Comstock Resources, Inc. (NYSE:CRK) Q4 2023 Earnings Conference Call February 14, 2024 11:00 AM ET

Company Participants

Jay Allison - Chairman and Chief Executive Officer

Roland Burns - President and Chief Financial Officer

Daniel Harrison - Chief Operating Officer

Conference Call Participants

Derrick Whitfield - Stifel Financial

Charles Meade - Johnson Rice

Fernando Zavala - Pickering Energy Partners

Jacob Roberts - TPH&Co.

Bertrand Donnes - Truist Financial

Phillips Johnston - Capital One Securities

Leo Mariani - ROTH MKM

Noel Parks - Tuohy Brothers Investment Research

Paul Diamond - Citi

Operator

Thank you for standing by and welcome to the Comstock Resources Fourth Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After this speaker's presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Jay Allison, Chairman and CEO. Please go ahead, sir.

Jay Allison

All right, Jonathan. I love that broadcasting voice, kind of starts the day off right. Our corporate team of 255 strong, I want to thank you for joining the call this morning and we wish you a Happy Valentine's Day.

Being a pure-play natural gas company in a sub $2 natural gas market, calls for decisive actions to weather the volatility, and at the same time, continue positioning Comstock to benefit from the longer term growth in natural gas demand in the foreseeable future. America will need to deliver an additional 10 billion cubic feet of natural gas per day to the LNG facilities currently under construction in the next few years.

Actions taken so far as we batten down the hatches to protect our balance sheet. Number one, in January, we released a frac crew. Number two, several months ago, we gave notice to release two rigs and they will both be finished their work by the end of this month. Number three, we suspended our quarterly dividend until natural gas prices improve.

Number four, we continually evaluate our activity level as we plan to fund our drilling program within operating cash flow if possible. Number five, we formed our mid-stream joint venture last year that allows us to build out of the Western Haynesville midstream assets to be funded by the midstream partnership and not burden our operating cash flow at Comstock.

Number six, we've positioned Comstock to have very few rigs needed to hold all of our corporate acres including the 250,000 plus net acres in the Western Haynesville. Number seven, we're bullish on the long term outlook for natural gas and are growing our resource base in the advantage proximity to the Gulf Coast market.