Comstock Resources is a leading independent natural gas producer with operations focused
on the development of the Haynesville Shale in North Louisiana and East Texas

News Releases Details

COMSTOCK RESOURCES, INC. REPORTS FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS

FRISCO, TX, April 30, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2025.

Highlights of 2025's First Quarter

  • Higher natural gas prices in the first quarter drove improved financial results in the quarter.

    • Natural gas and oil sales, including realized hedging gains, were $405 million for the quarter.

    • Operating cash flow was $239 million or $0.81 per diluted share.

    • Adjusted EBITDAX for the quarter was $293 million.

    • Adjusted net income was $53.8 million or $0.18 per diluted share for the quarter.

  • Comstock resumed completion activity in late 2024 allowing it to turn fourteen (11.3 net) operated wells to sales since the last update with an average per well initial production rate of 25 MMcf per day.

  • The successful results of Comstock’s step out Western Haynesville well drilled in Freestone County, Texas substantially extended the success the Company has had in proving up its Western Haynesville acreage.

     

Financial Results for the Three Months Ended March 31, 2025

Natural gas prices improved substantially in the first quarter of 2025 and Comstock realized $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its natural gas production of 115 Bcf in the quarter. Comstock's natural gas and oil sales in the first quarter of 2025 increased to $405.0 million (including realized hedging losses of $8.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2025 was $239.0 million, and net loss for the first quarter was $115.4 million or $0.40 per share. The net loss in the quarter included a pre-tax $322.4 million unrealized loss on hedging contracts held for price risk management resulting from the rise in future natural gas prices since the end of 2024. Excluding this item and exploration expense, adjusted net income for the first quarter of 2025 was $53.8 million, or $0.18 per diluted share.

Comstock's production cost per Mcfe in the first quarter averaged $0.83 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.30 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 77% in the first quarter of 2025 and 76% after hedging.

Drilling Results

Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2025, which had an average lateral length of 11,660 feet. Comstock turned eleven (8.3 net) operated wells to sales in the first quarter of 2025.

Since its last operational update in February, Comstock has turned fourteen (11.3 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 12,220 feet. Included in the wells turned to sales was our first Western Haynesville well drilled in Freestone county, the Olajuwon Pickens #1, which had a 10,306 foot completed lateral. This well is 24.4 miles away from the closest producing Western Haynesville well and represents a major milestone in Comstock's progress in delineating its Western Haynesville acreage. The Olajuwon Pickens #1 was turned to sales at an initial production rate of 41 MMcf per day.

Other

On April 29, 2025, Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on May 1, 2025, to discuss the first quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BIe794f2ba5583499f970858176fd39094. 
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/99m3j47q.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on May 1, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/99m3j47q.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

  Three Months Ended
March 31,		 
  2025  2024 
Revenues:      
Natural gas sales $412,286  $287,083 
Oil sales  702   876 
Total natural gas and oil sales  412,988   287,959 
Gas services  99,866   47,813 
Total revenues  512,854   335,772 
Operating expenses:      
Production and ad valorem taxes  11,179   17,908 
Gathering and transportation  42,617   47,099 
Lease operating  35,000   35,072 
Exploration  2,150   — 
Depreciation, depletion and amortization  167,891   190,689 
Gas services  116,769   48,680 
General and administrative  11,080   9,171 
Total operating expenses  386,686   348,619 
Operating income (loss)  126,168   (12,847)
Other income (expenses):      
Gain (loss) from derivative financial instruments  (330,339)  39,307 
Other income  339   331 
Interest expense  (54,837)  (49,557)
Total other expenses  (384,837)  (9,919)
Loss before income taxes  (258,669)  (22,766)
Benefit from income taxes  143,276   8,292 
Net loss  (115,393)  (14,474)
Net income attributable to noncontrolling interest  (5,885)  (1,847)
Net loss available to the Company $(121,278) $(16,321)
       
Net loss per share      
Basic $(0.40) $(0.05)
Diluted $(0.40) $(0.05)
Weighted average shares outstanding:      
Basic  290,303   277,962 
Diluted  290,303   277,962 

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)

  Three Months Ended March 31, 
  2025  2024 
Natural gas production (MMcf)  115,029   139,443 
Oil production (Mbbls)  10   12 
Total production (MMcfe)  115,091   139,515 
       
Natural gas sales $412,286  $287,083 
Natural gas hedging settlements (1)  (7,959)  47,995 
Total natural gas including hedging  404,327   335,078 
Oil sales  702   876 
Total natural gas and oil sales including hedging $405,029  $335,954 
       
Average natural gas price (per Mcf) $3.58  $2.06 
Average natural gas price including hedging (per Mcf) $3.52  $2.40 
Average oil price (per barrel) $70.20  $73.00 
Average price (per Mcfe) $3.59  $2.06 
Average price including hedging (per Mcfe) $3.52  $2.41 
       
Production and ad valorem taxes $11,179  $17,908 
Gathering and transportation  42,617   47,099 
Lease operating  35,000   35,072 
Cash general and administrative (2)  6,640   5,755 
Total production costs $95,436  $105,834 
       
Production and ad valorem taxes (per Mcfe) $0.10  $0.13 
Gathering and transportation (per Mcfe)  0.37   0.34 
Lease operating (per Mcfe)  0.30   0.25 
Cash general and administrative (per Mcfe)  0.06   0.04 
Total production costs (per Mcfe) $0.83  $0.76 
       
Unhedged operating margin  77%  63%
Hedged operating margin  76%  68%
       
Gas services revenue $99,866  $47,813 
Gas services expenses  116,769   48,680 
Gas services margin $(16,903) $(867)
       
Natural Gas and Oil Capital Expenditures:      
Unproved property acquisitions $9,684  $69,444 
Total natural gas and oil properties acquisitions $9,684  $69,444 
Exploration and Development:      
Development leasehold $3,556  $3,938 
Exploratory drilling and completion  100,107   106,456 
Development drilling and completion  145,578   145,793 
Other development costs  515   37 
Total exploration and development capital expenditures $249,756  $256,224 

(1)    Included in gain (loss) from derivative financial instruments in operating results.

(2)    Excludes stock-based compensation.

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

  Three Months Ended
March 31,		 
  2025  2024 
ADJUSTED NET INCOME (LOSS):      
Net loss $(115,393) $(14,474)
Unrealized loss from derivative financial instruments  322,380   8,688 
Exploration expense  2,150   — 
Adjustment to income taxes  (155,292)  (2,752)
Adjusted net income (loss) $53,845  $(8,538)
       
Adjusted net income (loss) per share (2) $0.18  $(0.03)
Diluted shares outstanding  293,633   277,962 
       
       
ADJUSTED EBITDAX:      
Net loss $(115,393) $(14,474)
Interest expense  54,837   49,557 
Income taxes  (143,276)  (8,292)
Depreciation, depletion, and amortization  167,891   190,689 
Exploration  2,150   — 
Unrealized loss from derivative financial instruments  322,380   8,688 
Stock-based compensation  4,442   3,415 
Total Adjusted EBITDAX (3) $293,031  $229,583 

(1)   Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.

(2)   Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.

(3)   Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

 

COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands)

  Three Months Ended
March 31,		 
  2025  2024 
OPERATING CASH FLOW (1):      
Net loss $(115,393) $(14,474)
Reconciling items:      
Unrealized loss from derivative financial instruments  322,380   8,688 
Deferred income taxes  (143,276)  (8,287)
Depreciation, depletion and amortization  167,891   190,689 
Amortization of debt discount and issuance costs  2,944   1,984 
Stock-based compensation  4,442   3,415 
Operating cash flow $238,988  $182,015 
(Increase) decrease in accounts receivable  (33,660)  99,418 
Decrease in other current assets  559   5,576 
Decrease in accounts payable and accrued expenses  (31,141)  (115,470)
Net cash provided by operating activities $174,746  $171,539 

 

  Three Months Ended
March 31,		 
  2025  2024 
FREE CASH FLOW (DEFICIT)(2):      
Operating cash flow $238,988  $182,015 
Less:      
Exploration and development capital expenditures  (249,756)  (256,224)
Midstream capital expenditures  (48,668)  (5,298)
Other capital expenditures  (86)  (29)
Contributions from midstream partner  59,500   6,000 
Free cash deficit from operations $(22) $(73,536)
Acquisitions  (9,684)  (69,444)
Free cash deficit after acquisitions $(9,706) $(142,980)

(1)   Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

(2)   Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

  March 31

,
2025

  December 31

,
2024

 
ASSETS      
Cash and cash equivalents $32,875  $6,799 
Accounts receivable  208,506   174,846 
Derivative financial instruments  —   4,865 
Other current assets  97,595   97,524 
Total current assets  338,976   284,034 
Property and equipment, net  5,828,842   5,688,389 
Goodwill  335,897   335,897 
Operating lease right-of-use assets  97,832   73,777 
  $6,601,547  $6,382,097 
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Accounts payable $433,797  $421,814 
Accrued costs  113,231   146,173 
Operating leases  47,256   35,927 
Derivative financial instruments  263,796   8,940 
Total current liabilities  858,080   612,854 
Long-term debt  3,050,034   2,952,090 
Deferred income taxes  201,841   345,116 
Derivative financial instruments  129,416   66,757 
Long-term operating leases  50,485   37,740 
Asset retirement obligation  34,507   33,996 
Total liabilities  4,324,363   4,048,553 
Stockholders' Equity:      
Common stock  146,460   146,130 
Additional paid-in capital  1,367,696   1,366,274 
Accumulated earnings  607,341   728,619 
Total stockholders' equity attributable to Comstock  2,121,497   2,241,023 
Noncontrolling interest  155,687   92,521 
Total stockholders' equity  2,277,184   2,333,544 
  $6,601,547  $6,382,097 


Ron Mills
VP - Finance and Investor Relations
Comstock Resources
972-668-8834
rmills@comstockresources.com

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Source: Comstock Resources, Inc.