Comstock Resources (CRK) Q4 Earnings Top On Ramped-Up Output
Zacks Investment Research | Mar 04, 2020 09:04PM ET
Comstock Resources, Inc. (NYSE:CRK) delivered fourth-quarter 2019 adjusted net income per share of 22 cents, ahead of the Zacks Consensus Estimate of 18 cents, attributable to strong production. However, the figure declined 37.1% from the year-ago adjusted net income per share of 35 cents due to lower commodity price realizations.
Total revenues of $289.25 million came below the Zacks Consensus Estimate of $298 million. The top line, however, soared 88.43% year over year.
Production & Realized Prices
Production of oil and natural gas averaged 125 billion cubic feet equivalent (Bcfe), up 247.3% from the year-ago level as the company’s successful Haynesville shale drilling program continues to yield returns. Natural gas output accounted for approximately 97% of the company’s total production compared with almost 86% in the year-earlier quarter, primarily owing to the Covey Park acquisition.
On third-quarter earnings call, Comstock announced its acquisition of a privately-held company with Haynesville shale properties, which was made on Nov 1. Located in DeSoto Parish, LA, the acquired acreage consists of 3,000 net acres alongside 12.7 net future drilling locations. Per the deal, Comstock issued 4,500,000 shares of common stock in connection with the all-stock transaction. According to the company, the acquired oil and gas reserves are anticipated to have a capacity of 89 Bcfe.
The average realized crude oil price in the quarter under review was $50.36 per barrel, down 7.1% from the year-ago realization of $54.21. The average realized natural gas price was $2.14 per thousand cubic feet compared with $3.49 in the same period last year.
Comstock Resources, Inc. Price, Consensus and EPS Surprise
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