Adjusted net income per share is calculated to include the
dilutive effects of unvested restricted stock pursuant to the
two-class method and performance stock units and preferred stock
pursuant to the treasury stock method.
- Adjusted EBITDAX is presented in the earnings release because
management believes that adjusted EBITDAX, which represents
Comstock's results from operations before interest, income taxes,
and certain non-cash items, including loss on early retirement of
debt, depreciation, depletion and amortization and exploration
expense, is a common alternative measure of operating performance
used by certain investors and financial analysts.
COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES (In thousands)
|
|
Three Months Ended
December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
OPERATING CASH FLOW
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
108,377 |
|
|
$ |
519,819 |
|
|
$ |
211,894 |
|
|
$ |
1,140,882 |
|
Reconciling items: |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain from derivative financial instruments |
|
|
(107,342 |
) |
|
|
(302,809 |
) |
|
|
(107,311 |
) |
|
|
(200,193 |
) |
Deferred income taxes |
|
|
15,423 |
|
|
|
79,928 |
|
|
|
44,301 |
|
|
|
228,317 |
|
Depreciation, depletion and amortization |
|
|
185,558 |
|
|
|
134,456 |
|
|
|
607,908 |
|
|
|
489,450 |
|
Loss on early retirement of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,840 |
|
Amortization of debt discount and issuance costs |
|
|
1,984 |
|
|
|
1,713 |
|
|
|
7,964 |
|
|
|
10,255 |
|
Stock-based compensation |
|
|
2,861 |
|
|
|
1,692 |
|
|
|
9,867 |
|
|
|
6,610 |
|
Gain on sale of assets |
|
|
— |
|
|
|
(319 |
) |
|
|
(125 |
) |
|
|
(340 |
) |
Operating cash flow |
|
$ |
206,861 |
|
|
$ |
434,480 |
|
|
$ |
774,498 |
|
|
$ |
1,721,821 |
|
(Increase) decrease in accounts receivable |
|
|
(16,626 |
) |
|
|
117,211 |
|
|
|
278,697 |
|
|
|
(242,389 |
) |
(Increase) decrease in other current assets |
|
|
1,369 |
|
|
|
(10,655 |
) |
|
|
745 |
|
|
|
(10,296 |
) |
Increase (decrease) in accounts payable and other accrued
expenses |
|
|
36,603 |
|
|
|
(72,704 |
) |
|
|
(37,094 |
) |
|
|
229,252 |
|
Net cash provided by operating activities |
|
$ |
228,207 |
|
|
$ |
468,332 |
|
|
$ |
1,016,846 |
|
|
$ |
1,698,388 |
|
|
|
Three Months Ended
December 31, |
|
|
Year Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
FREE
CASH FLOW (2): |
|
|
|
|
|
|
|
|
|
|
|
|
Operating cash flow |
|
$ |
206,861 |
|
|
$ |
434,480 |
|
|
$ |
774,498 |
|
|
$ |
1,721,821 |
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
Exploration and development capital expenditures |
|
|
(314,015 |
) |
|
|
(302,792 |
) |
|
|
(1,271,828 |
) |
|
|
(1,031,966 |
) |
Midstream capital expenditures |
|
|
(14,098 |
) |
|
|
— |
|
|
|
(35,694 |
) |
|
|
— |
|
Other capital expenditures |
|
|
(11 |
) |
|
|
(147 |
) |
|
|
(491 |
) |
|
|
(803 |
) |
Preferred stock dividends |
|
|
— |
|
|
|
(2,925 |
) |
|
|
— |
|
|
|
(16,014 |
) |
Contributions from midstream partnership |
|
|
24,000 |
|
|
|
— |
|
|
|
24,000 |
|
|
|
— |
|
Free cash flow (deficit) from operations |
|
$ |
(97,263 |
) |
|
$ |
128,616 |
|
|
$ |
(509,515 |
) |
|
$ |
673,038 |
|
Acquisitions |
|
|
(21,907 |
) |
|
|
(18,044 |
) |
|
|
(98,553 |
) |
|
|
(72,593 |
) |
Proceeds from divestitures |
|
|
— |
|
|
|
4,093 |
|
|
|
41,295 |
|
|
|
4,186 |
|
Free cash flow (deficit) after acquisition and divestiture
activity |
|
$ |
(119,170 |
) |
|
$ |
114,665 |
|
|
$ |
(566,773 |
) |
|
$ |
604,631 |
|
- Operating cash flow is presented in the earnings release
because management believes it to be useful to investors as a
common alternative measure of cash flows which excludes changes to
other working capital accounts.
- Free cash flow from operations and free cash flow after
acquisition and divestiture activity are presented in the earnings
release because management believes them to be useful indicators of
the Company's ability to internally fund acquisitions and debt
maturities after exploration and development capital expenditures,
midstream and other capital expenditures, preferred dividend
payments, proved and unproved property acquisitions, and proceeds
from divestitures of natural gas and oil properties.
COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS (In thousands)
|
|
December 31, 2023 |
|
|
December 31, 2022 |
|
ASSETS |
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
16,669 |
|
|
$ |
54,652 |
|
Accounts
receivable |
|
|
231,430 |
|
|
|
510,127 |
|
Derivative
financial instruments |
|
|
126,775 |
|
|
|
23,884 |
|
Other
current assets |
|
|
86,619 |
|
|
|
56,324 |
|
Total current assets |
|
|
461,493 |
|
|
|
644,987 |
|
Property and
equipment, net |
|
|
5,384,771 |
|
|
|
4,622,655 |
|
Goodwill |
|
|
335,897 |
|
|
|
335,897 |
|
Operating
lease right-of-use assets |
|
|
71,462 |
|
|
|
90,716 |
|
|
|
$ |
6,253,623 |
|
|
$ |
5,694,255 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
Accounts
payable |
|
$ |
523,260 |
|
|
$ |
530,195 |
|
Accrued
costs |
|
|
134,466 |
|
|
|
183,111 |
|
Operating
leases |
|
|
23,765 |
|
|
|
38,411 |
|
Derivative
financial instruments |
|
|
— |
|
|
|
4,420 |
|
Total current liabilities |
|
|
681,491 |
|
|
|
756,137 |
|
Long-term
debt |
|
|
2,640,391 |
|
|
|
2,152,571 |
|
Deferred
income taxes |
|
|
470,035 |
|
|
|
425,734 |
|
Derivative
financial instruments |
|
|
— |
|
|
|
— |
|
Long-term
operating leases |
|
|
47,742 |
|
|
|
52,385 |
|
Asset
retirement obligation |
|
|
30,773 |
|
|
|
29,114 |
|
Total liabilities |
|
|
3,870,432 |
|
|
|
3,415,941 |
|
Stockholders' Equity: |
|
|
|
|
|
|
Common stock |
|
|
139,214 |
|
|
|
138,759 |
|
Additional paid-in capital |
|
|
1,260,930 |
|
|
|
1,253,417 |
|
Accumulated earnings |
|
|
958,270 |
|
|
|
886,138 |
|
Total stockholders' equity attributable to Comstock |
|
|
2,358,414 |
|
|
|
2,278,314 |
|
Noncontrolling interest |
|
|
24,777 |
|
|
|
— |
|
Total stockholders' equity |
|
|
2,383,191 |
|
|
|
2,278,314 |
|
|
|
$ |
6,253,623 |
|
|
$ |
5,694,255 |
|
Ron Mills
Comstock Resources
Vice President of Finance and Investor Relations
972-668-8834
rmills@comstockresources.com
Comstock Resources (NYSE:CRK)
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