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

Rhea-AI Summary

Comstock Resources (NYSE:CRK) reported Q2 2025 financial results showing improved performance driven by higher natural gas prices. The company achieved natural gas and oil sales of $344 million, including realized hedging gains of $4.3 million. Key financial metrics include operating cash flow of $210 million ($0.71 per share) and adjusted EBITDAX of $260 million.

The company reported net income of $130.7 million ($0.44 per diluted share) and adjusted net income of $40.0 million ($0.13 per share). Production costs averaged $0.80 per Mcfe, with an impressive operating margin of 73% unhedged and 74% after hedging.

Operationally, Comstock turned 13 operated wells to sales in Q2 2025, including five Western Haynesville wells with average initial production rates of 36 MMcf per day. The company also announced a collaboration with NextEra Energy Resources to explore power generation assets development near its Western Haynesville area.

[ "Net income of $130.7 million ($0.44 per diluted share), up from a loss in Q2 2024", "Strong operating margins of 73% unhedged and 74% after hedging", "Impressive Western Haynesville well performance with 36 MMcf per day initial production rates", "Strategic collaboration with NextEra Energy Resources for power generation development", "Low production costs of $0.80 per Mcfe" ]

Positive

• None.

Negative

• Natural gas production declined to 112 Bcf from 131 Bcf in Q2 2024
• Gas services segment recorded minimal margin of $3.6 million on $130.3 million revenue
• Increased interest expenses to $55.2 million from $51.9 million year-over-year

Insights

Energy Financial Analyst

Comstock's Q2 results show improved performance driven by higher natural gas prices and strong Western Haynesville well productivity.

Comstock Resources delivered notable financial improvement in Q2 2025, primarily driven by stronger natural gas pricing at $3.02/Mcf (before hedging) versus $1.65/Mcf in Q2 2024. This 83% year-over-year price improvement significantly boosted the company's profitability metrics despite lower production volumes.

The company reported $344.3 million in natural gas and oil sales (including $4.3 million in hedging gains), generated $209.6 million in operating cash flow, and achieved adjusted net income of $40.0 million ($0.13/share). Adjusted EBITDAX reached $260 million, showing substantial operational strength.

Production declined to 112 Bcf in Q2 2025 from 131 Bcf in Q2 2024, a 14.5% reduction, indicating continued challenges in maintaining output levels. However, the company's Western Haynesville development showed impressive results, with five wells averaging initial production rates of 36 MMcf per day at efficient drilling costs of $2,647 per lateral foot.

Comstock maintained excellent cost control with production costs of $0.80/Mcfe, slightly improved from $0.84/Mcfe in Q2 2024. The company's operating margin expanded dramatically to 73% (unhedged) from 50% in the year-ago period, highlighting how the higher natural gas price environment is enhancing profitability.

Capital expenditures increased to $268.2 million in Q2 2025 from $221.0 million in Q2 2024, reflecting continued investment in the company's drilling program. Particularly noteworthy is the new collaboration with NextEra Energy Resources to explore power generation assets near the Western Haynesville area, potentially targeting data center customers – a strategic move to capitalize on growing natural gas demand for electricity generation.

The four highlighted Western Haynesville wells showed exceptional initial production rates between 28-41 MMcf per day, validating the company's focus on this area. With strong realized pricing, efficient operations, and productive new wells, Comstock appears well-positioned to capitalize on improved natural gas market conditions despite the ongoing production decline trend.

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

Highlights of 2025's Second Quarter

• Higher natural gas prices in the second quarter drove improved financial results in the quarter.
  • Natural gas and oil sales, including realized hedging gains, were $344 million for the quarter.
  • Operating cash flow was $210 million or $0.71 per diluted share.
  • Adjusted EBITDAX for the quarter was $260 million.
  • Adjusted net income was $40.0 million or $0.13 per diluted share for the quarter.
• Five Western Haynesville wells turned to sales in the second quarter.
  • These wells had an average lateral length of 10,897 feet and an average per well initial production rate of 36 MMcf per day.
  • The five wells were drilled and completed at an average per well cost of $2,647 per completed lateral foot.
• Comstock has turned 21 wells to sales to date in 2025 in its Legacy Haynesville area with an average lateral length of 11,803 feet and a per well initial production rate of 25 MMcf per day.
  
  

Financial Results for the Three Months Ended June 30, 2025

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

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

Financial Results for the Six Months Ended June 30, 2025

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

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

Drilling Results

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

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

Well		Vertical Depth (feet)		Completed Lateral (feet)		Initial Production Rate (MMcf per day)
Menn PB #1		16,262		10,926		38
Jennings Loehr #1		15,582		12,106		34
Jennings FSRA #1		14,760		12,045		28
Bell Meyer #1		18,762		9,100		41

Other

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

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on July 31, 2025, to discuss the second quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
https://register-conf.media-server.com/register/BI4a6aefc65c284c6190c230cdebdf9088.
Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/537xytab.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on July 31, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/537xytab.

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

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

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

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

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

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

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

(2)   Excludes stock-based compensation.

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

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

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

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

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

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

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

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

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

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

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

		June 30, 2025				December 31, 2024
ASSETS
Cash and cash equivalents		$	25,859			$	6,799
Accounts receivable			173,528				174,846
Derivative financial instruments			136				4,865
Other current assets			69,456				97,524
Total current assets			268,979				284,034
Property and equipment, net			6,002,010				5,688,389
Goodwill			335,897				335,897
Operating lease right-of-use assets			87,838				73,777
Derivative financial instruments			139				—
		$	6,694,863			$	6,382,097
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable		$	460,062			$	421,814
Accrued costs			151,798				146,173
Operating leases			48,378				35,927
Derivative financial instruments			87,909				8,940
Total current liabilities			748,147				612,854
Long-term debt			3,018,009				2,952,090
Deferred income taxes			345,426				345,116
Derivative financial instruments			74,017				66,757
Long-term operating leases			39,389				37,740
Asset retirement obligation			35,008				33,996
Total liabilities			4,259,996				4,048,553
Stockholders' Equity:
Common stock			146,535				146,130
Additional paid-in capital			1,364,857				1,366,274
Accumulated earnings			732,183				728,619
Total stockholders' equity attributable to Comstock			2,243,575				2,241,023
Noncontrolling interest			191,292				92,521
Total stockholders' equity			2,434,867				2,333,544
		$	6,694,863			$	6,382,097

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

FAQ

What were Comstock Resources' (CRK) Q2 2025 earnings per share?

Comstock reported net income of $0.44 per diluted share and adjusted net income of $0.13 per diluted share for Q2 2025.

What was CRK's natural gas production and realized price in Q2 2025?

Comstock produced 112 Bcf of natural gas and realized $3.02 per Mcf before hedging and $3.06 per Mcf after hedging.

How many wells did Comstock Resources complete in Q2 2025?

Comstock turned 13 operated wells to sales in Q2 2025, including five Western Haynesville wells with average initial production rates of 36 MMcf per day.

What was Comstock's operating margin in Q2 2025?

Comstock achieved an unhedged operating margin of 73% and a hedged operating margin of 74% in Q2 2025.

What is Comstock's new partnership with NextEra Energy Resources?

Comstock and NextEra are collaborating to explore power generation assets development near Western Haynesville area, targeting potential data center customers.