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Comstock Resources (CRK) Loss Wider than Expected in Q4
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Domestic energy explorer Comstock Resources Inc. (CRK - Free Report) reported fourth-quarter 2016 loss of $2.58 per share (excluding one-time items), substantially wider than the Zacks Consensus Estimate of a loss of $1.37. The wider loss can be attributed to weak oil prices.
However, Comstock’s quarterly loss narrowed from the year-ago adjusted loss of $4.55 per share. Increasing natural gas volumes and a significant decline in operating expenses supported the improvement.
Quarterly revenues increased to $48 million from $47 million a year ago. Revenues were in line with the Zacks Consensus Estimate.
Volume Analysis
Comstock’s quarterly volume was 14 billion cubic feet equivalent (Bcfe). Suspension of the drilling program in Jun 2016, divestment of certain natural gas properties and closedown of Haynesville shale production led to the poor results.
For the full year, natural gas output grew 13%, whereas oil production plunged 55%.
Price Realizations
Average oil price realization (before hedging) was $45.96 per barrel compared with $36.26 per barrel in the fourth quarter of 2015. Average natural gas realization was $2.85 per thousand cubic feet/Mcf as against $1.97 per Mcf in the year-earlier quarter.
Costs & Expenses
Gathering and transportation costs came in at $3.6 million, down 20% from the year-ago quarter. Lease operating cost of $9.5 million saw a 36.2% year-over-year decline.
Comstock Resources, Inc. Price, Consensus and EPS Surprise
Total operating expense was down 83.9% from the fourth quarter of 2015 to $54.3 million.
Cash Flow & EBITDAX
Comstock’s operating cash inflow from continuing operations was $9.2 million. This compared favorably with the operating cash outflow of $3.3 million in the fourth quarter of 2015.
Earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other non-cash expenses (EBITDAX) from continuing operations increased. The metric inched up 1.1% year over year to $27.2 million.
Capital Expenditure & Balance Sheet
In the reported quarter, Comstock spent $21.2 million on development drilling activities. This marks a 15.9% decline from $25.2 million spent a year ago. As of Dec 31, 2016, the company had $65.9 million in cash and cash equivalents and $1,044.5 million in long-term debt.
Zacks Rank
Currently, Comstock Resources has a Zacks Rank #3 (Hold).
In the last four quarters, Sunrun posted an average positive earnings surprise of 134.7%.
In the second last quarter, Delek Logistics Partners posted a positive earnings surprise of 13.8%.
In the last four quarters, Ultra Petroleum posted a positive earnings surprise of 93.7%.
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Comstock Resources (CRK) Loss Wider than Expected in Q4
Domestic energy explorer Comstock Resources Inc. (CRK - Free Report) reported fourth-quarter 2016 loss of $2.58 per share (excluding one-time items), substantially wider than the Zacks Consensus Estimate of a loss of $1.37. The wider loss can be attributed to weak oil prices.
However, Comstock’s quarterly loss narrowed from the year-ago adjusted loss of $4.55 per share. Increasing natural gas volumes and a significant decline in operating expenses supported the improvement.
Quarterly revenues increased to $48 million from $47 million a year ago. Revenues were in line with the Zacks Consensus Estimate.
Volume Analysis
Comstock’s quarterly volume was 14 billion cubic feet equivalent (Bcfe). Suspension of the drilling program in Jun 2016, divestment of certain natural gas properties and closedown of Haynesville shale production led to the poor results.
For the full year, natural gas output grew 13%, whereas oil production plunged 55%.
Price Realizations
Average oil price realization (before hedging) was $45.96 per barrel compared with $36.26 per barrel in the fourth quarter of 2015. Average natural gas realization was $2.85 per thousand cubic feet/Mcf as against $1.97 per Mcf in the year-earlier quarter.
Costs & Expenses
Gathering and transportation costs came in at $3.6 million, down 20% from the year-ago quarter. Lease operating cost of $9.5 million saw a 36.2% year-over-year decline.
Comstock Resources, Inc. Price, Consensus and EPS Surprise
Comstock Resources, Inc. Price, Consensus and EPS Surprise | Comstock Resources, Inc. Quote
Total operating expense was down 83.9% from the fourth quarter of 2015 to $54.3 million.
Cash Flow & EBITDAX
Comstock’s operating cash inflow from continuing operations was $9.2 million. This compared favorably with the operating cash outflow of $3.3 million in the fourth quarter of 2015.
Earnings before interest, taxes, depreciation, depletion, amortization, exploration expense and other non-cash expenses (EBITDAX) from continuing operations increased. The metric inched up 1.1% year over year to $27.2 million.
Capital Expenditure & Balance Sheet
In the reported quarter, Comstock spent $21.2 million on development drilling activities. This marks a 15.9% decline from $25.2 million spent a year ago. As of Dec 31, 2016, the company had $65.9 million in cash and cash equivalents and $1,044.5 million in long-term debt.
Zacks Rank
Currently, Comstock Resources has a Zacks Rank #3 (Hold).
Some better-ranked players from the broader energy sector include Sunrun Inc. (RUN - Free Report) , Delek Logistics Partners, L.P. (DKL - Free Report) and Ultra Petroleum Corp. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the last four quarters, Sunrun posted an average positive earnings surprise of 134.7%.
In the second last quarter, Delek Logistics Partners posted a positive earnings surprise of 13.8%.
In the last four quarters, Ultra Petroleum posted a positive earnings surprise of 93.7%.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>