0000023194-22-000041 | 10-Q | XBRL Viewer

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Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2022	Nov. 02, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2022
Document Transition Report	false
Entity File Number	001-03262
Entity Registrant Name	COMSTOCK RESOURCES, INC.
Entity Incorporation, State or Country Code	NV
Entity Tax Identification Number	94-1667468
Entity Address, Address Line One	5300 Town and Country Blvd.
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Frisco
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75034
City Area Code	972
Local Phone Number	668-8800
Title of 12(b) Security	Common Stock, par value $0.50 (per share)
Trading Symbol	CRK
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		233,757,678
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000023194
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 38,648	$ 30,663
Accounts receivable:
Oil and gas sales	548,979	217,149
Joint interest operations	57,601	29,755
From affiliates	20,758	20,834
Derivative financial instruments	2,368	5,258
Other current assets	40,470	15,077
Total current assets	708,824	318,736
Oil and natural gas properties, successful efforts method:
Proved	5,520,425	4,756,394
Unproved	306,095	302,129
Other	25,295	6,690
Accumulated depreciation, depletion and amortization	(1,411,793)	(1,058,067)
Net property and equipment	4,440,022	4,007,146
Goodwill	335,897	335,897
Operating lease right-of-use assets	99,622	6,450
Total assets	5,584,365	4,668,229
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	617,463	314,569
Accrued costs	150,327	135,026
Operating leases	38,024	2,444
Derivative financial instruments	285,713	181,945
Total current liabilities	1,091,527	633,984
Long-term debt	2,261,697	2,615,235
Deferred income taxes	345,806	197,417
Derivative financial instruments	0	4,042
Long-term operating leases	61,676	4,075
Reserve for future abandonment costs	29,235	25,673
Other non-current liabilities	8	24
Total liabilities	3,789,949	3,480,450
Commitments and contingencies
Mezzanine equity:
Series B Convertible Preferred stock — 5,000,000 shares authorized, 175,000 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	175,000	175,000
Stockholders' equity:
Common stock—$0.50 par, 400,000,000 shares authorized, 233,757,678 and 232,924,646 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively	116,879	116,462
Additional paid-in capital	1,098,605	1,100,359
Accumulated earnings (deficit)	403,932	(204,042)
Total stockholders' equity	1,619,416	1,012,779
Total liabilities and stockholders' equity	$ 5,584,365	$ 4,668,229

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	175,000	175,000
Preferred stock, shares outstanding (in shares)	175,000	175,000
Common stock, par value (in dollars per share)	$ 0.50	$ 0.50
Common stock, shares authorized (in shares)	400,000,000	400,000,000
Common stock, shares issued (in shares)	233,757,678	232,924,646
Common stock, shares outstanding (in shares)	233,757,678	232,924,646

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Total oil and gas sales	$ 1,190,005	$ 511,176	$ 2,705,673	$ 1,195,354
Operating expenses:
Production and ad valorem taxes	24,531	16,675	60,080	36,468
Gathering and transportation	44,740	35,402	113,797	96,596
Lease operating	28,608	26,576	79,873	77,150
Exploration	0	0	3,363	0
Depreciation, depletion and amortization	129,065	128,739	354,994	359,313
Gas services	181,818	0	305,271	0
General and administrative	10,165	8,052	27,451	23,952
Gain on sale of assets	0	(14)	(21)	(93)
Total operating expenses	418,927	215,430	944,808	593,386
Operating income	771,078	295,746	1,760,865	601,968
Other income (expenses):
Loss from derivative financial instruments	(271,335)	(510,319)	(781,654)	(756,026)
Other income	56	197	506	1,008
Interest expense	(41,393)	(49,954)	(132,204)	(170,645)
Loss on early retirement of debt	0	0	(46,840)	(352,599)
Total other expenses	(312,672)	(560,076)	(960,192)	(1,278,262)
Income (loss) before income taxes	458,406	(264,330)	800,673	(676,294)
(Provision for) benefit from income taxes	(102,810)	(23,976)	(179,610)	74,168
Net income (loss)	355,596	(288,306)	621,063	(602,126)
Preferred stock dividends	(4,411)	(4,411)	(13,089)	(13,089)
Net income (loss) available to common stockholders	$ 351,185	$ (292,717)	$ 607,974	$ (615,215)
Net income (loss) per share:
Basic (in dollars per share)	$ 1.50	$ (1.26)	$ 2.61	$ (2.66)
Diluted (in dollars per share)	$ 1.28	$ (1.26)	$ 2.24	$ (2.66)
Weighted average shares outstanding:
Basic (in shares)	232,482	231,747	232,170	231,519
Diluted (in shares)	277,715	231,747	277,605	231,519
Total oil and gas sales
Revenues:
Total oil and gas sales	$ 996,915	$ 511,176	$ 2,383,098	$ 1,195,354
Natural gas sales
Revenues:
Total oil and gas sales	994,979	488,303	2,376,774	1,133,783
Oil sales
Revenues:
Total oil and gas sales	1,936	22,873	6,324	61,571
Gas services
Revenues:
Total oil and gas sales	$ 193,090	$ 0	$ 322,575	$ 0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Shares	Additional Paid-in Capital	Accumulated Earnings (Deficit)
Beginning balance (in shares) at Dec. 31, 2020		232,415
Beginning balance at Dec. 31, 2020	$ 1,266,773	$ 116,206	$ 1,095,384	$ 55,183
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		(4)
Stock-based compensation	1,690		1,690
Stock issuance costs	(30)		(30)
Net income (loss)	(134,125)			(134,125)
Payment of preferred dividends	(4,315)			(4,315)
Ending balance (in shares) at Mar. 31, 2021		232,411
Ending balance at Mar. 31, 2021	1,129,993	$ 116,206	1,097,044	(83,257)
Beginning balance (in shares) at Dec. 31, 2020		232,415
Beginning balance at Dec. 31, 2020	1,266,773	$ 116,206	1,095,384	55,183
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(602,126)
Ending balance (in shares) at Sep. 30, 2021		232,925
Ending balance at Sep. 30, 2021	655,281	$ 116,462	1,098,851	(560,032)
Beginning balance (in shares) at Mar. 31, 2021		232,411
Beginning balance at Mar. 31, 2021	1,129,993	$ 116,206	1,097,044	(83,257)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		472
Stock-based compensation	1,799	$ 235	1,564
Income tax withholdings on equity awards (in shares)		(33)
Income tax withholdings on equity awards	(198)	$ (16)	(182)
Stock issuance costs	(126)		(126)
Net income (loss)	(179,695)			(179,695)
Payment of preferred dividends	(4,363)			(4,363)
Ending balance (in shares) at Jun. 30, 2021		232,850
Ending balance at Jun. 30, 2021	947,410	$ 116,425	1,098,300	(267,315)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		298
Stock-based compensation	1,802	$ 149	1,653
Income tax withholdings on equity awards (in shares)		(223)
Income tax withholdings on equity awards	(1,214)	$ (112)	(1,102)
Net income (loss)	(288,306)			(288,306)
Payment of preferred dividends	(4,411)			(4,411)
Ending balance (in shares) at Sep. 30, 2021		232,925
Ending balance at Sep. 30, 2021	655,281	$ 116,462	1,098,851	(560,032)
Beginning balance (in shares) at Dec. 31, 2021		232,925
Beginning balance at Dec. 31, 2021	1,012,779	$ 116,462	1,100,359	(204,042)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		(3)
Stock-based compensation	1,495	$ (1)	1,496
Income tax withholdings on equity awards (in shares)		(2)
Income tax withholdings on equity awards	(18)	$ (1)	(17)
Net income (loss)	(111,424)			(111,424)
Payment of preferred dividends	(4,315)			(4,315)
Ending balance (in shares) at Mar. 31, 2022		232,920
Ending balance at Mar. 31, 2022	898,517	$ 116,460	1,101,838	(319,781)
Beginning balance (in shares) at Dec. 31, 2021		232,925
Beginning balance at Dec. 31, 2021	1,012,779	$ 116,462	1,100,359	(204,042)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	621,063
Ending balance (in shares) at Sep. 30, 2022		233,758
Ending balance at Sep. 30, 2022	1,619,416	$ 116,879	1,098,605	403,932
Beginning balance (in shares) at Mar. 31, 2022		232,920
Beginning balance at Mar. 31, 2022	898,517	$ 116,460	1,101,838	(319,781)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		304
Stock-based compensation	1,580	$ 151	1,429
Income tax withholdings on equity awards (in shares)		(65)
Income tax withholdings on equity awards	(1,346)	$ (32)	(1,314)
Net income (loss)	376,891			376,891
Payment of preferred dividends	(4,363)			(4,363)
Ending balance (in shares) at Jun. 30, 2022		233,159
Ending balance at Jun. 30, 2022	1,271,279	$ 116,579	1,101,953	52,747
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation (in shares)		849
Stock-based compensation	1,843	$ 425	1,418
Income tax withholdings on equity awards (in shares)		(250)
Income tax withholdings on equity awards	(4,891)	$ (125)	(4,766)
Net income (loss)	355,596			355,596
Payment of preferred dividends	(4,411)			(4,411)
Ending balance (in shares) at Sep. 30, 2022		233,758
Ending balance at Sep. 30, 2022	$ 1,619,416	$ 116,879	$ 1,098,605	$ 403,932

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 621,063	$ (602,126)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Deferred income taxes	148,389	(84,942)
Gain on sale of assets	(21)	(93)
Depreciation, depletion and amortization	354,994	359,313
Loss on derivative financial instruments	781,654	756,026
Cash settlements of derivative financial instruments	(679,038)	(145,262)
Amortization of debt discount and issuance costs	8,542	17,587
Stock-based compensation	4,918	5,291
Loss on early retirement of debt	46,840	352,599
Increase in accounts receivable	(359,600)	(97,379)
(Increase) decrease in other current assets	(25,214)	850
Increase in accounts payable and accrued expenses	301,956	56,689
Net cash provided by operating activities	1,204,483	618,553
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures and acquisitions	768,327	508,051
Proceeds from sales of assets	93	261
Net cash used for investing activities	(768,234)	(507,790)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on bank credit facility	705,000	275,000
Repayments of bank credit facility	(840,000)	(350,000)
Issuance of Senior Notes	0	2,222,500
Retirement of Senior Notes	(273,920)	(2,210,626)
Preferred stock dividends paid	(13,089)	(13,089)
Debt and stock issuance costs	0	(35,567)
Income tax withholdings on equity awards	(6,255)	(1,412)
Net cash used for financing activities	(428,264)	(113,194)
Net increase (decrease) in cash and cash equivalents	7,985	(2,431)
Cash and cash equivalents, beginning of period	30,663	30,272
Cash and cash equivalents, end of period	$ 38,648	$ 27,841

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES –

Basis of Presentation

These unaudited consolidated financial statements include the accounts of Comstock Resources, Inc. and its wholly-owned subsidiaries (collectively, "Comstock" or the "Company"). In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of September 30, 2022, and the related results of operations and cash flows for the periods being presented. Net income and comprehensive income are the same in all periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed.

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States have been omitted pursuant to those rules and regulations, although Comstock believes that the disclosures made are adequate to make the information presented not misleading. These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations for the period through September 30, 2022 are not necessarily an indication of the results expected for the full year.

Other Current Assets

Other current assets at September 30, 2022 and December 31, 2021 consisted of the following:


	As of
	September 30, 2022		December 31, 2021
	(In thousands)
Pipe inventory	$	30,588	$	5,015
Production tax refunds receivable	7,084		7,879
Prepaid expenses	1,865		2,183
Accrued treating and transportation fees	933		—
	$	40,470	$	15,077

Property and Equipment

The Company follows the successful efforts method of accounting for its oil and natural gas properties. Costs incurred to acquire oil and gas leases and to drill and complete developmental wells are capitalized.

Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved oil and gas reserves. The changes in capitalized exploratory well costs are as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2022
	(In thousands)
Beginning capitalized exploratory project costs	$	9,771	$	6,966
Additions to exploratory project costs pending the determination of proved reserves	20,144		50,541
Determined to have found proved reserves	—		(27,592)


Ending capitalized exploratory project costs	$	29,915	$	29,915

As of September 30, 2022 and December 31, 2021, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

The Company assesses the need for an impairment of the capitalized costs for its proved oil and gas properties on a property basis. No impairments were recognized to adjust the carrying value of the Company's proved oil and gas properties during any of the periods presented. Unproved oil and gas properties are also periodically assessed and any impairment in value is charged to expense. The costs related to unproved properties are transferred to proved oil and gas properties and amortized on an equivalent unit-of-production basis when they are reflected in proved oil and natural gas reserves.

The Company determines the fair values of its oil and gas properties using a discounted cash flow model and proved and risk-adjusted probable oil and natural gas reserves. Undrilled acreage can also be valued based on sales transactions in comparable areas. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for oil and natural gas prices, production costs, capital expenditures, and future production as well as estimated proved oil and gas reserves and risk-adjusted probable oil and natural gas reserves. Management's oil and natural gas price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value.

It is reasonably possible that the Company's estimates of undiscounted future net cash flows attributable to its oil and gas properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable oil and gas reserves, results of future drilling activities, future prices for oil and natural gas, and increases or decreases in production and capital costs. As a result of these changes, there may be future impairments in the carrying values of these or other properties.

Goodwill

The Company had goodwill of $335.9 million as of September 30, 2022 that was recorded in 2018. The Company is not required to amortize goodwill as a charge to earnings; however, the Company is required to conduct an annual review of goodwill for impairment. The Company performs an annual assessment of goodwill on October 1 of each year and performs interim assessments if indicators of impairment are present. If the carrying value of goodwill exceeds the fair value, an impairment charge would be recorded for the difference between fair value and carrying value.

Leases

The Company has right-of-use lease assets of $99.6 million related to its corporate office, certain office equipment, vehicles and a hydraulic fracturing fleet used to complete natural gas wells with corresponding short-term and long-term liabilities. The value of the lease assets and liabilities are determined based upon discounted future minimum cash flows contained within each of the respective contracts. The Company determines if contracts contain a lease at inception of the contract. To the extent that contract terms representing a lease are identified, leases are identified as being either an operating lease or a finance-type lease. Comstock currently has no finance-type leases. Right-of-use lease assets representing the Company's right to use an underlying asset for the lease term and the related lease liabilities represent our obligation to make lease payments under the terms of the contracts. Short-term leases that have an initial term of one year or less are not capitalized; however, amounts paid for those leases are included as part of its lease cost disclosures. Short-term lease costs exclude expenses related to leases with a lease term of one month or less. Leases for the right to explore for and develop oil and natural gas reserves and the related rights to use the land associated with those leases are reflected as oil and gas properties.

Comstock contracts for a variety of equipment used in its oil and natural gas exploration and development activities. Contract terms for this equipment vary broadly, including the contract duration, pricing, scope of services included along with the equipment, cancellation terms, and rights of substitution, among others. The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for oil and natural gas, and the overall operating and economic environment. Accordingly, Comstock manages the terms of its contracts for drilling rigs and completion equipment so as to allow for maximum flexibility in responding to these changing conditions. In April 2022, the Company took delivery of a natural gas powered hydraulic fracturing fleet, which has been leased with a three year term. The Company's other hydraulic fracturing fleet contracts are on terms less than one year and include rights of substitution. The Company's drilling rig contracts are presently either for periods of less than one year, or they are on terms that provide for cancellation with 45 days advance notice without a specified expiration date. The Company has elected not to recognize right-of-use lease assets for contracts less than one year. The costs associated with drilling and completion operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of our proved oil and natural gas properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense.

Lease costs recognized during the three months and nine months ended September 30, 2022 and 2021 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Operating lease cost included in general and administrative expense	$	436	$	435	$	1,307	$	1,299
Operating lease cost included in lease operating expense	370		218		970		640
Operating lease cost included in proved oil and gas properties	9,450		—		15,750		—
Variable lease cost (completion costs included in proved oil and gas properties)	11,730		—		22,857		—
Short-term operating lease cost (drilling rig costs included in proved oil and gas properties)	16,102		8,239		44,242		27,482
	$	38,088	$	8,892	$	85,126	$	29,421

Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $0.8 million and $0.7 million for the three months ended September 30, 2022 and 2021, respectively, and $2.3 million and $1.9 million for the nine months ended September 30, 2022 and 2021, respectively. Cash payments for operating leases associated with right-of-use assets included in cash used for investing activities were $37.3 million and $8.2 million for the three months ended September 30, 2022 and 2021, respectively, and $82.8 million and $27.5 million for the nine months ended September 30, 2022 and 2021, respectively.

As of September 30, 2022 and December 31, 2021, the operating leases had a weighted-average term of 2.5 years and 2.7 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 3.5% and 2.7%, respectively. As of September 30, 2022, the Company also had expected future payments for contracted drilling services of $16.0 million.

As of September 30, 2022, expected future payments related to contracts that contain operating leases were as follows:


	(In thousands)
October 1 to December 31, 2022	$	10,279
2023	40,810
2024	40,412
2025	12,830
2026	82
Thereafter	17
Total lease payments	104,430
Imputed interest	(4,730)
Total lease liability	$	99,700

Accrued Costs

Accrued costs at September 30, 2022 and December 31, 2021 consisted of the following:


	As of
	September 30, 2022		December 31, 2021
	(In thousands)
Accrued income and other taxes	$	56,388	$	15,655
Accrued drilling costs	36,197		19,995
Accrued transportation costs	27,690		22,859
Accrued interest payable	19,861		60,305
Accrued employee compensation	6,529		12,320

Accrued lease operating expenses	1,636		2,036
Other	2,026		1,856
	$	150,327	$	135,026

Reserve for Future Abandonment Costs

Comstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and disposal of other facilities. The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:


	Nine Months Ended September 30,
	2022		2021
	(In thousands)
Reserve for future abandonment costs at beginning of period	$	25,673	$	19,290
New wells placed on production	1,251		1,666
Acquisitions	1,211		—
Liabilities settled and assets disposed of	(29)		(6)
Accretion expense	1,129		917
Reserve for future abandonment costs at end of period	$	29,235	$	21,867

Derivative Financial Instruments and Hedging Activities

All of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts were designated as cash flow hedges. All of Comstock's natural gas derivative financial instruments, except for certain basis swaps, are tied to the Henry Hub-NYMEX price index.

The Company had the following oil and natural gas price derivative financial instruments at September 30, 2022:


	Future Production Period
	Three Months Ending December 31, 2022		Year Ending December 31, 2023	Total
Natural Gas Swap Contracts:
Volume (MMBtu)	29,440,000		—		29,440,000
Average Price per MMBtu	$2.68				$2.68
Natural Gas Collar Contracts:
Volume (MMBtu)	33,580,000		128,925,000		162,505,000
Average Price per MMBtu:
Average Ceiling	$3.91		$9.85		$8.62
Average Floor	$2.62		$2.98		$2.91









Natural Gas Basis Swap Contracts:
Volume (MMBtu)	2,760,000	(1)	—		2,760,000	(1)
Average Price per MMBtu	($0.16)				($0.16)

_____________________________

(1)Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices.

The classification of derivative financial instruments of assets or liabilities, consists of the following:


		As of
Type	Consolidated Balance Sheet Location	September 30, 2022		December 31, 2021
		(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivatives	Derivative Financial Instruments – current	$	2,368	$	4,528
Oil price derivatives	Derivative Financial Instruments – current	—		730
		$	2,368	$	5,258





Liability Derivative Financial Instruments:
Natural gas price derivatives	Derivative Financial Instruments – current	$	285,713	$	181,215
Oil price derivatives	Derivative Financial Instruments – current	—		730

		$	285,713	$	181,945

Natural gas price derivatives	Derivative Financial Instruments – long-term	$	—	$	4,042

The Company recognized cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:


Loss on Derivatives Recognized in Earnings	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Natural gas price derivatives	$	(271,335)	$	(509,777)	$	(781,654)	$	(748,499)
Oil price derivatives	—		(287)		—		(7,820)
Interest rate derivatives	—		(255)		—		293
	$	(271,335)	$	(510,319)	$	(781,654)	$	(756,026)

Stock-Based Compensation

Comstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors. The Company recognized $1.8 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended September 30, 2022 and 2021, and $4.9 million and $5.3 million for the nine months ended September 30, 2022 and 2021, respectively.

During the nine months ended September 30, 2022, the Company granted an aggregate of 618,382 shares of restricted stock to its directors and employees. The weighted average grant date value of the 2022 awards were $17.74 per share. As of September 30, 2022, Comstock had 956,649 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $13.33 per share. Total unrecognized compensation cost related to unvested restricted stock grants of $11.6 million as of September 30, 2022 is expected to be recognized over a period of 2.5 years.

During the nine months ended September 30, 2022, the Company granted an aggregate of 223,004 PSUs to its executive officers with a weighted average grant date value of $26.07 per unit. As of September 30, 2022, Comstock had 628,845 PSUs outstanding with a weighted average grant date fair value of $14.52 per unit. The number of shares of common stock to be issued related to the PSUs is based on the Company's stock price performance as compared to its peers which could result in the issuance of anywhere from zero to 1,257,690 shares of common stock. Total unrecognized compensation cost related to these grants of $6.6 million as of September 30, 2022 is expected to be recognized over a period of 2.4 years.

Revenue Recognition

Comstock produces oil and natural gas and reports revenues separately for each of these two primary products in its statements of operations. Revenues are recognized upon the transfer of produced volumes to the Company's customers, who take control of the volumes and receive all the benefits of ownership upon delivery at designated sales points. Payment is reasonably assured upon delivery of production. All sales are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties. These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties. Prices for sales of oil and natural gas are generally based upon terms that are common in the oil and gas industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions. As a result, prices for oil and natural gas routinely fluctuate based on changes in these factors. Each unit of production (barrel of crude oil and thousand cubic feet of natural gas) represents a separate performance obligation under the Company's contracts since each unit has economic benefit on its own and each is priced separately according to the terms of the contracts.

Comstock has elected to exclude all taxes from the measurement of transaction prices, and its revenues are reported net of royalties and exclude revenue interests owned by others because the Company acts as an agent when selling crude oil and natural gas, on behalf of royalty owners and working interest owners. Revenue is recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. The Company recognizes any differences between estimates and actual amounts received in the month when payment is received. Historically, differences between estimated revenues and actual revenue received have not been significant. The amount of oil or natural gas sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at September 30, 2022. Sales of oil and natural gas generally occur at or near the wellhead. When sales of oil and gas occur at locations other than the wellhead, the Company accounts for costs incurred to transport the production to the delivery point as gathering and transportation expenses.

Gas services revenues represent sales of natural gas purchased for resale and fees received for gathering and treating services provided to unaffiliated third parties. The Company recognizes gas services revenues at the time the performance obligations have been fulfilled.

The Company recognized accounts receivable for oil and gas sales of $549.0 million as of September 30, 2022 from purchasers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

Credit Losses

Substantially all of the Company's accounts receivable are due from either purchasers of oil and gas or participants in oil and gas wells for which the Company serves as the operator. Generally, operators of oil and gas wells have the right to offset future revenues against unpaid charges related to operated wells. Oil and gas sales are generally unsecured. Comstock assesses the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been recorded for the nine months ended September 30, 2022 and 2021.

Income Taxes

Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates.

In recording deferred income tax assets, the Company considers whether it is more likely than not that its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods.

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Current - Federal	$	10,001	$	—	$	11,400	$	—
Current - State	14,749		7,637		19,821		10,774
Deferred - Federal	66,732		(12,971)		124,600		(105,934)
Deferred - State	11,328		29,310		23,789		20,992
	$	102,810	$	23,976	$	179,610	$	(74,168)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Tax at statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
Tax effect of:
Valuation allowance on deferred tax assets	(4.1)		(58.3)		(4.0)		(13.3)
State income taxes, net of federal benefit	5.8		(14.0)		5.6		(4.7)
Nondeductible stock-based compensation	(0.2)		(0.9)		(0.1)		(0.3)
Change in state tax law	—		43.1		—		8.3
Other	(0.1)		—		—		—
Effective tax rate	22.4	%	(9.1)	%	22.5	%	11.0	%

The Company's federal income tax returns for the years subsequent to December 31, 2017 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2018. The Company currently believes that all other significant filing positions are highly certain and that all of its other significant income tax positions and deductions would be sustained under audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions.

Fair Value Measurements

The Company holds or has held certain financial assets and liabilities that are required to be measured at fair value. These include cash and cash equivalents held in bank accounts and derivative financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements:

Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date.

Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.

Level 3 — Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions.

In 2021, the Company had natural gas price swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement. The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy:


	Nine Months Ended September 30, 2021
	(In thousands)
Balance at beginning of year	$	(22,588)
Total loss included in earnings	(113,018)
Settlements, net	21,881
Transfers out of Level 3	(6,418)
Balance at end of period	$	(120,143)

Fair Values – Reported

The following presents the carrying amounts and the fair values of the Company's financial instruments as of September 30, 2022 and December 31, 2021:


	As of
	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:	(In thousands)
Commodity-based derivatives (1)	$	2,368	$	2,368	$	5,258	$	5,258
Liabilities:
Commodity-based derivatives (1)	$	285,713	$	285,713	$	185,987	$	185,987
Bank credit facility (2)	$	100,000	$	100,000	$	235,000	$	235,000
7.5% senior notes due 2025 (3)	$	—	$	—	$	196,998	$	248,066

6.75% senior notes due 2029 (3)	$	1,230,037	$	1,129,029	$	1,256,874	$	1,337,500
5.875% senior notes due 2030 (3)	$	965,000	$	837,138	$	965,000	$	989,125

_____________________________

(1)The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using third party pricing services and other active markets or broker quotes that are readily available in the public markets.

(2)The carrying value of our floating rate debt outstanding approximates fair value.

(3)The fair value of the Company's fixed rate debt was based on quoted prices as of September 30, 2022 and December 31, 2021, respectively, a Level 1 measurement.

Earnings Per Share

Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At September 30, 2022 and December 31, 2021, 956,649 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

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


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In thousands)
Unvested restricted stock	890	1,148	914	1,092

PSUs represent the right to receive a number of shares of the Company's common stock that may range from zero to up to two times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any,

which would be issuable at the end of the respective period, assuming that date was the end of the performance period. The treasury stock method is used to measure the dilutive effect of PSUs.

Weighted average unearned PSUs outstanding were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In thousands, except per unit amounts)
Weighted average PSUs	942	1,204	1,024	1,178
Weighted average grant date fair value per unit	$14.52	$8.11	$14.52	$8.11

Basic and diluted income (loss) per share for the three months and nine months ended September 30, 2022 and 2021 were determined as follows:


	Three Months Ended September 30,
	2022					2021
	Income		Shares	Per Share		Loss		Shares	Per Share
	(In thousands, except per share amounts)
Net income (loss) attributable to common stock	$	351,185				$	(292,717)
Income allocable to unvested restricted shares	(1,339)					—
Basic income (loss) attributable to common stock	349,846		232,482	$	1.50	(292,717)		231,747	$	(1.26)
Effect of Dilutive Securities:
Restricted stock	1,339		392			—		—
Performance stock units	—		1,091			—		—
Convertible preferred stock	4,411		43,750			—		—
Diluted income (loss) attributable to common stock	$	355,596	277,715	$	1.28	$	(292,717)	231,747	$	(1.26)


	Nine Months Ended September 30,
	2022					2021
	Income		Shares	Per Share		Loss		Shares	Per Share
	(In thousands, except per share amounts)
Net income (loss) attributable to common stock	$	607,974				$	(615,215)
Income allocable to unvested restricted shares	(2,384)					—
Basic income (loss) attributable to common stock	605,590		232,170	$	2.61	(615,215)		231,519	$	(2.66)
Effect of Dilutive Securities:
Restricted stock	2,384		541			—		—
Performance stock units	—		1,144			—		—
Convertible preferred Stock	13,089		43,750			—		—
Diluted income (loss) attributable to common stock	$	621,063	277,605	$	2.24	$	(615,215)	231,519	$	(2.66)

The Series B Convertible Preferred Stock became convertible into an aggregate of 43,750,000 shares of common stock on July 16, 2020 at a conversion price of $4.00 per share. The dilutive effect of preferred stock is computed using the if-converted method as if conversion of the preferred shares had occurred at the earlier of the date of issuance or the beginning of the period.

None of the Company's participating securities participate in losses and as such are excluded from the computation of basic earnings per share during periods of net losses.

Supplementary Information with Respect to the Consolidated Statements of Cash Flows

Cash payments made for interest and income taxes and other non-cash investing activities for the nine months ended September 30, 2022 and 2021, respectively, were as follows:


	Nine Months Ended September 30,
	2022		2021
	(In thousands)
Cash payments for:
Interest payments	$	164,107	$	191,366
Income tax payments	$	719	$	—
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures	$	16,202	$	(3,021)
Liabilities assumed in exchange for right-of-use lease assets	$	109,546	$	5,562

LONG-TERM DEBT

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

LONG-TERM DEBT

At September 30, 2022, long-term debt was comprised of the following:


	(In thousands)
6.75% Senior Notes due 2029:
Principal	$	1,223,880
Premium, net of amortization	6,157
5.875% Senior Notes due 2030:
Principal	965,000
Bank Credit Facility:
Principal	100,000
Debt issuance costs, net of amortization	(33,340)
	$	2,261,697

As of September 30, 2022, the Company had $100.0 million outstanding under a bank credit facility with a $1.4 billion committed borrowing base which is re-determined on a semi-annual basis and upon the occurrence of certain other events and matures on July 16, 2024. The borrowing base was last redetermined on April 15, 2022. Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its subsidiaries and bear interest at the Company's option, at either LIBOR plus 2.25% to 3.25% or a base rate plus 1.25% to 2.25%, in each case depending on the utilization of the borrowing base. The Company also pays a commitment fee of 0.375% to 0.5% on the unused portion of the borrowing base. The bank credit facility places certain restrictions upon the Company's and its subsidiaries' ability to, among other things, incur additional indebtedness, pay cash dividends, repurchase common stock, make certain loans, investments and divestitures and redeem the senior notes. The only financial covenants are the maintenance of a leverage ratio of less than 4.0 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0. The Company was in compliance with the covenants as of September 30, 2022.

In May 2022, the Company completed the early redemption of all of its outstanding 7.5% senior notes due in 2025 for an aggregate amount of $258.1 million, which included principal of $244.4 million, premiums paid over face value of $4.5 million and accrued interest of $9.2 million. As a result of the redemption, the Company recognized a loss of $47.8 million on early retirement of debt including the write-off of $43.3 million of unamortized discount resulting from adjusting the senior notes to fair value on the date that they were assumed by the Company.

In June 2022, the Company repurchased $26.1 million principal amount of its 6.75% senior notes due in 2029 for $24.9 million. The Company recognized a gain of $1.0 million on early retirement of debt relating to the repurchase.

During the nine months ended September 30, 2021, the Company repurchased $375.0 million principal amount of its 7.5% senior notes due in 2025 and $1,650.0 million principal amount of its 9.75% senior notes due 2026 with proceeds from the issuance of $1,250.0 million principal amount of its 6.75% senior notes due in 2029 and $965.0 million principal amount of its 5.875% senior notes due in 2030. The Company recognized a loss of $352.6 million on early retirement of debt for the nine months ended September 30, 2021.

CONVERTIBLE PREFERRED STOCK	9 Months Ended
CONVERTIBLE PREFERRED STOCK	Sep. 30, 2022
Temporary Equity Disclosure [Abstract]
CONVERTIBLE PREFERRED STOCK	CONVERTIBLE PREFERRED STOCKThe Company has 175,000 shares outstanding of Series B Convertible Preferred Stock, which are held by its majority stockholder. The holder of the Series B Convertible Preferred Stock is entitled to receive quarterly dividends at a rate of 10% per annum, which are paid in arrears. The holder of the Series B Convertible Preferred Stock may convert any or all shares of such preferred stock into shares of the Company's common stock at $4.00 per share, subject to adjustment pursuant to customary anti-dilution provisions. The Company has the right to redeem the Series B Convertible Preferred Stock at any time at face value plus accrued dividends. The Series B Convertible Preferred Stock is classified as mezzanine equity based on the majority stockholder's ability to control the terms of conversion to common stock.

COMMITMENTS AND CONTINGENCIES	9 Months Ended
COMMITMENTS AND CONTINGENCIES	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In July 2022, the Company entered into a hydraulic fracturing services agreement for exclusive use of a natural gas powered hydraulic fracturing fleet. The term of the agreement is three years and the minimum commitment under this agreement is $19.2 million per year. The Company expects to take delivery of the fleet in 2023. From time to time, the Company is involved in certain litigation that arises in the normal course of its operations. The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company does not believe the resolution of these matters will have a material effect on the Company's financial position, results of operations or cash flows and no material amounts are accrued relative to these matters at September 30, 2022 or 2021.

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2022
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS Comstock operates oil and gas properties held by partnerships owned by its majority stockholder. The Company charges the partnerships for the costs incurred to drill, complete and produce wells, as well as drilling and operating overhead fees. Comstock also provides natural gas marketing services to the partnerships, including evaluating potential markets and providing hedging services, in return for a fee equal to $0.02 per Mcf for natural gas marketed. The Company received $152 thousand and $353 thousand for the three months ended September 30, 2022 and 2021, respectively, and $0.7 million and $1.2 million for the nine months ended September 30, 2022 and 2021, respectively, for drilling, operating and marketing services provided to the partnerships. The fees received for the services are reflected as a reduction of general and administrative expenses in the accompanying consolidated statements of operations.In connection with the operation of the wells, the Company had a $20.8 million receivable from the partnerships at September 30, 2022 and December 31, 2021, respectively.

SUBSEQUENT EVENT	9 Months Ended
SUBSEQUENT EVENT	Sep. 30, 2022
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENTOn October 31, 2022, the board of directors of the Company authorized a dividend of $0.125 per share to be paid to common stockholders of record on December 1, 2022.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Property and Equipment


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2022
	(In thousands)
Beginning capitalized exploratory project costs	$	9,771	$	6,966
Additions to exploratory project costs pending the determination of proved reserves	20,144		50,541
Determined to have found proved reserves	—		(27,592)


Ending capitalized exploratory project costs	$	29,915	$	29,915

As of September 30, 2022 and December 31, 2021, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

Goodwill

Leases

Reserve for Future Abandonment Costs

Reserve for Future Abandonment CostsComstock's asset retirement obligations relate to future plugging and abandonment expenses on its oil and gas properties and disposal of other facilities.

Derivative Financial Instruments and Hedging Activities

Derivative Financial Instruments and Hedging ActivitiesAll of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts were designated as cash flow hedges. All of Comstock's natural gas derivative financial instruments, except for certain basis swaps, are tied to the Henry Hub-NYMEX price index.

Stock-Based Compensation

Stock-Based CompensationComstock accounts for employee stock-based compensation under the fair value method. Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors.

Revenue Recognition

Credit Losses

Income Taxes

Fair Value Measurements

Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date.

In 2021, the Company had natural gas price swaption agreements that were measured at fair value using a third party pricing service, categorized as a Level 3 measurement.

Earnings Per Share

Earnings Per ShareUnvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At September 30, 2022 and December 31, 2021, 956,649 and 952,971 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Schedule of Other Current Assets

Other current assets at September 30, 2022 and December 31, 2021 consisted of the following:


	As of
	September 30, 2022		December 31, 2021
	(In thousands)
Pipe inventory	$	30,588	$	5,015
Production tax refunds receivable	7,084		7,879
Prepaid expenses	1,865		2,183
Accrued treating and transportation fees	933		—
	$	40,470	$	15,077

Capitalized Exploratory Well Costs

The changes in capitalized exploratory well costs are as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022		2022
	(In thousands)
Beginning capitalized exploratory project costs	$	9,771	$	6,966
Additions to exploratory project costs pending the determination of proved reserves	20,144		50,541
Determined to have found proved reserves	—		(27,592)


Ending capitalized exploratory project costs	$	29,915	$	29,915

Summary of Lease Cost Recognized

Lease costs recognized during the three months and nine months ended September 30, 2022 and 2021 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Operating lease cost included in general and administrative expense	$	436	$	435	$	1,307	$	1,299
Operating lease cost included in lease operating expense	370		218		970		640
Operating lease cost included in proved oil and gas properties	9,450		—		15,750		—
Variable lease cost (completion costs included in proved oil and gas properties)	11,730		—		22,857		—
Short-term operating lease cost (drilling rig costs included in proved oil and gas properties)	16,102		8,239		44,242		27,482
	$	38,088	$	8,892	$	85,126	$	29,421

Summary of Liabilities Under Contracts That Contain Operating Leases

As of September 30, 2022, expected future payments related to contracts that contain operating leases were as follows:


	(In thousands)
October 1 to December 31, 2022	$	10,279
2023	40,810
2024	40,412
2025	12,830
2026	82
Thereafter	17
Total lease payments	104,430
Imputed interest	(4,730)
Total lease liability	$	99,700

Summary of Accrued Costs

Accrued costs at September 30, 2022 and December 31, 2021 consisted of the following:


	As of
	September 30, 2022		December 31, 2021
	(In thousands)
Accrued income and other taxes	$	56,388	$	15,655
Accrued drilling costs	36,197		19,995
Accrued transportation costs	27,690		22,859
Accrued interest payable	19,861		60,305
Accrued employee compensation	6,529		12,320

Accrued lease operating expenses	1,636		2,036
Other	2,026		1,856
	$	150,327	$	135,026

Summary of Changes in Total Estimated Asset Retirement Obligation Liability

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


	Nine Months Ended September 30,
	2022		2021
	(In thousands)
Reserve for future abandonment costs at beginning of period	$	25,673	$	19,290
New wells placed on production	1,251		1,666
Acquisitions	1,211		—
Liabilities settled and assets disposed of	(29)		(6)
Accretion expense	1,129		917
Reserve for future abandonment costs at end of period	$	29,235	$	21,867

Schedule of Oil and Natural Gas Price Derivative

The Company had the following oil and natural gas price derivative financial instruments at September 30, 2022:


	Future Production Period
	Three Months Ending December 31, 2022		Year Ending December 31, 2023	Total
Natural Gas Swap Contracts:
Volume (MMBtu)	29,440,000		—		29,440,000
Average Price per MMBtu	$2.68				$2.68
Natural Gas Collar Contracts:
Volume (MMBtu)	33,580,000		128,925,000		162,505,000
Average Price per MMBtu:
Average Ceiling	$3.91		$9.85		$8.62
Average Floor	$2.62		$2.98		$2.91









Natural Gas Basis Swap Contracts:
Volume (MMBtu)	2,760,000	(1)	—		2,760,000	(1)
Average Price per MMBtu	($0.16)				($0.16)

_____________________________

(1)Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices.

Schedule of Derivative Instruments

The classification of derivative financial instruments of assets or liabilities, consists of the following:


		As of
Type	Consolidated Balance Sheet Location	September 30, 2022		December 31, 2021
		(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivatives	Derivative Financial Instruments – current	$	2,368	$	4,528
Oil price derivatives	Derivative Financial Instruments – current	—		730
		$	2,368	$	5,258





Liability Derivative Financial Instruments:
Natural gas price derivatives	Derivative Financial Instruments – current	$	285,713	$	181,215
Oil price derivatives	Derivative Financial Instruments – current	—		730

		$	285,713	$	181,945

Natural gas price derivatives	Derivative Financial Instruments – long-term	$	—	$	4,042

Schedule of Gains and Losses from Derivative Contracts

Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:


Loss on Derivatives Recognized in Earnings	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Natural gas price derivatives	$	(271,335)	$	(509,777)	$	(781,654)	$	(748,499)
Oil price derivatives	—		(287)		—		(7,820)
Interest rate derivatives	—		(255)		—		293
	$	(271,335)	$	(510,319)	$	(781,654)	$	(756,026)

Consolidated Income Tax Benefit (Provision)

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
	(In thousands)
Current - Federal	$	10,001	$	—	$	11,400	$	—
Current - State	14,749		7,637		19,821		10,774
Deferred - Federal	66,732		(12,971)		124,600		(105,934)
Deferred - State	11,328		29,310		23,789		20,992
	$	102,810	$	23,976	$	179,610	$	(74,168)

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:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Tax at statutory rate	21.0	%	21.0	%	21.0	%	21.0	%
Tax effect of:
Valuation allowance on deferred tax assets	(4.1)		(58.3)		(4.0)		(13.3)
State income taxes, net of federal benefit	5.8		(14.0)		5.6		(4.7)
Nondeductible stock-based compensation	(0.2)		(0.9)		(0.1)		(0.3)
Change in state tax law	—		43.1		—		8.3
Other	(0.1)		—		—		—
Effective tax rate	22.4	%	(9.1)	%	22.5	%	11.0	%

Summary of Lease Cost Recognized

The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy:


	Nine Months Ended September 30, 2021
	(In thousands)
Balance at beginning of year	$	(22,588)
Total loss included in earnings	(113,018)
Settlements, net	21,881
Transfers out of Level 3	(6,418)
Balance at end of period	$	(120,143)

Summary of Carrying Amounts and Fair Values of Financial Instruments

The following presents the carrying amounts and the fair values of the Company's financial instruments as of September 30, 2022 and December 31, 2021:


	As of
	September 30, 2022				December 31, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Assets:	(In thousands)
Commodity-based derivatives (1)	$	2,368	$	2,368	$	5,258	$	5,258
Liabilities:
Commodity-based derivatives (1)	$	285,713	$	285,713	$	185,987	$	185,987
Bank credit facility (2)	$	100,000	$	100,000	$	235,000	$	235,000
7.5% senior notes due 2025 (3)	$	—	$	—	$	196,998	$	248,066

6.75% senior notes due 2029 (3)	$	1,230,037	$	1,129,029	$	1,256,874	$	1,337,500
5.875% senior notes due 2030 (3)	$	965,000	$	837,138	$	965,000	$	989,125

_____________________________

(2)The carrying value of our floating rate debt outstanding approximates fair value.

(3)The fair value of the Company's fixed rate debt was based on quoted prices as of September 30, 2022 and December 31, 2021, respectively, a Level 1 measurement.

Weighted Average Shares of Unvested Restricted Stock

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


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In thousands)
Unvested restricted stock	890	1,148	914	1,092

Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding

The treasury stock method is used to measure the dilutive effect of PSUs.

Weighted average unearned PSUs outstanding were as follows:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2022	2021	2022	2021
	(In thousands, except per unit amounts)
Weighted average PSUs	942	1,204	1,024	1,178
Weighted average grant date fair value per unit	$14.52	$8.11	$14.52	$8.11

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

Basic and diluted income (loss) per share for the three months and nine months ended September 30, 2022 and 2021 were determined as follows:


	Three Months Ended September 30,
	2022					2021
	Income		Shares	Per Share		Loss		Shares	Per Share
	(In thousands, except per share amounts)
Net income (loss) attributable to common stock	$	351,185				$	(292,717)
Income allocable to unvested restricted shares	(1,339)					—
Basic income (loss) attributable to common stock	349,846		232,482	$	1.50	(292,717)		231,747	$	(1.26)
Effect of Dilutive Securities:
Restricted stock	1,339		392			—		—
Performance stock units	—		1,091			—		—
Convertible preferred stock	4,411		43,750			—		—
Diluted income (loss) attributable to common stock	$	355,596	277,715	$	1.28	$	(292,717)	231,747	$	(1.26)


	Nine Months Ended September 30,
	2022					2021
	Income		Shares	Per Share		Loss		Shares	Per Share
	(In thousands, except per share amounts)
Net income (loss) attributable to common stock	$	607,974				$	(615,215)
Income allocable to unvested restricted shares	(2,384)					—
Basic income (loss) attributable to common stock	605,590		232,170	$	2.61	(615,215)		231,519	$	(2.66)
Effect of Dilutive Securities:
Restricted stock	2,384		541			—		—
Performance stock units	—		1,144			—		—
Convertible preferred Stock	13,089		43,750			—		—
Diluted income (loss) attributable to common stock	$	621,063	277,605	$	2.24	$	(615,215)	231,519	$	(2.66)

Cash Payments Made for Interest and Income Taxes

Cash payments made for interest and income taxes and other non-cash investing activities for the nine months ended September 30, 2022 and 2021, respectively, were as follows:


	Nine Months Ended September 30,
	2022		2021
	(In thousands)
Cash payments for:
Interest payments	$	164,107	$	191,366
Income tax payments	$	719	$	—
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures	$	16,202	$	(3,021)
Liabilities assumed in exchange for right-of-use lease assets	$	109,546	$	5,562

LONG-TERM DEBT (Tables)

9 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-term Debt

At September 30, 2022, long-term debt was comprised of the following:


	(In thousands)
6.75% Senior Notes due 2029:
Principal	$	1,223,880
Premium, net of amortization	6,157
5.875% Senior Notes due 2030:
Principal	965,000
Bank Credit Facility:
Principal	100,000
Debt issuance costs, net of amortization	(33,340)
	$	2,261,697

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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-Section S99
-Paragraph 1
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 3
-Subparagraph (SX 210.12-04(a))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
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-Topic 835
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-Section 45
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Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 505
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-Section 50
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Reference 5: http://www.xbrl.org/2003/role/exampleRef
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-Name Accounting Standards Codification
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Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
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Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
-Topic 942
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823

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-Topic 505
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-URI https://asc.fasb.org/extlink&oid=126973232&loc=d3e21475-112644

+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Current Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Other Current Assets [Line Items]
Other current assets	$ 40,470	$ 15,077
Pipe inventory
Schedule Of Other Current Assets [Line Items]
Other current assets	30,588	5,015
Production tax refunds receivable
Schedule Of Other Current Assets [Line Items]
Other current assets	7,084	7,879
Prepaid expenses
Schedule Of Other Current Assets [Line Items]
Other current assets	1,865	2,183
Accrued treating and transportation fees
Schedule Of Other Current Assets [Line Items]
Other current assets	$ 933	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Equipment and Goodwill (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward]
Beginning capitalized exploratory project costs		$ 9,771,000	$ 6,966,000
Additions to exploratory project costs pending the determination of proved reserves	$ 20,144,000		50,541,000
Determined to have found proved reserves	0		(27,592,000)
Ending capitalized exploratory project costs	29,915,000		29,915,000
Impairment of oil and gas properties	0	$ 0	0	$ 0
Goodwill	$ 335,897,000		$ 335,897,000		$ 335,897,000

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Leases (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Apr. 01, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Operating lease, right-of-use assets	$ 99,622		$ 99,622			$ 6,450
Operating lease, term of contract					3 years
Prior advance notice period for cancellation of rig contracts			45 days
Cash payments for operating leases associated with right-of-use assets	800	$ 700	$ 2,300	$ 1,900
Cash payments for operating leases associated with ROU assets used for investing activities	$ 37,300	$ 8,200	$ 82,800	$ 27,500
Operating lease, weighted average remaining lease term	2 years 6 months		2 years 6 months			2 years 8 months 12 days
Operating lease, weighted average discount rate, percent	3.50%		3.50%			2.70%
Expected future payments for contracted drilling services	$ 16,000		$ 16,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Lease Cost Recognized (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operations And Summary Of Significant Accounting Policies [Line Items]
Operating lease cost	$ 38,088	$ 8,892	$ 85,126	$ 29,421
Operating lease cost included in general and administrative expense
Operations And Summary Of Significant Accounting Policies [Line Items]
Operating lease cost	436	435	1,307	1,299
Operating lease cost included in lease operating expense
Operations And Summary Of Significant Accounting Policies [Line Items]
Operating lease cost	370	218	970	640
Operating lease cost included in proved oil and gas properties
Operations And Summary Of Significant Accounting Policies [Line Items]
Operating lease cost	9,450	0	15,750	0
Variable lease cost (completion costs included in proved oil and gas properties)
Operations And Summary Of Significant Accounting Policies [Line Items]
Variable lease cost	11,730	0	22,857	0
Short-term operating lease cost (drilling rig costs included in proved oil and gas properties)
Operations And Summary Of Significant Accounting Policies [Line Items]
Operating lease cost	$ 16,102	$ 8,239	$ 44,242	$ 27,482

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Liabilities Under Contract Contain Operating Leases (Detail) $ in Thousands	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
October 1 to December 31, 2022	$ 10,279
2023	40,810
2024	40,412
2025	12,830
2026	82
Thereafter	17
Total lease payments	104,430
Imputed interest	(4,730)
Total lease liability	$ 99,700

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Accrued Costs (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Accrued income and other taxes	$ 56,388	$ 15,655
Accrued drilling costs	36,197	19,995
Accrued transportation costs	27,690	22,859
Accrued interest payable	19,861	60,305
Accrued employee compensation	6,529	12,320
Accrued lease operating expenses	1,636	2,036
Other	2,026	1,856
Total accrued expenses	$ 150,327	$ 135,026

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Changes in Reserve for Future Abandonment Costs (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Reserve for future abandonment costs at beginning of period	$ 25,673	$ 19,290
New wells placed on production	1,251	1,666
Acquisitions	1,211	0
Liabilities settled and assets disposed of	(29)	(6)
Accretion expense	1,129	917
Reserve for future abandonment costs at end of period	$ 29,235	$ 21,867

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Derivative Contracts Volume and Prices (Detail)	9 Months Ended
	Sep. 30, 2022 MMBTU $ / MMBTU
Natural Gas Swap Contracts:
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	29,440,000
Average price (in dollars per MMBtu)	2.68
Natural Gas Swap Contracts: \| Swap Contracts for 2022
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	29,440,000
Average price (in dollars per MMBtu)	2.68
Natural Gas Swap Contracts: \| Swap Contracts for 2023
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	0
Natural Gas Collar Contracts:
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	162,505,000
Average ceiling (dollars per unit)	8.62
Average floor (dollars per unit)	2.91
Natural Gas Collar Contracts: \| Collar Contracts for 2022
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	33,580,000
Average ceiling (dollars per unit)	3.91
Average floor (dollars per unit)	2.62
Natural Gas Collar Contracts: \| Collar Contract for 2023
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	128,925,000
Average ceiling (dollars per unit)	9.85
Average floor (dollars per unit)	2.98
Natural Gas Basis Swap Contracts:
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	2,760,000
Average price (in dollars per MMBtu)	(0.16)
Natural Gas Basis Swap Contracts: \| Basis Swap Contracts for 2022
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	2,760,000
Average price (in dollars per MMBtu)	(0.16)
Natural Gas Basis Swap Contracts: \| Basis Swap Contracts for 2023
Derivative [Line Items]
Volume (in MMBTU) \| MMBTU	0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivatives Narrative (Detail)	Sep. 30, 2022 USD ($)
Accounting Policies [Abstract]
Cash flow hedges derivative instruments	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Derivative Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Asset Derivative Financial Instruments:
Derivative Financial Instruments – current	$ 2,368	$ 5,258
Liability Derivative Financial Instruments:
Derivative Financial Instruments – current	285,713	181,945
Derivative Financial Instruments – long-term	0	4,042
Natural gas price derivatives
Asset Derivative Financial Instruments:
Derivative Financial Instruments – current	2,368	4,528
Liability Derivative Financial Instruments:
Derivative Financial Instruments – current	285,713	181,215
Derivative Financial Instruments – long-term	0	4,042
Oil price derivatives
Asset Derivative Financial Instruments:
Derivative Financial Instruments – current	0	730
Liability Derivative Financial Instruments:
Derivative Financial Instruments – current	$ 0	$ 730

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Gains and Losses from Derivative Financial Instruments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Derivative [Line Items]
Gain (loss) from derivative financial instruments	$ (271,335)	$ (510,319)	$ (781,654)	$ (756,026)
Natural gas price derivatives
Derivative [Line Items]
Gain (loss) from derivative financial instruments	(271,335)	(509,777)	(781,654)	(748,499)
Oil price derivatives
Derivative [Line Items]
Gain (loss) from derivative financial instruments	0	(287)	0	(7,820)
Interest rate derivatives
Derivative [Line Items]
Gain (loss) from derivative financial instruments	$ 0	$ (255)	$ 0	$ 293

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognized (Details)	9 Months Ended
	Sep. 30, 2022 USD ($) product	Dec. 31, 2021 USD ($)	Sep. 30, 2021 USD ($)
Accounting Policies [Abstract]
Number of primary products \| product	2
Contract cash settlement max days	25 days
Contract cancellable notice term	30 days
Oil and gas sales	$ 548,979,000	$ 217,149,000
Allowance for doubtful accounts	$ 0		$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Share Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Net income (loss) attributable to common stock
Stock-based compensation			$ 4,918	$ 5,291
Restricted Stock
Net income (loss) attributable to common stock
Granted (in shares)			618,382
Value per share (in dollars per share)			$ 17.74
Shares of unvested restricted stock outstanding (in shares)	956,649		956,649		952,971
Weighted average grant date fair value of stock grants per share (in dollars per share)	$ 13.33		$ 13.33
Unrecognized compensation cost related to unvested restricted stock	$ 11,600		$ 11,600
Period in which compensation cost expected to be recognized			2 years 6 months
PSUs
Net income (loss) attributable to common stock
Period in which compensation cost expected to be recognized			2 years 4 months 24 days
Number of performance share units awards granted (in shares)			223,004
Grant date fair value of performance shares (in dollars per share)			$ 26.07
Number of performance stock units ("PSUs") outstanding (in shares)	628,845		628,845
Weighted average grant date fair value of PSUs per unit (in dollars per share)	$ 14.52		$ 14.52
Minimum final number of shares of common stock issuable based on performance multiplier (in shares)			0
Maximum final number of shares of common stock issuable based on performance multiplier (in shares)			1,257,690
Unrecognized expense, performance share units			$ 6,600
General and Administrative Expense
Net income (loss) attributable to common stock
Stock-based compensation	$ 1,800	$ 1,800	$ 4,900	$ 5,300

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated Income Tax Provision (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Current - Federal	$ 10,001	$ 0	$ 11,400	$ 0
Current - State	14,749	7,637	19,821	10,774
Deferred - Federal	66,732	(12,971)	124,600	(105,934)
Deferred - State	11,328	29,310	23,789	20,992
Total	$ 102,810	$ 23,976	$ 179,610	$ (74,168)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Difference Between Federal Statutory Rate and Effective Tax Rate (Detail)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Tax at statutory rate	21.00%	21.00%	21.00%	21.00%
Tax effect of:
Valuation allowance on deferred tax assets	(4.10%)	(58.30%)	(4.00%)	(13.30%)
State income taxes, net of federal benefit	5.80%	(14.00%)	5.60%	(4.70%)
Nondeductible stock-based compensation	(0.20%)	(0.90%)	(0.10%)	(0.30%)
Change in state tax law	0.00%	43.10%	0.00%	8.30%
Other	(0.10%)	0.00%	0.00%	0.00%
Effective tax rate	22.40%	(9.10%)	22.50%	11.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of Beginning and Ending Balances for Derivative Instrument Assets (Liabilities) (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2021 USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]
Balance at beginning of year	$ (22,588)
Total loss included in earnings	(113,018)
Settlements, net	21,881
Transfers out of Level 3	(6,418)
Balance at end of period	$ (120,143)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	May 31, 2022	Dec. 31, 2021
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments	$ 2,368		$ 5,258
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments	$ 285,713		181,945
7.5% Senior Notes due 2025
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Interest rate on debt instrument	7.50%	7.50%
6.75% Senior Notes due 2029:
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Interest rate on debt instrument	6.75%
5.875% Senior Notes due 2030:
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Interest rate on debt instrument	5.875%
Bank Credit Facility
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, carrying value	$ 100,000		235,000
Long-term debt, fair value	100,000		235,000
Level 1 \| 7.5% Senior Notes due 2025
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, carrying value	0		196,998
Long-term debt, fair value	0		248,066
Level 1 \| 6.75% Senior Notes due 2029:
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, carrying value	1,230,037		1,256,874
Long-term debt, fair value	1,129,029		1,337,500
Level 1 \| 5.875% Senior Notes due 2030:
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Long-term debt, carrying value	965,000		965,000
Long-term debt, fair value	837,138		989,125
Level 2 and Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments	2,368		5,258
Derivative financial asset, fair value	2,368		5,258
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments	285,713		185,987
Derivative financial liabilities, fair value	$ 285,713		$ 185,987

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Earnings Per Share (Detail) - $ / shares		9 Months Ended
	Jul. 16, 2020	Sep. 30, 2022	Dec. 31, 2021
Operations And Summary Of Significant Accounting Policies [Line Items]
Performance multiplier, maximum		200.00%
Performance multiplier, minimum		0.00%
Preferred stock, conversion price per share in dollars per share)	$ 4.00	$ 4.00
Participating securities that share in losses (in shares)		0
Series B Convertible Preferred Stock
Operations And Summary Of Significant Accounting Policies [Line Items]
Aggregate common stock upon conversion (in shares)	43,750,000
Restricted Stock
Operations And Summary Of Significant Accounting Policies [Line Items]
Shares of unvested restricted stock outstanding (in shares)		956,649	952,971

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Weighted Average Shares of Unvested Restricted Stock (Detail) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Unvested restricted stock (in shares)	890	1,148	914	1,092

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding (Detail) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Weighted average PSUs (in shares)	942	1,204	1,024	1,178
Weighted average grant date fair value per unit (in dollars per share)	$ 14.52	$ 8.11	$ 14.52	$ 8.11

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Net income (loss) attributable to common stock
Net income (loss) attributable to common stock	$ 351,185	$ (292,717)	$ 607,974	$ (615,215)
Income allocable to unvested restricted shares	(1,339)	0	(2,384)	0
Basic income (loss) attributable to common stock	$ 349,846	$ (292,717)	$ 605,590	$ (615,215)
Basic income (loss) attributable to common stock (in shares)	232,482	231,747	232,170	231,519
Basic income (loss) attributable to common stock (in dollars per share)	$ 1.50	$ (1.26)	$ 2.61	$ (2.66)
Effect of Dilutive Securities:
Dilutive securities, effect on basic earnings per share, options and restrictive stock units	$ 4,411	$ 0	$ 13,089	$ 0
Convertible preferred stock (in shares)	43,750	0	43,750	0
Diluted income (loss) attributable to common stock	$ 355,596	$ (292,717)	$ 621,063	$ (615,215)
Diluted income (loss) attributable to common stock (in shares)	277,715	231,747	277,605	231,519
Diluted income (loss) attributable to common stock (in dollars per share)	$ 1.28	$ (1.26)	$ 2.24	$ (2.66)
Restricted Stock
Effect of Dilutive Securities:
Dilutive securities, effect on basic earnings per share, options and restrictive stock units	$ 1,339	$ 0	$ 2,384	$ 0
Dilutive effect of share-based payment arrangements (in shares)	392	0	541	0
PSUs
Effect of Dilutive Securities:
Dilutive securities, effect on basic earnings per share, options and restrictive stock units	$ 0	$ 0	$ 0	$ 0
Dilutive effect of share-based payment arrangements (in shares)	1,091	0	1,144	0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Supplementary Information of Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash payments for:
Interest payments	$ 164,107	$ 191,366
Income tax payments	719	0
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures	16,202	(3,021)
Liabilities assumed in exchange for right-of-use lease assets	$ 109,546	$ 5,562

LONG-TERM DEBT - Long-term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt issuance costs, net of amortization	$ (33,340)
Long-term debt	2,261,697	$ 2,615,235
Bank Credit Facility:
Debt Instrument [Line Items]
Principal	100,000
6.75% Senior Notes due 2029:
Debt Instrument [Line Items]
Principal	1,223,880
Premium, net of amortization	$ 6,157
Interest rate on debt instrument	6.75%
5.875% Senior Notes due 2030:
Debt Instrument [Line Items]
Principal	$ 965,000
Interest rate on debt instrument	5.875%

LONG-TERM DEBT - Additional Information (Detail) - USD ($)	1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2022	May 31, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Retirement of Senior Notes					$ 273,920,000	$ 2,210,626,000
Gain (loss) on early retirement of debt			$ 0	$ 0	(46,840,000)	(352,599,000)
Net proceeds from issuance of notes					0	$ 2,222,500,000
6.75% Senior Notes due 2029:
Debt Instrument [Line Items]
Principal			$ 1,223,880,000		$ 1,223,880,000
Interest rate on debt instrument			6.75%		6.75%
Retirement of Senior Notes	$ 26,100,000
Gain (loss) on early retirement of debt	1,000,000
Repayments of long-term debt	$ 24,900,000
Net proceeds from issuance of notes					$ 1,250,000,000
7.5% Senior Notes due 2025
Debt Instrument [Line Items]
Principal		$ 244,400,000
Interest rate on debt instrument		7.50%	7.50%		7.50%
Retirement of Senior Notes		$ 258,100,000
Premiums paid over face value		4,500,000
Payment of accrued interest		9,200,000
Gain (loss) on early retirement of debt		(47,800,000)
Debt instrument, unamortized discount		$ 43,300,000
Repayments of long-term debt					$ 375,000,000
9.75% Senior Notes due 2026
Debt Instrument [Line Items]
Interest rate on debt instrument			9.75%		9.75%
Retirement of Senior Notes					$ 1,650,000,000
5.875% Senior Notes due 2030:
Debt Instrument [Line Items]
Principal			$ 965,000,000		$ 965,000,000
Interest rate on debt instrument			5.875%		5.875%
Bank Credit Facility
Debt Instrument [Line Items]
Principal			$ 100,000,000		$ 100,000,000
Bank credit facility			$ 1,400,000,000		$ 1,400,000,000
Leverage ratio					400.00%
Current ratio					100.00%
Bank Credit Facility \| Minimum
Debt Instrument [Line Items]
Commitment fee on unused borrowing base					0.375%
Bank Credit Facility \| Maximum
Debt Instrument [Line Items]
Commitment fee on unused borrowing base					0.50%
Bank Credit Facility \| LIBOR \| Minimum
Debt Instrument [Line Items]
Spread rate for interest rate on credit facility					2.25%
Bank Credit Facility \| LIBOR \| Maximum
Debt Instrument [Line Items]
Spread rate for interest rate on credit facility					3.25%
Bank Credit Facility \| Base Rate \| Minimum
Debt Instrument [Line Items]
Spread rate for interest rate on credit facility					1.25%
Bank Credit Facility \| Base Rate \| Maximum
Debt Instrument [Line Items]
Spread rate for interest rate on credit facility					2.25%

CONVERTIBLE PREFERRED STOCK (Detail) - $ / shares			9 Months Ended
CONVERTIBLE PREFERRED STOCK (Detail) - $ / shares	Jul. 16, 2020	Jul. 16, 2019	Sep. 30, 2022	May 19, 2020
Temporary Equity Disclosure [Abstract]
Convertible preferred stock issued/ sold (in shares)		175,000
Preferred stock, quarterly dividends rate				10.00%
Conversion price per share (in dollars per share)	$ 4.00		$ 4.00

COMMITMENTS AND CONTINGENCIES (Detail) $ in Millions	Jul. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Fracturing service agreements, 2022	$ 19.2
Fracturing service agreements, 2023	19.2
Fracturing service agreements, 2024	$ 19.2

RELATED PARTY TRANSACTIONS (Detail) $ in Thousands	3 Months Ended		9 Months Ended
RELATED PARTY TRANSACTIONS (Detail) $ in Thousands	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) $ / Mcf	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($)
Related Party Transaction [Line Items]
Accounts receivable from affiliates	$ 20,758		$ 20,758		$ 20,834
Partnerships owned by majority stockholder
Related Party Transaction [Line Items]
Related party revenue, fee (in USD per Mcf) \| $ / Mcf			0.02
Accounts receivable from affiliates	20,800		$ 20,800		$ 20,800
Partnerships owned by majority stockholder \| Partnership costs to drill and operating wells and overhead fees
Related Party Transaction [Line Items]
Revenue from related parties	$ 152	$ 353	$ 700	$ 1,200

- Definition

Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.6-07.1(c))
-URI https://asc.fasb.org/extlink&oid=120401555&loc=SL114874292-224272

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442552-122756

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI https://asc.fasb.org/extlink&oid=126975872&loc=SL124442526-122756

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.1(e))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

+ Details

SUBSEQUENT EVENT (Details)	Oct. 31, 2022 $ / shares
Subsequent Event
Subsequent Event [Line Items]
Common stock dividends declared (in dollars per share)	$ 0.125