þ
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
|
|
|
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
|
NEVADA
(State
or other jurisdiction of
|
94-1667468
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
Number)
|
Yes
þ
|
No
o
|
Large
accelerated filer þ
|
Accelerated
filer o
|
Non-accelerated
filer
o
|
Yes
o
|
No
þ
|
Page
|
|
||
PART
I. Financial Information
|
|||
Item
1. Financial Statements (Unaudited):
|
|||
|
|||
Consolidated
Balance Sheets -
September
30, 2007 and December
31, 2006
|
4
|
||
Consolidated
Statements of Operations -
Three
months and nine months
ended September 30, 2007 and 2006
|
5
|
||
Consolidated
Statement of Stockholders' Equity -
Nine
months ended September 30,
2007
|
6
|
||
Consolidated
Statements of Cash Flows -
Nine
months ended September 30,
2007 and 2006
|
7
|
||
Notes
to Consolidated Financial
Statements
|
8
|
||
Independent
Accountants' Review
Report
|
23
|
||
Item
2. Management's Discussion
and Analysis of Financial Condition and Results of
Operations
|
24
|
||
Item
3. Quantitative and
Qualitative Disclosure About Market Risk
|
30
|
||
Item
4. Controls and
Procedures
|
31
|
||
32
|
|||
Awareness
Letter of Ernst & Young LLP
|
|||
Section
302 Certification of the Chief Executive Officer
|
|||
Section
302 Certification of the Chief Financial Officer
|
|||
Certification
for the Chief Executive Officer as required by Section 906
|
|||
Certification
for the Chief Financial Officer as required by Section 906
|
September
30,
|
December
31,
|
||||||||
2007
|
2006
|
||||||||
ASSETS
|
|||||||||
(In
thousands)
|
|||||||||
Cash
and Cash
Equivalents
|
$
|
17,032
|
$
|
10,715
|
|||||
Accounts
Receivable:
|
|||||||||
Oil
and gas
sales
|
59,384
|
56,328
|
|||||||
Joint
interest
operations
|
17,407
|
19,233
|
|||||||
Other
Current
Assets
|
17,066
|
12,552
|
|||||||
Total
current
assets
|
110,889
|
98,828
|
|||||||
Property
and Equipment:
|
|||||||||
Unevaluated
oil and gas
properties
|
14,024
|
13,645
|
|||||||
Oil
and gas properties, successful efforts method
|
2,913,019
|
2,511,782
|
|||||||
Other
property and
equipment
|
9,552
|
8,483
|
|||||||
Accumulated
depreciation, depletion and amortization
|
(915,859
|
)
|
(760,284
|
)
|
|||||
Net
property and
equipment
|
2,020,736
|
1,773,626
|
|||||||
Other
Assets
|
4,734
|
5,671
|
|||||||
$
|
2,136,359
|
$
|
1,878,125
|
||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Short-term
Debt
|
$
|
5,176
|
$
|
3,250
|
||||
Accounts
Payable
|
116,300
|
132,504
|
||||||
Accrued
Expenses
|
11,402
|
16,107
|
||||||
Total
current
liabilities
|
132,878
|
151,861
|
||||||
Long-term
Debt
|
597,000
|
455,000
|
||||||
Deferred
Income Taxes
Payable
|
356,050
|
311,236
|
||||||
Reserve
for Future Abandonment
Costs
|
60,436
|
57,116
|
||||||
Minority
Interest in Bois d'Arc
Energy
|
251,443
|
220,349
|
||||||
Total
liabilities
|
1,397,807
|
1,195,562
|
||||||
Commitments
and Contingencies
|
||||||||
Stockholders'
Equity:
|
||||||||
Common
stock – $0.50 par, 50,000,000 shares authorized, 44,432,345 and
44,395,495
shares
outstanding at September 30, 2007 and December 31, 2006,
respectively
|
22,216
|
22,197
|
||||||
Additional
paid-in
capital
|
376,090
|
367,323
|
||||||
Retained
earnings
|
340,246
|
293,043
|
||||||
Total
stockholders'
equity
|
738,552
|
682,563
|
||||||
$
|
2,136,359
|
$
|
1,878,125
|
|||||
|
Three
Months Ended
September 30, |
Nine
Months Ended
September 30, |
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||
Oil
and gas sales
|
$
|
171,074
|
$
|
129,251
|
$
|
491,309
|
$
|
385,153
|
||||||||
Operating
expenses:
|
||||||||||||||||
Oil
and gas operating
|
34,005
|
26,904
|
91,268
|
78,220
|
||||||||||||
Exploration
|
5,710
|
8,069
|
36,709
|
16,662
|
||||||||||||
Depreciation,
depletion and amortization
|
62,420
|
40,709
|
178,887
|
104,457
|
||||||||||||
Impairment
|
826
|
1,389
|
826
|
10,169
|
||||||||||||
General
and administrative, net
|
8,676
|
7,370
|
26,540
|
22,738
|
||||||||||||
Total
operating expenses
|
111,637
|
84,441
|
334,230
|
232,246
|
||||||||||||
Income
from operations
|
59,437
|
44,810
|
157,079
|
152,907
|
||||||||||||
Other
income (expenses):
|
||||||||||||||||
Interest
income
|
410
|
258
|
1,041
|
724
|
||||||||||||
Other
income
|
154
|
187
|
505
|
616
|
||||||||||||
Interest
expense
|
(11,225
|
)
|
(6,733
|
)
|
(29,880
|
)
|
(18,322
|
)
|
||||||||
Gain
on derivatives
|
—
|
1,180
|
—
|
10,608
|
||||||||||||
Total
other income (expenses)
|
(10,661
|
)
|
(5,108
|
)
|
(28,334
|
)
|
(6,374
|
)
|
||||||||
Income
before income taxes and minority interest
|
48,776
|
39,702
|
128,745
|
146,533
|
||||||||||||
Provision
for income taxes
|
(21,570
|
)
|
(16,662
|
)
|
(55,955
|
)
|
(61,847
|
)
|
||||||||
Minority
interest in earnings of Bois d'Arc Energy
|
(10,778
|
)
|
(6,004
|
)
|
(25,587
|
)
|
(22,433
|
)
|
||||||||
Net
income
|
$
|
16,428
|
$
|
17,036
|
$
|
47,203
|
$
|
62,253
|
||||||||
Net
income per share:
|
||||||||||||||||
Basic
|
$
|
0.38
|
$
|
0.40
|
$
|
1.09
|
$
|
1.48
|
||||||||
Diluted
|
$
|
0.37
|
$
|
0.39
|
$
|
1.05
|
$
|
1.42
|
||||||||
Weighted
average common and common stock equivalent
shares outstanding:
|
||||||||||||||||
Basic
|
43,379
|
42,243
|
43,372
|
42,128
|
||||||||||||
Diluted
|
44,434
|
43,553
|
44,345
|
43,505
|
Common
Stock
(Shares)
|
Common
Stock
– Par Value |
Additional
Paid-in
Capital
|
Retained
Earnings |
Total
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Balance
at January 1, 2007
|
44,395
|
$
|
22,197
|
$
|
367,323
|
$
|
293,043
|
$
|
682,563
|
|||||||||||
Exercise
of stock options
|
19
|
10
|
269
|
—
|
279
|
|||||||||||||||
Stock-based
compensation
|
18
|
9
|
7,896
|
—
|
7,905
|
|||||||||||||||
Excess
tax benefit from stock-based compensation
|
—
|
—
|
602
|
—
|
602
|
|||||||||||||||
Net
income
|
—
|
—
|
—
|
47,203
|
47,203
|
|||||||||||||||
Balance
at September 30, 2007
|
44,432
|
$
|
22,216
|
$
|
376,090
|
$
|
340,246
|
$
|
738,552
|
|||||||||||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income
|
$
|
47,203
|
$
|
62,253
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||
Deferred
income taxes
|
45,942
|
55,078
|
||||||
Dry
hole costs and leasehold impairments
|
31,442
|
13,246
|
||||||
Depreciation,
depletion and amortization
|
178,887
|
104,457
|
||||||
Impairment
|
826
|
10,169
|
||||||
Debt
issuance cost amortization
|
854
|
878
|
||||||
Stock-based
compensation
|
12,910
|
9,834
|
||||||
Excess
tax benefit from stock-based compensation
|
(602
|
)
|
(922
|
)
|
||||
Minority
interest in earnings of Bois d'Arc Energy
|
25,587
|
22,433
|
||||||
Gain
on derivatives
|
—
|
(10,608
|
)
|
|||||
(Increase)
decrease in accounts receivable
|
(1,230
|
)
|
10,774
|
|||||
Increase
in other current assets
|
(2,588
|
)
|
(139
|
)
|
||||
Decrease
in accounts payable and accrued expenses
|
(14,346
|
)
|
(3,153
|
)
|
||||
Net
cash provided by operating activities
|
324,885
|
274,300
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Capital
expenditures
|
(461,824
|
)
|
(404,295
|
)
|
||||
Payments
to settle derivatives
|
—
|
(703
|
)
|
|||||
Net
cash used for investing activities
|
(461,824
|
)
|
(404,998
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Borrowings
|
174,000
|
182,000
|
||||||
Principal
payments on debt
|
(32,000
|
)
|
(39,000
|
)
|
||||
Proceeds
from issuance of common stock
|
789
|
1,756
|
||||||
Excess
tax benefit from stock-based compensation
|
602
|
922
|
||||||
Debt
issuance costs
|
(135
|
)
|
(28
|
)
|
||||
Net
cash provided by financing activities
|
143,256
|
145,650
|
||||||
Net
increase in cash and cash equivalents
|
6,317
|
14,952
|
||||||
Cash
and cash equivalents, beginning of period
|
10,715
|
89
|
||||||
Bois
d'Arc Energy cash and equivalents as of January 1, 2006
|
—
|
12,043
|
||||||
Cash
and cash equivalents, end of period
|
$
|
17,032
|
$
|
27,084
|
||||
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Beginning
asset retirement
obligations
|
$
|
57,116
|
$
|
3,206
|
||||
Bois
d'Arc abandonment
liability(1)
|
—
|
35,034
|
||||||
Accretion
expense
|
2,702
|
1,849
|
||||||
Acquisition
liabilities
assumed
|
94
|
3,314
|
||||||
New
wells placed on production and changes in estimates
|
1,279
|
953
|
||||||
Liabilities
settled
|
(755
|
)
|
(23
|
)
|
||||
Future
abandonment liability — end of period
|
$
|
60,436
|
$
|
44,333
|
(1) |
Concurrent
with including Bois d'Arc Energy as a consolidated subsidiary as
of
January 1, 2006, the asset retirement obligations of Bois d'Arc Energy
are
included in the Company's financial
statements.
|
|
Stock-Based
Compensation
|
Three
Months Ended
|
Nine
Months Ended
|
||||||||||||||
September
30,
|
September
30,
|
||||||||||||||
2007
|
2006
|
2007
|
2006
|
||||||||||||
Tax
at statutory
rate
|
35.0%
|
35.0%
|
35.0%
|
35.0%
|
|||||||||||
Tax
effect of:
|
|||||||||||||||
Undistributed
earnings of Bois d'Arc Energy, not consolidated for federal income
tax
purposes
|
7.5%
|
4.9%
|
6.8%
|
5.0%
|
|||||||||||
Nondeductible
stock-based compensation
|
1.7%
|
2.0%
|
2.0%
|
1.7%
|
|||||||||||
Changes
due to tax law changes
|
—%
|
—%
|
(0.6%
|
)
|
0.7%
|
||||||||||
State
income taxes, net of federal benefit
|
0.9%
|
(0.4%
|
)
|
0.9%
|
—%
|
||||||||||
Other
|
(0.9%
|
)
|
0.5%
|
(0.6%
|
)
|
(0.2%
|
)
|
||||||||
Effective
tax
rate
|
44.2%
|
42.0%
|
43.5%
|
42.2%
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands)
|
||||||||||||||||
Current
provision
|
$
|
4,322
|
$
|
1,599
|
$
|
10,013
|
$
|
6,769
|
||||||||
Deferred
provision
|
17,248
|
15,063
|
45,942
|
55,078
|
||||||||||||
Provision
for Income Taxes
|
$
|
21,570
|
$
|
16,662
|
$
|
55,955
|
$
|
61,847
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Per
|
Per
|
|||||||||||||||||||||||
Income
|
Shares
|
Share
|
Income
|
Shares
|
Share
|
|||||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||
Basic
Earnings Per Share:
|
||||||||||||||||||||||||
Net
Income
|
$
|
16,428
|
43,379
|
$
|
0.38
|
$
|
17,036
|
|
42,243
|
$
|
0.40
|
|||||||||||||
Diluted
Earnings Per Share:
|
||||||||||||||||||||||||
Net
Income
|
$
|
16,428
|
43,379
|
$
|
17,036
|
42,243
|
||||||||||||||||||
Effect
of Dilutive
Securities:
|
||||||||||||||||||||||||
Stock
Grants and
Options
|
(186
|
)
|
1,055
|
(88
|
)
|
1,310
|
||||||||||||||||||
Net
Income Available to Common Stockholders With Assumed
Conversions
|
$
|
16,242
|
44,434
|
$
|
0.37
|
$
|
16,948
|
43,553
|
$
|
0.39
|
Nine
Months Ended September 30,
|
||||||||||||||||||||||||
2007
|
2006
|
|||||||||||||||||||||||
Per
|
Per
|
|||||||||||||||||||||||
Income
|
Shares
|
Share
|
Income
|
Shares
|
Share
|
|||||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||||||
Basic
Earnings Per Share:
|
||||||||||||||||||||||||
Net
Income
|
$
|
47,203
|
43,372
|
$
|
1.09
|
$
|
62,253
|
|
42,128
|
$
|
1.48
|
|||||||||||||
Diluted
Earnings Per Share:
|
||||||||||||||||||||||||
Net
Income
|
$
|
47,203
|
43,372
|
$
|
62,253
|
42,128
|
||||||||||||||||||
Effect
of Dilutive
Securities:
|
||||||||||||||||||||||||
Stock
Grants and
Options
|
(441
|
)
|
973
|
(394
|
)
|
1,377
|
||||||||||||||||||
Net
Income Available to Common Stockholders With Assumed
Conversions
|
$
|
46,762
|
44,345
|
$
|
1.05
|
$
|
61,859
|
43,505
|
$
|
1.42
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
September
30,
|
September
30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
(In
thousands except per share data)
|
||||||||||||||||
Weighted
average anti-dilutive stock options
|
267
|
132
|
249
|
113
|
||||||||||||
Weighted
average exercise price
|
$
|
32.32
|
$
|
32.48
|
$
|
32.52
|
$
|
32.49
|
||||||||
12
|
Nine
Months Ended
|
||||||||
September
30,
|
||||||||
2007
|
2006
|
|||||||
(In
thousands)
|
||||||||
Cash
Payments -
|
||||||||
Interest
payments
|
$
|
32,448
|
$
|
21,017
|
||||
Income
tax payments
|
$
|
9,978
|
$
|
7,105
|
(In
thousands)
|
||||
Comstock
Revolving Bank Credit Facility
|
$
|
322,000
|
||
Bois d'Arc Energy Revolving Bank Credit Facility | 100,000 | |||
Comstock 6⅞% Senior Notes due 2012 | 175,000 | |||
$ | 597,000 |
Balance
Sheet:
|
As
of September 30, 2007
|
|||||||||||||||||||
Comstock
Resources
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminating
Entries |
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
2,286
|
$
|
14,746
|
$
|
—
|
$
|
17,032
|
||||||||||
Accounts
receivable
|
—
|
42,793
|
33,998
|
—
|
76,791
|
|||||||||||||||
Other
current assets
|
392
|
6,122
|
10,552
|
—
|
17,066
|
|||||||||||||||
Total
current assets
|
392
|
51,201
|
59,296
|
—
|
110,889
|
|||||||||||||||
Net
property and equipment
|
28,622
|
1,107,822
|
884,292
|
—
|
2,020,736
|
|||||||||||||||
Investment
in subsidiaries
|
742,806
|
—
|
—
|
(742,806
|
)
|
—
|
||||||||||||||
Intercompany
receivables
|
488,154
|
—
|
—
|
(488,154
|
)
|
—
|
||||||||||||||
Other
assets
|
4,148
|
—
|
586
|
—
|
4,734
|
|||||||||||||||
Total
assets
|
$
|
1,264,122
|
$
|
1,159,023
|
$
|
944,174
|
$
|
(1,230,960
|
)
|
$
|
2,136,359
|
|||||||||
Liabilities
and Stockholders' Equity:
|
||||||||||||||||||||
Short-term
debt
|
$
|
—
|
$
|
—
|
$
|
5,176
|
$
|
—
|
$
|
5,176
|
||||||||||
Accounts
payable
|
28
|
75,822
|
40,450
|
—
|
116,300
|
|||||||||||||||
Accrued
expenses
|
3,953
|
6,109
|
1,340
|
—
|
11,402
|
|||||||||||||||
Total
current liabilities
|
3,981
|
81,931
|
46,966
|
—
|
132,878
|
|||||||||||||||
Long-term
debt
|
497,000
|
—
|
100,000
|
—
|
597,000
|
|||||||||||||||
Intercompany
payables
|
—
|
488,154
|
—
|
(488,154
|
)
|
—
|
||||||||||||||
Deferred
income taxes payable
|
24,589
|
158,063
|
173,398
|
—
|
356,050
|
|||||||||||||||
Reserve
for future abandonment costs
|
—
|
9,307
|
51,129
|
—
|
60,436
|
|||||||||||||||
Minority
interest
|
—
|
—
|
—
|
251,443
|
251,443
|
|||||||||||||||
Total
liabilities
|
525,570
|
737,455
|
371,493
|
(236,711
|
)
|
1,397,807
|
||||||||||||||
Stockholders'
equity
|
738,552
|
421,568
|
572,681
|
(994,249
|
)
|
738,552
|
||||||||||||||
Total
liabilities and stockholders'
equity
|
$
|
1,264,122
|
$
|
1,159,023
|
$
|
944,174
|
$
|
(1,230,960
|
)
|
$
|
2,136,359
|
Balance Sheet: |
As
of December 31, 2006
|
|||||||||||||||||||
Comstock
Resources
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminating
Entries |
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Assets:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$
|
—
|
$
|
1,228
|
$
|
9,487
|
$
|
—
|
$
|
10,715
|
||||||||||
Accounts
receivable
|
—
|
37,049
|
38,512
|
—
|
75,561
|
|||||||||||||||
Other
current assets
|
210
|
3,547
|
8,795
|
—
|
12,552
|
|||||||||||||||
Total
current assets
|
210
|
41,824
|
56,794
|
—
|
98,828
|
|||||||||||||||
Net
property and equipment
|
30,345
|
915,486
|
827,795
|
—
|
1,773,626
|
|||||||||||||||
Investment
in subsidiaries
|
654,840
|
—
|
—
|
(654,840
|
)
|
—
|
||||||||||||||
Intercompany
receivables
|
374,858
|
—
|
—
|
(374,858
|
)
|
—
|
||||||||||||||
Other
assets
|
4,757
|
2
|
912
|
—
|
5,671
|
|||||||||||||||
Total
assets
|
$
|
1,065,010
|
$
|
957,312
|
$
|
885,501
|
$
|
(1,029,698
|
)
|
$
|
1,878,125
|
|||||||||
Liabilities
and Stockholders' Equity:
|
||||||||||||||||||||
Short-term
debt
|
$
|
—
|
$
|
—
|
$
|
3,250
|
$
|
—
|
$
|
3,250
|
||||||||||
Accounts
payable
|
9,687
|
62,041
|
60,776
|
—
|
132,504
|
|||||||||||||||
Accrued
expenses
|
—
|
11,265
|
4,842
|
—
|
16,107
|
|||||||||||||||
Total
current liabilities
|
9,687
|
73,306
|
68,868
|
—
|
151,861
|
|||||||||||||||
Long-term
debt
|
355,000
|
—
|
100,000
|
—
|
455,000
|
|||||||||||||||
Intercompany
payables
|
—
|
374,858
|
—
|
(374,858
|
)
|
—
|
||||||||||||||
Deferred
income taxes payable
|
17,760
|
141,517
|
151,959
|
—
|
311,236
|
|||||||||||||||
Reserve
for future abandonment costs
|
—
|
9,052
|
48,064
|
—
|
57,116
|
|||||||||||||||
Minority
interest
|
—
|
—
|
—
|
220,349
|
220,349
|
|||||||||||||||
Total
liabilities
|
382,447
|
598,733
|
368,891
|
(154,509
|
)
|
1,195,562
|
||||||||||||||
Stockholders'
equity
|
682,563
|
358,579
|
516,610
|
(875,189
|
)
|
682,563
|
||||||||||||||
Total
liabilities and stockholders'
equity
|
$
|
1,065,010
|
$
|
957,312
|
$
|
885,501
|
$
|
(1,029,698
|
)
|
$
|
1,878,125
|
Statement
of Operations:
|
||||||||||||||||||||
Three
Months Ended September 30, 2007
|
||||||||||||||||||||
Comstock
Resources
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminating
Entries |
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Oil
and gas sales
|
$
|
—
|
$
|
83,087
|
$
|
87,987
|
$
|
—
|
$
|
171,074
|
||||||||||
Operating
expenses:
|
||||||||||||||||||||
Oil
and gas operating
|
—
|
17,030
|
16,975
|
—
|
34,005
|
|||||||||||||||
Exploration
|
—
|
1,375
|
4,335
|
—
|
5,710
|
|||||||||||||||
Depreciation,
depletion and amortization
|
848
|
33,293
|
28,279
|
—
|
62,420
|
|||||||||||||||
Impairment
|
—
|
482
|
344
|
826
|
||||||||||||||||
General
and administrative, net
|
8,372
|
(2,709
|
)
|
3,013
|
—
|
8,676
|
||||||||||||||
Total
operating expenses
|
9,220
|
49,471
|
52,946
|
—
|
111,637
|
|||||||||||||||
Income
from operations
|
(9,220
|
)
|
33,616
|
35,041
|
—
|
59,437
|
||||||||||||||
Other
income (expenses):
|
||||||||||||||||||||
Interest
income
|
—
|
256
|
154
|
—
|
410
|
|||||||||||||||
Other
income
|
—
|
39
|
115
|
—
|
154
|
|||||||||||||||
Interest
expense
|
(8,772
|
)
|
—
|
(2,453
|
)
|
—
|
(11,225
|
)
|
||||||||||||
Intercompany
interest income (expense)
|
2,749
|
(2,749
|
)
|
—
|
—
|
—
|
||||||||||||||
Total
other income (expenses)
|
(6,023
|
)
|
(2,454
|
)
|
(2,184
|
)
|
(10,661
|
)
|
||||||||||||
Income
(loss) before income taxes and minority interest in earnings of
Bois
d'Arc Energy
|
(15,243
|
)
|
31,162
|
32,857
|
—
|
48,776
|
||||||||||||||
(Provision
for) benefit from income taxes
|
1,026
|
(10,968
|
)
|
(11,628
|
)
|
—
|
(21,570
|
)
|
||||||||||||
Minority
interest in earnings of Bois
d'Arc Energy
|
—
|
—
|
—
|
(10,778
|
)
|
(10,778
|
)
|
|||||||||||||
Equity
in earnings of subsidiaries
|
30,645
|
—
|
—
|
(30,645
|
)
|
—
|
||||||||||||||
Net
income
|
$
|
16,428
|
$
|
20,194
|
$
|
21,229
|
$
|
(41,423
|
)
|
$
|
16,428
|
Statement of Operations: | ||||||||||||||||||||
Three
Months Ended September 30, 2006
|
||||||||||||||||||||
Comstock
Resources
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminating
Entries |
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Oil
and gas sales
|
$
|
—
|
$
|
62,255
|
$
|
66,996
|
$
|
—
|
$
|
129,251
|
||||||||||
Operating
expenses:
|
||||||||||||||||||||
Oil
and gas operating
|
—
|
13,366
|
13,538
|
—
|
26,904
|
|||||||||||||||
Exploration
|
—
|
—
|
8,069
|
—
|
8,069
|
|||||||||||||||
Depreciation,
depletion and amortization
|
329
|
18,648
|
21,732
|
—
|
40,709
|
|||||||||||||||
Impairment
|
—
|
803
|
586
|
—
|
1,389
|
|||||||||||||||
General
and administrative, net
|
6,123
|
(1,783
|
)
|
3,030
|
—
|
7,370
|
||||||||||||||
Total
operating expenses
|
6,452
|
31,034
|
46,955
|
—
|
84,441
|
|||||||||||||||
Income
from operations
|
(6,452
|
)
|
31,221
|
20,041
|
—
|
44,810
|
||||||||||||||
Other
income (expenses):
|
||||||||||||||||||||
Interest
income
|
—
|
143
|
115
|
—
|
258
|
|||||||||||||||
Other
income
|
—
|
45
|
142
|
—
|
187
|
|||||||||||||||
Interest
expense
|
(4,851
|
)
|
—
|
(1,882
|
)
|
—
|
(6,733
|
)
|
||||||||||||
Gain
on derivatives
|
—
|
1,180
|
—
|
—
|
1,180
|
|||||||||||||||
Intercompany
interest income (expense)
|
2,621
|
(2,621
|
)
|
—
|
—
|
—
|
||||||||||||||
Total
other income (expenses)
|
(2,230
|
) |
(1,253
|
)
|
(1,625
|
)
|
(5,108
|
)
|
||||||||||||
Income
(loss) before income taxes and minority interest in earnings of
Bois
d'Arc Energy
|
(8,682
|
)
|
29,968
|
18,416
|
—
|
39,702
|
||||||||||||||
Provision
for income taxes
|
410
|
|
(10,240
|
)
|
(6,832
|
)
|
—
|
(16,662
|
)
|
|||||||||||
Minority
interest in earnings of Bois
d'Arc Energy
|
—
|
—
|
—
|
(6,004
|
)
|
(6,004
|
)
|
|||||||||||||
Equity
in earnings of subsidiaries
|
25,308
|
—
|
—
|
(25,308
|
)
|
—
|
||||||||||||||
Net
income
|
$
|
17,036
|
$
|
19,728
|
$
|
11,584
|
$
|
(31,312
|
)
|
$
|
17,036
|
Statement
of Operations:
|
||||||||||||||||||||
Nine
Months Ended September 30, 2007
|
||||||||||||||||||||
Comstock
Resources
|
Guarantor
Subsidiaries
|
Non-Guarantor
Subsidiaries
|
Eliminating
Entries |
Consolidated
|
||||||||||||||||
(In
thousands)
|
||||||||||||||||||||
Oil
and gas sales
|
$
|
—
|
$
|
236,094
|
$
|
255,215
|
$
|
—
|
$
|
491,309
|
||||||||||
Operating
expenses:
|
||||||||||||||||||||
Oil
and gas operating
|
—
|
48,709
|
42,559
|
—
|
91,268
|
|||||||||||||||
Exploration
|
—
|
3,651
|
33,058
|
—
|
36,709
|
|||||||||||||||
Depreciation,
depletion and amortization
|
2,621
|
90,693
|
85,573
|
—
|
178,887
|
|||||||||||||||
Impairment
|
—
|
482
|
344
|
826
|
||||||||||||||||
General
and administrative, net
|
24,902
|
(7,401
|
)
|
9,039
|
—
|
26,540
|
||||||||||||||
Total
operating expenses
|
27,523
|
136,134
|
170,573
|
—
|
334,230
|
|||||||||||||||
Income
from operations
|
(27,523
|
)
|
99,960
|
84,642
|
—
|
157,079
|
||||||||||||||
Other
income (expenses):
|
||||||||||||||||||||
Interest
income
|
—
|
644
|
397
|
—
|
1,041
|
|||||||||||||||
Other
income
|
—
|
116
|
389
|