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Comstock Ramps Up Drilling +85% YOY in Q1; Spending Nearly Doubled

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Comstock Resources reported its Q1 2019 results.

Q1 Summary

- Well Activity (gross): Drilled 13 wells - up +86%

• Haynesville: 11 wells drilled

• Eagle Ford: 2 wells drilled
  

- Q1 D&C Spending: $92.5 million - up +99% YOY

- Q1 Production: Total equivalent production averaged 38 Bcfe - up +67% from Q1 2018

• The Company's natural gas production averaged 368 MMcf/d, an increase of 53% YOY

Drilling

Comstock reported the results to date of its 2019 Haynesville/Bossier shale drilling program.  During the first three months of 2019, Comstock spent $92.5 million on its development activities.  Comstock spent $82.6 million on drilling and completing Haynesville shale wells.  Comstock also spent $5.6 million drilling two (1.1 net) Eagle Ford shale oil wells and an additional $4.3 million primarily on leases and other development activity.  Comstock drilled 11 (8.4 net) horizontal Haynesville/Bossier shale wells during the first three months of 2019, which had an average lateral length of approximately 7,600 feet.  Comstock also completed 17 (5.2 net) wells that were drilled in 2018.  Two (1.6 net) of the wells drilled in the first three months of 2019 were also completed.  Comstock expects to connect 12 (7.8 net) Haynesville wells to sales in the second quarter.

Since the last operational update, Comstock reported on six new Haynesville shale wells.  The average initial production rate of these wells was 26 MMcf per day. The wells had completed lateral lengths ranging from 9,646 feet to 9,913 feet, with an average completed lateral length of 9,799 feet.  Each well was tested at initial production rates of 21 to 30 MMcf per day.  Comstock currently has eight (7.0 net) operated Haynesville shale wells that are in the process of being completed.

With lower drilling and completion contracted rates from its major service providers beginning in April, Comstock announced that it is reducing its 2019 drilling and completion budget to $318 million for its Haynesville/Bossier shale drilling program.  Activity planned for 2019 includes completing 19 (5.2 net) wells drilled in 2018 and drilling 52 (34.6 net) wells in 2019.  Comstock will also spend $27 million in 2019 on its oil properties.