Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK)
today reported financial and operating results for the quarter and
year ended December 31, 2022.
Highlights
- Generated free cash flow from
operations of $673 million in 2022, including $129 million in the
fourth quarter.
- Production in the fourth quarter
increased 7% from last year to 1,445 MMcfe per day.
- Oil and gas sales, including realized
hedging losses, were $2.3 billion in 2022 and $558 million in the
fourth quarter and were 58% and 47% higher than 2021 and 2021's
fourth quarter.
- Cash flow from operations in 2022 was
$1.7 billion or $6.21 per diluted share, including $434 million in
the fourth quarter or $1.57 per diluted share.
- Adjusted EBITDAX in 2022 increased 72%
to $1.9 billion and in the fourth quarter increased 61% to $478
million.
- Adjusted net income
to common stockholders in 2022 was $1.0 billion or $3.73 per
diluted share and $288 million or $1.05 per diluted share in the
fourth quarter.
- Drilled 73 (57.0
net) successful Haynesville and Bossier shale operated horizontal
wells in 2022 with an average lateral length of 10,044 feet and
connected 66 (53.6 net) operated wells to sales with an average
initial production rate of 26 MMcf per day.
- Drilled two
successful wells in Comstock's Western Haynesville exploratory
play.
- 2022 drilling
program drove 9% reserve growth with 1.1 Tcfe of drilling related
reserve additions achieving an overall finding cost of 95¢ per
Mcfe.
- Improved balance
sheet with retirement of $506 million of debt and conversion of
preferred stock.
- Resumed quarterly
dividend of $0.125 per share in December 2022.
Financial Results for
the Three Months Ended December 31,
2022
Comstock's natural gas and oil sales in the
fourth quarter of 2022 totaled $557.9 million (after realized
hedging losses of $183.7 million). Net cash provided by operating
activities (excluding changes in working capital) generated in the
fourth quarter was $434.5 million, and net income available to
common stockholders for the fourth quarter of 2022 was $516.9
million or $1.87 per share. Reported net income in the quarter
included a pre-tax $302.8 million unrealized gain on hedging
contracts held for risk management. Excluding this item and certain
other items, adjusted net income available to common stockholders
for the fourth quarter of 2022 was $287.7 million, or $1.05 per
diluted share.
Comstock's production cost per Mcfe in the
fourth quarter was $0.76 per Mcfe, which was comprised of $0.32 for
gathering and transportation costs, $0.24 for lease operating
costs, $0.12 for production and other taxes and $0.08 for cash
general and administrative expenses. Production cost was $0.82 per
Mcfe in the third quarter of 2022 and $0.67 in the fourth quarter
of 2021. Comstock's unhedged operating margin was 86% in the fourth
quarter of 2022 and 82% after hedging.
Financial Results for the Year
Ended December 31,
2022
Natural gas and oil sales for the year ended
December 31, 2022 totaled $2.3 billion (after realized hedging
losses of $862.7 million). Net cash provided by operating
activities (excluding changes in working capital) was $1.7 billion,
and the Company reported net income available to common
stockholders for the year ended December 31, 2022 of $1.1
billion, or $4.11 per share. Net income during the year included a
pre-tax $200.2 million unrealized gain on hedging contracts held
for risk management and a $46.8 million loss on the early
retirement of debt. Excluding these items and certain other items,
adjusted net income available to common stockholders for 2022 was
$1.0 billion, or $3.73 per diluted share.
Drilling Results
Comstock drilled 73 (57.0 net) operated
horizontal Haynesville/Bossier shale wells in 2022 which had an
average lateral length of 10,044 feet. The Company also
participated in an additional 42 (3.4 net) non-operated Haynesville
shale wells in 2022. Comstock turned 66 (53.6 net) operated wells
and 38 (1.8 net) non-operated wells to sales in 2022 and currently
expects to turn an additional 17 (10.5 net) operated wells to sales
in the first quarter of 2023.
Since its last operational update in November,
Comstock has turned 19 (13.1 net) operated Haynesville/Bossier
shale wells to sales. These wells had initial daily production
rates that averaged 25 MMcf per day. The completed lateral length
of these wells averaged 10,186 feet. Included in these results was
the second successful exploratory well drilled in the Western
Haynesville area, the Cazey Black A #1, which had an initial
production rate of 42 MMcf per day.
2023 Drilling Budget
In response to the current lower natural gas
prices, Comstock is releasing two of its nine operated drilling
rigs and currently plans to spend approximately $950 million to
$1.15 billion in 2023 on drilling and completion activities
primarily focused on the continued development of its
Haynesville/Bossier shale properties and delineation of its Western
Haynesville play. Comstock also expects to spend $75 million to
$125 million on infrastructure, including upgrades to its Western
Haynesville pipeline and processing facilities, and for other
development costs. Under its current operating plan, Comstock
expects to drill 67 (50.5 net) and complete 69 (49.2 net) operated
horizontal wells in 2023, including eight (8.0 net) wells in the
Western Haynesville area. Comstock also expects to spend an
additional $25 million to $35 million on lease acquisitions in
2023.
Declaration of Quarterly
Dividend
On February 13, 2023, Comstock's Board of
Directors declared a quarterly dividend of $0.125 per common share.
The dividend will be payable on March 15, 2023 to stockholders of
record at the close of business on March 1, 2023.
Other Matters
Comstock has planned a conference call for 10:00
a.m. Central Time on February 15, 2023, to discuss the fourth
quarter of 2022 operational and financial results. Investors
wishing to participate 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/BId7bb63a06a2246038d691f84bbfe8331.
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/trvtnedj.
If you are unable to participate in the original
conference call, a web replay will be available for twelve months
beginning at 1:00 p.m. Central Time on February 15, 2023. The
replay of the conference call can be accessed using the webcast
link: https://edge.media-server.com/mmc/p/trvtnedj.
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 December 31, |
|
Year EndedDecember 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenues: |
|
|
|
|
|
|
|
Natural gas sales |
$ |
740,320 |
|
|
$ |
641,985 |
|
|
$ |
3,117,094 |
|
|
$ |
1,775,768 |
|
Oil sales |
|
1,273 |
|
|
|
13,391 |
|
|
|
7,597 |
|
|
|
74,962 |
|
Total oil and gas sales |
|
741,593 |
|
|
|
655,376 |
|
|
|
3,124,691 |
|
|
|
1,850,730 |
|
Gas services |
|
180,791 |
|
|
|
— |
|
|
|
503,366 |
|
|
|
— |
|
Total revenues |
|
922,384 |
|
|
|
655,376 |
|
|
|
3,628,057 |
|
|
|
1,850,730 |
|
Operating expenses: |
|
|
|
|
|
|
|
Production and ad valorem taxes |
|
17,837 |
|
|
|
12,673 |
|
|
|
77,917 |
|
|
|
49,141 |
|
Gathering and transportation |
|
41,882 |
|
|
|
34,344 |
|
|
|
155,679 |
|
|
|
130,940 |
|
Lease operating |
|
31,261 |
|
|
|
26,317 |
|
|
|
111,134 |
|
|
|
103,467 |
|
Depreciation, depletion and amortization |
|
134,456 |
|
|
|
110,075 |
|
|
|
489,450 |
|
|
|
469,388 |
|
Gas services |
|
159,773 |
|
|
|
— |
|
|
|
465,044 |
|
|
|
— |
|
General and administrative |
|
11,954 |
|
|
|
10,991 |
|
|
|
39,405 |
|
|
|
34,943 |
|
Exploration |
|
4,924 |
|
|
|
— |
|
|
|
8,287 |
|
|
|
— |
|
(Gain) loss on sale of assets |
|
(319 |
) |
|
|
162,170 |
|
|
|
(340 |
) |
|
|
162,077 |
|
Total operating expenses |
|
401,768 |
|
|
|
356,570 |
|
|
|
1,346,576 |
|
|
|
949,956 |
|
Operating income |
|
520,616 |
|
|
|
298,806 |
|
|
|
2,281,481 |
|
|
|
900,774 |
|
Other income (expenses): |
|
|
|
|
|
|
|
Gain (loss) from derivative financial instruments |
|
119,132 |
|
|
|
195,378 |
|
|
|
(662,522 |
) |
|
|
(560,648 |
) |
Other income (expense) |
|
410 |
|
|
|
(372 |
) |
|
|
916 |
|
|
|
636 |
|
Interest expense |
|
(38,888 |
) |
|
|
(47,840 |
) |
|
|
(171,092 |
) |
|
|
(218,485 |
) |
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
(46,840 |
) |
|
|
(352,599 |
) |
Total other income (expenses) |
|
80,654 |
|
|
|
147,166 |
|
|
|
(879,538 |
) |
|
|
(1,131,096 |
) |
Income (loss) before income
taxes |
|
601,270 |
|
|
|
445,972 |
|
|
|
1,401,943 |
|
|
|
(230,322 |
) |
Provision for income
taxes |
|
(81,451 |
) |
|
|
(85,571 |
) |
|
|
(261,061 |
) |
|
|
(11,403 |
) |
Net income (loss) |
|
519,819 |
|
|
|
360,401 |
|
|
|
1,140,882 |
|
|
|
(241,725 |
) |
Preferred stock dividends and
accretion |
|
(2,925 |
) |
|
|
(4,411 |
) |
|
|
(16,014 |
) |
|
|
(17,500 |
) |
Net income (loss) available to
common stockholders |
$ |
516,894 |
|
|
$ |
355,990 |
|
|
$ |
1,124,868 |
|
|
$ |
(259,225 |
) |
|
|
|
|
|
|
|
|
Net income (loss) per
share: |
|
|
|
|
|
|
|
Basic |
$ |
2.08 |
|
|
$ |
1.53 |
|
|
$ |
4.75 |
|
|
$ |
(1.12 |
) |
Diluted |
$ |
1.87 |
|
|
$ |
1.30 |
|
|
$ |
4.11 |
|
|
$ |
(1.12 |
) |
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
|
247,543 |
|
|
|
231,972 |
|
|
|
236,045 |
|
|
|
231,633 |
|
Diluted |
|
277,032 |
|
|
|
276,713 |
|
|
|
277,465 |
|
|
|
231,633 |
|
Dividends per share |
$ |
0.125 |
|
|
$ |
— |
|
|
$ |
0.125 |
|
|
$ |
— |
|
COMSTOCK RESOURCES,
INC.CONSOLIDATED BALANCE SHEETS(In
thousands)
|
As of December 31, |
|
|
2022 |
|
|
2021 |
|
ASSETS |
|
|
|
Cash and cash equivalents |
$ |
54,652 |
|
$ |
30,663 |
|
Accounts receivable |
|
510,127 |
|
|
267,738 |
|
Derivative financial
instruments |
|
23,884 |
|
|
5,258 |
|
Other current assets |
|
56,324 |
|
|
15,077 |
|
Total current assets |
|
644,987 |
|
|
318,736 |
|
Property and equipment,
net |
|
4,622,655 |
|
|
4,007,146 |
|
Goodwill |
|
335,897 |
|
|
335,897 |
|
Operating lease right-of-use
assets |
|
90,716 |
|
|
6,450 |
|
|
$ |
5,694,255 |
|
$ |
4,668,229 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
Accounts payable |
$ |
530,195 |
|
$ |
314,569 |
|
Accrued costs |
|
183,111 |
|
|
135,026 |
|
Operating leases |
|
38,411 |
|
|
2,444 |
|
Derivative financial
instruments |
|
4,420 |
|
|
181,945 |
|
Total current liabilities |
|
756,137 |
|
|
633,984 |
|
Long-term debt |
|
2,152,571 |
|
|
2,615,235 |
|
Deferred income taxes |
|
425,734 |
|
|
197,417 |
|
Derivative financial
instruments |
|
— |
|
|
4,042 |
|
Long-term operating
leases |
|
52,385 |
|
|
4,075 |
|
Asset retirement
obligation |
|
29,114 |
|
|
25,673 |
|
Other non-current
liabilities |
|
— |
|
|
24 |
|
Total liabilities |
|
3,415,941 |
|
|
3,480,450 |
|
Mezzanine Equity: |
|
|
|
Preferred stock |
|
— |
|
|
175,000 |
|
Stockholders' Equity: |
|
|
|
Common stock |
|
138,759 |
|
|
116,462 |
|
Additional paid-in capital |
|
1,253,417 |
|
|
1,100,359 |
|
Accumulated earnings (deficit) |
|
886,138 |
|
|
(204,042 |
) |
Total stockholders' equity |
|
2,278,314 |
|
|
1,012,779 |
|
|
$ |
5,694,255 |
|
$ |
4,668,229 |
|
COMSTOCK RESOURCES,
INC.OPERATING RESULTS(In
thousands, except per unit amounts)
|
Three Months Ended December 31, |
|
Year EndedDecember 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Gas production (MMcf) |
|
132,858 |
|
|
|
123,002 |
|
|
|
500,616 |
|
|
|
489,274 |
|
Oil production (Mbbls) |
|
16 |
|
|
|
176 |
|
|
|
82 |
|
|
|
1,210 |
|
Total production (MMcfe) |
|
132,955 |
|
|
|
124,060 |
|
|
|
501,107 |
|
|
|
496,534 |
|
|
|
|
|
|
|
|
|
Natural gas sales |
$ |
740,320 |
|
|
$ |
641,985 |
|
|
$ |
3,117,094 |
|
|
$ |
1,775,768 |
|
Natural gas hedging
settlements (1) |
|
(183,677 |
) |
|
|
(272,891 |
) |
|
|
(862,715 |
) |
|
|
(411,798 |
) |
Total natural gas including hedging |
|
556,643 |
|
|
|
369,094 |
|
|
|
2,254,379 |
|
|
|
1,363,970 |
|
Oil sales |
|
1,273 |
|
|
|
13,391 |
|
|
|
7,597 |
|
|
|
74,962 |
|
Oil hedging settlements
(1) |
|
— |
|
|
|
(2,588 |
) |
|
|
— |
|
|
|
(8,077 |
) |
Total oil including hedging |
|
1,273 |
|
|
|
10,803 |
|
|
|
7,597 |
|
|
|
66,885 |
|
Total oil and gas sales including hedging |
$ |
557,916 |
|
|
$ |
379,897 |
|
|
$ |
2,261,976 |
|
|
$ |
1,430,855 |
|
|
|
|
|
|
|
|
|
Average gas price (per
Mcf) |
$ |
5.57 |
|
|
$ |
5.22 |
|
|
$ |
6.23 |
|
|
$ |
3.63 |
|
Average gas price including
hedging (per Mcf) |
$ |
4.19 |
|
|
$ |
3.00 |
|
|
$ |
4.50 |
|
|
$ |
2.79 |
|
Average oil price (per
barrel) |
$ |
79.56 |
|
|
$ |
76.09 |
|
|
$ |
92.65 |
|
|
$ |
61.95 |
|
Average oil price including
hedging (per barrel) |
$ |
79.56 |
|
|
$ |
61.38 |
|
|
$ |
92.65 |
|
|
$ |
55.28 |
|
Average price (per Mcfe) |
$ |
5.58 |
|
|
$ |
5.28 |
|
|
$ |
6.24 |
|
|
$ |
3.73 |
|
Average price including
hedging (per Mcfe) |
$ |
4.20 |
|
|
$ |
3.06 |
|
|
$ |
4.51 |
|
|
$ |
2.88 |
|
|
|
|
|
|
|
|
|
Production and ad valorem
taxes |
$ |
17,837 |
|
|
$ |
12,673 |
|
|
$ |
77,917 |
|
|
$ |
49,141 |
|
Gathering and
transportation |
|
41,882 |
|
|
|
34,344 |
|
|
|
155,679 |
|
|
|
130,940 |
|
Lease operating |
|
31,261 |
|
|
|
26,317 |
|
|
|
111,134 |
|
|
|
103,467 |
|
Cash general and
administrative (2) |
|
10,262 |
|
|
|
9,484 |
|
|
|
32,795 |
|
|
|
28,145 |
|
Total production costs |
$ |
101,242 |
|
|
$ |
82,818 |
|
|
$ |
377,525 |
|
|
$ |
311,693 |
|
|
|
|
|
|
|
|
|
Production and ad valorem
taxes (per Mcfe) |
$ |
0.12 |
|
|
$ |
0.10 |
|
|
$ |
0.16 |
|
|
$ |
0.10 |
|
Gathering and transportation
(per Mcfe) |
|
0.32 |
|
|
|
0.28 |
|
|
|
0.31 |
|
|
|
0.26 |
|
Lease operating (per
Mcfe) |
|
0.24 |
|
|
|
0.21 |
|
|
|
0.22 |
|
|
|
0.21 |
|
Cash general and
administrative (per Mcfe) |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.07 |
|
|
|
0.06 |
|
Total production costs (per Mcfe) |
$ |
0.76 |
|
|
$ |
0.67 |
|
|
$ |
0.76 |
|
|
$ |
0.63 |
|
|
|
|
|
|
|
|
|
Unhedged operating margin |
|
86 |
% |
|
|
87 |
% |
|
|
88 |
% |
|
|
83 |
% |
Hedged operating margin |
|
82 |
% |
|
|
78 |
% |
|
|
83 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
Oil and Gas Capital
Expenditures: |
|
|
|
|
|
|
|
Proved property acquisitions |
$ |
295 |
|
|
$ |
21,781 |
|
|
$ |
500 |
|
|
$ |
21,781 |
|
Unproved property acquisitions |
|
16,724 |
|
|
|
17,222 |
|
|
|
54,120 |
|
|
|
35,871 |
|
Total oil and gas properties acquisitions |
$ |
17,019 |
|
|
$ |
39,003 |
|
|
$ |
54,620 |
|
|
$ |
57,652 |
|
Exploration and Development: |
|
|
|
|
|
|
|
Development leasehold |
$ |
5,429 |
|
|
$ |
6,159 |
|
|
$ |
13,727 |
|
|
$ |
12,953 |
|
Exploratory drilling and completion |
|
14,517 |
|
|
|
6,966 |
|
|
|
63,520 |
|
|
|
6,966 |
|
Development drilling and completion |
|
281,653 |
|
|
|
114,617 |
|
|
|
901,026 |
|
|
|
569,141 |
|
Other development costs |
|
1,193 |
|
|
|
12,373 |
|
|
|
53,693 |
|
|
|
39,168 |
|
Total exploration and development capital expenditures |
$ |
302,792 |
|
|
$ |
140,115 |
|
|
$ |
1,031,966 |
|
|
$ |
628,228 |
|
(1) Included in gain (loss) from derivative
financial instruments in operating results.
(2) Excludes stock-based compensation.
COMSTOCK RESOURCES,
INC.NON-GAAP FINANCIAL
MEASURES(In thousands, except per share
amounts)
|
Three Months Ended December 31, |
|
Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
ADJUSTED NET INCOME
AVAILABLE TO COMMON STOCKHOLDERS: |
|
|
|
|
|
|
|
|
Net income (loss) available to common stockholders |
$ |
516,894 |
|
|
$ |
355,990 |
|
|
$ |
1,124,868 |
|
|
$ |
(259,225 |
) |
|
Unrealized (gain) loss from derivative financial instruments |
|
(302,809 |
) |
|
|
(469,830 |
) |
|
|
(200,193 |
) |
|
|
140,934 |
|
|
Non-cash interest amortization from adjusting debt assumed in
acquisition to fair value |
|
— |
|
|
|
2,659 |
|
|
|
4,174 |
|
|
|
12,621 |
|
|
(Gain) loss on sale of assets |
|
(319 |
) |
|
|
162,170 |
|
|
|
(340 |
) |
|
|
162,077 |
|
|
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
46,840 |
|
|
|
352,599 |
|
|
Exploration expense |
|
4,924 |
|
|
|
— |
|
|
|
8,287 |
|
|
|
— |
|
|
Adjustment to (provision for) benefit from income taxes |
|
68,970 |
|
|
|
47,777 |
|
|
|
39,011 |
|
|
|
(106,000 |
) |
|
Adjusted net income available to common stockholders (1) |
$ |
287,660 |
|
|
$ |
98,766 |
|
|
$ |
1,022,647 |
|
|
$ |
303,006 |
|
|
Adjusted net income available to common stockholders per share
(2) |
$ |
1.05 |
|
|
$ |
0.37 |
|
|
$ |
3.73 |
|
|
$ |
1.16 |
|
|
Diluted shares outstanding |
|
277,032 |
|
|
|
276,713 |
|
|
|
277,464 |
|
|
|
275,663 |
|
|
ADJUSTED
EBITDAX: |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
519,819 |
|
|
$ |
360,401 |
|
|
$ |
1,140,882 |
|
|
$ |
(241,725 |
) |
|
Interest expense (3) |
|
38,888 |
|
|
|
46,811 |
|
|
|
171,092 |
|
|
|
218,322 |
|
|
Income taxes |
|
81,451 |
|
|
|
85,571 |
|
|
|
261,061 |
|
|
|
11,403 |
|
|
Depreciation, depletion, and amortization |
|
134,456 |
|
|
|
110,075 |
|
|
|
489,450 |
|
|
|
469,388 |
|
|
Exploration |
|
4,924 |
|
|
|
— |
|
|
|
8,287 |
|
|
|
— |
|
|
Unrealized (gain) loss from derivative financial instruments |
|
(302,809 |
) |
|
|
(469,830 |
) |
|
|
(200,193 |
) |
|
|
140,934 |
|
|
Stock-based compensation |
|
1,692 |
|
|
|
1,508 |
|
|
|
6,610 |
|
|
|
6,799 |
|
|
Loss on early extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
46,840 |
|
|
|
352,599 |
|
|
(Gain) loss on sale of assets |
|
(319 |
) |
|
|
162,170 |
|
|
|
(340 |
) |
|
|
162,077 |
|
|
Total Adjusted EBITDAX (4) |
$ |
478,102 |
|
|
$ |
296,706 |
|
|
$ |
1,923,689 |
|
|
$ |
1,119,797 |
|
|
(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 December 31, |
|
Year EndedDecember 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
OPERATING CASH
FLOW(1): |
|
|
|
|
|
|
|
Net income (loss) |
$ |
519,819 |
|
|
$ |
360,401 |
|
|
$ |
1,140,882 |
|
|
$ |
(241,725 |
) |
Reconciling items: |
|
|
|
|
|
|
|
Unrealized (gain) loss from derivative financial instruments |
|
(302,809 |
) |
|
|
(469,830 |
) |
|
|
(200,193 |
) |
|
|
140,934 |
|
Deferred income taxes (benefit) |
|
79,928 |
|
|
|
81,377 |
|
|
|
228,317 |
|
|
|
(3,565 |
) |
Depreciation, depletion and amortization |
|
134,456 |
|
|
|
110,075 |
|
|
|
489,450 |
|
|
|
469,388 |
|
Loss on early retirement of debt |
|
— |
|
|
|
— |
|
|
|
46,840 |
|
|
|
352,599 |
|
Amortization of debt discount and issuance costs |
|
1,713 |
|
|
|
4,116 |
|
|
|
10,255 |
|
|
|
21,703 |
|
Stock-based compensation |
|
1,692 |
|
|
|
1,508 |
|
|
|
6,610 |
|
|
|
6,799 |
|
(Gain) loss on sale of assets |
|
(319 |
) |
|
|
162,170 |
|
|
|
(340 |
) |
|
|
162,077 |
|
Operating cash flow |
$ |
434,480 |
|
|
$ |
249,817 |
|
|
$ |
1,721,821 |
|
|
$ |
908,210 |
|
(Increase) decrease in accounts receivable |
|
117,211 |
|
|
|
(24,573 |
) |
|
|
(242,389 |
) |
|
|
(121,952 |
) |
Increase in other current assets |
|
(10,655 |
) |
|
|
(2,883 |
) |
|
|
(10,296 |
) |
|
|
(2,033 |
) |
Increase (decrease) in accounts payable and accrued expenses |
|
(72,704 |
) |
|
|
18,091 |
|
|
|
229,252 |
|
|
|
74,780 |
|
Net cash provided by operating activities |
$ |
468,332 |
|
|
$ |
240,452 |
|
|
$ |
1,698,388 |
|
|
$ |
859,005 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, |
|
Year EndedDecember 31, |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
FREE CASH
FLOW(2): |
|
|
|
|
|
|
|
Operating cash flow |
$ |
434,480 |
|
|
$ |
249,817 |
|
|
$ |
1,721,821 |
|
|
$ |
908,210 |
|
Less: |
|
|
|
|
|
|
|
Preferred stock dividends |
|
(2,925 |
) |
|
|
(4,411 |
) |
|
|
(16,014 |
) |
|
|
(17,500 |
) |
Exploration and development capital expenditures |
|
(302,792 |
) |
|
|
(140,115 |
) |
|
|
(1,031,966 |
) |
|
|
(628,228 |
) |
Other capital expenditures |
|
(147 |
) |
|
|
(123 |
) |
|
|
(803 |
) |
|
|
(192 |
) |
Free cash flow from operations |
$ |
128,616 |
|
|
$ |
105,168 |
|
|
$ |
673,038 |
|
|
$ |
262,290 |
|
Acquisitions of proved and unproved properties |
|
(17,019 |
) |
|
|
(39,003 |
) |
|
|
(54,620 |
) |
|
|
(57,652 |
) |
Other assets acquisitions |
|
(1,025 |
) |
|
|
— |
|
|
|
(17,973 |
) |
|
|
— |
|
Proceeds from divestitures |
|
4,093 |
|
|
|
138,133 |
|
|
|
4,186 |
|
|
|
138,394 |
|
Free cash flow after acquisition and divestiture activity |
$ |
114,665 |
|
|
$ |
204,298 |
|
|
$ |
604,631 |
|
|
$ |
343,032 |
|
|
|
|
|
|
|
|
|
(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, debt maturities and dividends after
exploration and development capital expenditures, preferred
dividend payments, proved and unproved property acquisitions and
proceeds from divestiture of oil and gas properties.
Ron Mills
VP of Finance and Investor Relations
Comstock Resources
972-668-8834
rmills@comstockresources.com
Comstock Resources (NYSE:CRK)
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