COMSTOCK RESOURCES, INC. NYSE:CRK
1st Quarter 2021 Results
MAY 4, 2021
Disclaimer
This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. These statements include estimates of future natural gas and oil reserves, expected natural gas and oil production and future expenses, assumptions regarding future natural gas and oil prices, budgeted capital expenditures and other anticipated cash outflows, as well as statements concerning anticipated cash flow and liquidity, business strategy and other plans and objectives for future operations.
Our production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity.
Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in market prices for oil and gas, operating risks, liquidity risks, including risks relating to our debt, political and regulatory developments and legislation, and other risk factors and known trends and uncertainties as described in our Annual Report on Form 10-K for fiscal year 2020 and as updated and supplemented in our Quarterly Reports on Form 10-Q, in each case as filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, our actual results and plans could differ materially from those expressed in the forward-looking statements.
Reserve engineering is a process of estimating underground accumulations of hydrocarbons that cannot be measured in an exact way. The accuracy of any reserve estimate depends on the quality of available data, the interpretation of such data and price and cost assumptions made by reserve engineers. In addition, the results of drilling, testing and production activities may justify revisions of estimates that were made previously. If significant, such revisions could impact Comstock's strategy and change the schedule of any further production and development drilling. Accordingly, reserve estimates may differ significantly from the quantities of oil and natural gas that are ultimately recovered. These quantities do not necessarily constitute or represent reserves as defined by the Securities and Exchange Commission and are not intended to be representative of all anticipated future well results.
Comstock owns or has rights to various trademarks, service marks and trade names that we use in connection with the operation of our business. This presentation also contains trademarks, service marks and trade names of third parties, which are the property of their respective owners. The use or display of third parties' trademarks, service marks, trade names or products in this presentation is not intended to, and does not imply, a relationship with, an endorsement or sponsorship by or of Comstock. Solely for convenience, the trademarks, service marks and trade names referred to in this presentation may appear without the ®. TM or SM symbols, but such references are not intended to indicate, in any way, that Comstock will not assert, to the fullest extend under applicable law, their rights or the right of the applicable licensor to these trademarks, service marks and trade names.
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1st Quarter 2021 Highlights
- Adjusted net income was $63 million for the quarter or 25¢ per diluted share
- Production averaged 1,281 Mmcfe per day (98% natural gas), a 6% increase over 2020's fourth quarter
- Average realized price, including hedging, was $2.88 per Mcfe compared to $2.16 per Mcfe in 2020's first quarter
- Revenues(1) were $332 million, 22% higher than 2020's first quarter
- EBITDAX was $262 million, 30% higher than 2020's first quarter
- Operating cash flow(2) was $207 million or 75¢ per diluted share
- All-infirst quarter capital spending was $169 million, including $6 million for leasing activities
- Free cash flow after preferred dividends was $33 million in the quarter
- In March, we refinanced approximately $1,152 million of senior notes which saves us $19.5 million in cash interest payments per year and extends our senior notes weighted average maturity from 4.9 years to 6.7 years
- In April, our $1.4 billion borrowing base was reaffirmed by our bank group
- including realized hedging gains and losses
- excluding working capital changes
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Senior Notes Issuance and Tender Offer
Sources & uses
Sources
($ in millions) | |
Senior Notes Issuance | $1,258 |
Cash from Balance Sheet | 13 |
Total Sources | $1,271 |
Uses | |
($ in millions) | |
Repurchase 7.50% Senior Notes due 2025 | $393 |
Repurchase 9.75% Senior Notes due 2026 | 857 |
Offering and Tender Expenses | 21 |
Total Uses | $1,271 |
•Weighted average maturity increases from 4.9 years to 6.7 years
•Lowers annual interest expense by $44.3 million
•Lowers annual cash interest by $19.5 million
Capitalization
As of | As of | |||
($ in millions) | Dec. 31, 2020 | Mar. 31, 2021 | ||
Cash and Cash Equivalents | $30 | $77 | ||
Revolving Credit Facility | $500 | $550 | ||
Secured Debt | $500 | $550 | ||
7.50% Senior Notes due 2025 | $619 | $244 | ||
9.75% Senior Notes due 2026 | 1,650 | 873 | ||
6.75% Senior Notes due 2029 | - | 1,250 | ||
Total Debt | $2,769 | $2,917 | ||
Preferred Equity (at face value) | $175 | $175 | ||
Common Equity | 1,267 | 1,130 | ||
Total Capitalization | $4,211 | $4,222 | ||
Annualized EBITDAX for Quarter (1) | $843 | $1,048 | ||
Credit Statistics | ||||
Secured Debt / Annualized EBITDAX (1) | 0.6x | 0.5x | ||
Total Net Debt / Annualized EBITDAX (1) | 3.2x | 2.7x | ||
Liquidity Analysis | ||||
Cash & Cash Equivalents | $30 | $77 | ||
Revolving Credit Facility Borrowing Base | 1,400 | 1,400 | ||
Less Revolving Credit Facility Outstanding | 500 | 550 | ||
Liquidity | $930 | $927 | ||
- EBITDAX is a non-GAAP financial measure. Please see Appendix for a reconciliation to the most directly comparable GAAP financial measure.
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Q1 2021 Financial Results
$ in millions except per share and unit amounts | ||||||||||||
2020 Q1 | 2021 Q1 | |||||||||||
Oil Production (Mbbls) | 454 | 326 | -28% | |||||||||
Gas Production (MMcf) | 122,786 | 113,293 | -8% | |||||||||
Production (MMcfe) | 125,513 | 115,246 | -8% | |||||||||
Oil Price (Per Barrel) | $46.31 | $47.87 | 3% | |||||||||
Gas Price (Per Mcf) | $2.04 | $2.79 | 37% | |||||||||
Oil and Gas Sales (1) | $271.3 | $332.1 | 22% | |||||||||
Lifting Costs | 62.7 | 63.7 | 2% | |||||||||
General and Administrative | 8.7 | 8.0 | -8% | |||||||||
Depreciation, Depletion and Amort. | 110.5 | 109.1 | -1% | |||||||||
Operating Income before Taxes (1) | ||||||||||||
$ | 89.4 | $ | 151.3 | 69% | ||||||||
Reported Net Income (Loss) | $30.0 | ($138.4) | ||||||||||
Loss on Early Extinguishment of Debt | - | 238.5 | ||||||||||
Unrealized Losses (Gains) from Hedging | (16.5) | 13.1 | ||||||||||
Interest Amortization on Senior Notes Valuation | 5.3 | 4.9 | ||||||||||
Loss (Gain) on Asset Sales | - | (0.1) | ||||||||||
Non-Cash Preferred Stock Accretion | 2.5 | - | ||||||||||
Adjustment to Income Taxes | 2.4 | (54.8) | ||||||||||
Adjusted Net Income | ||||||||||||
$ | 23.6 | $63.3 | ||||||||||
Adjusted Net Income per Diluted Share | ||||||||||||
$ | 0.12 | $ | 0.25 | |||||||||
Adjusted EBITDAX (2) | ||||||||||||
$ | 201.6 | $ | 262.1 | 30% | ||||||||
Cash Flow from Operations (3) | ||||||||||||
$ | 156.0 | $ | 206.6 | 32% |
- Includes Realized Hedging Gains and Losses
- Excludes Stock-based Compensation
- Excludes Working Capital Changes
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Comstock Resources Inc. published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 20:24:08 UTC.
