THIRD QUARTER 2017 FINANCIAL AND OPERATING RESULTS
FRISCO, TEXAS, November 2, 2017 - Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE:CRK) today reported financial and operating results for the three months and nine months ended September 30, 2017.
Financial Results for the Three Months Ended September 30, 2017
Comstock produced 20.0 billion cubic feet of natural gas and 229,000 barrels of oil or 21.4 billion cubic feet of natural gas equivalent ("Bcfe") in the third quarter of 2017. Natural gas production averaged 217.3 million cubic feet ("MMcf") per day, reflecting growth of 51% from pro forma natural gas production in the third quarter of 2016 (excluding the divestitures completed in 2016). Natural gas production in the quarter also increased 14% from the second quarter of 2017. The growth in natural gas production is being driven by Comstock's successful Haynesville shale drilling program. Oil production in the third quarter of 2017, which averaged 2,491 barrels of oil per day, declined by 28% from the 3,482 barrels per day produced in the third quarter of 2016. The decrease in oil production was the result of the lack of drilling in the Company's South Texas Eagle Ford shale properties.
Oil and natural gas prices improved in the third quarter of 2017. Comstock's average realized natural gas price, including hedging gains, increased 14% to $2.98 per Mcf in the third quarter of 2017 as compared to $2.62 per Mcf realized in the third quarter of 2016. The Company's average realized oil price increased by 10% to $46.45 per barrel in the third quarter of 2017 as compared to $42.07 per barrel in the third quarter of 2016. The higher realized prices and the growth in natural gas production caused oil and gas sales to increase by 40% in the third quarter of 2017 to $70.3 million (including realized hedging gains) as compared to 2016's third quarter sales of $50.3 million. EBITDAX, or earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other noncash expenses, was $50.3 million in the third quarter of 2017, an increase of 69% over EBITDAX of $29.7 million generated in the third quarter of 2016. Operating cash flow generated in the third quarter of 2017 was $32.2 million as compared to operating cash flow of $4.9 million in the third quarter of 2016.
Comstock reported a net loss of $24.7 million or $1.67 per share for the third quarter of 2017 as compared to a net loss of $28.5 million or $2.32 per share for the third quarter of 2016. The third quarter 2017 results include an unrealized loss from derivative financial instruments of $2.0 million, loss on sale of oil and gas properties of $1.0 million and $9.9 million of non-cash interest expense associated with the discounts recognized and costs incurred on the debt exchange that occurred in 2016. Financial results for the third quarter of 2016 included impairments on oil and gas properties and undeveloped leases of $76.5 million, a net loss on the sale of oil and gas properties of $13.2 million, a net gain on debt extinguishment of $97.5 million related to the debt exchange and an income tax benefit to reflect a change in state law of $0.8 million. Excluding these items from each year's results, the net loss for the third quarter of 2017 would have been $11.8 million or $0.80 per share as compared to a net loss of $37.1 million or $3.02 per share in the third quarter of 2016.
Comstock produced 51.3 billion cubic feet of natural gas and 737,000 barrels of oil or 55.7 billion cubic feet of natural gas equivalent in the first nine months of 2017 compared to 41.4 Bcf of natural gas and 1.1 million barrels of oil or 48.0 Bcfe in the first nine months of 2016. Natural gas production averaged 187.9 million cubic feet per day in the first nine months of 2017, an increase of 33% over pro forma 2016 natural gas production, excluding the divestitures completed in 2016. Oil production in the first nine months of 2017 declined by 33% from the first nine months of 2016.
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