This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Comstock Resources' CEO Discusses Q3 2011 Results - Earnings Call Transcript

Please refer to Slide 2 in our presentations. And note that our discussions today will include forward-looking statements within the meaning of securities laws. While we believe the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct.

If you'll turn to Page 3 of the presentation, this is the 2011 third quarter highlights. Please refer to Page 3 of the presentation where we will summarize the third quarter results. We have improved our financial results this year despite weak natural gas prices by increasing production and lowering our operating cost. We reported revenues of $119 million, generated EBITDAX of $94 million and had operating cash flow of $86 million or $1.79 per share. The gain we recognized from selling some of our Stone Energy shares allowed us to make a slight profit this quarter of $1.3 million or $0.03 per share.

Our production increased 53% over the third quarter of last year and 8% over our strong second quarter. The Haynesville program is driving the production gains this year, as we have caught up on completions of wells we drilled in 2010, but were not completed due to the lack of frac services. We're very pleased with the results of our 2011 drilling program. This year, we drilled 67 successful wells, including 51 Haynesville shale wells and 12 Eagle Ford shale wells.

In the Eagle Ford, we have probed up our acreage in this oil-rich play and have increased our holdings to 28,000 net acres. Our dedicated completion crew started working in south Texas in the third quarter. We put 4 new Eagle Ford wells on production and are currently completing 5 more.

Our balance sheet continues to be very strong. We continue to have good liquidity and currently, have approximately $460 million in cash or marketable securities available borrowings on our credit facility. We will also talk about our preliminary plans for 2012 on this call, when we plan to fund our drilling program with operating cash flow to protect our strong balance sheet.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs