Comstock Resources Inc (CRK) Q3 2023 Earnings: Natural Gas Prices Impact Results
Comstock Resources Inc (NYSE:CRK) reported Q3 2023 financial and operating results on October 30, 2023.
Natural gas and oil sales, including realized hedging gains, were $316 million.
Operating cash flow was $167 million or $0.60 per diluted share.
Adjusted net income was $11.7 million for the quarter.
Comstock Resources Inc (NYSE:CRK) released its third-quarter 2023 financial and operating results on October 30, 2023. The company reported that weak natural gas prices weighed heavily on the results for the quarter. However, the company's Haynesville shale drilling program showed solid results with 21 operated wells turned to sales since the company's last update.
Financial Highlights
Comstock Resources Inc (NYSE:CRK)'s natural gas and oil sales for the third quarter of 2023 totaled $315.8 million, including realized hedging gains of $10.3 million. The company's operating cash flow for the quarter was $167.2 million, and net income available to common stockholders was $14.7 million or $0.05 per share. After excluding certain items, the adjusted net income available to common stockholders for the third quarter of 2023 was $11.7 million, or $0.04 per diluted share.
Operational Highlights
The company reported solid results from the Haynesville shale drilling program with 21 operated wells turned to sales since the company's last update. The latest two Western Haynesville wells were successful with average initial production rates of 34 and 35 Mmcf per day. Comstock is also entering into a new venture to fund the midstream build-out to support Western Haynesville development.
Financial Results for the Nine Months Ended September 30, 2023
For the nine months ended September 30, 2023, natural gas and oil sales totaled $991.4 million. The operating cash flow generated during the first nine months of 2023 was $567.6 million, and net income available to common stockholders was $103.5 million or $0.37 per share. Adjusted net income available to common stockholders for the nine months ended September 30, 2023 was $104.8 million or $0.38 per diluted share.
Dividend Declaration
On October 30, 2023, Comstock's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be payable on December 15, 2023 to stockholders of record at the close of business on December 1, 2023.
Midstream Partnership
Comstock is forming a midstream partnership for its Western Haynesville acreage with Quantum Capital Solutions ("QCS"), an affiliate of Quantum Capital Group. As part of this transaction, Comstock will contribute its Pinnacle gathering and treating system to the partnership in exchange for a total capital commitment by QCS of $300 million to fund the future build-out of the Western Haynesville midstream system over the next several years.
Explore the complete 8-K earnings release (here) from Comstock Resources Inc for further details.
This article first appeared on GuruFocus.
