2013 Financial Results To our stockholders: 2013 was a milestone year for Comstock as we were able to put in place all the ingredients to allow  the Company to be successfully balanced between oil and natural gas in 2014. Low natural gas  prices, which continued through 2013, had weakened the Company’s financial strength during a time  when we needed to make investments in new acreage to grow our oil production. We made those  investments and created a very successful drilling program in the Eagle Ford shale. Our investment  in the emerging Wolfcamp shale play in West Texas did not create the successful drilling program we  expected but did provide the Company the opportunity to make a $230 million profit on its divestiture  and repay $722 million in debt. The strong balance sheet created by this transaction allowed us to  ramp up our successful drilling program in our Eagleville field in South Texas and to invest in new  oil opportunities in the East Texas expansion of the Eagle Ford shale and in the emerging Tuscaloosa  Marine shale. We are poised in 2014 to have a successful year driven by our oil production growth. With natural gas prices starting to improve in 2014, our properties in the Haynesville and Bossier  shales in East Texas and North Louisiana provide us an opportunity to once again grow our natural  gas production and reserves once higher natural gas prices make those investments profitable again. We generated a $41 million, or 85¢ per share, profit in 2013. The profit was solely attributable  to the gain we recognized on the sale of our West Texas region. Oil and gas sales related to our  continuing operations increased 9% in 2013 as growth in our oil production and improved natural  gas prices offset the decrease in our natural gas production. We generated operating cash flow from  our continuing operations of $249 million in 2013 which was 7% higher than 2012’s operating cash  flow of $234 million. Our operating costs decreased 5% in 2013 to $85 million as compared to $89  million in 2012. Lower transport ation costs relate to the lo wer gas production in 2013 offset the  higher lifting co sts of our increas ed oil production. Deprecia tion, depletion and amortization in 201 3  of $337 million decreased 2% a compare d to th $ 344 mill ion we ha d in 201 due to the decreas e  in natural gas produc tion. Our d epreciatio n, depleti on and amortizatio n per Mcf produced increa sed  2011 2012 2013 $(33) $(100) $41 Net Income $ in millions