August 7, 2019 - 6:45 AM EDT
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Comstock Resources, Inc. Reports Second Quarter 2019 Financials and Operating Results

Frisco, TX, Aug. 07, 2019 (GLOBE NEWSWIRE) -- COMSTOCK RESOURCES, INC. REPORTS
SECOND QUARTER 2019 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, August 7, 2019 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the second quarter of 2019.  On August 14, 2018, the Company completed transactions in which entities controlled by Dallas businessman Jerry Jones contributed Bakken Shale properties to the Company in exchange for a controlling interest in the Company (the "Jones Contribution") and the Company refinanced its long-term debt.  Results for the three months and six months ended June 30, 2019 reflect the Jones Contribution, while results for the three months and six months ended June 30, 2018 (the "Predecessor") reflect the historical results of Comstock for that period.  The Company's consolidated financial results are being presented with a blackline division which delineates the lack of comparability between amounts presented for these periods.

Financial Results for the Three Months Ended June 30, 2019

For the second quarter of 2019, Comstock reported net income of $21.4 million or $0.20 per diluted share as compared to a net loss of $34.0 million or $2.22 per share for the Predecessor second quarter of 2018.  The second quarter 2019 results included an unrealized gain from derivative financial instruments held to manage oil and gas price risks of $12.8 million and Covey Park merger related transaction costs of $1.4 million.  Excluding these items, the net income for the second quarter of 2019 would have been $12.7 million or $0.12 per diluted share. 

Comstock produced 40.9 billion cubic feet ("Bcf") of natural gas and 695,000 barrels of oil or 45.1 billion cubic feet of natural gas equivalent ("Bcfe") in the second quarter of 2019.  The Company's natural gas production averaged 450 million cubic feet ("MMcf") per day, an increase of 88% over natural gas production in the Predecessor second quarter of 2018 and 22% higher than the first quarter of 2019.  The growth in natural gas production was primarily attributable to Comstock's Haynesville shale drilling program.  Oil production in the second quarter of 2019, which averaged 7,628 barrels of oil per day, increased from the 990 barrels per day produced in the Predecessor second quarter of 2018 due to production from the Bakken Shale properties.  Oil production in the second quarter of 2018 was primarily attributable to the Company's Eagle Ford shale properties which were sold on April 30, 2018.

Comstock's average realized natural gas price, including hedging gains, decreased 13% to $2.29 per Mcf in the second quarter of 2019 as compared to $2.64 per Mcf realized in the Predecessor second quarter of 2018.  The Company's average realized oil price, including hedging gains, decreased by 9% to $52.12 per barrel in the second quarter of 2019 as compared to $57.56 per barrel in the Predecessor second quarter of 2018.  Oil and gas sales were $130.1 million (including realized hedging gains and losses) in the second quarter of 2019 as compared to the Predecessor 2018 second quarter sales of $62.6 million.  EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, of $93.2 million in the second quarter of 2019 increased by 110% over EBITDAX of $44.3 million for the Predecessor second quarter of 2018.  The Company's operating cash flow generated in the second quarter of 2019 (before working capital changes and the merger related costs) of $66.3 million increased 151% over operating cash flow of $26.4 million in the Predecessor second quarter of 2018. 

Financial Results for the Six Months Ended June 30, 2019

For the first six months of 2019, Comstock reported net income of $35.0 million or $0.33 per diluted share as compared to a net loss of $75.9 million or $4.99 per share for the Predecessor first six months of 2018.  The first six months of 2019 results included an unrealized loss from derivative financial instruments held to manage oil and gas price risks of $0.2 million and the merger related transaction costs of $1.4 million.  Excluding these items, the net income for the first six months of 2019 would have been $36.3 million or $0.34 per share.

Comstock produced 74.1 billion cubic feet of natural gas and 1.5 million barrels of oil or 83.1 Bcfe in the first six months of 2019.  The Company's natural gas production averaged 409 MMcf per day, an increase of 71% over natural gas production in the Predecessor first six months of 2018.  Oil production in the first six months of 2019, which averaged 8,313 barrels of oil per day, increased from the 1,547 barrels per day produced in the Predecessor first six months of 2018 due to production from the contributed Bakken Shale properties. 

Comstock's average realized natural gas price, including hedging gains, decreased 7% to $2.55 per Mcf in the first six months of 2019 as compared to $2.73 per Mcf realized in the Predecessor first six months of 2018.  The Company's average realized oil price, including hedging gains, decreased by 25% to $48.71 per barrel in the first six months of 2019 as compared to $65.12 per barrel in the Predecessor first six months of 2018.  Oil and gas sales were $262.3 million (including realized hedging gains and losses) in the first six months of 2019 as compared to the Predecessor first six months of 2018 sales of $136.6 million.  EBITDAX of $190.2 million in the first six months of 2019 increased by 94% over EBITDAX of $98.0 million for the Predecessor first six months of 2018.  The Company's operating cash flow generated in the first six months of 2019 (before working capital changes and the merger related costs) of $137.0 million increased 120% over operating cash flow of $62.2 million in the Predecessor first six months of 2018.

Drilling Results

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program which is driving the strong production growth in 2019.  During the first six months of 2019, Comstock spent $181.9 million on its development activities.  Comstock spent $155.9 million on drilling and completing Haynesville shale wells.  Comstock drilled 21 (14.2 net) horizontal Haynesville/Bossier shale wells during the first six months of 2019, which had an average lateral length of approximately 8,016 feet.  Comstock also completed 19 (5.2 net) wells that were drilled in 2018.  Twelve (9.4 net) of the wells drilled in the first six months of 2019 were also completed.  Comstock also spent $15.9 million drilling four (2.2 net) Eagle Ford shale oil wells and an additional $10.1 million primarily on leasehold and other development activity. 

Since the last operational update, Comstock reported on ten new Haynesville shale wells.  The average initial production rate of these wells was 24 MMcf per day. The wells had completed lateral lengths ranging from 4,426 feet to 11,319 feet, with an average completed lateral length of 6,970 feet.  Each well was tested at initial production rates of 22 to 28 MMcf per day. The four Eagle Ford shale wells in South Texas drilled in 2019 have been completed and had an average initial production rate of 1,034 barrels of oil equivalent (85% oil) per well.

Covey Park 2019 Results

On July 16, 2019 Comstock completed the previously announced acquisition of Covey Park Energy, LLC ("Covey Park") pursuant to a merger in which the Company was the surviving entity.  The Company's financial results will include the results of operations of Covey Park in the third quarter of 2019 beginning on July 16, 2019.

For the three months ended June 30, 2019, Covey Park produced 67.6 Bcf of natural gas and 11,000 barrels of oil or 68 Bcfe.  Covey Park's average realized sales price (including hedging gains) was $2.68 per Mcf for natural gas and $59.94 per barrel for oil.  Total oil and gas sales for the second quarter of 2019 (including hedging gains) were $182.1 million. 

For the six months ended June 30, 2019, Covey Park produced 131.0 Bcf of natural gas and 20,000 barrels of oil or 131 Bcfe.  The average realized sales price (including hedging gains) was $2.74 per Mcf for natural gas and $58.25 per barrel for oil.  Total oil and gas sales for the six months ended June 30, 2019 (including realized hedging gains) were $359.7 million. 

During the first six months of 2019, Covey Park drilled 17 Haynesville shale wells (15.5 net) and completed 19 wells (17.7 net).  The average per well initial production rate of these wells was 20 MMcf per day. The wells had completed lateral lengths ranging from 4,200 feet to 9,492 feet, with an average completed lateral length of 7,403 feet.  Each well was tested at initial production rates of 12 to 30 MMcf per day. 

With completion of the Covey Park acquisition, Comstock's 2019 annual drilling and completion budget will be $538 million which includes drilling activity on Covey Park properties subsequent to the closing of the merger.  Activity planned for 2019 includes completing 19 (5.2 net) wells drilled by Comstock in 2018 and drilling 78 (57.4 net) Haynesville/Bossier shale wells in 2019.  Comstock is also spending $21.2 million in 2019 on its Eagle Ford shale and Bakken shale oil properties.

Other

Comstock has planned a conference call for 10:00 a.m. Central Time on August 7, 2019, to discuss the second quarter of 2019 operational and financial results.  Investors wishing to participate should visit the Company's website at www.comstockresources.com for a live web cast or dial 844-776-7840 (international dial-in use 661-378-9538) and provide access code 6057864 when prompted.  If you are unable to participate in the original conference call, a web replay will be available approximately 24 hours following the completion of the call on Comstock's website at www.comstockresources.com.  The web replay will be available for approximately one week.  A replay of the conference call will be available beginning at 1:00 p.m. CT August 7, 2019 and will continue until 1:00 p.m. August 14, 2019.  To hear the replay, call 855-859-2056 (404-537-3406 if calling from outside the US).  The conference call access code is 6057864.


This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995.  Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein.  Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

Comstock Resources, Inc. is an independent energy company based in Frisco, Texas engaged in oil and gas acquisitions, exploration and development, and its assets are primarily located in Texas, Louisiana and North Dakota.  The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per share amounts)

  Three Months Ended June 30,  Six Months Ended June 30, 
  2019  2018  2019  2018 
      (Predecessor)      (Predecessor) 
Revenues:                
Natural gas sales..................................................................................... $91,951  $56,265  $182,083  $115,808 
Oil sales....................................................................................................  36,165   5,184   72,914   18,234 
Total oil and gas sales.................................................................  128,116   61,449   254,997   134,042 
                 
Operating expenses:                
Production taxes.....................................................................................  5,827   1,112   11,766   2,952 
Gathering and transportation...............................................................  10,502   4,398   17,932   8,732 
Lease operating......................................................................................  14,452   7,948   29,337   17,721 
Depreciation, depletion and amortization.........................................  46,847   26,798   84,437   53,950 
General and administrative..................................................................  6,841   6,639   14,655   12,655 
Loss on sale of oil and gas properties.................................................  26   6,838   25   35,438 
                 
Total operating expenses................................................................  84,495   53,733   158,152   131,448 
                 
Operating income.......................................................................................  43,621   7,716   96,845   2,594 
                 
Other income (expenses):                
Gain (loss) from derivative financial instruments............................  14,744   (1,638)  7,087   964 
Other income...........................................................................................  155   327   248   393 
Interest expense......................................................................................  (28,568)  (40,213)  (56,419)  (79,063)
Transaction costs...................................................................................  (1,443)  (317)  (1,443)  (317)
                 
Total other income (expenses).......................................................  (15,112)  (41,841)  (50,527)  (78,023)
                 
Income (loss) before income taxes.........................................................  28,509   (34,125)  46,318   (75,429)
Benefit from (provision for) income taxes............................................  (7,102)  122   (11,336)  (460)
Net income (loss)........................................................................................ $21,407  $(34,003) $34,982  $(75,889)
                 
Net income (loss) per share –
basic and diluted................................................................................
 $0.20  $(2.22) $0.33  $(4.99)
                 
Weighted average shares outstanding –
basic and diluted....................................................................................
  105,457   15,340   105,457   15,212 


COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands)

  Three Months Ended June 30,  Six Months Ended June 30, 
  2019  2018  2019  2018 
      (Predecessor)      (Predecessor) 
OPERATING CASH FLOW:                
                 
Net income (loss)..................................................................................................... $21,407  $(34,003) $34,982  $(75,889)
Reconciling items:                 
Deferred income taxes..........................................................................................  7,078   (146)  11,430   426 
Depreciation, depletion and amortization..............................................................  46,847   26,798   84,437   53,950 
Unrealized (gain) loss from derivative financial instruments................................  (12,797)  2,746   248   1,548 
Amortization of debt discount and
issuance costs.....................................................................................................
  1,623   12,211   3,197   23,267 
Interest paid in-kind..............................................................................................     10,169      20,014 
Stock-based compensation...................................................................................  623   1,508   1,271   3,109 
Transaction costs..................................................................................................  1,443   317   1,443   317 
Loss on sale of oil and gas properties...................................................................  26   6,838   25   35,438 
Operating cash flow.........................................................................................  66,250   26,438   137,033   62,180 
Transaction costs........................................................................................  (1,443)  (317)  (1,443)  (317)
Decrease (increase) in accounts receivable.................................................  9,951   (2,172)  20,734   (717)
Decrease in other current assets..................................................................  15   169   1,592   641 
Increase in accounts payable and
accrued expenses......................................................................................
  23,538   41,324   15,110   25,211 
Net cash provided by operating activities............................................. $98,311  $65,442  $173,026  $86,998 
                 
EBITDAX:                
                 
Net income (loss)..................................................................................................... $21,407  $(34,003) $34,982  $(75,889)
Interest expense........................................................................................................  28,568   40,213   56,419   79,063 
Income taxes.............................................................................................................  7,102   (122)  11,336   460 
Depreciation, depletion and amortization..................................................................  46,847   26,798   84,437   53,950 
Unrealized (gain) loss from derivative financial instruments....................................  (12,797)  2,746   248   1,548 
Transaction costs......................................................................................................  1,443   317   1,443   317 
Stock-based compensation.......................................................................................  623   1,508   1,271   3,109 
Loss on sale of oil and gas properties.......................................................................  26   6,838   25   35,438 
Total Adjusted EBITDAX................................................................... $93,219  $44,295  $190,161  $97,996 


  As of
June 30,

2019
  As of
December 31,

2018
         
                 
BALANCE SHEET DATA:                
                 
Cash and cash equivalents.......................................................................................................... $46,747  $23,193         
Derivative financial instruments..................................................................................................  14,284   15,401         
Other current assets....................................................................................................................  90,410   120,833         
Property and equipment, net.......................................................................................................  1,765,445   1,667,979         
Other..........................................................................................................................................  366,010   360,434         
Total assets.......................................................................................................................... $2,282,896  $2,187,840         
                 
Current liabilities........................................................................................................................ $228,625  $206,853         
Long-term debt...........................................................................................................................  1,267,390   1,244,363         
Deferred income taxes................................................................................................................  173,253   161,917         
Other non-current liabilities........................................................................................................  2,348            
Asset retirement obligation.........................................................................................................  5,456   5,136         
Stockholders' equity...................................................................................................................  605,824   569,571         
Total liabilities and stockholders' equity.............................................................................. $2,282,896  $2,187,840         


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

         
  For the Three Months Ended June 30, 2019 
  Haynesville/ Bossier  Cotton
Valley
 Bakken  Eagle Ford  Other Total 
Gas production (MMcf)............................................................................  37,847   924  2,045      112  40,928 
Oil production (Mbbls).........................................................................  1   11  680      3  695 
Total production (MMcfe)........................................................................  37,850   986  6,122      135  45,093 
                       
Natural gas sales................................................................................. $87,261  $2,102 $2,357  $  $231 $91,951 
Natural gas hedging settlements(1)....................................................................               1,932 
Total natural gas including hedging..................................................................  87,261   2,102  2,357      231  93,883 
Oil sales.................................................................................  21   614  35,350      180  36,165 
Oil hedging settlements(1)....................................................................               15 
Total oil including hedging..................................................................  21   614  35,350      180  36,180 
Total oil and gas sales including hedging.................................................................. $87,282  $2,716 $37,707  $  $411 $130,063 
                       
Average gas price (per Mcf)............................................................................... $2.31  $2.28 $1.15  $  $2.05 $2.25 
Average gas price including hedging (per Mcf)...............................................................................                   $2.29 
Average oil price (per barrel)............................................................................ $48.01  $58.87 $52.02  $  $47.24 $52.10 
Average oil price including hedging (per barrel)............................................................................                   $52.12 
Average price (per Mcfe)............................................................................. $2.31  $2.75 $6.16  $  $3.03 $2.84 
Average price including hedging (per Mcfe).............................................................................                   $2.88 
                       
Production taxes................................................................................. $1,779  $112 $3,899  $  $37 $5,827 
Gathering and transportation................................................................. $10,319  $94 $  $  $89 $10,502 
Lease operating.......................................................................... $4,697  $3,371 $6,206  $  $178 $14,452 
                       
Production taxes (per Mcfe)............................................................................. $0.05  $0.11 $0.64  $  $0.28 $0.13 
Gathering and transportation (per Mcfe)............................................................................ $0.27  $0.10 $  $  $0.66 $0.23 
Lease operating (per Mcfe)............................................................................. $0.12  $3.42 $1.01  $  $1.31 $0.32 
                       
Oil and Gas Capital Expenditures:                      
Development leasehold.................................................................... $2,449  $ $  $  $ $2,449 
Development drilling and completion.................................................................  73,217     2,092   10,276     85,585 
Other development.................................................................  1,437             1,437 
Total........................................................................... $77,103  $ $2,092  $10,276  $ $89,471 

                                                           
(1)    Included in gain (loss) from derivative financial instruments in operating results


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

   For the Three Months ended June 30, 2018 (Predecessor) 
  Haynesville/ Bossier  Cotton
Valley
  Eagle Ford  Other  Total 
Gas production (MMcf)............................................................................  20,682   838   97   101   21,718 
Oil production (Mbbls).........................................................................     11   74   5   90 
Total production (MMcfe)........................................................................  20,682   904   537   135   22,258 
                     
Natural gas sales................................................................................. $53,294  $2,313  $399  $259  $56,265 
Natural gas hedging settlements(1)....................................................................              1,108 
Total natural gas including hedging..................................................................  53,294   2,313   399   259   57,373 
Oil sales.................................................................................     728   4,136   320   5,184 
Total oil and gas sales including hedging.................................................................. $53,294  $3,041  $4,535  $579  $62,557 
                     
Average gas price (per Mcf)............................................................................... $2.58  $2.76  $4.11  $2.61  $2.59 
Average gas price including hedging (per Mcf)...............................................................................                 $2.64 
Average oil price (per barrel)............................................................................ $  $66.39  $56.38  $55.73  $57.56 
Average price (per Mcfe)............................................................................. $2.58  $3.36  $8.44  $4.33  $2.76 
Average price including hedging (per Mcfe).............................................................................                 $2.81 
                     
Production taxes................................................................................. $833  $35  $201  $43  $1,112 
Gathering and transportation................................................................. $4,037  $177  $119  $65  $4,398 
Lease operating.......................................................................... $3,081  $3,191  $1,412  $264  $7,948 
                     
Production taxes (per Mcfe)............................................................................. $0.04  $0.04  $0.37  $0.32  $0.05 
Gathering and transportation (per Mcfe)............................................................................ $0.20  $0.20  $0.22  $0.48  $0.20 
Lease operating (per Mcfe)............................................................................. $0.14  $3.52  $2.64  $1.96  $0.35 
                     
Oil and Gas Capital Expenditures:                    
Development leasehold.................................................................... $1,191  $  $  $  $1,191 
Development drilling and completion.................................................................  38,090            38,090 
Other development.................................................................  3,920      153   20   4,093 
Total........................................................................... $43,201  $  $153  $20  $43,374 

                                               
                        (1)       Included in gain (loss) from derivative financial instruments in operating results


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

         
  For the Six Months Ended June 30, 2019 
  Haynesville/ Bossier  Cotton
Valley
 Bakken  Eagle Ford  Other Total 
Gas production (MMcf)............................................................................  69,211   1,827  2,813      226  74,077 
Oil production (Mbbls).........................................................................  1   18  1,479      7  1,505 
Total production (MMcfe)........................................................................  69,214   1,933  11,684      274  83,105 
                       
Natural gas sales................................................................................. $172,999  $4,673  3,857  $  $554 $182,083 
Natural gas hedging settlements(1)....................................................................               6,965 
Total natural gas including hedging..................................................................  172,999   4,673  3,857      554  189,048 
Oil sales.................................................................................  25   977  71,497      415  72,914 
Oil hedging settlements(1)....................................................................               370 
Total oil including hedging..................................................................  25   977  71,497      415  73,284 
Total oil and gas sales including hedging.................................................................. $173,024  $5,650 $75,354  $  $969 $262,332 
                       
Average gas price (per Mcf)............................................................................... $2.50  $2.56 $1.37  $  $2.44 $2.46 
Average gas price including hedging (per Mcf)...............................................................................                   $2.55 
Average oil price (per barrel)............................................................................ $48.21  $54.99 $48.36  $  $52.95 $48.46 
Average oil price including hedging (per barrel)............................................................................                   $48.71 
Average price (per Mcfe)............................................................................. $2.50  $2.92 $6.45  $  $3.54 $3.07 
Average price including hedging (per Mcfe).............................................................................                   $3.16 
                       
Production taxes................................................................................. $3,511  $207 $7,972  $  $76 $11,766 
Gathering and transportation................................................................. $17,592  $157 $  $  $183 $17,932 
Lease operating.......................................................................... $9,630  $6,606 $12,725  $  $376 $29,337 
                       
Production taxes (per Mcfe)............................................................................. $0.05  $0.11 $0.68  $  $0.28 $0.14 
Gathering and transportation (per Mcfe)............................................................................ $0.25  $0.08 $  $  $0.67 $0.22 
Lease operating (per Mcfe)............................................................................. $0.14  $3.42 $1.09  $  $1.37 $0.35 
                       
Oil and Gas Capital Expenditures:                      
Development leasehold.................................................................... $4,306  $ $  $  $ $4,306 
Development drilling and completion.................................................................  155,855     1,139   15,924     172,918 
Other development.................................................................  4,716             4,716 
Total........................................................................... $164,877  $ $1,139  $15,924  $ $181,940 

                                                           
(1)    Included in gain (loss) from derivative financial instruments in operating results


COMSTOCK RESOURCES, INC.
REGIONAL OPERATING RESULTS
(In thousands, except per unit amounts)

  For the Six Months ended June 30, 2018 (Predecessor) 
  Haynesville/ Bossier  Cotton
Valley
  Eagle Ford  Other Total 
Gas production (MMcf)................................................................................  40,679   1,900   379   406  43,364 
Oil production (Mbbls).............................................................................     22   247   11  280 
Total production (MMcfe)............................................................................  40,679   2,030   1,860   475  45,044 
                    
Natural gas sales..................................................................................... $107,858  $5,226  $1,590  $1,134 $115,808 
Natural gas hedging settlements(1)........................................................................             2,512 
Total natural gas including hedging......................................................................  107,858   5,226   1,590   1,134  118,320 
Oil sales.....................................................................................     1,374   16,157   703  18,234 
Total oil and gas sales including hedging...................................................................... $107,858  $6,600  $17,747  $1,837 $136,554 
                    
Average gas price (per Mcf)................................................................................... $2.65  $2.75  $4.19  $2.80 $2.67 
Average gas price including hedging (per Mcf)...................................................................................                $2.73 
Average oil price (per barrel)................................................................................ $  $63.63  $65.46  $60.72 $65.12 
Average price (per Mcfe)................................................................................. $2.65  $3.25  $9.54  $3.87 $2.98 
Average price including hedging (per Mcfe).................................................................................                $3.03 
                    
Production taxes..................................................................................... $1,901  $95  $831  $125 $2,952 
Gathering and transportation..................................................................... $7,743  $386  $463  $140 $8,732 
Lease operating.............................................................................. $5,976  $6,389  $4,829  $527 $17,721 
                    
Production taxes (per Mcfe)................................................................................. $0.05  $0.05  $0.45  $0.26 $0.07 
Gathering and transportation (per Mcfe)................................................................................ $0.19  $0.19  $0.25  $0.30 $0.19 
Lease operating (per Mcfe)................................................................................. $0.14  $3.14  $2.59  $1.11 $0.39 
                    
Oil and Gas Capital Expenditures:                   
Development leasehold........................................................................ $2,344  $  $  $ $2,344 
Development drilling and completion.....................................................................  76,629           76,629 
Other development.....................................................................  10,247      393   273  10,913 
Total............................................................................... $89,220  $  $393  $273 $89,886 

                                               
                        (1)       Included in gain (loss) from derivative financial instruments in operating results


PRO FORMA COMBINED OPERATING RESULTS

 (In thousands, except per unit amounts)

         
  For the Three Months Ended June 30, 2019 For the Six Months Ended June 30, 2019 
  Comstock  Covey
Park 
 Pro Forma Combined  Comstock  Covey Park(2) Pro Forma Combined 
Gas production (MMcf)......................................................................  40,928   67,639  108,567   74,077   130,956  205,033 
Oil production (Mbbls)...................................................................  695   11  706   1,505   20  1,525 
Total production (MMcfe)..................................................................  45,093   67,705  112,798   83,105   131,076  214,181 
                       
Natural gas sales........................................................................... $91,951  $166,772 $258,723  $182,083  $354,688 $536,771 
Natural gas hedging settlements(1)..............................................................  1,932   14,668  16,600   6,965   3,824  10,789 
Total natural gas including hedging............................................................  93,883   181,440  275,323   189,048   358,512  547,560 
Oil sales............................................................................  36,165   659  36,824   72,914   1,165  74,079 
Oil hedging settlements(1)..............................................................  15     15   370     370 
Total oil including hedging............................................................  36,180   659  36,839   73,284   1,165  74,449 
Total oil and gas sales including hedging............................................................ $130,063  $182,099 $312,162  $262,332  $359,677 $622,009 
                       
Average gas price (per Mcf)......................................................................... $2.25  $2.47 $2.38  $2.46  $2.71 $2.62 
Average gas price including hedging (per Mcf)......................................................................... $2.29  $2.68 $2.54  $2.55  $2.74 $2.67 
Average oil price (per barrel)....................................................................... $52.10  $59.94 $52.20  $48.46  $58.25 $48.58 
Average oil price including hedging (per barrel)....................................................................... $52.12  $59.94 $52.22  $48.71  $58.25 $48.82 
Average price (per Mcfe)....................................................................... $2.84  $2.47 $2.62  $3.07  $2.71 $2.85 
Average price including hedging (per Mcfe)....................................................................... $2.88  $2.69 $2.77  $3.16  $2.74 $2.90 
                       
Production taxes........................................................................... $5,827  $3,356 $9,183  $11,766  $8,280 $20,046 
Gathering and transportation........................................................... $10,502  $20,015 $30,517  $17,932  $38,811 $56,743 
Lease operating..................................................................... $14,452  $18,789 $33,241  $29,337  $34,261 $63,598 
                       
Production taxes (per Mcfe)....................................................................... $0.13  $0.05 $0.08  $0.14  $0.06 $0.09 
Gathering and transportation (per Mcfe)...................................................................... $0.23  $0.30 $0.27  $0.22  $0.30 $0.26 
Lease operating (per Mcfe)....................................................................... $0.32  $0.28 $0.30  $0.35  $0.26 $0.31 

                                                           
(1)    Included in gain (loss) from derivative financial instruments in operating results
(2)    Pro forma for an acquisition which completed on March 5, 2019

                  

Comstock Resources
Gary H. Guyton
Director of Planning and Investor Relations
972-668-8834

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Source: GlobeNewswire (August 7, 2019 - 6:45 AM EDT)

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