Comstock Resources agrees to $1.65B SOCAR asset sale
Sixteen Legacy Haynesville and six Western Haynesville wells were turned to sales, averaging initial production rates of 25 and 33 MMcf per day, respectively.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Comstock Resources, Inc. reported third-quarter 2026 results and entered a definitive agreement to sell specified Haynesville and Pinnacle interests to the State Oil Company of the Republic of Azerbaijan (SOCAR) for $1.65 billion cash, subject to customary purchase-price adjustments.
Production was 122.4 Bcfe, up 9% from a year earlier and 8% from the second quarter. Natural gas and oil sales including realized hedging gains were $359.343 million, and cash flows from operating activities were $180.209 million. Net income available to Comstock was $22.270 million, or $0.08 per diluted share, versus $111.128 million, or $0.40, a year earlier. That net income included a pre-tax $35.067 million unrealized hedging gain; adjusted net income available was $5.876 million, or $0.02 per diluted share.
The agreement covers non-operated working interests in 20% of Comstock's interest in Legacy Haynesville upstream assets, 15% of its interest in Western Haynesville upstream assets, and 15% of its interest in Pinnacle Gas Services LLC. Closing is expected by year-end, subject to customary conditions, including required governmental approvals. SOCAR's Western Haynesville interest will reduce to 7.5% after five years and after SOCAR achieves a 15% return on investment in those assets.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.The $1.65 billion SOCAR divestiture is expected to substantially enhance Comstock's balance sheet. 42% of market cap
- Moderate pointQuarterly cash flows from operating activities reached $180.209 million, versus $153.093 million a year earlier.
- Moderate pointHedged natural gas and oil sales were $359.343 million, versus $334.968 million.
Negative
- Moderate pointQuarterly net income available fell to $22.270 million from $111.128 million.
- Moderate pointTotal revenues and other operating income fell to $384.363 million from $447.359 million.
- Moderate pointNine-month cash flows from operating activities declined to $622.379 million from $675.403 million.
Filing Explained
The facility’s extended maturity is currently in effect; the later extension depends on the SOCAR sale closing and debt retirement.
In the November 4 amendment, Comstock extended its bank credit facility’s maturity to
After the sale closes, aggregate facility commitments are to remain
At
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDAX financial
working capital financial
unrealized gain financial
non-operated working interests technical
borrowing base financial
Earnings Snapshot
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was CRK's third-quarter 2026 net income?
What did CRK agree to sell to SOCAR, and for how much?
When does CRK's bank credit facility mature?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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Registrant’s Telephone Number, Including Area Code: |
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 4, 2026, Comstock Resources, Inc. ("Comstock" or the "Company") announced financial results for the quarter ended September 30, 2026. A copy of the press release announcing Comstock's earnings and operating results for this period and other matters is attached hereto as Exhibit 99.1.
The earnings press release contains financial measures that are not in accordance with generally accepted accounting principles in the United States ("GAAP"). Comstock has provided reconciliations within the earnings release of the non-GAAP financial measures to the most directly comparable GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, measures of financial performance prepared in accordance with GAAP that are presented in the earnings release.
The information in this Form 8-K and the Exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liability of that section, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
Exhibit No. |
Description |
99.1 |
Press Release dated November 4, 2026 |
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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COMSTOCK RESOURCES, INC. |
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Date: |
November 4, 2026 |
By: |
/s/ ROLAND O. BURNS |
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Roland O. Burns |
Exhibit 99.1
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5300 Town and Country Blvd., Suite 500 |
Frisco, Texas 75034 |
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Telephone: (972) 668-8834 |
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Contact: Ron Mills |
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VP of Finance and Investor Relations |
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Web Site: www.comstockresources.com |
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NEWS RELEASE |
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For Immediate Release
COMSTOCK RESOURCES, INC. REPORTS
THIRD QUARTER 2026 FINANCIAL AND OPERATING RESULTS
FRISCO, TEXAS, November 4, 2026 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended September 30, 2026.
Highlights of 2026's Third Quarter
Financial Results for the Three Months Ended September 30, 2026
Comstock produced 122.4 Bcfe in the third quarter of 2026, which increased 9% from the third quarter of 2025 and 8% from the second quarter of this year. During the third quarter of 2026, Comstock realized $2.61 per Mcfe before hedging and $2.94 per Mcfe after hedging. Comstock's natural gas and oil sales in the third quarter of 2026 were $359.3 million (including realized hedging gains of $39.5 million). Cash flows from operating activities in the third quarter of 2026 was $180.2 million. Operating cash flow before changes in working capital generated in the third quarter of 2026 was $208.0 million, and net income available to the Company for the third quarter was $22.3 million or $0.08 per diluted share. The net income available to the Company in the quarter included a pre-tax $35.1 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 2026. Excluding this item and exploration expense, adjusted net income available to the Company for the third quarter of 2026 was $5.9 million, or $0.02 per diluted share.
Comstock's production cost per Mcfe in the third quarter averaged $0.80 per Mcfe, which was comprised of $0.41 for gathering and transportation costs, $0.23 for lease operating costs, $0.09 for production and other taxes and $0.07 for cash general and administrative expenses. Comstock's unhedged operating margin was 69% in the third quarter of 2026 and 73% after hedging.
Financial Results for the Nine Months Ended September 30, 2026
For the nine months ended September 30, 2026, production was 1,221 MMcfe per day. Comstock realized $3.08 per Mcfe before hedging and $3.09 per Mcfe after hedging. Natural gas and oil sales for the nine months ended September 30, 2026 totaled $1.03 billion (including realized hedging gains of $2.4 million). Cash flows from operating activities for the first nine months of 2026 was $622.4 million. Operating cash flow before changes in working capital generated in the first nine months of 2026 was $588.4 million, and net income available to the Company was $138.5 million or $0.47 per diluted share. Net income available to the Company for the first nine months of 2026 included a pre-tax $118.9 million unrealized gain on hedging contracts held for price risk management. Excluding this item, exploration expense and gain on sale of assets, adjusted net income available to the Company for the nine months ended September 30, 2026 was $53.6 million, or $0.18 per diluted share.
Comstock's production cost per Mcfe for the nine months ended September 30, 2026 averaged $0.83 per Mcfe, which was comprised of $0.41 for gathering and transportation costs, $0.25 for lease operating costs, $0.09 for production and other taxes and $0.08 for cash general and administrative expenses. Comstock's unhedged and hedged operating margin was 73% for the first nine months of 2026.
Drilling Results
Comstock drilled 21 (13.9 net) operated horizontal Haynesville/Bossier shale wells in the third quarter of 2026, which had an average lateral length of 10,967 feet. Comstock turned 23 (20.4 net) operated wells to sales in the third quarter of 2026.
Since its last operational update in July 2026, Comstock has turned 22 (17.1 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 27 MMcf per day. The completed lateral length of these wells averaged 10,544 feet.
Included in the wells turned to sales were six more successful Western Haynesville wells:
Well |
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Vertical Depth (feet) |
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Completed Lateral (feet) |
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Initial Production Rate (MMcf per day) |
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Kretzschmar PBH #1 |
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18,274 |
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7,956 |
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29 |
Kretzschmar PP #1 |
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16,572 |
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9,292 |
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39 |
Winn CR #1 |
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14,970 |
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11,393 |
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31 |
Dollie Jones RP #1 |
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16,322 |
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14,783 |
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40 |
Starkey MP #1 |
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16,183 |
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6,936 |
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31 |
Danford CS #1 |
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16,462 |
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8,612 |
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26 |
SOCAR Transaction
On November 4, 2026, Comstock entered into a definitive purchase and sale agreement with the State Oil Company of the Republic of Azerbaijan ("SOCAR") to sell non-operated working interests in 20% of Comstock's interest in its Legacy Haynesville upstream assets, 15% of Comstock's interest in its Western Haynesville upstream assets and 15% of the Company's interest in Pinnacle Gas Services LLC for an aggregate cash purchase price of $1.65 billion, subject to customary purchase price adjustments. SOCAR's interest in the Western Haynesville upstream assets will reduce to 7.5% after five years and after SOCAR has achieved a 15% return on investment in those assets. The effective date of the transaction is July 1, 2026 and is expected to close by year end, subject to customary conditions, including any required governmental approvals.
Extension of Bank Credit Facility
On November 4, 2026, the Company entered into an amendment to its bank credit facility to extend the maturity date of the bank credit facility to November 15, 2028. Upon the closing of the SOCAR transaction and the retirement of debt using the proceeds received from SOCAR, the maturity date will extend further to November 15, 2031. After closing the SOCAR transaction, aggregate commitments under the bank credit facility will continue to be $1.5 billion while borrowings will be subject to a borrowing base initially set at $1.6 billion.
Earnings Call Information
Comstock has planned a conference call for 10:00 a.m. Central Time on November 5, 2026, to discuss the third quarter 2026 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/BI962f0a6609044819bcc431a45cfea339.
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/e9dram3p.
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 5, 2026. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/e9dram3p.
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)
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Three Months Ended |
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Nine Months Ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenues: |
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Natural gas sales |
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$ |
319,269 |
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$ |
307,906 |
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$ |
1,025,289 |
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$ |
1,059,417 |
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Oil sales |
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612 |
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681 |
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1,846 |
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|
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2,124 |
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Total natural gas and oil sales |
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319,881 |
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308,587 |
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1,027,135 |
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|
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1,061,541 |
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Gas services |
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64,482 |
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141,265 |
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294,464 |
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371,427 |
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Gain (loss) on sale of assets |
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— |
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(2,493 |
) |
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3,400 |
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(2,493 |
) |
Total revenues and other operating income |
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384,363 |
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447,359 |
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1,324,999 |
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1,430,475 |
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Operating expenses: |
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Production and ad valorem taxes |
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11,032 |
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11,216 |
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28,653 |
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32,950 |
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Gathering and transportation |
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50,012 |
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39,969 |
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135,147 |
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124,345 |
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Lease operating |
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28,457 |
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28,778 |
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84,888 |
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94,887 |
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Exploration |
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10,745 |
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6,600 |
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24,515 |
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8,750 |
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Depreciation, depletion and amortization |
|
|
185,655 |
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|
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157,395 |
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|
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494,619 |
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|
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483,665 |
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Gas services |
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59,423 |
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|
|
141,684 |
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|
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285,293 |
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|
|
385,167 |
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General and administrative |
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|
16,104 |
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|
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11,504 |
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51,477 |
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34,884 |
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Total operating expenses |
|
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361,428 |
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|
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397,146 |
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|
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1,104,592 |
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|
|
1,164,648 |
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Operating income |
|
|
22,935 |
|
|
|
50,213 |
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|
|
220,407 |
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|
|
265,827 |
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Other income (expenses): |
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|
|
|
|
|
|
|
|
|
|
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Gain from derivative financial instruments |
|
|
74,529 |
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|
142,822 |
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|
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121,290 |
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|
|
48,330 |
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Other income |
|
|
208 |
|
|
|
409 |
|
|
|
730 |
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|
|
2,848 |
|
Interest expense |
|
|
(58,333 |
) |
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|
(56,722 |
) |
|
|
(166,436 |
) |
|
|
(166,737 |
) |
Total other income (expenses) |
|
|
16,404 |
|
|
|
86,509 |
|
|
|
(44,416 |
) |
|
|
(115,559 |
) |
Income before income taxes |
|
|
39,339 |
|
|
|
136,722 |
|
|
|
175,991 |
|
|
|
150,268 |
|
Provision for income taxes |
|
|
(13,973 |
) |
|
|
(18,623 |
) |
|
|
(23,126 |
) |
|
|
(16,834 |
) |
Net income |
|
|
25,366 |
|
|
|
118,099 |
|
|
|
152,865 |
|
|
|
133,434 |
|
Net income attributable to noncontrolling interest |
|
|
(3,096 |
) |
|
|
(6,971 |
) |
|
|
(14,379 |
) |
|
|
(18,742 |
) |
Net income available to the Company |
|
$ |
22,270 |
|
|
$ |
111,128 |
|
|
$ |
138,486 |
|
|
$ |
114,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.08 |
|
|
$ |
0.40 |
|
|
$ |
0.47 |
|
|
$ |
0.46 |
|
Diluted |
|
$ |
0.08 |
|
|
$ |
0.40 |
|
|
$ |
0.47 |
|
|
$ |
0.45 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
291,772 |
|
|
|
291,097 |
|
|
|
291,569 |
|
|
|
290,671 |
|
Diluted |
|
|
291,772 |
|
|
|
293,952 |
|
|
|
291,569 |
|
|
|
294,004 |
|
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)
|
|
Three Months Ended September 30, |
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Nine Months Ended September 30, |
|
||||||||||
|
|
2026 |
|
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2025 |
|
|
2026 |
|
|
2025 |
|
||||
Natural gas production (MMcf) |
|
|
122,392 |
|
|
|
111,770 |
|
|
|
333,316 |
|
|
|
338,963 |
|
Oil production (Mbbls) |
|
|
7 |
|
|
|
11 |
|
|
|
23 |
|
|
|
34 |
|
Total production (MMcfe) |
|
|
122,432 |
|
|
|
111,837 |
|
|
|
333,453 |
|
|
|
339,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural gas sales |
|
$ |
319,269 |
|
|
$ |
307,906 |
|
|
$ |
1,025,289 |
|
|
$ |
1,059,417 |
|
Natural gas hedging settlements (1) |
|
|
39,462 |
|
|
|
26,381 |
|
|
|
2,407 |
|
|
|
22,708 |
|
Total natural gas including hedging |
|
|
358,731 |
|
|
|
334,287 |
|
|
|
1,027,696 |
|
|
|
1,082,125 |
|
Oil sales |
|
|
612 |
|
|
|
681 |
|
|
|
1,846 |
|
|
|
2,124 |
|
Total natural gas and oil sales including hedging |
|
$ |
359,343 |
|
|
$ |
334,968 |
|
|
$ |
1,029,542 |
|
|
$ |
1,084,249 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average natural gas price (per Mcf) |
|
$ |
2.61 |
|
|
$ |
2.75 |
|
|
$ |
3.08 |
|
|
$ |
3.13 |
|
Average natural gas price including hedging (per Mcf) |
|
$ |
2.93 |
|
|
$ |
2.99 |
|
|
$ |
3.08 |
|
|
$ |
3.19 |
|
Average oil price (per barrel) |
|
$ |
87.43 |
|
|
$ |
61.91 |
|
|
$ |
80.26 |
|
|
$ |
62.47 |
|
Average price (per Mcfe) |
|
$ |
2.61 |
|
|
$ |
2.76 |
|
|
$ |
3.08 |
|
|
$ |
3.13 |
|
Average price including hedging (per Mcfe) |
|
$ |
2.94 |
|
|
$ |
3.00 |
|
|
$ |
3.09 |
|
|
$ |
3.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Production and ad valorem taxes |
|
$ |
11,032 |
|
|
$ |
11,216 |
|
|
$ |
28,653 |
|
|
$ |
32,950 |
|
Gathering and transportation |
|
|
50,012 |
|
|
|
39,969 |
|
|
|
135,147 |
|
|
|
124,345 |
|
Lease operating |
|
|
28,457 |
|
|
|
28,778 |
|
|
|
84,888 |
|
|
|
94,887 |
|
Cash general and administrative (2) |
|
|
8,628 |
|
|
|
5,880 |
|
|
|
28,198 |
|
|
|
19,291 |
|
Total production costs |
|
$ |
98,129 |
|
|
$ |
85,843 |
|
|
$ |
276,886 |
|
|
$ |
271,473 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Production and ad valorem taxes (per Mcfe) |
|
$ |
0.09 |
|
|
$ |
0.10 |
|
|
$ |
0.09 |
|
|
$ |
0.09 |
|
Gathering and transportation (per Mcfe) |
|
|
0.41 |
|
|
|
0.36 |
|
|
|
0.41 |
|
|
|
0.37 |
|
Lease operating (per Mcfe) |
|
|
0.23 |
|
|
|
0.26 |
|
|
|
0.25 |
|
|
|
0.28 |
|
Cash general and administrative (per Mcfe) |
|
|
0.07 |
|
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.06 |
|
Total production costs (per Mcfe) |
|
$ |
0.80 |
|
|
$ |
0.77 |
|
|
$ |
0.83 |
|
|
$ |
0.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unhedged operating margin |
|
|
69 |
% |
|
|
72 |
% |
|
|
73 |
% |
|
|
74 |
% |
Hedged operating margin |
|
|
73 |
% |
|
|
74 |
% |
|
|
73 |
% |
|
|
75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gas services revenue |
|
$ |
64,482 |
|
|
$ |
141,265 |
|
|
$ |
294,464 |
|
|
$ |
371,427 |
|
Gas services expenses |
|
|
59,423 |
|
|
|
141,684 |
|
|
|
285,293 |
|
|
|
385,167 |
|
Gas services margin |
|
$ |
5,059 |
|
|
$ |
(419 |
) |
|
$ |
9,171 |
|
|
$ |
(13,740 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Natural Gas and Oil Capital Expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unproved property acquisitions |
|
$ |
17,066 |
|
|
$ |
16,941 |
|
|
$ |
56,515 |
|
|
$ |
36,557 |
|
Total natural gas and oil properties acquisitions |
|
$ |
17,066 |
|
|
$ |
16,941 |
|
|
$ |
56,515 |
|
|
$ |
36,557 |
|
Exploration and Development: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Development leasehold |
|
$ |
16,917 |
|
|
$ |
1,095 |
|
|
$ |
24,291 |
|
|
$ |
9,946 |
|
Exploratory drilling and completion |
|
|
120,023 |
|
|
|
114,215 |
|
|
|
469,157 |
|
|
|
345,319 |
|
Development drilling and completion |
|
|
233,780 |
|
|
|
145,854 |
|
|
|
591,695 |
|
|
|
415,423 |
|
Other development costs |
|
|
12,147 |
|
|
|
5,946 |
|
|
|
31,424 |
|
|
|
14,380 |
|
Total exploration and development capital expenditures |
|
$ |
382,867 |
|
|
$ |
267,110 |
|
|
$ |
1,116,567 |
|
|
$ |
785,068 |
|
COMSTOCK RESOURCES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
ADJUSTED NET INCOME AVAILABLE TO THE COMPANY: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income available to the Company |
|
$ |
22,270 |
|
|
$ |
111,128 |
|
|
$ |
138,486 |
|
|
$ |
114,692 |
|
Unrealized gain from derivative financial instruments |
|
|
(35,067 |
) |
|
|
(116,441 |
) |
|
|
(118,883 |
) |
|
|
(25,622 |
) |
Exploration expense |
|
|
10,745 |
|
|
|
6,600 |
|
|
|
24,515 |
|
|
|
8,750 |
|
Loss (gain) on sale of assets |
|
|
— |
|
|
|
2,493 |
|
|
|
(3,400 |
) |
|
|
2,493 |
|
Adjustment to income taxes |
|
|
7,928 |
|
|
|
17,153 |
|
|
|
12,847 |
|
|
|
2,734 |
|
Adjusted net income available to the Company(1) |
|
$ |
5,876 |
|
|
$ |
20,933 |
|
|
$ |
53,565 |
|
|
$ |
103,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted net income available to the Company per share(2) |
|
$ |
0.02 |
|
|
$ |
0.07 |
|
|
$ |
0.18 |
|
|
$ |
0.35 |
|
Diluted shares outstanding |
|
|
291,772 |
|
|
|
293,952 |
|
|
|
291,569 |
|
|
|
294,004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
ADJUSTED EBITDAX: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income |
|
$ |
25,366 |
|
|
$ |
118,099 |
|
|
$ |
152,865 |
|
|
$ |
133,434 |
|
Interest expense |
|
|
58,333 |
|
|
|
56,722 |
|
|
|
166,436 |
|
|
|
166,737 |
|
Income taxes |
|
|
13,973 |
|
|
|
18,623 |
|
|
|
23,126 |
|
|
|
16,834 |
|
Depreciation, depletion, and amortization |
|
|
185,655 |
|
|
|
157,395 |
|
|
|
494,619 |
|
|
|
483,665 |
|
Exploration |
|
|
10,745 |
|
|
|
6,600 |
|
|
|
24,515 |
|
|
|
8,750 |
|
Unrealized gain from derivative financial instruments |
|
|
(35,067 |
) |
|
|
(116,441 |
) |
|
|
(118,883 |
) |
|
|
(25,622 |
) |
Stock-based compensation |
|
|
7,477 |
|
|
|
5,624 |
|
|
|
23,280 |
|
|
|
15,595 |
|
Loss (gain) on sale of assets |
|
|
— |
|
|
|
2,493 |
|
|
|
(3,400 |
) |
|
|
2,493 |
|
Total Adjusted EBITDAX (3) |
|
$ |
266,482 |
|
|
$ |
249,115 |
|
|
$ |
762,558 |
|
|
$ |
801,886 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL(4): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash flows from operating activities |
|
$ |
180,209 |
|
|
$ |
153,093 |
|
|
$ |
622,379 |
|
|
$ |
675,403 |
|
Increase (decrease) in accounts receivable |
|
|
43,207 |
|
|
|
(582 |
) |
|
|
(18,745 |
) |
|
|
(1,900 |
) |
Increase (decrease) in other current assets |
|
|
29 |
|
|
|
1,729 |
|
|
|
2,978 |
|
|
|
(24,152 |
) |
(Increase) decrease in accounts payable and accrued expenses |
|
|
(15,460 |
) |
|
|
36,111 |
|
|
|
(18,224 |
) |
|
|
(10,376 |
) |
Operating cash flow before changes in working capital |
|
$ |
207,985 |
|
|
$ |
190,351 |
|
|
$ |
588,388 |
|
|
$ |
638,975 |
|
COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
|
|
September 30, |
|
|
December 31, |
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
18,633 |
|
|
$ |
23,930 |
|
Accounts receivable |
|
|
223,800 |
|
|
|
242,545 |
|
Derivative financial instruments |
|
|
108,576 |
|
|
|
19,206 |
|
Other current assets |
|
|
69,250 |
|
|
|
75,257 |
|
Total current assets |
|
|
420,259 |
|
|
|
360,938 |
|
Property and equipment, net |
|
|
6,990,777 |
|
|
|
6,215,494 |
|
Goodwill |
|
|
335,897 |
|
|
|
335,897 |
|
Operating lease right-of-use assets |
|
|
96,456 |
|
|
|
94,733 |
|
Derivative financial instruments |
|
|
11,571 |
|
|
|
— |
|
|
|
$ |
7,854,960 |
|
|
$ |
7,007,062 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
547,744 |
|
|
$ |
501,695 |
|
Accrued costs |
|
|
116,348 |
|
|
|
153,248 |
|
Operating leases |
|
|
37,789 |
|
|
|
46,937 |
|
Derivative financial instruments |
|
|
— |
|
|
|
27,636 |
|
Total current liabilities |
|
|
701,881 |
|
|
|
729,516 |
|
Long-term debt |
|
|
3,356,968 |
|
|
|
2,809,066 |
|
Deferred income taxes |
|
|
510,039 |
|
|
|
437,098 |
|
Derivative financial instruments |
|
|
9,694 |
|
|
|
— |
|
Long-term operating leases |
|
|
58,215 |
|
|
|
47,692 |
|
Reserve for future abandonment costs |
|
|
21,829 |
|
|
|
20,787 |
|
Total liabilities |
|
|
4,658,626 |
|
|
|
4,044,159 |
|
Stockholders' Equity: |
|
|
|
|
|
|
||
Common stock |
|
|
146,810 |
|
|
|
146,527 |
|
Additional paid-in capital |
|
|
1,199,358 |
|
|
|
1,376,053 |
|
Accumulated earnings |
|
|
1,262,716 |
|
|
|
1,124,230 |
|
Total stockholders' equity attributable to Comstock |
|
|
2,608,884 |
|
|
|
2,646,810 |
|
Noncontrolling interest |
|
|
587,450 |
|
|
|
316,093 |
|
Total stockholders' equity |
|
|
3,196,334 |
|
|
|
2,962,903 |
|
|
|
$ |
7,854,960 |
|
|
$ |
7,007,062 |
|