FRISCO, Texas, Aug. 4 /PRNewswire-FirstCall/ -- Comstock Resources, Inc.
('Comstock' or the 'Company') (NYSE: CRK) today reported financial and
operating results for the quarter and six months ended June 30, 2008. In the
second quarter of 2008, Comstock began reflecting its offshore operations,
which are held by Bois d'Arc Energy, Inc. ('Bois d'Arc Energy') (NYSE: BDE) as
discontinued operations due to the expected closing of the merger between Bois
d'Arc Energy and Stone Energy Corporation ('Stone') (NYSE: SGY) in the third
quarter of 2008. The Company's financial results for prior periods have also
been adjusted to present the offshore properties of Bois d'Arc Energy as
discontinued operations.
Financial Results for the Three Months and Six Months Ended June 30, 2008
Comstock reported record high net income of $82.6 million or $1.81 per
diluted share for the three months ended June 30, 2008 as compared to 2007's
second quarter net income of $18.2 million or $0.41 per diluted share.
Comstock's income from continuing operations was $70.4 million or $1.55 per
diluted share as compared to income from continuing operations of $13.0
million or $0.29 per diluted share for the second quarter of last year.
Second quarter operating results reflect strong market prices for oil and
natural gas combined with strong production growth from Comstock's onshore
operations. Comstock's production from its continuing onshore operations in
the second quarter of 2008 increased 42% to 15.3 billion cubic feet equivalent
of natural gas ('Bcfe') as compared to production of 10.7 Bcfe in the second
quarter of 2007. The second quarter average daily production rate of 168
million cubic feet of natural gas equivalent ('Mmcfe') also increased 5% from
the first quarter 2008 production rate of 160 Mmcfe per day. Comstock's
realized oil prices in the second quarter of 2008 averaged $105.16 per barrel,
87% higher than the $56.10 per barrel in 2007's second quarter. Oil prices in
the second quarter of 2008 also improved from the $81.49 per barrel realized
during the first quarter of 2008. Natural gas prices realized in the second
quarter of 2008 averaged $10.51 per Mcf, 41% higher than the $7.47 per Mcf for
2007. Natural gas prices in the second quarter of 2008 were also 28% higher
than the $8.22 per Mcf realized during the first quarter of 2008. The 42%
production increase and higher commodity prices caused second quarter 2008's
oil and gas sales to increase 107% to $172.0 million from 2007's second
quarter sales of $83.2 million. Operating cash flow from continuing
operations (before changes in working capital accounts) generated by Comstock
in 2008's second quarter of $134.3 million increased 147% over 2007's second
quarter cash flow of $54.3 million. EBITDAX, or earnings before interest,
taxes, depreciation, depletion, amortization, exploration expense and other
noncash expenses from continuing operations, increased 131% to $145.0 million
in 2008's second quarter over 2007's second quarter EBITDAX from continuing
operations of $62.8 million.
Comstock reported net income of $123.7 million or $2.72 per diluted share
for the six months ended June 30, 2008 as compared to 2007's net income of
$30.8 million or 69? per diluted share. Income from continuing operations was
$99.8 million or $2.21 per diluted share as compared to income from continuing
operations of $22.4 million or $0.51 per diluted share for the same period in
2007.
Financial results for the first half of 2008 also reflect higher oil and
natural gas prices and the Company's strong production growth in 2008.
Comstock's continuing onshore production in the first six months of 2008
increased 43% to 29.9 Bcfe as compared to production of 20.9 Bcfe in the first
six months of 2007. Realized oil prices in the first six months of 2008
averaged $93.92 per barrel, 80% higher than the $52.10 per barrel realized in
2007. Natural gas prices in the first six months of 2008 averaged $9.39 per
Mcf, or 32% higher than the $7.09 per Mcf realized in 2007. Oil and gas sales
of $299.7 million for the first six months of 2008 increased 96% from 2007's
first six months sales of $153.0 million. Operating cash flow (before changes
in working capital accounts) generated by Comstock's continuing operations in
2008's first six months of $225.8 million increased 126% from 2007's first six
months cash flow from continuing operations of $99.8 million. EBITDAX from
continuing operations was $248.2 million in 2008's first six months, a 115%
increase over 2007's first six months EBITDAX from continuing operations of
$115.2 million.
The Company's income attributable to the discontinued offshore operations
of Bois d'Arc Energy of $12.2 million or 26? per diluted share increased in
the second quarter of 2008 as compared to $5.2 million (12? per diluted share)
in the second quarter of 2007. For the six months ended June 30, 2008, Bois
d'Arc Energy contributed $23.9 million or 51? per diluted share to net income
as compared to $8.4 million or 18? per diluted share for the same period in
2007.
The offshore operations of Bois d'Arc Energy are reflected as discontinued
operations due to the pending merger of Bois d'Arc Energy pursuant to which
Stone will acquire Bois d'Arc Energy. Under the terms of the merger
agreement, the Bois d'Arc Energy shareholders, including Comstock, will
receive $13.65 in cash and 0.165 shares of Stone common stock for each share
of Bois d'Arc Energy. Comstock will receive $440 million in cash and
5,317,069 shares of the common stock of Stone for its stake in Bois d'Arc
Energy. Completion of the transaction is subject to approval by the Bois
d'Arc Energy and Stone stockholders at special meetings of their respective
stockholders to be held on August 27, 2008. Comstock has entered into a
stockholder agreement with Stone in which it has agreed to vote in favor of
the merger.
The 2008 second quarter and six months financial results also include a
$21.4 million gain ($13.9 million after tax or 31? per share) on the
previously announced sales of properties in East and South Texas for $122.0
million which closed in June 2008. The estimated proved reserves attributable
to the sold properties is 44.3 Bcfe. Production in the first half of 2008
attributable to Comstock's interest in these properties averaged 8.4 MMcfe per
day.
Comstock also announced today that it has accepted offers whereby it
intends to sell certain properties in its South Texas operating region for
$16.4 million. The properties include Comstock's interests in the East White
Point and Markham fields in South Texas. The sales are expected to close in
August 2008. The estimated proved reserves attributable to the properties
being sold are 15.3 Bcfe. Production in the first half of 2008 attributable
to Comstock's interest in these properties was 0.9 MMcfe per day. Comstock
expects to realize an after tax gain of $3.9 million on these sales.
Six Months 2008 Onshore Drilling Results
Comstock also announced the results of its 2008 onshore drilling program.
In the first six months of 2008 Comstock drilled 62 wells (37.0 net). Sixty-
one (36.5 net) of the wells drilled were successful and one (.5 net) was a dry
hole.
Comstock drilled 52 successful wells (30.5 net) in its East Texas and
North Louisiana region which have been tested at an average per well initial
production rate of 2.6 Mmcfe per day.
