Comstock Resources, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed by Comstock Resources, Inc. on May 16, 2003. The filing primarily addresses a change in the company's independent public accountants.
Key Financial Metrics
The filing text does not provide specific values for revenue, profit, cash flow, margins, debt, or liquidity. This report focuses on governance and audit matters rather than financial performance data.
Material Changes
- Change in Auditor: The Board of Directors terminated the engagement of KPMG LLP and engaged Ernst & Young LLP as the independent public accountants for the 2003 fiscal year.
- Historical Audit Notes: KPMG's reports for the years ended December 31, 2002, and 2001, included separate paragraphs noting a change in the method of accounting for derivative instruments effective January 1, 2001, and a restatement of the consolidated balance sheet and related statements for the two-year period ended December 31, 2001.
- No Disagreements: There were no disagreements with KPMG regarding accounting principles, practices, financial statement disclosure, or auditing scope during the two most recent fiscal years.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future operations, or specific risk factors beyond the standard disclosure of the auditor change. Comstock confirmed it did not consult Ernst & Young regarding accounting principles or audit opinions prior to their engagement.
Investor Verification Checklist
- Verify the reasons for the auditor change by reviewing the attached letter from KPMG LLP (Exhibit 16).
- Review the press release dated May 16, 2003 (Exhibit 99.1) for additional context on the transition.
- Examine the restated financial statements for the period ended December 31, 2001, to understand the impact of the derivative accounting change.
- Confirm the scope of the new engagement with Ernst & Young LLP for the 2003 fiscal year.