On Jan 22, energy explorer Comstock Resources Inc. (CRK) provided an update on its production and proved reserves for the year ended Dec 31, 2014.
Proved Reserves
The company added that as of Dec 31, 2014, it had proved oil and gas reserves of 620.4 billion cubic feet of natural gas equivalent (Bcfe), compared with 585 Bcfe last year. The reserves comprised 20.9 million barrels of crude oil and 495 billion cubic feet (bcf) of natural gas. Comstock Resources further stated that 68% of the proved reserves are developed and the company operates 96% of these.
4Q14 and Full-Year 2014 Production
For the fourth-quarter, production was 15.9 Bcfe or 173 million cubic feet equivalent (MMcfe) per day – 57% gas and 43% oil. It comprised 12,403 barrels of oil and 98 MMcf of natural gas.
Production for full year was 65.6 Bcfe or 180 MMcfe per day. It comprised of 39% oil, up from 20% last year. The company added that 2014 saw oil production growth of 86%, whereas natural gas production fell 29%.
Drilling Statistics
Comstock Resources stated that Eagle Ford drilling has added 5.9 million barrels of oil equivalent to its total proved reserves. Whereas, reserves addition from Haynesville Shale and other regions totaled 74 Bcf of natural gas. The company further added that it intends to commence development activities in the Haynesville Shale in 2015.
The company said that it has spent $486.4 million on drilling activities and $94.9 million on acquisitions. Also, considering the current weak crude price, it plans to focus its 2015 spending on natural gas development projects in the Haynesville Shale play.
Earnings Projection
Comstock Resources is slated to report fourth-quarter 2014 earnings on Feb 9. Most upstream firms like Pioneer Natural Resources Co. (PXD), EOG Resources, Inc. (EOG), Encana Corporation (ECA) are expected to report lower earnings amid the current weakness in commodity prices. Comstock Resources’ earnings are also expected to be hampered by it.
The company’s fourth-quarter earnings are currently pegged at 25 cents while current year estimate is at $1.63 per share. Downward revision for current quarter and year estimates suggest further bearishness ahead.
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