Slide 1: 1st Quarter 2023 Results
NYSE:CRK 1st Quarter 2023 Results MAY 2, 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: 1st Quarter 2023 Highlights
1st Quarter 2023 Highlights • Production in 1st quarter increased 11% to 1,414 MMcfe per day • Oil and gas sales were $390 million (1) • Cash flow from operations was $255 million or 92¢ per diluted share (2) • Adjusted EBITDAX was $293 million • Adjusted net income was $92 million or 33¢ per dilute
Slide 4: Q1 2023 Financial Results
Q1 2023 Financial Results $ in millions 4 4
Slide 5: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 NYMEX Settlement Month Average $ 4.95 $ 7.17 $ 8.20 $ 6.26 $ 3.42 High margins supported by NYMEX Differential (0.40) (0.24) (0.48) (0.69) (0.44) Realized Prices $ 4.55 $ 6.93 $ 7.72 $ 5.57 $ 2.98 gas marketing arrangemen
Slide 6: Low Operating Costs / High Margins
Low Operating Costs / High Margins Operating Costs Per Mcfe / EBITDAX Margin 6 6
Slide 7: 2023 Drilling Program
2023 Drilling Program 1Q 2023 Haynesville Drilling Program ($ in millions) Haynesville Bossier Total Gross Net Gross Net Gross Net First Quarter Operated - 2023 Drilled 16 11.8 2 1.9 18 13.7 ($ in millions) Turned to Sales 18 10.6 1 1.0 19 11.6 Haynesville Drilling Program - Operated D&C $ 278.0 Non
Slide 8: Balance Sheet
Balance Sheet Capitalization New Bank Credit Facility ($ in millions) 3/31/2023 Cash and Cash Equivalents $34 $1.5 Billion Senior Secured Revolving Credit Facility: Revolving Credit Facility $- • $2 billion borrowing base Secured Debt $- • Maturity date November 15, 2027 6¾% Senior Notes due 2029 1,
Slide 9: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 8,928 feet • Over 25 years of drilling based on 2023 activity As of March 31, 2023 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 151 122 363 52 514 175 805
Slide 10: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 10
Slide 11: 1st Quarter Drilling Results
1st Quarter Drilling Results Bossier Harrison Completed 15 operated wells (average lateral length of 11,042 ft.) with average IP rate of 23 Mmcf/d Caddo LL Turned To IP Well Name (feet) Sales (Mmcf/d) 1 Beaubouef 16H #3 4,514 02/09/2023 23 6 2 Beaubouef 16H #2 4,608 02/09/2023 25 3 1 8 9 3 CGU 13H 8
Slide 12: D&C Costs
D&C Costs (Laterals > 8,000 ft.) ($ per Lateral Foot) $1,579 $1,506 $1,446 $1,329 $1,215 $1,026 $1,040 $916 $941 $1,021 $806 $764 $569 $643 $663 $565 $523 $425 $451 $457 $397 2017 2018 2019 2020 2021 2022 2023 Q1 Completion Drilling 12
Slide 13: Lowering GHG Emissions
Lowering GHG Emissions GHG and methane emissions down despite increased activity in 2022… • Deployed optical imaging and aircraft leak monitoring technology at almost 100% of our production sites • Natural gas powered frac fleet eliminated 5.0 million gallons of diesel, offsetting 10,200 metric tonn
Slide 14: 2023 Outlook
2023 Outlook • Will continue to de-risk and delineate our Western Haynesville play with two rig program in 2023 • Managing drilling activity levels to prudently respond to lower gas price environment in 2023 • Releasing two operated rigs on our legacy Haynesville footprint • Focused on maintaining s
Slide 15: Guidance
Guidance Guidance 2Q 2023 2023 Production (Mmcfe/d) 1,375 - 1,435 1,425 - 1,550 D&C Costs ($ in Millions) $260 - $310 $950 - $1,150 Infrastructure/Other ($ in Millions) $15 - $30 $75 - $125 2 Acreage ($ in Millions) $2.7 - $7.5 $50 - $60 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.22 - $0.26 $0.
Slide 16: Hedging Program
Hedging Program Comstock has ~30% of its oil and gas production hedged with wide collars in 2023 (Mmcf/d) 2023 Total Swaps Q2 675 Collars 675 $3.00 x $10.17 2023 Total Swaps Q3 250 Collars 250 $3.00 x $10.28 2023 Total Swaps Q4 250 Collars 250 $3.00 x $10.28 16
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Operating Cash Flow Quarter Ended March 31, Quarter Ended March 31, $ in thousands except per share amounts 2023 2022 $ in thousands 2023 2022 Net income (loss) $ 134,503 $ (115,739) Net income (loss) $ 134,503 $ (111,424) Unrealized (gain) loss on hed