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Comstock (CRK) Reports 47% Increase in 2016 Proved Reserves

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U.S.-based upstream energy player, Comstock Resources Inc.CRK announced that as of year-end 2016, its proved reserves amounted to 7.3 million barrels of crude oil and 872 billion cubic feet of natural gas, totaling 916 billion cubic feet of natural gas equivalent (Bcfe). The company replaced its production by 667% and enhanced its proved reserves by 47% as compared to the previous year. Of the total proved reserves, 40% are labeled as proved developed and 98% are operated by the company.

The increase in the proved reserves was driven by the company's Haynesville shale drilling program. Despite a restricted drilling budget, Comstock added 285.5 Bcfe of new reserves to its Haynesville properties and also experienced 143.6 Bcfe in upward revisions related to the reserves at the end of 2015.

With the announcement of the 47% increase in proved reserves, Comstock shares rallied on higher volumes. The price of shares grew by 21% to $12.71 from the previous close of $10.46 on volume of 2643976 shares, up by almost 338%.

Comstock reported production of 62 Bcfe per day during 2016. Natural gas accounted for 87% of the company's total production during the year. The company's oil production decreased 55% and natural gas production increased 13% over the same time frame.

However, the production in the fourth quarter came down to just 14 Bcfe. This was due to the temporary shelving of the drilling program and divestments of certain natural gas properties in the fourth quarter.

Comstock incurred a total expenditure of $59.5 million for its drilling activities in 2016 boring 13 wells. The company aims to drill 20 wells in 2017 with an estimated capital expenditure of $142.9 million for 2017.

Further, the financial condition of the company improved due to the debt exchange offer it executed in Sep 2016.

Comstock, which is engaged in the production and exploration of oil and natural gas , chiefly operates in the Gulf of Mexico along with East and Southeast Texas. The company currently carries a Zacks Rank #3 (Hold).

The company outperformed the Zacks categorized industry over the last three months. During the aforesaid period, shares of Comstock rose almost 34% while the broader industry gained around 11%.

The company outperformed the Zacks categorized US Oil and Gas Exploration and Production industry over the last three months. During the aforesaid period, shares of Comstock rose almost 34% while the broader industry gained around 11%.

Some better-ranked players in the industry include Denbury Resources Inc. DNR , Northern Oil and Gas, Inc. NOG and Legacy Reserves LP LGCY . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Denbury Resources is expected to report a year-over-year growth of 450% on its earnings.

Northern Oil and Gas recorded a positive earnings surprise in three of the last four quarters, the average being 81.35%.

Legacy Reserves LP is expected to report year-over-year growth of 15.36% and 58.97% on its revenue and earnings for 2017.

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Denbury Resources Inc. (DNR): Free Stock Analysis Report

Comstock Resources, Inc. (CRK): Free Stock Analysis Report

Legacy Reserves LP (LGCY): Free Stock Analysis Report

Northern Oil and Gas, Inc. (NOG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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