Comstock Resources Inc., Frisco, Tex., is releasing two of its nine operated drilling rigs in response to the current lower natural gas prices and plans to spend about $950 million to $1.15 billion this year in drilling and completion activities.
Activities for the year will be primarily focused on continued development of Haynesville-Bossier shale properties and delineation of the Western Haynesville play (2-rig program), the company said in its earnings report Feb. 14.
Under the current 2023 operating plan, the company plans to drill 67 (50.5 net) and complete 69 (49.2 net) operated horizontal wells, including eight (8.0 net) wells in the Western Haynesville area. First quarter production of 1,375-1,435 MMcfed is expected, with guidance of 1,425-1,550 MMcfed for the year.
Comstock also expects to spend $75-125 million on infrastructure, including upgrades to its Western Haynesville pipeline and processing infrastructure, and for other development costs. An additional $25-35 million is earmarked for lease acquisitions.
Earnings
Reported net income for fourth-quarter 2022 included a pre-tax $302.8 million unrealized gain on hedging contracts. Excluding this and certain other items, adjusted net income for the quarter was $287.7 million.
Net cash provided by operating activities (excluding changes in working capital) generated in the quarter was $434.5 million, and net income available to common stockholders for the quarter was $516.9 million.
Drilling, production
Production in the fourth quarter increased 7% from last year to 1,445 MMcfed.
The company drilled 73 (57.0 net) operated horizontal Haynesville/Bossier shale wells in 2022 which had an average lateral length of 10,044 ft. The company also participated in an additional 42 (3.4 net) non-operated Haynesville shale wells during the year.
Comstock turned 66 (53.6 net) operated wells and 38 (1.8 net) non-operated wells to sales in 2022 and currently expects to turn an additional 17 (10.5 net) operated wells to sales in first-quarter 2023.