Comstock Resources, Inc. · NYSE:CRK
Comstock Resources — Investor Presentation (April 2018)
13 slides from Comstock Resources's investor presentation, Apr 2, 2018
Slide 1: Investor Presentation April 2018
Exhibit 99.1 Investor Presentation April 2018 NYSE:CRK
Slide 2: Forward-looking statements
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 estimates o
Slide 3: Recent Achievements
Recent Achievements Comstock’s recent performance has put us in position to achieve a comprehensive refinancing of our balance sheet Last year, we successfully grew production and drilling prospect inventory with our high return Haynesville shale drilling program Natural gas production (pro forma fo
Slide 4: New Developments
New Developments We are now launching our comprehensive refinancing program with the following actions: We have entered into a strategic partnership with Dallas businessman and Dallas Cowboys owner Jerry Jones including a $75 million cash common stock investment at $7.50 per share to make his invest
Slide 5: Refinancing Benefits
Refinancing Benefits Our refinancing plan will eliminate all of our existing secured debt, clear our maturity runway and provide significant committed liquidity through a traditional bank revolver allowing the company to focus on operating the business Deleveraging transactions that will reduce our
Slide 6: Sources and Uses
Sources and Uses ($ in millions) AssetSourcesSale Proceeds Total$125 New New Senior Secured UnsecuredRevolver Notes 600 136 Cash Offer Equity for ConvertibleInvestment Second Lien PIK Notes 340 75 Total Sources $1,276 RepurchaseUses First Lien Secured Notes Total$743 Retire Retire Convertible Conver
Slide 7: Pro Forma Balance Sheet
Pro Forma Balance Sheet As of ($ in millions) 12/31/17 Pro Forma Cash and cash equivalents $61 $61 Revolving Credit Facility—$136 10% First Lien Secured Notes $697— Convertible Second Lien PIK Notes ( All $472— Interest PIK) Unsecured Senior Notes $26 $626 Total Debt (at face amount) $1,195 $762 201
Slide 8: New Bank Revolver
New Bank Revolver Traditional bank revolving credit facility Total commitments of $300 million from Bank of Montreal (lead arranger), Bank of America, Deutsche Bank and Regions Financial Secured by first lien on company assets 4-year term Pricing grid of LIBOR + 275 to 375 bps (based on utilization)
Slide 9: Offers for Existing Notes
Offers for Existing Notes Offer to retire any and all $483 million Convertible Second Lien PIK Notes Value of $1,000 in cash and common stock per $1,000 principal amount of existing notes (assuming price of $7.50 per share) $295 million 7.75% Convertible Second Lien PIK Notes due 2019 $347.50 in cas
Slide 10: Equity Investment/Strategic Partnership
Equity Investment/ Strategic Partnership Arkoma Drilling LP, which is owned by Dallas businessman and Dallas Cowboys owner Jerry Jones, will make a $75 million investment in Comstock common stock at $7.50 per share Arkoma will acquire a 14% interest in Comstock, becoming one of its largest sharehold
Slide 11: Eagle Ford Shale Sale and New JV
Eagle Ford Shale Sale and New JV Sale of 191 producing wells and 80 acre proration units to USG Energy Producer Holdings, LLC for $125 million Comstock retains all undeveloped acreage (8,700 net acres) with 218 drilling locations Comstock and USG will form a joint development venture on the ~23,000
Slide 12: 2018 Drilling Program
2018 Drilling Program ($ in millions) Capital 2018 Expenditures Gross WI Net $179 $ Wells Wells $152 Haynesville/Bossier Shale: Drilling and Completion $ 95.9 31 10.0 Completion of 2017 Wells 19.7 ReFracs (7) 31.6 Eagleford Shale 4.8 7 1.9 Total Capital Expenditures $ 152.0 38 11.9 8182 Lateral Leng
Slide 13: 2018 Outlook
2018 Outlook Comstock’s high return Haynesville Shale assets provide opportunities for continued growth in 2018 Comstock’s enhanced completion design has transformed the Haynesville shale into one of North America’s highest return natural gas basins Comstock’s acreage position provides a strong foun
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