Comstock Resources(US:CRK)2021-11-03 16:00Financial Performance - Oil and natural gas sales for Q3 2021 were $511.2 million, an increase of $333.2 million (187%) compared to $178.0 million in Q3 2020[88]. - Total oil and natural gas sales for the nine months ended September 30, 2021, were $1.2 billion, an increase of $611.9 million (105%) compared to $583.4 million for the same period in 2020[89]. - The company reported a net loss available to common stockholders of $292.7 million or $1.26 per share for Q3 2021, attributed to a $510.3 million net loss from derivative financial instruments[102]. - Cash flow from operating activities for the nine months ended September 30, 2021, was $618.6 million, compared to $390.0 million for the same period in 2020[103]. Production and Sales - Natural gas production increased by 26% to 128.9 Bcf (1.4 Bcf per day) in Q3 2021, sold at an average price of $3.79 per Mcf, compared to 102.6 Bcf (1.1 Bcf per day) at $1.64 per Mcf in Q3 2020[88]. - Oil production for Q3 2021 was 346 MBbls (3,761 Bbls per day) at an average price of $66.11 per Bbl, compared to 354 MBbls (3,851 Bbls per day) at $27.20 per Bbl in Q3 2020[88]. - The company drilled 81 (46.9 net) wells and completed 68 (47.2 net) Haynesville shale wells in the first nine months of 2021[104]. Costs and Expenses - Production and ad valorem taxes increased by $6.9 million (70%) to $16.7 million in Q3 2021 from $9.8 million in Q3 2020, primarily due to higher oil and natural gas prices[92]. - Gathering and transportation costs for Q3 2021 rose by $13.0 million (58%) to $35.4 million compared to $22.4 million in Q3 2020[93]. - Depreciation, depletion, and amortization (DD&A) increased by $29.7 million (30%) to $128.7 million in Q3 2021 from $99.1 million in Q3 2020[95]. - Interest expense decreased by 22% to $50.0 million for Q3 2021, down from $63.9 million in Q3 2020, due to the retirement of senior notes[98]. Capital Expenditures and Debt - Total capital expenditures for the nine months ended September 30, 2021, amounted to $508.4 million, compared to $315.7 million for the same period in 2020, representing a 61% increase[106]. - The company expects to spend an additional $115 million to $135 million in Q4 2021 for drilling and completion activities[104]. - As of September 30, 2021, the company had $425 million outstanding under its bank credit facility, which has a committed borrowing base of $1.4 billion[113]. - The company issued $1.25 billion of 6.75% senior notes due in 2029, with net proceeds of $1.24 billion used to repurchase part of its 2025 and 2026 senior notes[109]. - The company has $2.5 billion in long-term debt outstanding, with fixed interest rates ranging from 5.875% to 7.50%[123]. Hedging and Financial Instruments - The company has natural gas price swap agreements hedging approximately 129.0 Bcf of production at an average price of $2.66 per MMBtu[121]. - A 10% increase in natural gas prices would decrease the fair value of the company's natural gas swaps and collars by approximately $125 million[122]. - The company recognized a loss of $352.6 million on early retirement of debt for the nine months ended September 30, 2021[112]. Future Commitments - The company entered into a well stimulation agreement with a minimum commitment of $19.2 million per year from 2022 through 2024[114].