Slide 1: 4th Quarter 2023 Results
NYSE:CRK 4th Quarter 2023 Results FEBRUARY 13, 2024
Slide 2: Disclaimer
Disclaimer This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. These statements include
Slide 3: 4th Quarter 2023 Highlights
4th Quarter 2023 Highlights • Weak natural gas prices weighed heavily on the fourth quarter results • Natural gas and oil sales for the quarter were $354 million (1) • Cash flow from operations was $207 million or 75¢ per diluted share (2) • Adjusted EBITDAX was $244 million • Adjusted net income wa
Slide 4: Q4 2023 Financial Results
Q4 2023 Financial Results $ in millions 4 4
Slide 5: Annual 2023 Financial Results
Annual 2023 Financial Results $ in millions Production Natural Gas & Cash Flow Adjusted EBITDAX (MMcfe/d) Oil Sales Net Income 1,438 $1,722 1,373 $2,262 $1,023 $1,924 $1,345 $774 $928 $133 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 5 5
Slide 6: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 4Q 2022 1Q 2023 2Q 2023 3Q 2023 4Q 2023 NYMEX Settlement Month Average $ 6.26 $ 3.42 $ 2.10 $ 2.55 $ 2.88 NYMEX Differential (0.69) (0.44) (0.29) (0.22) (0.40) Realized Prices $ 5.57 $ 2.98 $ 1.81 $ 2.33 $ 2.48 $5.57 $2.98 $2.33 $2.48 $1.81 NYMEX Contract Settl
Slide 7: Low Operating Costs / High Margins
Low Operating Costs / High Margins Operating Costs Per Mcfe / EBITDAX Margin 7 7
Slide 8: 2023 Drilling Program
2023 Drilling Program ($ in millions) 2023 Haynesville Drilling Program Haynesville Bossier Total Gross Net Gross Net Gross Net Fourth Year Ended Operated - Quarter 2023 2023 Drilled 55 43.8 12 11.7 67 55.5 ($ in millions) Turned to Sales 63 45.0 11 10.7 74 55.7 Haynesville Drilling Program - Drilli
Slide 9: Natural Gas & Oil Reserves – SEC Pricing
Natural Gas & Oil Reserves – SEC Pricing Replaced 109% of production from drilling activities Revisions from 2022 due to low SEC gas price Oil Gas Total MBbls Bcf Bcfe Proved Reserves as of 12/31/22 (SEC) 549 6,697.6 6,700.9 Production (70) (524.5) (524.9) Drilling Additions 116 570.8 571.4 Revision
Slide 10: Natural Gas & Oil Reserves at a $3.50 NYMEX Gas Price
Natural Gas & Oil Reserves at a $3.50 NYMEX Gas Price Oil Gas Total MBbls Bcf Bcfe Proved Reserves as of 12/31/22 (SEC) 549 6,697.6 6,700.9 Production (70) (524.5) (524.9) Drilling Additions 116 570.8 571.4 Revisions (24) (104.1) (104.1) Proved Reserves as of 12/31/23 ($3.50 Gas) 571 6,639.8 6,643.3
Slide 11: Balance Sheet
Balance Sheet Capitalization New Bank Credit Facility ($ in millions) 12/31/2023 Cash and Cash Equivalents $17 $1.5 Billion Senior Secured Revolving Credit Facility: Revolving Credit Facility $480 • $2 billion borrowing base (reaffirmed in October 2023) Secured Debt $480 • Maturity date November 15,
Slide 12: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 8,971 feet • Over 25 years of drilling based on 2023 activity As of December 31, 2023 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 140 110 349 51 489 161
Slide 13: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 13
Slide 14: 4th Quarter Drilling Results
4th Quarter Drilling Results Completed 22 operated wells Harrison Bossier (average lateral length of 11,966 ft.) with average IP rate of 24 Mmcf/d 8 9 10 11 LL Turned To IP Caddo 1 16 17 Well Name (feet) Sales (Mmcf/d) 3 1 Cotswold 17-8 #1 7,520 10/24/2023 25 21 20 22 18 2 Cotswold 17-8 #2 7,388 10/
Slide 15: D&C Costs
D&C Costs (Laterals > 8,500 ft.) ($ per Lateral Foot) $1,595 $1,561 $1,506 $1,541 $1,482 $1,446 $1,329 $1,215 $1,026 $1,040 $932 $842 $888 $941 $871 $1,021 $806 $764 $569 $643 $664 $653 $719 $565 $610 $451 $457 $523 $425 $397 2017 2018 2019 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 2023 Q4 Completion D
Slide 16: 2024 Outlook
2024 Outlook • Building a great asset in the Western Haynesville that will be well positioned to benefit from the longer-term growth in natural gas demand • Midstream build out will not be a burden on operating cash flow • Actively managing drilling activity levels to prudently respond to current lo
Slide 17: Guidance
Guidance Guidance 1Q 2024 2024 Production (Mmcfe/d) 1,425 - 1,525 1,425 - 1,525 D&C Costs ($ in Millions) $225 - $275 $750 - $850 Pinnacle Gas Services ($ in Millions) $30 - $40 $125 - $150 2 Acreage ($ in Millions) $30 - $40 $40 - $50 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 $0.24
Slide 18: Hedging Program
Hedging Program Building 2024 Hedge Program (Mmcf/d) $/Mmbtu 2024 Total Swaps 400 $3.55 Q1 400 Collars 2024 Total Swaps 400 $3.55 Collars Q2 400 2024 Total Swaps 400 $3.55 Q3 400 Collars 2024 Total Swaps 400 $3.55 Q4 400 Collars 18
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended December 31, Year Ended December 31, $ in thousands except per share amounts 2023 2022 2023 2022 Net income (loss) availabe to common shareholders $ 108,377 $ 516,894 $ 211,894 $ 1,124,868 Unrealized (gain) loss on hedging contracts (107,
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended December 31, Year Ended December 31, $ in thousands 2023 2022 2023 2022 Net income (loss) $ 108,377 $ 519,819 $ 211,894 $ 1,140,882 Reconciling items: Deferred income taxes (benefit) 15,423 79,928 44,301 228,317 Depreciation, depletion an