Comstock Resources, Inc. Reports First Quarter 2013 Financial And Operating Results

 Comstock Resources, Inc. Reports First Quarter 2013 Financial And Operating
                                   Results

PR Newswire

FRISCO, Texas, April 29, 2013

FRISCO, Texas, April 29, 2013 /PRNewswire/ -- Comstock Resources, Inc.
("Comstock" or the "Company") (NYSE: CRK) today reported financial and
operating results for the three months ended March 31, 2013.

Financial Results for the Three Months Ended March 31, 2013

Comstock reported a net loss from continuing operations of $24.5 million or
52¢ per share for the first quarter of 2013 as compared to net income from
continuing operations of $1.4 million or 3¢ per diluted share for the three
months ended March 31, 2012. As previously announced, Comstock entered into
an agreement on March 14, 2013 to sell its West Texas properties for $768.0
million. The sale is expected to close on or about May 14, 2013 with an
effective date of January 1, 2013. The West Texas properties have been
classified as "Discontinued Operations" as a result of the pending sale.
Including discontinued operations in the first quarter financial results,
Comstock reported a net loss of $27.1 million or 58¢ per share for the first
quarter of 2013 as compared to net income of $1.4 million or 3¢ per share for
the first quarter of 2012.

The first quarter of 2013 results include an unrealized loss from derivative
financial instruments of $8.8 million ($5.7 million after tax or 12¢ per
share), a gain of $7.9 million ($5.1 million after tax, or 11¢ per share) from
sales of marketable securities and an impairment on unevaluated acreage of
$2.4 million ($1.6 million after tax or 3¢ per share). Results for the three
months ended March 31, 2012 include an unrealized loss from derivative
financial instruments of $10.2 million ($6.6 million after tax or 14¢ per
share), a gain on sale of marketable securities of $26.6 million ($17.3
million after tax or 37¢ per share), a gain of $6.7 million ($4.4 million
after tax or 9¢ per share) from the sale of oil and gas properties and
impairments of unevaluated acreage of $1.3 million ($0.9 million after tax or
2¢ per share).

Comstock's production from continuing operations in the first quarter of 2013
of 432,000 barrels of oil and 15.6 billion cubic feet of natural gas or 18.2
billion cubic feet of natural gas equivalent ("Bcfe") decreased 27% from the
24.9 Bcfe produced in the first quarter of 2012 due to production declines
from the Company's Haynesville shale properties and due to divestitures
completed in 2012. Oil production in the first quarter, which averaged 4,800
barrels of oil per day, grew 7% from the 4,500 barrels per day produced in the
fourth quarter of 2012.

Comstock's average realized natural gas price increased 21% to $3.15 per Mcf
for the first quarter of 2013 as compared to $2.61 per Mcf realized in the
first quarter of 2012. The Company's average realized oil price, including
hedging gains, improved by 9% to $111.19 per barrel for the first quarter of
2013 as compared to $102.06 per barrel for the first quarter of 2012. Oil and
gas sales from continuing operations (including realized gains or losses from
hedging) of $97.3 million decreased by 5% as compared to 2012's first quarter
sales of $102.4 million. Operating cash flow from continuing operations
(before changes in working capital accounts) was $56.3 million in the first
quarter of 2013 as compared to operating cash flow from continuing operations
of $61.7 million for the first quarter of 2012. EBITDAX, or earnings before
interest, taxes, depreciation, depletion, amortization, exploration expense
and other noncash expenses, from continuing operations was $72.5 million in
the first quarter of 2013 as compared to EBITDAX from continuing operations of
$73.0 million in the first quarter of 2012.

2013 Drilling Results

Comstock reported on the results to date of its 2013 drilling program related
to its continuing operations which is focused on developing its Eagle Ford oil
shale properties in South Texas. During the first three months of 2013,
Comstock spent $56.1 million on its continuing development and exploration
activities and $2.1 million on acreage and other acquisition costs. Comstock
drilled 11 horizontal oil wells (7.2 net) and had three wells (2.3 net)
drilling at March 31, 2013.

Since the beginning of 2013, the Company has completed ten (6.4 net)
horizontal Eagle Ford shale wells including six (3.8 net) wells drilled in
2012. The ten Eagle Ford shale wells that were completed had an average per
well initial production rate of 854 barrels of oil equivalent ("BOE") per
day. The 2013 completions have an average initial rate that is 32% higher
than the average initial rate in 2012. The four wells with the highest
initial production rates were the Swenson A #1H, the Gloria Wheeler C #1H, the
Gloria Wheeler A #3H, and the Rancho Tres Hijos B #1H. These wells are
located in McMullen County and had initial production rates of 1,222, 1,032,
978 and 968 BOE per day, respectively.

Comstock has planned a conference call for 9:30 a.m. Central Time on April 30,
2013, to discuss the operational and financial results for the first quarter
of 2013. Investors wishing to participate should visit the Company's website
at www.comstockresources.com for a live web cast or dial 1-877-546-5021
(international dial-in use 857-244-7553) and provide access code 62393735 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 12:30 p.m. ET April 30, 2013
and will continue until 11:59 p.m. May 7, 2013. To hear the replay, call
888-286-8010 (617-801-6888 if calling from outside the US). The conference
call ID number is 62248208.

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 and is engaged in oil and gas acquisitions, exploration and development
primarily in Texas and Louisiana. 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 March 31, 2013            Three Months Ended March 31, 2012
                 Continuing   Discontinued   Total            Continuing     Discontinued     Total
                 Operations   Operations                      Operations     Operations
Revenues:
Oil and gas      $ 95,020     $   16,299     $ 111,319        $ 103,772    $ 7,917          $ 111,689
sales
Gain on sale of
oil and gas        —              —            —                6,727        —                6,727
properties
Total revenues     95,020         16,299       111,319          110,499      7,917            118,416
Operating
expenses:
Production         2,121          693          2,814            3,247        390              3,637
taxes
Gathering and      4,202          331          4,533            7,715        177              7,892
transportation
Lease operating    13,206         6,308        19,514           13,458       1,291            14,749
Exploration^(1)    2,593          —            2,593            1,353        —                1,353
Depreciation,
depletion and      84,967         8,649        93,616           77,311       1,786            79,097
amortization
General and        8,787          —            8,787            8,798        —                8,798
administrative
Impairment of
oil and gas        —              —            —                49           —                49
properties
Total operating    115,876        15,981       131,857          111,931      3,644            115,575
expenses
Operating          (20,856)       318          (20,538)         (1,432)      4,273            2,841
income (loss)
Other income
(expenses):
Gain on sale of
marketable         7,877          —            7,877            26,621       —                26,621
securities
Realized gain
(loss) from        2,320          —            2,320            (1,354)      —                (1,354)
derivatives
Unrealized loss
from               (8,767)        —            (8,767)          (10,187)     —                (10,187)
derivatives
Other income       245            —            245              239          —                239
Interest           (17,578)       (3,499)      (21,077) ^(2)    (12,303)     (934)            (13,237) ^(2)
expense
Total other
income             (15,903)       (3,499)      (19,402)         3,016        (934)            2,082
(expenses)
Income (loss)
before income      (36,759)       (3,181)      (39,940)         1,584        3,339            4,923

taxes
Benefit from
(provision for)    12,242         554          12,796           (167)        (3,381)          (3,548)
income taxes
Income (loss)
from continuing    (24,517)       —            (24,517)         1,417        —                1,417
operations
Loss from
discontinued       —              (2,627)      (2,627)          —            (42)             (42)
operations, net
of taxes
Net income       $ (24,517)   $   (2,627)    $ (27,144)       $ 1,417      $ (42)           $ 1,375
(loss)
Net income
(loss) per
share:
Basic—
income (loss)    $ (0.52)     $   —          $ (0.52)         $ 0.03       $ —              $ 0.03
from continuing
operations
 —
loss from          —              (0.06)       (0.06)           —            —                —
discontinued
operations
 — net        $ (0.52)     $   (0.06)     $ (0.58)         $ 0.03       $ —              $ 0.03
income (loss)
Diluted—
income (loss)    $ (0.52)     $   —          $ (0.52)         $ 0.03       $ —              $ 0.03
from continuing
operations

— loss from        —              (0.06)       (0.06)           —            —                —
discontinued
operations
 — net        $ (0.52)     $   (0.06)     $ (0.58)         $ 0.03       $ —              $ 0.03
income (loss)
Weighted average
shares
outstanding:
Basic              46,730         46,730       46,730           46,372       46,372           46,372
Diluted            46,730         46,730       46,730           46,372       46,372           46,372



(1) Includes impairments of unevaluated leases of $2.4 million and $1.3
    million in the three months ended March 31, 2013 and 2012, respectively.
(2) $3.0 million and $5.2 million of interest expense was capitalized for the
    three months ended March 31, 2013 and 2012, respectively.



COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)
                                          Three Months Ended March 31,
                                          2013                 2012
OPERATING CASH FLOW:
Net income (loss)                         $   (27,144)         $   1,375
Reconciling items:
Loss from discontinued operations             2,627                42
Deferred income taxes                         (12,245)             250
Depreciation, depletion and                   84,967               77,311
amortization
Impairment of oil and gas properties          —                    49
Dry hole costs and lease impairments          2,443                1,315
Gain on sale of assets                        (7,877)              (33,348)
Unrealized loss on derivatives                8,767                10,187
Debt issuance cost and discount               1,587                944
amortization
Stock-based compensation                      3,218                3,535
Operating cash flow from continuing           56,343               61,660
operations
Excess income taxes from stock-based          1,742                1,405
compensation
(Increase) decrease in accounts               (19,724)             5,070
receivable
Decrease in other current assets              480                  110
Increase in accounts payable and              34,981               48,328
accrued expenses
Net cash provided by continuing               73,822               116,573
operations
Net cash provided by discontinuing            23,530               16,607
operations^(1)
Net cash provided by operating            $   97,352           $   133,180
activities
(1) $5.5 million and $5.1 million for the three months ended March 31, 2013
and 2012, respectively, excluding working capital changes.
EBITDAX:
Net income (loss) from continuing         $   (24,517)         $   1,417
operations
Interest expense                              17,578               12,303
Provision for (benefit from) income           (12,242)             167
taxes
Depreciation, depletion and                   84,967               77,311
amortization
Exploration                                   2,593                1,353
Impairments of oil and gas properties         —                    49
Gain on sale of assets                        (7,877)              (33,348)
Unrealized loss from derivatives              8,767                10,187
Stock-based compensation                      3,218                3,535
EBITDAX from continuing operations            72,487               72,974
EBITDAX from discontinued operations          8,967                6,059
Total EBITDAX                             $   81,454           $   79,033



                                           As of
                                           March 31, 2013   December 31, 2012
Balance Sheet Data:
Cash and cash equivalents                  $   6,844        $    4,471
Restricted cash                                38,400            —
Marketable securities                          —                 12,312
Derivative financial instruments               2,884             11,651
Other current assets                           63,144            43,898
Assets of discontinued operations              562,453           518,934
Property and equipment, net                    1,929,840         1,958,687
Other                                          18,942            19,944
Total assets                               $   2,622,507    $    2,569,897
Current liabilities                        $   175,335      $    110,139
Liabilities of discontinued operations         50,516            33,280
Long-term debt                                 1,334,957         1,324,383
Deferred income taxes                          140,798           149,901
Other non-current liabilities                  19,019            18,660
Stockholders' equity                           901,882           933,534
Total liabilities and stockholders'        $   2,622,507    $    2,569,897
equity



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
                For the Three Months Ended March 31, 2013
                East
                Texas/      South                      Continuing     Discontinued
                North       Texas           Other      Operations     Operations       Total

                Louisiana
Oil production     16         410             6           432         174              606
(Mbbls)
Gas production     13,399     1,781           448         15,628      269              15,897
(MMcf)
Total
production         13,495     4,242           484         18,221      1,311            19,532
(MMcfe)
Oil sales       $  1,504    $ 43,546        $ 690      $  45,740    $ 14,734         $ 60,474
Oil hedging        —          —               —           2,320       —                2,320
gains^(1)
Total oil
including          1,504      43,546          690         48,060      14,734           62,794
hedging
Natural gas        41,157     6,471           1,652       49,280      1,565            50,845
sales
Total oil and
gas sales and
realized gain   $  42,661   $ 50,017        $ 2,342    $  97,340    $ 16,299         $ 113,639
from
derivatives
Average oil
price (per      $  93.58    $ 106.19        $ 113.69   $  105.82    $ 84.84          $ 99.81
barrel)
Average oil
price
including       $  93.58    $ 106.19        $ 113.69   $  111.19    $ 84.84          $ 103.64
hedging (per
barrel)
Average gas
price (per      $  3.07     $ 3.63          $ 3.69     $  3.15      $ 5.82           $ 3.20
Mcf)
Average price   $  3.16     $ 11.79         $ 4.84     $  5.21      $ 12.43          $ 5.70
(per Mcfe)
Average price
including       $  3.16     $ 11.79         $ 4.84     $  5.34      $ 12.43          $ 5.82
hedging (per
Mcfe)
Production      $  (231)    $ 2,220         $ 132      $  2,121     $ 693            $ 2,814
taxes
Gathering and   $  3,557    $ 612           $ 33       $  4,202     $ 331            $ 4,533
transportation
Lease           $  7,493    $ 4,712         $ 1,001    $  13,206    $ 6,308          $ 19,514
operating
Production
taxes (per      $  (0.02)   $ 0.52          $ 0.27     $  0.12      $ 0.53           $ 0.14
Mcfe)
Gathering and
transportation  $  0.26     $ 0.14          $ 0.07     $  0.23      $ 0.25           $ 0.23
(per Mcfe)
Lease
operating (per  $  0.56     $ 1.12          $ 2.07     $  0.72      $ 4.81           $ 1.01
Mcfe)
Oil and Gas
Capital
Expenditures:
Exploratory     $  —        $ 1,939         $ —        $  1,939     $ 6,203          $ 8,142
leasehold
Development        —          184             —           184         —                184
leasehold
Exploratory        —          —               —           —           —                —
drilling
Development        3,047      50,741          —           53,788      49,658           103,446
drilling
Other              1,076      1,137           55          2,268       180              2,448
development
Total           $  4,123    $ 54,001 ^^(2)  $ 55       $  58,179    $ 56,041         $ 114,220



(1) Reported as realized gain from derivatives in operating results.
(2) Net of reimbursements received of $8.1 million under the Company's Eagle
    Ford shale joint venture.



COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)
                For the Three Months Ended March 31, 2012
                East
                Texas/      South                Continuing     Discontinued
                North       Texas      Other     Operations     Operations       Total

                Louisiana
Oil production     27         403        3          433         73               506
(Mbbls)
Gas production     19,100     2,660      535        22,295      127              22,422
(MMcf)
Total
production         19,263     5,075      554        24,892      566              25,458
(MMcfe)
Oil sales       $  2,751    $ 42,474   $ 303     $  45,528    $ 7,113          $ 52,641
Oil hedging        —          —          —          (1,354)     —                (1,354)
losses^(1)
Total oil
including          2,751      42,474     303        44,174      7,113            51,287
hedging
Natural gas        47,502     9,136      1,606      58,244      804              59,048
sales
Total oil and
gas sales and
realized loss   $  50,253   $ 51,610   $ 1,909   $  102,418   $ 7,917          $ 110,335
from
derivatives
Average oil
price (per      $  101.49   $ 105.52   $ 94.88   $  105.19    $ 97.12          $ 104.02
barrel)
Average oil
price
including       $  101.49   $ 105.52   $ 94.88   $  102.06    $ 97.12          $ 101.35
hedging (per
barrel)
Average gas
price (per      $  2.49     $ 3.43     $ 3.00    $  2.61      $ 6.33           $ 2.63
Mcf)
Average price   $  2.61     $ 10.17    $ 3.45    $  4.17      $ 13.99          $ 4.39
(per Mcfe)
Average price
including       $  2.61     $ 10.17    $ 3.45    $  4.11      $ 13.99          $ 4.33
hedging (per
Mcfe)
Production      $  801      $ 2,291    $ 155     $  3,247     $ 390            $ 3,637
taxes
Gathering and   $  6,833    $ 772      $ 110     $  7,715     $ 177            $ 7,892
transportation
Lease           $  8,661    $ 3,719    $ 1,078   $  13,458    $ 1,291          $ 14,749
operating
Production
taxes (per      $  0.04     $ 0.45     $ 0.28    $  0.13      $ 0.69           $ 0.14
Mcfe)
Gathering and
transportation  $  0.35     $ 0.15     $ 0.20    $  0.31      $ 0.31           $ 0.31
(per Mcfe)
Lease
operating (per  $  0.46     $ 0.74     $ 1.94    $  0.54      $ 2.28           $ 0.58
Mcfe)
Oil and Gas
Capital
Expenditures:
Acquisitions    $  —        $ —        $ —       $  —         $ 3,333          $ 3,333
Exploratory        1,595      1,488      —          3,083       3,543            6,626
leasehold
Development        345        1,216      —          1,561       —                1,561
leasehold
Exploratory        368        405        —          773         —                773
drilling
Development        68,208     64,438     —          132,646     34,516           167,162
drilling
Other              1,026      607        149        1,782       336              2,118
development
Total           $  71,542   $ 68,154   $ 149     $  139,845   $ 41,728         $ 181,573



(1) Reported as realized loss from derivatives in operating results.



SOURCE Comstock Resources, Inc.

Website: http://www.comstockresources.com
Contact: Gary H. Guyton, Director of Planning and Investor Relations,
Telephone: (972) 668-8800, Web Site: www.comstockresources.com
 
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