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FRISCO, TX, July 29, 2026 (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, 2026.
Highlights of 2026's Second Quarter
Return of production growth in quarter with 16% growth over first quarter.Sold a 27% noncontrolling common equity interest in Pinnacle Gas Services LLC ("Pinnacle") for $600 million and used the proceeds to redeem and retire all of Pinnacle's preferred equity securities and its outstanding indebtedness.Turned five Western Haynesville wells to sales in the second quarter with an average lateral length of 9,679 feet and an average per well initial production rate of 33 MMcf per day.Turned twelve Legacy Haynesville wells to sales during the second quarter with an average lateral length of 11,835 feet and an average per well initial production rate of 31 MMcf per day. Five of these wells were horseshoe wells.Second quarter 2026 financial results: Natural gas and oil sales, including realized hedging gains, were $332 million for the quarter.Cash flows from operating activities was $170 million and operating cash flow before changes in working capital was $189 million or $0.65 per share.Net income available to the Company was $9 million, or $0.03 per share and adjusted net income available to the Company was $8 million or $0.03 per share for the quarter.Net income was $15 million and adjusted EBITDAX was $245 million. Financial Results for the Three Months Ended June 30, 2026
Comstock produced 113.1 Bcfe in the second quarter of 2026, which increased 16% from the first quarter of this year and increased 1% from the same period in 2025. During the second quarter of 2026, Comstock realized $2.55 per Mcfe before hedging and $2.93 per Mcfe after hedging. Comstock's natural gas and oil sales in the second quarter of 2026 were $331.6 million (including realized hedging gains of $43.3 million). Cash flows from operating activities in the second quarter of 2026 was $170.2 million. Operating cash flow before changes in working capital generated in the second quarter of 2026 was $188.5 million, and net income available to the Company for the second quarter was $8.8 million or $0.03 per diluted share. The net income available to the Company in the quarter included a pre-tax $1.0 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 2026. Excluding this item, exploration expense and gain on sale of assets, adjusted net income available to the Company for the second quarter of 2026 was $8.3 million, or $0.03 per diluted share.
Comstock's production cost per Mcfe in the second quarter returned to normal levels and averaged $0.77 per Mcfe, which was comprised of $0.38 for gathering and transportation costs, $0.25 for lease operating costs, $0.06 for production and other taxes and $0.08 for cash general and administrative expenses. Comstock's unhedged operating margin was 70% in the second quarter of 2026 and 74% after hedging.
Financial Results for the Six Months Ended June 30, 2026
For the six months ended June 30, 2026, production was down 7% to 1,166 MMcfe per day compared to the same period in 2025. Comstock realized $3.35 per Mcfe before hedging and $3.18 per Mcfe after hedging for its production of 211.0 Bcfe. Natural gas and oil sales for the six months ended June 30, 2026 totaled $670.2 million (including realized hedging losses of $37.1 million). Cash flows from operating activities for the first six months of 2026 was $442.2 million. Operating cash flow before changes in working capital generated in the first six months of 2026 was $380.4 million, and net income available to the Company was $116.2 million or $0.40 per diluted share. Net income available to the Company for the first six months of 2026 included a pre-tax $83.8 million unrealized gain on hedging contracts held for price risk management. Excluding this item and exploration expense and gain on sale of assets, adjusted net income available to the Company for the six months ended June 30, 2026 was $47.7 million, or $0.16 per diluted share.
Comstock's production cost per Mcfe for the six months ended June 30, 2026 averaged $0.85 per Mcfe, which was comprised of $0.40 for gathering and transportation costs, $0.27 for lease operating costs, $0.09 for production and other taxes and $0.09 for cash general and administrative expenses. Comstock's unhedged operating margin was 75% for the first six months of 2026 and 73% after hedging.
Drilling Results
Comstock drilled 17 (15.6 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2026, which had an average lateral length of 11,104 feet. Comstock turned 16 (12.7 net) operated wells to sales in the second quarter of 2026.
Since its last operational update in May 2026, Comstock has turned 17 (13.6 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 31 MMcf per day. The completed lateral length of these wells averaged 11,201 feet. Included in the wells turned to sales were five more successful Western Haynesville wells:
Well
Vertical
Depth
(feet)
Completed
Lateral (feet)
Initial
Production
Rate (MMcf
per day) Ericson KN #1 15,414 7,975 30Jensen WW #1 14,272 9,243 31Glass KG #1 14,972 11,182 35Lotspeich BJ #1 17,903 9,805 34Jones LA #1 16,069 10,191 33 Earnings Call Information
Comstock has planned a conference call for 10:00 a.m. Central Time on July 30, 2026, to discuss the second 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/BIb1b9c89894d24cf390641104a3f40885.
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/xprpo4xr.
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 30, 2026. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/xprpo4xr.
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, 2026 2025 2026 2025 Revenues: Natural gas sales $287,745 $339,225 $706,020 $751,511 Oil sales 476 741 1,234 1,443 Total natural gas and oil sales 288,221 339,966 707,254 752,954 Gas services 63,481 130,296 229,982 230,162 Gain on sale of assets 1,580 — 3,400 — Total revenues and other operating income 353,282 470,262 940,636 983,116 Operating expenses: Production and ad valorem taxes 7,196 10,555 17,621 21,734 Gathering and transportation 43,331 41,759 85,135 84,376 Lease operating 28,150 31,109 56,431 66,109 Exploration 4,427 — 13,770 2,150 Depreciation, depletion and amortization 167,432 158,379 308,964 326,270 Gas services 63,014 126,714 225,870 243,483 General and administrative 17,151 12,300 35,373 23,380 Total operating expenses 330,701 380,816 743,164 767,502 Operating income 22,581 89,446 197,472 215,614 Other income (expenses): Gain (loss) from derivative financial instruments 44,365 235,847 46,761 (94,492)Other income 259 2,100 522 2,439 Interest expense (55,042) (55,178) (108,103) (110,015)Total other income (expenses) (10,418) 182,769 (60,820) (202,068)Income before income taxes 12,163 272,215 136,652 13,546 (Provision for) benefit from income taxes 2,837 (141,487) (9,153) 1,789 Net income 15,000 130,728 127,499 15,335 Net income attributable to noncontrolling interest (6,234) (5,886) (11,283) (11,771)Net income available to the Company $8,766 $124,842 $116,216 $3,564 Net income per share: Basic $0.03 $0.45 $0.40 $0.05 Diluted $0.03 $0.44 $0.40 $0.05 Weighted average shares outstanding: Basic 291,612 290,604 291,465 290,455 Diluted 291,612 294,247 291,465 294,026 COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)
Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Natural gas production (MMcf) 113,069 112,164 210,924 227,193 Oil production (Mbbls) 5 13 16 23 Total production (MMcfe) 113,102 112,238 211,021 227,329 Natural gas sales $287,745 $339,225 $706,020 $751,511 Natural gas hedging settlements (1) 43,333 4,286 (37,055) (3,673)Total natural gas including hedging 331,078 343,511 668,965 747,838 Oil sales 476 741 1,234 1,443 Total natural gas and oil sales including hedging $331,554 $344,252 $670,199 $749,281 Average natural gas price (per Mcf) $2.54 $3.02 $3.35 $3.31 Average natural gas price including hedging (per Mcf) $2.93 $3.06 $3.17 $3.29 Average oil price (per barrel) $95.20 $57.00 $77.13 $62.74 Average price (per Mcfe) $2.55 $3.03 $3.35 $3.31 Average price including hedging (per Mcfe) $2.93 $3.07 $3.18 $3.30 Production and ad valorem taxes $7,196 $10,555 $17,621 $21,734 Gathering and transportation 43,331 41,759 85,135 84,376 Lease operating 28,150 31,109 56,431 66,109 Cash general and administrative (2) 8,792 6,771 19,570 13,411 Total production costs $87,469 $90,194 $178,757 $185,630 Production and ad valorem taxes (per Mcfe) $0.06 $0.09 $0.09 $0.10 Gathering and transportation (per Mcfe) 0.38 0.37 0.40 0.37 Lease operating (per Mcfe) 0.25 0.28 0.27 0.29 Cash general and administrative (per Mcfe) 0.08 0.06 0.09 0.06 Total production costs (per Mcfe) $0.77 $0.80 $0.85 $0.82 Unhedged operating margin 70% 73% 75% 75%Hedged operating margin 74% 74% 73% 75% Gas services revenue $63,481 $130,296 $229,982 $230,162 Gas services expenses 63,014 126,714 225,870 243,483 Gas services margin $467 $3,582 $4,112 $(13,321) Natural Gas and Oil Capital Expenditures: Unproved property acquisitions $20,409 $9,932 $39,449 $19,616 Total natural gas and oil properties acquisitions $20,409 $9,932 $39,449 $19,616 Exploration and Development: Development leasehold $4,006 $5,295 $7,374 $8,851 Exploratory drilling and completion 174,359 130,997 349,134 231,104 Development drilling and completion 199,356 123,991 357,915 269,569 Other development costs 12,707 7,919 19,277 8,434 Total exploration and development capital expenditures $390,428 $268,202 $733,700 $517,958 (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, 2026 2025 2026 2025 ADJUSTED NET INCOME AVAILABLE TO THE COMPANY: Net income available to the Company $8,766 $124,842 $116,216 $3,564 Unrealized (gain) loss from derivative financial instruments (1,032) (231,561) (83,816) 90,819 Exploration expense 4,427 — 13,770 2,150 Gain on sale of assets (1,580) — (3,400) — Adjustment to income taxes (2,330) 140,873 4,919 (14,419)Adjusted net income available to the Company(1) $8,251 $34,154 $47,689 $82,114 Adjusted net income available to the Company per share(2) $0.03 $0.12 $0.16 $0.28 Diluted shares outstanding 291,612 294,247 291,465 294,026 ADJUSTED EBITDAX: Net income $15,000 $130,728 $127,499 $15,335 Interest expense 55,042 55,178 108,103 110,015 Income taxes (2,837) 141,487 9,153 (1,789)Depreciation, depletion, and amortization 167,432 158,379 308,964 326,270 Exploration 4,427 — 13,770 2,150 Unrealized (gain) loss from derivative financial instruments (1,032) (231,561) (83,816) 90,819 Stock-based compensation 8,359 5,529 15,803 9,971 Gain on sale of assets (1,580) — (3,400) — Total Adjusted EBITDAX (3) $244,811 $259,740 $496,076 $552,771 OPERATING CASH FLOW BEFORE CHANGES IN WORKING CAPITAL(4): Cash flows from operating activities $170,205 $347,564 $442,170 $522,310 Increase (decrease) in accounts receivable 11,542 (34,978) (61,952) (1,318)Increase (decrease) in other current assets 12,148 (25,322) 2,949 (25,881)Increase in accounts payable and accrued expenses (5,390) (77,628) (2,764) (46,487)Operating cash flow before changes in working capital $188,505 $209,636 $380,403 $448,624 (1) Adjusted net income available to the Company 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 available to the Company 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.
(4) Operating cash flow before changes in working capital is presented in the earnings release because management believes it to be useful to investors as a measure of operating cash generation of the Company based on the revenues and expenses that were related to the period versus the period when the revenues were received or expenses paid while enhancing comparability across periods. Operating cash flow before changes in working capital is not a measure of Comstock's liquidity or actual cash generation.
COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30,
2026 December 31,
2025 ASSETS Cash and cash equivalents $45,008 $23,930 Accounts receivable 180,593 242,545 Derivative financial instruments 53,156 19,206 Other current assets 59,804 75,257 Total current assets 338,561 360,938 Property and equipment, net 6,756,314 6,215,494 Goodwill 335,897 335,897 Operating lease right-of-use assets 71,684 94,733 Derivative financial instruments 22,230 — $7,524,686 $7,007,062 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $503,111 $501,695 Accrued costs 171,187 153,248 Operating leases 37,598 46,937 Derivative financial instruments — 27,636 Total current liabilities 711,896 729,516 Long-term debt 3,098,770 2,809,066 Deferred income taxes 495,428 437,098 Long-term operating leases 33,570 47,692 Asset retirement obligation 21,444 20,787 Total liabilities 4,361,108 4,044,159 Stockholders' Equity: Common stock 146,810 146,527 Additional paid-in capital 1,191,881 1,376,053 Accumulated earnings 1,240,446 1,124,230 Total stockholders' equity attributable to Comstock 2,579,137 2,646,810 Noncontrolling interest 584,441 316,093 Total stockholders' equity 3,163,578 2,962,903 $7,524,686 $7,007,062
