Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

Summary of Estimated Fair Value of Assets and Liabilities and Resulting Goodwill of Jones Contribution

The estimated fair value of Comstock's assets and liabilities and the resulting goodwill at the date of the Jones Contribution were as follows:

	(In thousands)
Fair Value of Comstock's common stock	$	149,357
Fair Value of Liabilities Assumed —
Current Liabilities		180,452
Long-Term Debt		2,059,560
Deferred Income Taxes		63,708
Reserve for Future Abandonment Costs		4,440
Net Liabilities Assumed		2,308,160
Fair Value of Assets Acquired —
Current Assets		936,026
Oil and Gas Properties		1,147,749
Other Property & Equipment		4,440
Income Taxes Receivable		19,086
Other Assets		2
Total Assets		2,107,303
Goodwill	$	350,214

Summary of Unaudited Pro Forma Financial Information

 The following pro forma condensed combined financial information was derived from the historical financial statements of Comstock and the Bakken Shale Properties and gives effect to the Jones Contribution as if it had occurred on January 1, 2018. The below information reflects pro forma adjustments for the issuance of Comstock common stock in exchange for the Bakken Shale Properties.  The pro forma adjustments are based on available information and certain assumptions that we believe are reasonable, including (i) the depletion, depreciation and amortization expense for the Bakken shale properties, (ii) the income taxes for the combined operations of Comstock and the Bakken Shale Properties, and (iii) the effect on basic and diluted shares of the share issuance pursuant to the Jones Contribution. The pro forma results of operations do not include any cost savings or other synergies or any costs that have been or will be incurred to integrate the Bakken Shale Properties. The pro forma condensed combined financial information is not necessarily indicative of the results that might have actually occurred had the Jones Contribution taken place on January 1, 2018. In addition, the pro forma financial information below is not intended to be a projection of future results.

	Pro Forma
	Three Months Ended March 31,
	2018
	(In thousands, except per share amount)
Revenues	$	132,553
Net loss	$	(6,231	)
Net loss per share – basic and diluted	$	(0.06	)

Results of Operations for Properties

Results of operations for properties that were sold were as follows:

	Predecessor
	Three Months Ended March 31,
	2018
	(In thousands)
Total oil and gas sales	$	13,212
Total operating expenses(1)		(4,391	)
Operating income	$	8,821

Summary of Lease Cost Recognized

Lease costs recognized during the three months ended March 31, 2019 were as follows:

	(In thousands)
Operating lease cost included in general and administrative expense	$	411
Operating lease cost included in lease operating expense		91
Short-term lease cost (drilling rig costs included in proved oil and gas properties)		8,640
	$	9,142

Summary of Liabilities Under Contract Contain Operating Leases

As of March 31, 2019, Comstock had the following liabilities under contracts that contain operating leases:

	(In thousands)
April 1 to December 31, 2019	$	2,008
2020		1,889
2021		1,203
Total lease payments		5,100
Imputed interest		(327	)
Total lease liability	$	4,773

Summary of Accrued Expenses

Accrued expenses at March 31, 2019 and December 31, 2018 consisted of the following:

	Successor
	As of March 31, 2019		As of December 31, 2018
	(In thousands)
Accrued drilling costs	$	15,457	$	17,920
Accrued interest payable		11,410		35,461
Accrued transportation costs		5,290		4,632
Accrued employee compensation		3,660		6,045
Accrued ad valorem taxes		750		—
Accrued lease operating expenses		2,250		2,130
Other		1,688		1,898
	$	40,505	$	68,086

Summary of Changes in Reserve for Future Abandonment Costs

The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:

	Successor			Predecessor
	Three Months Ended March 31,
	2019			2018
	(In thousands)
Future abandonment costs — beginning of period	$	5,136		$	10,407
Accretion expense		96			140
New wells placed on production		40			2
Liabilities settled and assets disposed of		(29	)		(60	)
Future abandonment costs — end of period	$	5,243		$	10,489

Schedule of Gas Derivative Contracts Volume and Prices

The Company had the following outstanding derivative financial instruments for natural gas price risk management at March 31, 2019:

	Future Production Period
	Nine Months Ending December 31, 2019		Year Ending December 31, 2020		Total
Natural Gas Swap contracts:
Volume (MMbtu)		16,200,000		5,400,000		21,600,000
Average Price per MMbtu		$3.00		$3.00		$3.00
Natural Gas Collar contracts:
Volume (MMbtu)		32,754,500		11,850,000		44,604,500
Price per MMbtu
Average Ceiling		$3.46		$3.70		$3.52
Average Floor		$2.43		$2.52		$2.46
Crude Oil Collar contracts:
Volume (Barrels)		951,200		982,000		1,933,200
Price per Barrel
Average Ceiling		$72.62		$65.62		$69.07
Average Floor		$50.68		$48.67		$49.66

Schedule of Derivative Instruments

None of the Company's derivative contracts were designated as cash flow hedges. The aggregate fair value of the Company's derivative instruments reported in the accompanying consolidated balance sheets by type, including the classification between assets and liabilities, consists of the following:

Type	Consolidated Balance Sheet Location	Fair Value			Gross Amounts Offset in the Consolidated Balance Sheet					Net Fair Value Presented in the Consolidated Balance Sheet
						(in thousands)
Successor Fair Value of Derivative Instruments as of March 31, 2019
Asset Derivatives:
Natural gas price derivatives	Derivative Financial Instruments  – current		$4,075			$(964		)			$3,111
Oil price derivatives	Derivative Financial Instruments  – current		$535			$(1,290		)			$(755			)
Liability Derivatives:
Natural gas price derivatives	Derivative Financial Instruments – current		$964			$(964		)			—
Oil price derivatives	Derivative Financial Instruments – current			$1,290			$(1,290		)				—
													$2,356
Successor Fair Value of Derivative Instruments as of December 31, 2018
Asset Derivatives:
Natural gas price derivatives	Derivative Financial Instruments – current		$7,264			$(1,168		)			$6,096
Oil price derivatives	Derivative Financial Instruments – current		$9,305			—					$9,305
Liability Derivatives:
Natural gas price derivatives	Derivative Financial Instruments – current		$1,168			$(1,168		)				—
												$15,401

Schedule of Gains and Losses from Derivative Financial Instruments

Gains and lossesrelated to the change in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:

	Successor			Predecessor
Gain/(Loss) Recognized in Earnings on Derivatives	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018
	(In thousands)
Swaps		$3,157			$2,602
Collars		(10,814	)		—
		$(7,657	)		$2,602

Consolidated Income Tax Provision

The following is an analysis of the consolidated income tax provision:

	Successor			Predecessor
	Three Months Ended March 31,
	2019			2018
		(In thousands)
Current - State	$	(118	)	$	10
- Federal		—			—
Deferred - State		410			(454	)
- Federal		3,942			1,026
	$	4,234		$	582

Difference Between Federal Statutory Rate and Effective Tax Rate

The difference between the federal statutory rate of 21% and the effective tax rate is due to the following:

	Successor			Predecessor
	Three Months Ended March 31,
	2019			2018
	(In thousands)
Tax at statutory rate		21.0	%		21.0	%
Tax effect of:
State income taxes, net of federal benefit		0.7			3.1
Valuation allowance on deferred tax assets		1.5			(24.5	)
Nondeductible stock-based compensation		0.6			(1.0	)
Effective tax rate		23.8	%		(1.4	)%

Basic and Diluted Income (Loss) Per Share

Basic and diluted income (loss) per share were determined as follows:

	Successor								Predecessor
		Three Months Ended March 31,
		2019							2018
		Income			Shares		Per Share		Loss			Shares		Per Share
		(In thousands, except per share amounts)
Net income (loss) attributable to common stock		$	13,575						$	(41,886	)
Income allocable to unvested restricted shares			(53	)						—
Basic income attributable to common stock		$	13,522			105,457	$	0.13	$	(41,886	)		15,084	$	(2.78	)
Diluted income attributable to common stock		$	13,522			105,457	$	0.13	$	(41,886	)		15,084	$	(2.78	)

Weighted Average Shares of Unvested Restricted Stock

Weighted average shares of unvested restricted stock outstanding were as follows:

	Successor		Predecessor
	Three Months Ended March 31,
	2019		2018
		(In thousands)
Unvested restricted stock		414		834

Common Stock and Convertible Stock Dilutive in Computation of Earning Per Share

All unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that would be dilutive in the computation of earnings per share were as follows:

	Successor		Predecessor
	Three Months Ended March 31,
	2019		2018
	(In thousands except per share/ unit amounts)
Weighted average PSUs		335		418
Weighted average grant date fair value per unit	$	12.93	$	13.83
Weighted average warrants for common stock		—		218
Weighted average exercise price per share	$	—	$	0.01
Weighted average contingently convertible shares		—		39,205
Weighted average conversion price per share	$	—	$	12.32

Cash Payments Made for Interest and Income Taxes

Cash payments made for interest and income taxes for the three months ended March 31, 2019 and 2018, respectively, were as follows:

	Successor		Predecessor
	Three Months Ended March 31,
	2019		2018
	(In thousands)
Interest payments	$	50,329	$	35,137
Income tax payments	$	—	$	—