Comstock Resources Q4 Report

February 11, 2015 Elizabeth Alford

Comstock Resources released its Q4 earnings report and confirmed their spending plan for 2015.

Comstock’s loss of $55.1 million in the last three months of the year are in contrast to a record 86% increase growth in oil production. Production in 2014 was at 4.3 million barrels, compared to 2.3 million barrels produced in 2013.

Looking to the new year, Comstock will be scaling back its drilling program due to the significant drop in oil prices.

“With the rapid fall in oil prices, we have shutdown our oil drilling program in late December, but we do have eight additional wells in our South Texas Eagle Ford and nine additional wells in our East Texas Eagle Ford area that we expect to put on production in the first quarter of 2015. So we do expect a little more oil growth in the first quarter, but then we expect oil to decline later in the year with no additional drilling budgeted. For all of 2015, we’re expecting oil production to average between 9,500 and 10,500 barrels per day.”

— CFO Roland Burns

2014 Eagle Ford highlights:

Successful drilling program in South Texas Eagle Ford shale drove oil growth in 2014

68 out of 68 wells drilled were successful

Placed 91 (61.3 net) new Eagle Ford shale wells on production

Four wells drilled in 2014 to be completed in 2015

Clayton Williams Grew Eagle Ford Oil Production ~430% in Fourth-Quarter of 2013

March 12, 2014 Kirk Eggleston

Clayton Williams Energy grew its Eagle Ford oil production in the fourth quarter of 2013 over 2012 by ~430% from 312 b/d - 1,354 b/d.

The increase in production is a sign that the company is gaining confidence in moving forward with its Eagle Ford operations. In an early February 2013 statement, the company alluded that additional drilling and production data would be needed to determine if the Eagle Ford Shale drilling program could be economically viable.

Clayton Williams Reserve Additions in 2013

In 2013, the Eagle Ford contributed to 27.7 mmboe of reserves additions in 2013. Other plays that contributed to Clayton Williams' reserve additions included the Wolfberry and Delaware Basin.

Clayton Williams Eagle Ford Guidance for 2014

Planned expenditures in the Eagle Ford formations account for ~$160 million. That's ~50% of the company's budget for the year. As of late February, the company had 2 rigs in its Giddings - Eagle Ford Shale drilling program.

Clayton Williams Eagle Ford Production Breakdown in Q4 2013

Oil - 1,354 b/d
Natural Gas - 86 mcf/d
NGLs - 20 b/d

Clayton Williams Eagle Ford Production Breakdown for 2013

Oil - 1,136 b/d
Natural Gas - 78 mcf/d
NGLs - 19 b/d

Cabot Completing First Six-Well Pad in Eagle Ford in 2014

February 24, 2014 Kirk Eggleston

Cabot's first four-well pads in the Eagle Ford came online during the fourth-quarter of 2013 and produced an average peak 24-hour rate per well of 885 boe/d.

The company had record production in 2013 of ~412 bcfe or 1.13 bcfe/d, an increase of 55% over 2012. Also, the company's longest lateral well (8,708') came online in the Eagle Ford in 2013. The well was completed with 31 frac stages, and reached a peak 24-hour rate of 1,344 boe/d (92% oil).

Cabot Completing First Six Well Pad in 2014

Cabot is completing its first six-well pad, which includes four wells with lateral lengths of approximately 8,000'. The six-well pad is expected to provide approximately $600,000 of cost savings per well.

Cabot Eagle Ford 2014 Plans

Cabot is planning on 40 - 50 Eagle Ford wells in 2014. If the company sees better than expected results from its drilling efforts in the Eagle Ford, you may see more activity than currently planned, according to CEO, Dan Dinges.

“We are [] at 36 to 38 [] Eagle Ford wells right now, so [] that’s incorporated already in our guidance. So, moving that up to even 50 would be an impactful move for our current guidance.”

— Dan Dinges

abot, which is also active in the Marcellus Shale, is focused on maximizing operating efficiencies and managing its price risk in 2014. Cabot announced that it will continue to monitor regional natural gas prices before making a decision on further acceleration in 2014 in the Marcellus. Maintaining the Marcellus rig count at six rigs will reduce the 2014 capital budget from $1.375 to $1.475 billion to $1.3 to $1.4 billion.

“We have elected to stay at eight rigs in our total program, which is what we ended at our — ended ‘13 with, which includes six in the Marcellus and two in the Eagle Ford. And while we will be permitting and be prepared to add additional rigs during the year, we are pleased that our revised program spending — spends less capital but delivers the same absolute midpoint of production guidance.”

— Dan Dinges

Cabot Highlights

Record production of 413.6 billion cubic feet equivalent bcfe, an increase of 55 % over 2012
First four-well pads in the Eagle Ford came online during the fourth-quarter of 2013 and produced an average peak 24-hour rate per well of 885 boe/d.
Peak 24-hour rate of 1,344 boe/d (92% oil) for Eagle Ford lateral well
Completing its first six-well Eagle Ford pad, which includes four wells with lateral lengths of approximately 8,000'
Maintaining Marcellus Shale rig count at 6 will reduce 2014 capital budget to $1.3 to $1.4 billion