Comstock Resources Inc's Business Segments

We are engaged in the acquisition, development, production and exploration of oil and natural gas. Our common stock is listed and traded on the New York Stock Exchange under the symbol "CRK". Our oil and gas operations are primarily concentrated in Texas and Louisiana. Our operations are principally focused in two operating areas: East Texas/North Louisiana and South Texas. Our properties have an average reserve life of approximately 14.8 years and have extensive development and exploration potential. Our properties in the East Texas/North Louisiana region, which are primarily prospective for natural gas, include 78,437 acres (66,172 net to us) in the Haynesville or Bossier shale formations. Advances in drilling and completion technology have allowed us to increase the reserves recovered through longer horizontal lateral length and substantially larger well stimulation. As a result of the improved economic returns that we achieved with our Haynesville shale natural gas wells, and continued low oil prices, our 2015 and 2016 drilling activity primarily targeted natural gas in the Haynesville shale. In our South Texas region, our Eagleville field includes 25,949 acres (19,046 net to us) located in the oil window of the Eagle Ford shale. In addition to our acreage in the Eagle Ford shale, we have 71,813 acres (66,698 net to us) in Mississippi and Louisiana that are prospective for oil development in the Tuscaloosa Marine shale. We currently have no plans to develop the Tuscaloosa Marine shale properties prior to the expiration of the leases unless oil prices improve significantly in the near term.

Grow Oil and Natural Gas Reserves and Production. Each year, we conduct exploration and development activities to grow our reserve base and to replace our production. In 2016, we focused on our Haynesville shale properties in North Louisiana as these properties provide us the highest returns within our opportunity set. We deferred further development of our oil and other natural gas properties given the low oil and natural gas prices.

Exploit Existing Reserves. We seek to maximize the value of our oil and natural gas properties by increasing production and recoverable reserves through development drilling and workover, recompletion and exploitation activities. We utilize advanced industry technology, including horizontal drilling, enhanced logging and steering tools, and formation stimulation techniques.

The Logansport field located in DeSoto Parish, Louisiana primarily produces from the Haynesville and Bossier shale formations at a depth of 11,100 to 11,500 feet and from multiple sands in the Cotton Valley and Hosston formations at an average depth of 8,000 feet. Our proved reserves of 739.0 Bcfe in the Logansport field represent approximately 81% of our proved reserves. We own interests in 252 wells (173.8 net to us) and operate 187 of these wells in this field. Most of our drilling activities have been focused on our Logansport field where we drilled 9 wells (8.6 net to us) and 11 wells (7.8 net to us) in 2015 and 2016, respectively. We plan to drill 16 wells in Logansport in 2017 targeting the Haynesville shale formation.

Comstock Resources Inc. is a natural gas and oil exploration and production company primarily focused on the acquisition, development, and production of oil and natural gas properties in the United States, particularly in the prolific resource-rich regions. Their operations highlight several segments, energetic products, and a variety of services catering to the energy sector.

Segments

1. Exploration and Production (E&P):
- Comstock is primarily engaged in the exploration, development, and production of oil and natural gas. The E&P segment is crucial, focusing on the acquisition of exploratory licenses and operation of existing oil and natural gas fields.
- The company employs advanced extraction technologies and geological research processes to enhance recovery rates and ensure sustainable production.

2. Midstream Activities:
- Although primarily an upstream company (exploration and production), Comstock may engage in midstream activities that involve the transportation and storage of oil and gas. This includes partnerships or joint ventures focusing on pipeline projects and terminal facilities to facilitate the movement of hydrocarbons from production sites to refineries or distribution points.

3. Asset Development and Enhancement:
- Comstock focuses on optimizing its asset base through innovation in drilling techniques, enhanced oil recovery (EOR) methods, and effective reservoir management strategies. They may invest in new technologies to boost production efficiency and extend the life of their older fields.

Products

1. Natural Gas:
- One of Comstocks main products is natural gas, which is extracted from various formations. The company markets its natural gas primarily to utilities and industrial consumers and through long-term contracts and spot market transactions.
- Natural gas is used extensively for heating, electricity generation, and as an industrial feedstock, making it a crucial component of Comstock’s product offerings.

2. Crude Oil:
- Comstock produces crude oil, which is derived from its oil-rich properties. The company either sells crude oil directly or via contractual arrangements that ensure consistent delivery to refineries for processing into various petroleum products.

3. Natural Gas Liquids (NGLs):
- The company also extracts natural gas liquids, which are important components in the production of petrochemicals and provide various applications in the fuel industry.

Services

1. Drilling Services:
- Comstock undertakes drilling operations as part of its exploration and production activities. This includes both vertical and horizontal drilling techniques, employing experienced crews and advanced drilling rigs to improve efficiencies and reduce operational costs.

2. Reservoir Management:
- They offer services related to integrated reservoir management, which involves assessing and optimizing the performance of oil and gas fields. This can include advanced analytics, simulation modeling, and enhanced recovery techniques.

3. Field Development:
- The company engages in the development of new fields, which includes site planning, resource allocation, and the implementation of environmental assessments to ensure compliance with industry regulations.

4. Environmental and Regulatory Services:
- Comstock places a significant emphasis on environmental stewardship, offering services that cater to environmental assessments, compliance with regulatory frameworks, and the implementation of practices aimed at minimizing ecological impacts during exploration and production activities.

5. Technical Support and Consulting:
- Through a team of experienced professionals, Comstock may provide technical consulting services in areas such as geosciences, engineering, and production technologies, helping to optimize not only their own operations but potentially offering these capabilities to third parties as well.

In summary, Comstock Resources Inc. operates across several segments, delivering a blend of natural gas, crude oil, and NGLs, while offering a suite of services including drilling, reservoir management, field development, and environmental compliance, all aimed at maximizing output and ensuring sustainable practices within the energy sector. The companys operations reflect a commitment to both resource development and environmental responsibility, recognizing the broader implications of energy production on communities and ecosystems.