Slide 1: 2nd Quarter 2023 Results
NYSE:CRK 2nd Quarter 2023 Results JULY 31, 2023
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: 2nd Quarter 2023 Highlights
2nd Quarter 2023 Highlights • Weak natural gas prices have weighed heavily on the second quarter results. • Oil and gas sales for the quarter were $285 million (1) • Cash flow from operations was $145 million or 53¢ per diluted share (2) • Adjusted EBITDAX was $182 million • Adjusted net income was
Slide 4: Q2 2023 Financial Results
Q2 2023 Financial Results $ in millions 4 4
Slide 5: Six Months 2023 Financial Results
Six Months 2023 Financial Results $ in millions 5 5
Slide 6: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 NYMEX Settlement Month Average $ 7.17 $ 8.20 $ 6.26 $ 3.42 $ 2.10 NYMEX Differential (0.24) (0.48) (0.69) (0.44) (0.29) Realized Prices $ 6.93 $ 7.72 $ 5.57 $ 2.98 $ 1.81 $7.72 $6.93 $5.57 $2.98 $1.81 NYMEX Contract Settl
Slide 7: Low Operating Costs / High Margins
Low Operating Costs / High Margins Operating Costs Per Mcfe / EBITDAX Margin 7 7
Slide 8: 2023 Drilling Program
2023 Drilling Program Six Months 2023 Haynesville Drilling Program ($ in millions) Haynesville Bossier Total Gross Net Gross Net Gross Net Second Six Months Operated - Quarter 2023 2023 Drilled 34 26.1 5 4.8 39 30.9 ($ in millions) Turned to Sales 34 22.8 2 2.0 36 24.8 Haynesville Drilling Program -
Slide 9: Balance Sheet
Balance Sheet Capitalization New Bank Credit Facility ($ in millions) 6/30/2023 Cash and Cash Equivalents $10 $1.5 Billion Senior Secured Revolving Credit Facility: Revolving Credit Facility $20 • $2 billion borrowing base Secured Debt $20 • Maturity date November 15, 2027 6¾% Senior Notes due 2029
Slide 10: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 8,947 feet • Over 25 years of drilling based on 2023 activity As of June 30, 2023 10 10
Slide 11: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 11
Slide 12: 2nd Quarter Drilling Results
2nd Quarter Drilling Results 8 Completed 15 operated wells (average lateral length of 10,671 ft.) 10 9 with average IP rate of 21 Mmcf/d Harrison LL Turned To IP Well Name (feet) Sales (Mmcf/d) 12 13 1 6 Caddo 14 1 Renrew Lands 5-32-29 #3 11,095 04/22/2023 20 2 Renrew Lands 5-32-29 #4 10,818 04/22/2
Slide 13: D&C Costs
D&C Costs (Laterals > 8,000 ft.) ($ per Lateral Foot) 13
Slide 14: 2023 Outlook
2023 Outlook • Positioning the Company to benefit from the substantial growth in demand in the Gulf Coast corridor starting in 2024 • Focused on proving up our Western Haynesville play and continuing to add to our extensive acreage position • Managing drilling activity levels to prudently respond to
Slide 15: Guidance
Guidance Guidance 3Q 2023 2023 Production (Mmcfe/d) 1,350 - 1,450 1,425 - 1,550 D&C Costs ($ in Millions) $240 - $280 $950 - $1,150 Infrastructure/Other ($ in Millions) $15 - $30 $75 - $125 Acreage ($ in Millions) $7.5 - $12.5 $70 2 - $85 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 $0
Slide 16: Hedging Program
Hedging Program Initiating 2024 Hedge Program (Mmcf/d) $/Mmbtu 2023 Total Swaps Q3 250 Collars 250 $3.00 x $10.28 2023 Total Swaps Q4 250 Collars 250 $3.00 x $10.28 2024 Total Swaps 130 $3.50 FY 130 Collars 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended June 30, Six Months Ended March 31, $ in thousands except per share amounts 2023 2022 2023 2022 Net income (loss) $ (45,706) $ 372,528 $ 88,797 $ 256,789 Unrealized (gain) loss on hedging contracts 59,989 (184,537) 3,963 135,770 Loss on e
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended June 30, Six Months Ended March 31, $ in thousands 2023 2022 2023 2022 Net income (loss) $ (45,706) $ 376,891 $ 88,797 $ 265,467 Reconciling items: Deferred income taxes (benefit) (13,910) 95,117 25,270 70,329 Depreciation, depletion and