Monday, oil and natural gas producer Comstock Resources Inc. (CRK) reported a fourth quarter loss that narrowed significantly from last year. The reported loss was wider than the mean Street estimate, primarily due to a decline in revenue due to substantial decline in oil and natural gas prices.
The Frisco, Texas-based company reported a net loss for the fourth quarter of $6.8 million or $0.15 per share, compared to a loss of $96.4 million or $2.09 per share in the year-ago quarter, primarily attributable to to the low natural gas prices in 2009. The year-ago loss was due to a $162.7 million impairment to the value of the company's marketable securities.
On average, seven analysts polled by Thomson Reuters expected the company to report a loss of $0.07 per share for the quarter. Analysts estimates typically exclude special items.
Oil and gas sales for the quarter declines to $90.20 million from $100.15 million in the prior-year quarter. Thirteen analysts had a revenue consensus of $87.50 million for the quarter.
The lower natural gas prices caused oil and gas sales to decrease 10% to $90.2 million in the fourth quarter of 2009 as compared to 2008's fourth quarter sales of $100.2 million, despite significant increase in production.
Total operating expenses increased to $92.10 million from $83.78 million in the same quarter last year.
Comstock's production in the fourth quarter of 2009 increased 27% to 19.1 billion cubic feet of natural gas equivalent or Bcfe as compared to 15.1 Bcfe produced in the fourth quarter of 2008.
The 2009 fourth quarter average daily production rate of 207.5 million cubic feet of natural gas equivalent or MMcfe also increased 13% from the 2009 third quarter production rate of 184.3 MMcfe per day, primarily attributable to Comstock's successful Haynesville shale drilling program.
Comstock averaged $4.34 per Mcf for sales of its natural gas production in the fourth quarter of 2009, 33% less than the $6.44 per Mcf realized in the fourth quarter of 2008. Realized oil prices in the fourth quarter of 2009 improved to $64.76 per barrel from $52.16 per barrel in the fourth quarter of 2008.
For the fiscal year 2009, the company reported a net loss of $36.47 million or $0.81 per share, compared to net income of $251.96 million or $5.46 per share last year.
Oil and gas sales for the quarter dropped to $290.86 million from $563.75 million in the fiscal year 2008.
Analysts were looking for a loss of $0.73 per share on revenues of $287.77 million for fiscal 2009.
CRK closed Monday's regular trading session at $37.32, up $0.24 or 0.65%, on a volume of 995,492 shares. For the past 52 weeks, the stock traded in the range of $26.62 - $49.14, with a three-month average volume of 651,854 shares.
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