This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Comstock Resources' CEO Discusses Q4 2011 Results - Earnings Call Transcript

Stocks in this article: CRK

We had very strong results in our 2011 drilling program. We drilled 87 successful wells including 62 Haynesville shale wells and 20 Eagle Ford shale wells. The drilling program was one of the drivers of our 25% growth in proved reserves that we achieved in 2011. It added 228 Bcfe of new reserves and increased our proved developed reserves by 170 Bcfe.

We ended 2011 by closing an acquisition that established a new core area in the oil-rich Permian basin. As we have shifted most of our resources this year to growing our oil production, this acquisition gives us a low-risk vertical drilling program to complement our successful Eagle Ford shale program in South Texas. We also think we're very well positioned to be a significant player in the emerging horizontal Wolfcamp shale in the Permian basin.

I will turn it over to Roland to review the financial results for this quarter in more detail. Roland?

Roland O. Burns

Thanks, Jay.

On Slide 4, we show our oil and gas production on a daily basis the last 4 years and we also separate it by operating region. Production from the Haynesville shale program on the chart is shown in blue and now we're showing the contribution from our Eagle Ford program in yellow. In the fourth quarter of this year, our production averaged 277 million cubic feet of natural gas equivalent per day, 48% increase over the fourth quarter of last year but about 3% lower than production in the third quarter of this year. Oil production of 3,800 barrels per day in the fourth quarter was up 78% from the third quarter. And oil now makes up 8% of our total production, as compared to only 4% in the previous 3 quarters.

Eagle Ford averaged 20 million per day in the fourth quarter, as compared to about only 9 million a day in the third quarter of this year. On December 31, we estimate that oil made up 16% of total production, which we put in the press release, when taking into account the Permian properties that we closed on, on December 29.

3 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs