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 SECOND QUARTER 2025 FINANCIAL AND OPERATING RESULTS

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

Highlights of 2025's Second Quarter

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

    • Natural gas and oil sales, including realized hedging gains, were $344 million for the quarter.

    • Operating cash flow was $210 million or $0.71 per diluted share.

    • Adjusted EBITDAX for the quarter was $260 million.

    • Adjusted net income was $40.0 million or $0.13 per diluted share for the quarter.

  • Five Western Haynesville wells turned to sales in the second quarter.

    • These wells had an average lateral length of 10,897 feet and an average per well initial production rate of 36 MMcf per day.

    • The five wells were drilled and completed at an average per well cost of $2,647 per completed lateral foot.

  • Comstock has turned 21 wells to sales to date in 2025 in its Legacy Haynesville area with an average lateral length of 11,803 feet and a per well initial production rate of 25 MMcf per day.

     

Financial Results for the Three Months Ended June 30, 2025

During the second quarter of 2025, Comstock realized $3.02 per Mcf before hedging and $3.06 per Mcf after hedging for its natural gas production of 112 Bcf. As a result, Comstock's natural gas and oil sales in the second quarter of 2025 increased to $344.3 million (including realized hedging gains of $4.3 million). Operating cash flow (excluding changes in working capital) generated in the second quarter of 2025 was $209.6 million, and net income for the second quarter was $130.7 million or $0.44 per diluted share. The net income in the quarter included a pre-tax $231.6 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the first quarter of 2025. Excluding this item, adjusted net income for the second quarter of 2025 was $40.0 million, or $0.13 per diluted share.

Comstock's production cost per Mcfe in the second quarter averaged $0.80 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.28 for lease operating costs, $0.09 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 73% in the second quarter of 2025 and 74% after hedging.

Financial Results for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, Comstock realized $3.31 per Mcf before hedging and $3.29 per Mcf after hedging for its natural gas production of 227 Bcf. Natural gas and oil sales for the six months ended June 30, 2025 totaled $749.3 million (including realized hedging losses of $3.7 million). Operating cash flow (excluding changes in working capital) generated during the first six months of 2025 was $448.6 million, and net income was $15.3 million or $0.05 per diluted share. Net income during the first six months of 2025 included a pre-tax $90.8 million unrealized loss on hedging contracts held for risk management. Excluding this item and exploration expense, adjusted net income for the six months ended June 30, 2025 was $93.9 million or $0.32 per diluted share.

Comstock's production cost per Mcfe during the six months ended June 30, 2025 averaged $0.82 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.29 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged and hedged operating margin was 75% during the first six months of 2025.

Drilling Results

Comstock drilled twelve (10.6 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2025, which had an average lateral length of 10,388 feet. Comstock turned thirteen (12.0 net) operated wells to sales in the second quarter of 2025.

Since its last operational update in May 2025, Comstock has turned twelve (11.0 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 29 MMcf per day. The completed lateral length of these wells averaged 10,939 feet. Included in the wells turned to sales were four more successful Western Haynesville wells:







Well		 

Vertical 
Depth 
(feet)		 



Completed
Lateral (feet)		 Initial
Production
Rate (MMcf
per day)
       
Menn PB #1 16,262 10,926 38
Jennings Loehr

 #1

 15,582 12,106 34
Jennings FSRA #1 14,760 12,045 28
Bell Meyer

 #1

 18,762 9,100 41

Other

Comstock and NextEra Energy Resources, LLC, a unit of NextEra Energy, Inc. (NYSE: NEE) are collaborating to explore the potential development of power generation assets near Comstock's growing Western Haynesville area. The joint project will look to integrate Comstock's growing natural gas supply and its natural gas gathering and processing and pipeline assets in its Western Haynesville area to support reliable energy solutions to potential data center customers.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on July 31, 2025, to discuss the second 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/BI4a6aefc65c284c6190c230cdebdf9088.
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/537xytab.

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 July 31, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/537xytab.

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 NYSE and the NYSE Texas under the symbol CRK.

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

  Three Months Ended
June 30,		  Six Months Ended
June 30,		 
  2025  2024  2025  2024 
Revenues:            
Natural gas sales $339,225  $216,527  $751,511  $503,610 
Oil sales  741   1,074   1,443   1,950 
Total natural gas and oil sales  339,966   217,601   752,954   505,560 
Gas services  130,296   29,229   230,162   77,042 
Total revenues  470,262   246,830   983,116   582,602 
Operating expenses:            
Production and ad valorem taxes  10,555   19,244   21,734   37,152 
Gathering and transportation  41,759   49,361   84,376   96,460 
Lease operating  31,109   34,805   66,109   69,877 
Exploration  —   —   2,150   — 
Depreciation, depletion and amortization  158,379   194,242   326,270   384,931 
Gas services  126,714   31,494   243,483   80,174 
General and administrative  12,300   10,177   23,380   19,348 
Total operating expenses  380,816   339,323   767,502   687,942 
Operating income (loss)  89,446   (92,493)  215,614   (105,340)
Other income (expenses):            
Gain (loss) from derivative financial instruments  235,847   (25,252)  (94,492)  14,055 
Other income  2,100   322   2,439   653 
Interest expense  (55,178)  (51,932)  (110,015)  (101,489)
Total other income (expenses)  182,769   (76,862)  (202,068)  (86,781)
Income (loss) before income taxes  272,215   (169,355)  13,546   (192,121)
(Provision for) benefit from income taxes  (141,487)  46,106   1,789   54,398 
Net income (loss)  130,728   (123,249)  15,335   (137,723)
Net income attributable to noncontrolling interest  (5,886)  (3,061)  (11,771)  (4,908)
Net income (loss) available to the Company $124,842  $(126,310) $3,564  $(142,631)
             
Net income (loss) per share            
Basic $0.45  $(0.43) $0.05  $(0.49)
Diluted $0.44  $(0.43) $0.05  $(0.49)
Weighted average shares outstanding:            
Basic  290,604   289,670   290,455   283,816 
Diluted  294,247   289,670   294,026   283,816 

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

  Three Months Ended June 30,  Six Months Ended June 30, 
  2025  2024  2025  2024 
Natural gas production (MMcf)  112,164   130,861   227,193   270,304 
Oil production (Mbbls)  13   15   23   27 
Total production (MMcfe)  112,238   130,949   227,329   270,464 
             
Natural gas sales $339,225  $216,527  $751,511  $503,610 
Natural gas hedging settlements (1)  4,286   60,552   (3,673)  108,547 
Total natural gas including hedging  343,511   277,079   747,838   612,157 
Oil sales  741   1,074   1,443   1,950 
Total natural gas and oil sales including hedging $344,252  $278,153  $749,281  $614,107 
             
Average natural gas price (per Mcf) $3.02  $1.65  $3.31  $1.86 
Average natural gas price including hedging (per Mcf) $3.06  $2.12  $3.29  $2.26 
Average oil price (per barrel) $57.00  $71.60  $62.74  $72.22 
Average price (per Mcfe) $3.03  $1.66  $3.31  $1.87 
Average price including hedging (per Mcfe) $3.07  $2.12  $3.30  $2.27 
             
Production and ad valorem taxes $10,555  $19,244  $21,734  $37,152 
Gathering and transportation  41,759   49,361   84,376   96,460 
Lease operating  31,109   34,805   66,109   69,877 
Cash general and administrative (2)  6,771   6,095   13,411   11,850 
Total production costs $90,194  $109,505  $185,630  $215,339 
             
Production and ad valorem taxes (per Mcfe) $0.09  $0.14  $0.10  $0.13 
Gathering and transportation (per Mcfe)  0.37   0.38   0.37   0.36 
Lease operating (per Mcfe)  0.28   0.27   0.29   0.26 
Cash general and administrative (per Mcfe)  0.06   0.05   0.06   0.04 
Total production costs (per Mcfe) $0.80  $0.84  $0.82  $0.79 
             
Unhedged operating margin  73%  50%  75%  57%
Hedged operating margin  74%  61%  75%  65%
             
Gas services revenue $130,296  $29,229  $230,162  $77,042 
Gas services expenses  126,714   31,494   243,483   80,174 
Gas services margin $3,582  $(2,265) $(13,321) $(3,132)
             
Natural Gas and Oil Capital Expenditures:            
Unproved property acquisitions $9,932  $9,694  $19,616  $79,138 
Total natural gas and oil properties acquisitions $9,932  $9,694  $19,616  $79,138 
Exploration and Development:            
Development leasehold $5,295  $2,592  $8,851  $6,530 
Exploratory drilling and completion  130,997   52,392   231,104   158,848 
Development drilling and completion  123,991   151,350   269,569   297,143 
Other development costs  7,919   14,685   8,434   14,722 
Total exploration and development capital expenditures $268,202  $221,019  $517,958  $477,243 

(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
June 30,		  Six Months Ended
June 30,		 
  2025  2024  2025  2024 
ADJUSTED NET INCOME (LOSS):            
Net income (loss) $130,728  $(123,249) $15,335  $(137,723)
Unrealized (gain) loss from derivative financial instruments  (231,561)  85,804   90,819   94,492 
Exploration expense  —   —   2,150   — 
Adjustment to income taxes  140,873   (20,769)  (14,419)  (23,521)
Adjusted net income (loss) (1) $40,040  $(58,214) $93,885  $(66,752)
             
Adjusted net income (loss) per share (2) $0.13  $(0.20) $0.32  $(0.24)
Diluted shares outstanding  294,247   289,670   294,026   283,816 
             
             
ADJUSTED EBITDAX:            
Net income (loss) $130,728  $(123,249) $15,335  $(137,723)
Interest expense  55,178   51,932   110,015   101,489 
Income taxes  141,487   (46,106)  (1,789)  (54,398)
Depreciation, depletion, and amortization  158,379   194,242   326,270   384,931 
Exploration  —   —   2,150   — 
Unrealized (gain) loss from derivative financial instruments  (231,561)  85,804   90,819   94,492 
Stock-based compensation  5,529   4,082   9,971   7,497 
Total Adjusted EBITDAX (3) $259,740  $166,705  $552,771  $396,288 

(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
June 30,		  Six Months Ended
June 30,		 
  2025  2024  2025  2024 
OPERATING CASH FLOW (1):            
Net income (loss) $130,728  $(123,249) $15,335  $(137,723)
Reconciling items:            
Unrealized (gain) loss from derivative financial instruments  (231,561)  85,804   90,819   94,492 
Deferred income taxes  143,586   (46,144)  310   (54,431)
Depreciation, depletion and amortization  158,379   194,242   326,270   384,931 
Amortization of debt discount and issuance costs  2,975   3,399   5,919   5,383 
Stock-based compensation  5,529   4,082   9,971   7,497 
Operating cash flow $209,636  $118,134  $448,624  $300,149 
(Increase) decrease in accounts receivable  34,978   (23,187)  1,318   76,231 
(Increase) decrease in other current assets  25,322   (730)  25,881   4,846 
Increase (decrease) in accounts payable and accrued expenses  77,628   (10,642)  46,487   (126,112)
Net cash provided by operating activities $347,564  $83,575  $522,310  $255,114 

 

  Three Months Ended
June 30,		  Six Months Ended
June 30,		 
  2025  2024  2025  2024 
FREE CASH FLOW (DEFICIT)(2):            
Operating cash flow $209,636  $118,134  $448,624  $300,149 
Less:            
Exploration and development capital expenditures  (268,202)  (221,019)  (517,958)  (477,243)
Midstream capital expenditures  (54,272)  (11,190)  (102,940)  (16,488)
Other capital reimbursements (expenditures)  848   (942)  762   (971)
Contributions from midstream partner  33,000   11,000   92,500   17,000 
Free cash deficit from operations $(78,990) $(104,017) $(79,012) $(177,553)
Acquisitions  (9,932)  (9,694)  (19,616)  (79,138)
Free cash deficit after acquisitions $(88,922) $(113,711) $(98,628) $(256,691)

(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)

  June 30

,
2025

  December 31

,
2024

 
ASSETS      
Cash and cash equivalents $25,859  $6,799 
Accounts receivable  173,528   174,846 
Derivative financial instruments  136   4,865 
Other current assets  69,456   97,524 
Total current assets  268,979   284,034 
Property and equipment, net  6,002,010   5,688,389 
Goodwill  335,897   335,897 
Operating lease right-of-use assets  87,838   73,777 
Derivative financial instruments  139   — 
  $6,694,863  $6,382,097 
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Accounts payable $460,062  $421,814 
Accrued costs  151,798   146,173 
Operating leases  48,378   35,927 
Derivative financial instruments  87,909   8,940 
Total current liabilities  748,147   612,854 
Long-term debt  3,018,009   2,952,090 
Deferred income taxes  345,426   345,116 
Derivative financial instruments  74,017   66,757 
Long-term operating leases  39,389   37,740 
Asset retirement obligation  35,008   33,996 
Total liabilities  4,259,996   4,048,553 
Stockholders' Equity:      
Common stock  146,535   146,130 
Additional paid-in capital  1,364,857   1,366,274 
Accumulated earnings  732,183   728,619 
Total stockholders' equity attributable to Comstock  2,243,575   2,241,023 
Noncontrolling interest  191,292   92,521 
Total stockholders' equity  2,434,867   2,333,544 
  $6,694,863  $6,382,097 


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

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Source: Comstock Resources, Inc.