THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS
FRISCO, TEXAS, November 3, 2025 – 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:
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
