CRK Tops on Higher Volumes, Prices – Analyst Blog

Filed in Debt, earnings, silver by on May 12, 2010 0 Comments

Oil and natural gas firm Comstock Resources Inc . ( CRK ) reported strong first quarter results backed by a rise in production volumes and higher commodity price realizations. Earnings per share came in at 16 cents, higher than the Zacks Consensus Estimate of 11 cents. In the year-ago period, the Texas-based company lost 12 cents. Oil and gas sales were up 55.2% year-over-year to $106.1 million. Volume Growth The company’s operational performance during the quarter continued to reflect the success of its enhanced onshore drilling programs and property acquisitions, resulting in a quarterly volume growth of 33.8% year-over-year to 18.8 billion cubic feet equivalent (Bcfe), of which 94% was natural gas. Production in the East Texas/North Louisiana operating region increased 74.7% to 13.2 Bcfe, while production from the South Texas properties came in at 4.4 Bcfe, an approximately 16.3% decrease from the year-earlier level. Price Realizations Up Average price realization per thousand cubic feet equivalent (Mcfe) was $5.63, up 16.1% from the year-ago quarter. Average oil price realization was $67.08 per barrel and average natural gas realization was $5.30 per Mcf, compared to $35.03 per barrel and $4.75 per Mcf, respectively, in the year-earlier quarter. Costs & Expenses Oil and gas operating costs were up 20.1% from the first quarter of 2009 to $20.4 million, while overall operating expenses increased 22.7% year-over-year to $90.9 million. Cash Flow & EBITDAX Comstock generated an operating cash flow from continuing operations of $71.7 million, an increase of 60.2% from the year-earlier period. Quarterly EBITDAX (earnings before interest, taxes, depreciation, depletion, amortization, exploration expense, and other non-cash expenses) increased 77.2% year-over-year to $80.3 million. Capital Expenditure & Balance Sheet During the first quarter of 2010, Comstock spent $93.7 million on its exploration and development activities. As of Mar 31, 2010, Comstock had approximately $122.2 million in cash and cash equivalents and $471.0 million in long-term debt. Debt-to-capitalization at the end of the quarter was 30.4%. Read the full analyst report on “CRK” Zacks Investment Research

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CRK Tops on Higher Volumes, Prices – Analyst Blog

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