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

News Releases Details

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

FRISCO, TX, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended September 30, 2025.

Highlights of 2025's Third Quarter

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

    • Natural gas and oil sales, including realized hedging gains, were $335 million for the quarter.

    • Operating cash flow was $190 million or $0.65 per diluted share.

    • Adjusted EBITDAX for the quarter was $249 million.

    • Adjusted net income was $28 million or $0.09 per diluted share for the quarter.

  • Three Western Haynesville wells turned to sales in the third quarter.

    • These wells had an average lateral length of 8,566 feet and an average per well initial production rate of 32 MMcf per day.

  • Comstock has turned 28 wells to sales to date in 2025 in its Legacy Haynesville area with an average lateral length of 11,919 feet and a per well initial production rate of 25 MMcf per day.

  • Divested non-strategic Cotton Valley wells in East Texas and North Louisiana for net proceeds of $15 million.

  • Entered into an agreement to divest Shelby Trough assets in East Texas for $430 million in cash.

Financial Results for the Three Months Ended September 30, 2025

During the third quarter of 2025, Comstock realized $2.99 per Mcf after hedging for its natural gas production of 112 Bcf. As a result, Comstock's natural gas and oil sales in the third quarter of 2025 increased to $335.0 million (including realized hedging gains of $26.4 million). Operating cash flow (excluding changes in working capital) generated in the third quarter of 2025 was $190.4 million, and net income for the third quarter was $118.1 million or $0.40 per diluted share. The net income in the quarter included a pre-tax $116.4 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the second quarter of 2025. Excluding this item, exploration expense and loss from sale of assets, adjusted net income for the third quarter of 2025 was $27.9 million, or $0.09 per diluted share.

Comstock's production cost per Mcfe in the third quarter averaged $0.77 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.26 for lease operating costs, $0.10 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 72% in the third quarter of 2025 and 74% after hedging.

Financial Results for the Nine Months Ended September 30, 2025

For the nine months ended September 30, 2025, Comstock realized $3.19 per Mcf after hedging for its natural gas production of 339 Bcf. Natural gas and oil sales for the nine months ended September 30, 2025 totaled $1.08 billion (including realized hedging losses of $22.7 million). Operating cash flow (excluding changes in working capital) generated during the first nine months of 2025 was $639.0 million, and net income was $133.4 million or $0.45 per diluted share. Net income during the first nine months of 2025 included a pre-tax $25.6 million unrealized gain on hedging contracts held for risk management. Excluding this item, exploration expense and loss from sale of assets, adjusted net income for the nine months ended September 30, 2025 was $121.8 million or $0.41 per diluted share.

Comstock's production cost per Mcfe during the nine months ended September 30, 2025 averaged $0.80 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.28 for lease operating costs, $0.09 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 74% during the first nine months of 2025 and 75% after hedging.

Drilling Results

Comstock drilled seventeen (14.2 net) operated horizontal Haynesville/Bossier shale wells in the third quarter of 2025, which had an average lateral length of 11,692 feet. Comstock turned twelve (10.6 net) operated wells to sales in the third quarter of 2025.

Since its last operational update in July 2025, Comstock has turned ten (8.6 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 28 MMcf per day. The completed lateral length of these wells averaged 11,156 feet.

Included in the wells turned to sales were three more successful Western Haynesville wells:







Well		 

Vertical 
Depth 
(feet)		 



Completed
Lateral (feet)		 Initial
Production
Rate (MMcf
per day)
       
Hughes SC #1 15,741 11,062 35
McCullough GLR #1 18,720 6,708 31
McCullough GLR #3 19,236 7,927 31

Divestitures

On September 2, 2025, Comstock divested of its interest in its legacy Cotton Valley wells in East Texas and North Louisiana for net proceeds, after selling expenses, of $15.2 million. The properties sold include interests in 883 (770.9 net to Comstock) wells and 46 (27.3 net to Comstock) inactive wells. The properties were producing 7.9 MMcfe of natural gas equivalent in August 2025.

On October 10, 2025, the Company entered into an agreement to sell its Shelby Trough properties in Nacogdoches, San Augustine and Shelby counties in Texas for $430.0 million to an unaffiliated third party. The transaction has an effective date of October 1, 2025, and is subject to customary closing conditions. The properties being sold include interests in 155 (74.5 net to Comstock) producing wells and approximately 36,000 net acres that are primarily undeveloped. Production net to Comstock's interest in these properties was 9.3 MMcf of natural gas per day in September 2025. Comstock expects to close the divestiture in December 2025 and intends to use the proceeds to reduce long-term debt.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on November 4, 2025, to discuss the third quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BI7df9635a192e4021a7e3fa6c51387c86.
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/7ikyc57y.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on November 4, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/7ikyc57y.

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

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

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

  Three Months Ended
September 30,		  Nine Months Ended
September 30,		 
  2025  2024  2025  2024 
Revenues:            
Natural gas sales $307,906  $252,650  $1,059,417  $756,260 
Oil sales  681   975   2,124   2,925 
Total natural gas and oil sales  308,587   253,625   1,061,541   759,185 
Gas services  141,265   50,847   371,427   127,889 
Total revenues  449,852   304,472   1,432,968   887,074 
Operating expenses:            
Production and ad valorem taxes  11,216   12,578   32,950   49,730 
Gathering and transportation  39,969   53,996   124,345   150,456 
Lease operating  28,778   29,248   94,887   99,125 
Exploration  6,600   —   8,750   — 
Depreciation, depletion and amortization  157,395   208,350   483,665   593,281 
Gas services  141,684   52,622   385,167   132,796 
General and administrative  11,504   9,923   34,884   29,271 
Loss (gain) on sale of assets  2,493   (910)  2,493   (910)
Total operating expenses  399,639   365,807   1,167,141   1,053,749 
Operating income (loss)  50,213   (61,335)  265,827   (166,675)
Other income (expenses):            
Gain from derivative financial instruments  142,822   75,163   48,330   89,218 
Other income  409   274   2,848   927 
Interest expense  (56,722)  (54,516)  (166,737)  (156,005)
Total other income (expenses)  86,509   20,921   (115,559)  (65,860)
Income (loss) before income taxes  136,722   (40,414)  150,268   (232,535)
(Provision for) benefit from income taxes  (18,623)  14,696   (16,834)  69,094 
Net income (loss)  118,099   (25,718)  133,434   (163,441)
Net income attributable to noncontrolling interest  (6,971)  (3,173)  (18,742)  (8,081)
Net income (loss) available to the Company $111,128  $(28,891) $114,692  $(171,522)
             
Net income (loss) per share            
Basic $0.40  $(0.09) $0.46  $(0.57)
Diluted $0.40  $(0.09) $0.45  $(0.57)
Weighted average shares outstanding:            
Basic  291,097   290,170   290,671   285,949 
Diluted  293,952   290,170   294,004   285,949 

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

  Three Months Ended September 30,  Nine Months Ended September 30, 
  2025  2024  2025  2024 
Natural gas production (MMcf)  111,770   133,116   338,963   403,420 
Oil production (Mbbls)  11   13   34   40 
Total production (MMcfe)  111,837   133,198   339,166   403,662 
             
Natural gas sales $307,906  $252,650  $1,059,417  $756,260 
Natural gas hedging settlements (1)  26,381   51,409   22,708   159,956 
Total natural gas including hedging  334,287   304,059   1,082,125   916,216 
Oil sales  681   975   2,124   2,925 
Total natural gas and oil sales including hedging $334,968  $305,034  $1,084,249  $919,141 
             
Average natural gas price (per Mcf) $2.75  $1.90  $3.13  $1.87 
Average natural gas price including hedging (per Mcf) $2.99  $2.28  $3.19  $2.27 
Average oil price (per barrel) $61.91  $75.00  $62.47  $73.13 
Average price (per Mcfe) $2.76  $1.90  $3.13  $1.88 
Average price including hedging (per Mcfe) $3.00  $2.29  $3.20  $2.28 
             
Production and ad valorem taxes $11,216  $12,578  $32,950  $49,730 
Gathering and transportation  39,969   53,996   124,345   150,456 
Lease operating  28,778   29,248   94,887   99,125 
Cash general and administrative (2)  5,880   6,042   19,291   17,892 
Total production costs $85,843  $101,864  $271,473  $317,203 
             
Production and ad valorem taxes (per Mcfe) $0.10  $0.09  $0.09  $0.12 
Gathering and transportation (per Mcfe)  0.36   0.41   0.37   0.37 
Lease operating (per Mcfe)  0.26   0.22   0.28   0.25 
Cash general and administrative (per Mcfe)  0.05   0.05   0.06   0.04 
Total production costs (per Mcfe) $0.77  $0.77  $0.80  $0.78 
             
Unhedged operating margin  72%  60%  74%  58%
Hedged operating margin  74%  67%  75%  65%
             
Gas services revenue $141,265  $50,847  $371,427  $127,889 
Gas services expenses  141,684   52,622   385,167   132,796 
Gas services margin $(419) $(1,775) $(13,740) $(4,907)
             
Natural Gas and Oil Capital Expenditures:            
Unproved property acquisitions $16,941  $8,800  $36,557  $87,938 
Total natural gas and oil properties acquisitions $16,941  $8,800  $36,557  $87,938 
Exploration and Development:            
Development leasehold $1,095  $5,623  $9,946  $12,153 
Exploratory drilling and completion  114,215   57,144   345,319   215,992 
Development drilling and completion  145,854   114,172   415,423   411,315 
Other development costs  5,946   7,453   14,380   22,175 
Total exploration and development capital expenditures $267,110  $184,392  $785,068  $661,635 

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

(2)   Excludes stock-based compensation.

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

  Three Months Ended
September 30,		  Nine Months Ended
September 30,		 
  2025  2024  2025  2024 
ADJUSTED NET INCOME (LOSS):            
Net income (loss) $118,099  $(25,718) $133,434  $(163,441)
Unrealized (gain) loss from derivative financial instruments  (116,441)  (23,754)  (25,622)  70,738 
Exploration expense  6,600   —   8,750   — 
Loss (gain) on sale of assets  2,493   (910)  2,493   (910)
Adjustment to income taxes  17,153   1,873   2,734   (27,663)
Adjusted net income (loss) (1) $27,904  $(48,509) $121,789  $(121,276)
             
Adjusted net income (loss) per share (2) $0.09  $(0.17) $0.41  $(0.42)
Diluted shares outstanding  293,952   290,170   294,004   285,949 
             
             
ADJUSTED EBITDAX:            
Net income (loss) $118,099  $(25,718) $133,434  $(163,441)
Interest expense  56,722   54,516   166,737   156,005 
Income taxes  18,623   (14,696)  16,834   (69,094)
Depreciation, depletion, and amortization  157,395   208,350   483,665   593,281 
Exploration  6,600   —   8,750   — 
Unrealized (gain) loss from derivative financial instruments  (116,441)  (23,754)  (25,622)  70,738 
Stock-based compensation  5,624   3,883   15,595   11,380 
Loss (gain) on sale of assets  2,493   (910)  2,493   (910)
Total Adjusted EBITDAX (3) $249,115  $201,671  $801,886  $597,959 

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

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

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

 

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

  Three Months Ended
September 30,		  Nine Months Ended
September 30,		 
  2025  2024  2025  2024 
OPERATING CASH FLOW (1):            
Net income (loss) $118,099  $(25,718) $133,434  $(163,441)
Reconciling items:            
Unrealized (gain) loss from derivative financial instruments  (116,441)  (23,754)  (25,622)  70,738 
Deferred income taxes  20,175   (12,734)  20,485   (67,165)
Depreciation, depletion and amortization  157,395   208,350   483,665   593,281 
Amortization of debt discount and issuance costs  3,006   3,136   8,925   8,519 
Stock-based compensation  5,624   3,883   15,595   11,380 
Loss (gain) on sale of assets  2,493   (910)  2,493   (910)
Operating cash flow $190,351  $152,253  $638,975  $452,402 
(Increase) decrease in accounts receivable  582   (658)  1,900   75,573 
(Increase) decrease in other current assets  (1,729)  (5,595)  24,152   (749)
Increase (decrease) in accounts payable and accrued expenses  (36,111)  (47,830)  10,376   (173,942)
Net cash provided by operating activities $153,093  $98,170  $675,403  $353,284 

 

  Three Months Ended
September 30,		  Nine Months Ended
September 30,		 
  2025  2024  2025  2024 
FREE CASH FLOW (DEFICIT)(2):            
Operating cash flow $190,351  $152,253  $638,975  $452,402 
Less:            
Exploration and development capital expenditures  (267,110)  (184,392)  (785,068)  (661,635)
Midstream capital expenditures  (60,038)  (30,251)  (162,978)  (46,739)
Other capital expenditures  (875)  (735)  (113)  (1,706)
Contributions from midstream partner  64,000   19,000   156,500   36,000 
Free cash deficit from operations $(73,672) $(44,125) $(152,684) $(221,678)
Acquisitions  (16,941)  (8,800)  (36,557)  (87,938)
Proceeds from divestitures  15,166   1,214   15,166   1,214 
Free cash deficit after acquisitions $(75,447) $(51,711) $(174,075) $(308,402)

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

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

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

  September 30

,
2025

  December 31

,
2024

 
ASSETS      
Cash and cash equivalents $19,215  $6,799 
Accounts receivable  172,946   174,846 
Derivative financial instruments  8,140   4,865 
Other current assets  68,552   97,524 
Total current assets  268,853   284,034 
Property and equipment, net  6,158,898   5,688,389 
Goodwill  335,897   335,897 
Operating lease right-of-use assets  77,179   73,777 
Derivative financial instruments  166   — 
  $6,840,993  $6,382,097 
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
Accounts payable $455,282  $421,814 
Accrued costs  123,912   146,173 
Operating leases  48,332   35,927 
Derivative financial instruments  22,284   8,940 
Total current liabilities  649,810   612,854 
Long-term debt  3,126,015   2,952,090 
Deferred income taxes  365,601   345,116 
Derivative financial instruments  31,232   66,757 
Long-term operating leases  28,795   37,740 
Asset retirement obligation  21,730   33,996 
Total liabilities  4,223,183   4,048,553 
Stockholders' Equity:      
Common stock  146,527   146,130 
Additional paid-in capital  1,370,426   1,366,274 
Accumulated earnings  843,311   728,619 
Total stockholders' equity attributable to Comstock  2,360,264   2,241,023 
Noncontrolling interest  257,546   92,521 
Total stockholders' equity  2,617,810   2,333,544 
  $6,840,993  $6,382,097 


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

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Source: Comstock Resources, Inc.