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COMSTOCK RESOURCES, INC. REPORTS SECOND QUARTER 2022 FINANCIAL AND OPERATING RESULTS

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Comstock Resources, Inc.
Comstock Resources, Inc.

FRISCO, TX, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended June 30, 2022.

Highlights of 2022's Second Quarter

  • Generated free cash flow from operations of $190 million in the quarter.

  • Retired $271 million in senior notes and reduced annualized leverage ratio to 1.2x.

  • Adjusted net income to common stockholders was $274 million for the quarter or $1.00 per diluted share.

  • Adjusted EBITDAX increased 105% to $515 million.

  • Operating cash flow (excluding working capital changes) increased 133% to $458 million or $1.65 per diluted share.

  • Oil and gas sales, after realized hedging losses, were $604 million, 86% higher than 2021's second quarter.

  • Strong results from Haynesville drilling program with 16 (14.4 net) operated wells turned to sales with an average initial production of 26 MMcf per day.

  • Completed an attractive bolt-on acquisition which included approximately 60,000 net acres prospective for the Haynesville and Bossier shale in East Texas and a 145 mile high pressure pipeline and natural gas treating plant for $36 million.

  • Achieved independent certification for natural gas production under the MiQ standard during the quarter.

Financial Results for the Three Months Ended June 30, 2022

Revenues in the second quarter of 2022 totaled $604.0 million (including realized hedging losses of $257.4 million). Net cash provided by operating activities (excluding changes in working capital) generated in the second quarter was $457.9 million, and net income available to common stockholders for the second quarter of 2022 was $372.5 million or $1.36 per share. Reported net income in the quarter included a pre-tax $184.5 million unrealized gain on hedging contracts held for risk management and a $46.8 million loss on early retirement of senior notes in the quarter. Excluding these items and certain other items, adjusted net income available to common stockholders for the second quarter of 2022 was $273.6 million, or $1.00 per diluted share.

Comstock's production cost per Mcfe in the second quarter averaged $0.74 per Mcfe, which was comprised of $0.30 for gathering and transportation costs, $0.20 for lease operating costs, $0.18 for production and other taxes and $0.06 for cash general and administrative expenses. Production cost was $0.69 per Mcfe in the first quarter of 2022 and $0.59 in the second quarter of 2021. The increase is due to higher production taxes resulting from higher natural gas prices in the quarter. Comstock's unhedged operating margin was 89% in the second quarter of 2022 and 85% after hedging.

Financial Results for the Six Months Ended June 30, 2022

Revenues for the six months ended June 30, 2022 totaled $1.0 billion (including realized hedging losses of $374.5 million). Net cash provided by operating activities (excluding changes in working capital) generated during the first six months of 2022 was $754.5 million, and income available to common stockholders was $256.8 million or $0.96 per share. Net income during the first six months of 2022 included a pre-tax $135.8 million unrealized loss on hedging contracts held for risk management and a $46.8 million loss on early retirement of debt. Excluding these items and certain other items, adjusted net income available to common stockholders for the six months ended June 30, 2022 was $409.4 million or $1.50 per diluted share.

Comstock's production cost per Mcfe during the six months ended June 30, 2022 averaged $0.71 per Mcfe, which was comprised of $0.29 for gathering and transportation costs, $0.21 for lease operating costs, $0.15 for production and other taxes and $0.06 for cash general and administrative expenses. Production cost was $0.59 per Mcfe for the six months ended June 30, 2021. Comstock's unhedged operating margin was 88% during the first six months of 2022 and 83% after hedging.

Drilling Results

Comstock drilled 18 (16.5 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2022 which had an average lateral length of 9,924 feet. The Company also participated in an additional 13 (1.9 net) non-operated Haynesville shale wells in the second quarter of 2022. Comstock turned 16 (14.4 net) wells to sales in the second quarter of 2022 and currently expects to turn an additional 14 (13.2 net) wells to sales in the third quarter of 2022.

Since its last operational update in May, Comstock has turned 14 (12.6 net) new operated Haynesville/Bossier shale wells to sales. These wells had initial daily production rates that averaged 26 MMcf per day. The completed lateral length of these wells averaged 9,577 feet. Included in the reported drilling results was Comstock's successful Circle M well drilled in Robertson County, Texas in the Western Haynesville area. The well was completed with a 7,900 foot lateral and was tested at 37 MMcf per day.

During the second quarter, Comstock completed an acquisition which included approximately 60,000 net acres prospective for the Haynesville and Bossier shale in East Texas, a 145 mile high pressure natural gas pipeline and a natural gas treating plant for $35.6 million.

Natural Gas Certification

Comstock announced it has achieved certification for its operated natural gas production under the MiQ standard for methane emissions measurement and management. The MiQ Standard scores production, based on how well operators deploy integrated technologies to detect, measure, and abate emissions while also including a detailed assessment of policies and work practices that evaluate an operator's preparedness to prevent future methane emissions. The certification highlights Comstock's ongoing commitment to produce natural gas under strict environmental standards and deliver differentiated, independently certified gas based on methane intensity to both domestic and international markets. Comstock received the certification in June 2022 and the first block of the Company's certified natural gas is available for trading. The certificates, which can be traded bundled (combined with natural gas delivery) or unbundled, will be available on MiQ's Digital Registry in the coming weeks. The certification covers all the Company's facilities in North Louisiana and East Texas, which currently produce approximately 2.0 billion cubic feet per day of natural gas.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on August 2, 2022, to discuss the second quarter 2022 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/BI2b5f1d27974644e3bb8e3cae9a36c3c1. 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/cjhpy3va.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 10:00 a.m. CT on August 2, 2022. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/cjhpy3va.

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
June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

Revenues:

 

 

 

 

 

 

 

Natural gas sales

$

858,838

 

 

$

321,520

 

 

$

1,381,795

 

 

$

645,480

 

Oil sales

 

2,504

 

 

 

22,173

 

 

 

4,388

 

 

 

38,698

 

Total oil and gas sales

 

861,342

 

 

 

343,693

 

 

 

1,386,183

 

 

 

684,178

 

Gas services

 

84,912

 

 

 

 

 

 

129,485

 

 

 

 

Total revenues

 

946,254

 

 

 

343,693

 

 

 

1,515,668

 

 

 

684,178

 

Operating expenses:

 

 

 

 

 

 

 

Production and ad valorem taxes

 

21,729

 

 

 

10,141

 

 

 

35,549

 

 

 

19,793

 

Gathering and transportation

 

36,964

 

 

 

31,736

 

 

 

69,057

 

 

 

61,194

 

Lease operating

 

25,079

 

 

 

26,011

 

 

 

51,265

 

 

 

50,574

 

Exploration

 

2,342

 

 

 

 

 

 

3,363

 

 

 

 

Depreciation, depletion and amortization

 

119,201

 

 

 

121,446

 

 

 

225,929

 

 

 

230,574

 

Gas services

 

82,778

 

 

 

 

 

 

123,453

 

 

 

 

General and administrative

 

9,063

 

 

 

7,872

 

 

 

17,286

 

 

 

15,900

 

Gain on sale of assets

 

(19

)

 

 

(9

)

 

 

(21

)

 

 

(79

)

Total operating expenses

 

297,137

 

 

 

197,197

 

 

 

525,881

 

 

 

377,956

 

Operating income

 

649,117

 

 

 

146,496

 

 

 

989,787

 

 

 

306,222

 

Other income (expenses):

 

 

 

 

 

 

 

Loss from derivative financial instruments

 

(72,826

)

 

 

(223,958

)

 

 

(510,319

)

 

 

(245,707

)

Other income

 

182

 

 

 

530

 

 

 

450

 

 

 

811

 

Interest expense

 

(44,320

)

 

 

(56,880

)

 

 

(90,811

)

 

 

(120,691

)

Loss on early retirement of debt

 

(46,840

)

 

 

(114,060

)

 

 

(46,840

)

 

 

(352,599

)

Total other expenses

 

(163,804

)

 

 

(394,368

)

 

 

(647,520

)

 

 

(718,186

)

Income (loss) before income taxes

 

485,313

 

 

 

(247,872

)

 

 

342,267

 

 

 

(411,964

)

(Provision for) benefit from income taxes

 

(108,422

)

 

 

68,177

 

 

 

(76,800

)

 

 

98,144

 

Net income (loss)

 

376,891

 

 

 

(179,695

)

 

 

265,467

 

 

 

(313,820

)

Preferred stock dividends

 

(4,363

)

 

 

(4,363

)

 

 

(8,678

)

 

 

(8,678

)

Net income (loss) available to common stockholders

$

372,528

 

 

$

(184,058

)

 

$

256,789

 

 

$

(322,498

)

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

1.60

 

 

$

(0.80

)

 

$

1.10

 

 

$

(1.39

)

Diluted

$

1.36

 

 

$

(0.80

)

 

$

0.96

 

 

$

(1.39

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

Basic

 

232,045

 

 

 

231,428

 

 

 

232,011

 

 

 

231,403

 

Diluted

 

277,614

 

 

 

231,428

 

 

 

277,485

 

 

 

231,403

 

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

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

 

 

2021

 

 

 

 

 

2021

 

 

 

2022

 

 

Pro
Forma (3)

 

As Reported

 

 

2022

 

 

Pro
Forma (3)

 

As Reported

Gas production (MMcf)

 

123,950

 

 

 

122,324

 

 

 

124,083

 

 

 

238,856

 

 

 

234,128

 

 

 

237,376

 

Oil production (Mbbls)

 

24

 

 

 

29

 

 

 

362

 

 

 

45

 

 

 

46

 

 

 

688

 

Total production (MMcfe)

 

124,092

 

 

 

122,496

 

 

 

126,260

 

 

 

239,127

 

 

 

234,404

 

 

 

241,506

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas sales

$

858,838

 

 

$

317,160

 

 

$

321,520

 

 

$

1,381,795

 

 

$

639,955

 

 

$

645,480

 

Natural gas hedging settlements (1)

 

(257,363

)

 

 

(16,879

)

 

 

(16,879

)

 

 

(374,549

)

 

 

(24,369

)

 

 

(24,369

)

Total natural gas including hedging

 

601,475

 

 

 

300,281

 

 

 

304,641

 

 

 

1,007,246

 

 

 

615,586

 

 

 

621,111

 

Oil sales

 

2,504

 

 

 

1,792

 

 

 

22,173

 

 

 

4,388

 

 

 

2,743

 

 

 

38,698

 

Oil hedging settlements (1)

 

 

 

 

 

 

 

(1,965

)

 

 

 

 

 

 

 

 

(2,883

)

Total oil including hedging

 

2,504

 

 

 

1,792

 

 

 

20,208

 

 

 

4,388

 

 

 

2,743

 

 

 

35,815

 

Total oil and gas sales including hedging

$

603,979

 

 

$

302,073

 

 

$

324,849

 

 

$

1,011,634

 

 

$

618,329

 

 

$

656,926

 

 

 

 

 

 

 

 

 

 

 

 

 

Average gas price (per Mcf)

$

6.93

 

 

$

2.59

 

 

$

2.59

 

 

$

5.79

 

 

$

2.73

 

 

$

2.72

 

Average gas price including hedging (per Mcf)

$

4.85

 

 

$

2.45

 

 

$

2.46

 

 

$

4.22

 

 

$

2.63

 

 

$

2.62

 

Average oil price (per barrel)

$

104.33

 

 

$

61.79

 

 

$

61.25

 

 

$

97.51

 

 

$

59.63

 

 

$

56.25

 

Average oil price including hedging (per barrel)

$

104.33

 

 

$

61.79

 

 

$

55.82

 

 

$

97.51

 

 

$

59.63

 

 

$

52.06

 

Average price (per Mcfe)

$

6.94

 

 

$

2.60

 

 

$

2.72

 

 

$

5.80

 

 

$

2.74

 

 

$

2.83

 

Average price including hedging (per Mcfe)

$

4.87

 

 

$

2.47

 

 

$

2.57

 

 

$

4.23

 

 

$

2.64

 

 

$

2.72

 

 

 

 

 

 

 

 

 

 

 

 

 

Production and ad valorem taxes

$

21,729

 

 

$

8,033

 

 

$

10,141

 

 

$

35,549

 

 

$

16,081

 

 

$

19,793

 

Gathering and transportation

 

36,964

 

 

 

31,736

 

 

 

31,736

 

 

 

69,057

 

 

 

61,194

 

 

 

61,194

 

Lease operating

 

25,079

 

 

 

22,807

 

 

 

26,011

 

 

 

51,265

 

 

 

43,866

 

 

 

50,574

 

Cash general and administrative (2)

 

7,482

 

 

 

6,073

 

 

 

6,073

 

 

 

14,210

 

 

 

12,411

 

 

 

12,411

 

Total production costs

$

91,254

 

 

$

68,649

 

 

$

73,961

 

 

$

170,081

 

 

$

133,552

 

 

$

143,972

 

 

 

 

 

 

 

 

 

 

 

 

 

Production and ad valorem taxes (per Mcfe)

$

0.18

 

 

$

0.06

 

 

$

0.08

 

 

$

0.15

 

 

$

0.07

 

 

$

0.08

 

Gathering and transportation (per Mcfe)

 

0.30

 

 

 

0.26

 

 

 

0.25

 

 

 

0.29

 

 

 

0.26

 

 

 

0.25

 

Lease operating (per Mcfe)

 

0.20

 

 

 

0.19

 

 

 

0.21

 

 

 

0.21

 

 

 

0.19

 

 

 

0.21

 

Cash general and administrative (per Mcfe)

 

0.06

 

 

 

0.05

 

 

 

0.05

 

 

 

0.06

 

 

 

0.05

 

 

 

0.05

 

Total production costs (per Mcfe)

$

0.74

 

 

$

0.56

 

 

$

0.59

 

 

$

0.71

 

 

$

0.57

 

 

$

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

Unhedged operating margin

 

89

%

 

 

78

%

 

 

78

%

 

 

88

%

 

 

79

%

 

 

79

%

Hedged operating margin

 

85

%

 

 

77

%

 

 

77

%

 

 

83

%

 

 

78

%

 

 

78

%

 

 

 

 

 

 

 

 

 

 

 

 

Oil and gas capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

Proved property acquisitions

$

(69

)

 

$

 

 

$

 

 

$

205

 

 

$

 

 

$

 

Unproved property acquisitions

 

21,551

 

 

 

7,625

 

 

 

7,625

 

 

 

25,182

 

 

 

13,401

 

 

 

13,401

 

Total oil and gas properties acquisitions

$

21,482

 

 

$

7,625

 

 

$

7,625

 

 

$

25,387

 

 

$

13,401

 

 

$

13,401

 

Exploration and development:

 

 

 

 

 

 

 

 

 

 

 

Development leasehold

$

655

 

 

$

1,995

 

 

$

2,005

 

 

$

5,287

 

 

$

6,038

 

 

$

6,061

 

Exploratory drilling and completion

 

18,840

 

 

 

 

 

 

 

 

 

30,397

 

 

 

 

 

 

 

Development drilling and completion

 

225,371

 

 

 

157,648

 

 

 

157,648

 

 

 

414,419

 

 

 

312,887

 

 

 

312,887

 

Other development costs

 

18,325

 

 

 

2,951

 

 

 

4,624

 

 

 

36,937

 

 

 

5,340

 

 

 

8,076

 

Total exploration and development capital expenditures

$

263,191

 

 

$

162,594

 

 

$

164,277

 

 

$

487,040

 

 

$

324,265

 

 

$

327,024

 


 

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

(2)   Excludes stock-based compensation.

(3)   Excludes results of the Company's Bakken shale assets, which were sold in October 2021.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

 

Three Months Ended June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS:

 

 

 

 

 

 

 

Net income (loss) available to common stockholders

$

372,528

 

 

$

(184,058

)

 

$

256,789

 

 

$

(322,498

)

Unrealized (gain) loss from derivative financial instruments

 

(184,537

)

 

 

204,822

 

 

 

135,770

 

 

 

217,894

 

Loss on early retirement of debt

 

46,840

 

 

 

114,060

 

 

 

46,840

 

 

 

352,599

 

Non-cash interest amortization from adjusting debt assumed in
acquisition to fair value

 

1,414

 

 

 

2,470

 

 

 

4,174

 

 

 

7,397

 

Exploration expense

 

2,342

 

 

 

 

 

 

3,363

 

 

 

 

Gain on sale of assets

 

(19

)

 

 

(9

)

 

 

(21

)

 

 

(79

)

Adjustment to (provision for) benefit from income taxes

 

35,050

 

 

 

(87,875

)

 

 

(37,539

)

 

 

(142,608

)

Adjusted net income available to common stockholders (1)

$

273,618

 

 

$

49,410

 

 

$

409,376

 

 

$

112,705

 

 

 

 

 

 

 

 

 

Adjusted net income available to common stockholders per share (2)

$

1.00

 

 

$

0.20

 

 

$

1.50

 

 

$

0.44

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

277,614

 

 

 

275,211

 

 

 

277,484

 

 

 

275,153

 


ADJUSTED EBITDAX:

 

 

 

 

 

 

 

Net income (loss)

$

376,891

 

 

$

(179,695

)

 

$

265,467

 

 

$

(313,820

)

Interest expense (3)

 

44,320

 

 

 

57,172

 

 

 

90,811

 

 

 

121,252

 

Income taxes

 

108,422

 

 

 

(68,177

)

 

 

76,800

 

 

 

(98,144

)

Depreciation, depletion, and amortization

 

119,201

 

 

 

121,446

 

 

 

225,929

 

 

 

230,574

 

Exploration

 

2,342

 

 

 

 

 

 

3,363

 

 

 

 

Unrealized (gain) loss from derivative financial instruments

 

(184,537

)

 

 

204,822

 

 

 

135,770

 

 

 

217,894

 

Stock-based compensation

 

1,581

 

 

 

1,799

 

 

 

3,076

 

 

 

3,489

 

Loss on early extinguishment of debt

 

46,840

 

 

 

114,060

 

 

 

46,840

 

 

 

352,599

 

Gain on sale of assets

 

(19

)

 

 

(9

)

 

 

(21

)

 

 

(79

)

Total Adjusted EBITDAX (4)

$

515,041

 

 

$

251,418

 

 

$

848,035

 

 

$

513,765

 


 

(1)   Adjusted net income available to common stockholders 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.

(2)   Adjusted net income available to common stockholders 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.

(3)   Includes realized gains or losses from interest rate derivative financial instruments.

(4)   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 June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

OPERATING CASH FLOW (1):

 

 

 

 

 

 

 

Net income (loss)

$

376,891

 

 

$

(179,695

)

 

$

265,467

 

 

$

(313,820

)

Reconciling items:

 

 

 

 

 

 

 

Unrealized (gain) loss from derivative financial instruments

 

(184,537

)

 

 

204,822

 

 

 

135,770

 

 

 

217,894

 

Deferred income taxes (benefit)

 

95,117

 

 

 

(71,131

)

 

 

70,329

 

 

 

(101,281

)

Depreciation, depletion and amortization

 

119,201

 

 

 

121,446

 

 

 

225,929

 

 

 

230,574

 

Loss on early retirement of debt

 

46,840

 

 

 

114,060

 

 

 

46,840

 

 

 

352,599

 

Amortization of debt discount and issuance costs

 

2,873

 

 

 

5,086

 

 

 

7,098

 

 

 

13,575

 

Stock-based compensation

 

1,581

 

 

 

1,799

 

 

 

3,076

 

 

 

3,489

 

Gain on sale of assets

 

(19

)

 

 

(9

)

 

 

(21

)

 

 

(79

)

Operating cash flow

$

457,947

 

 

$

196,378

 

 

$

754,488

 

 

$

402,951

 

Increase in accounts receivable

 

(232,043

)

 

 

(33,158

)

 

 

(203,918

)

 

 

(40,190

)

(Increase) decrease in other current assets

 

(11,126

)

 

 

750

 

 

 

(9,720

)

 

 

5,528

 

Increase in accounts payable and accrued expenses

 

187,116

 

 

 

28,341

 

 

 

145,083

 

 

 

17,294

 

Net cash provided by operating activities

$

401,894

 

 

$

192,311

 

 

$

685,933

 

 

$

385,583

 

 

 

 

 

 

 

 

 


 

Three Months Ended June 30,

 

Six Months Ended
June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

FREE CASH FLOW (2):

 

 

 

 

 

 

 

Operating cash flow

$

457,947

 

 

$

196,378

 

 

$

754,488

 

 

$

402,951

 

Less:

 

 

 

 

 

 

 

Exploration and development capital expenditures

 

(263,191

)

 

 

(164,277

)

 

 

(487,040

)

 

 

(327,024

)

Preferred dividends

 

(4,363

)

 

 

(4,363

)

 

 

(8,678

)

 

 

(8,678

)

Free cash flow from operations

$

190,393

 

 

$

27,738

 

 

$

258,770

 

 

$

67,249

 

Acquisitions

 

(39,539

)

 

 

(7,665

)

 

 

(43,466

)

 

 

(13,447

)

Proceeds from divestitures

 

48

 

 

 

11

 

 

 

93

 

 

 

211

 

Free cash flow after acquisition and divestiture activity

$

150,902

 

 

$

20,084

 

 

$

215,397

 

 

$

54,013

 

 

 

 

 

 

 

 

 


 

(1)   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.

(2)   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, preferred dividend payments, proved and unproved property acquisitions, and proceeds from divestiture of oil and gas properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

 

As of

 

June 30,
2022

 

December 31, 2021

ASSETS

 

 

 

Cash and cash equivalents

$

32,272

 

$

30,663

 

Accounts receivable

 

471,656

 

 

267,738

 

Derivative financial instruments

 

2,086

 

 

5,258

 

Other current assets

 

24,797

 

 

15,077

 

Total current assets

 

530,811

 

 

318,736

 

Property and equipment, net

 

4,313,201

 

 

4,007,146

 

Goodwill

 

335,897

 

 

335,897

 

Operating lease right-of-use assets

 

108,284

 

 

6,450

 

 

$

5,288,193

 

$

4,668,229

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Accounts payable

$

454,752

 

$

314,569

 

Accrued costs

 

153,763

 

 

135,026

 

Operating leases

 

37,561

 

 

2,444

 

Derivative financial instruments

 

318,585

 

 

181,945

 

Total current liabilities

 

964,661

 

 

633,984

 

Long-term debt

 

2,510,253

 

 

2,615,235

 

Deferred income taxes

 

267,746

 

 

197,417

 

Derivative financial instruments

 

 

 

4,042

 

Long-term operating leases

 

70,797

 

 

4,075

 

Asset retirement obligation

 

28,433

 

 

25,673

 

Other non-current liabilities

 

24

 

 

24

 

Total liabilities

 

3,841,914

 

 

3,480,450

 

Mezzanine Equity:

 

 

 

Preferred stock

 

175,000

 

 

175,000

 

Stockholders' Equity:

 

 

 

Common stock

 

116,579

 

 

116,462

 

Additional paid-in capital

 

1,101,953

 

 

1,100,359

 

Accumulated earnings (deficit)

 

52,747

 

 

(204,042

)

Total stockholders' equity

 

1,271,279

 

 

1,012,779

 

 

$

5,288,193

 

$

4,668,229

 

CONTACT: Ron MIlls Vice President of Finance and Investor Relations Comstock Resources 972-668-8834 rmills@comstockresources.com