Comstock Resources Inc (NYSE:CRK) reported operating and financial results for the quarter ended September 30, 2015. Low natural gas and oil prices continue to negatively impact the overall financial performance and resulted in a noteworthy impairment of Comstock’s producing assets being recorded this quarter.
Comstock posted a net loss of $545 million for the third quarter of 2015 against a net loss of $1.9 million for the third quarter of 2014. 3Q2015 results include several charges including a charge to impair certain productive gas and oil assets and unassessed leases of $549.8 million and an unrealized gain of $0.7 million from derivative financial instruments.
It included a net profit on extinguishment of debt amounting to $51.1 million and recognition of a valuation allowance. Financial report for 3Q2014 included exploratory dry hole costs amounting to $11.4 million and an unrealized gain of $12.4 million from derivative financial instruments. Excluding these charges from each quarter`s financial results, the net loss for 3Q2015 came at $48.9 million against a net loss of $2.2 million in the third quarter of 2014.
On July 22, Comstock Resources Inc (NYSE:CRK) completed the previously reported sale of its Burleson County properties and recorded net proceeds of $103 million. A part of the net proceeds were utilized to pay debt through purchases of its notes on the open market. The company reported that as of September 30, 2015, it repurchased notes worth $100.9 million at a price of $37.8 million.
Comstock Resources Inc (NYSE:CRK) recorded natural gas and oil production of 3.5 billion cubic feet and 635,000 barrels of oil, respectively. The natural gas production in 3Q2015 jumped 40% over3Q2014 and by 22% QOQ primarily due to the recommencement of the Haynesville shale drilling plan in early 2015. However, the oil production declined due to the sale of Burleson County properties.