FRISCO, TX, May 05, 2026 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended March 31, 2026.
Highlights of 2026's First Quarter
- First quarter 2026 financial results:
- Natural gas and oil sales, including realized hedging losses, were $339 million for the quarter.
- Operating cash flow was $192 million or $0.66 per share.
- Adjusted EBITDAX for the quarter was $251 million.
- Adjusted net income was $44 million or $0.15 per share for the quarter.
- Turned six Western Haynesville wells to sales in the first quarter with an average lateral length of 10,874 feet and an average per well initial production rate of 29 MMcf per day.
- Turned ten Legacy Haynesville wells to sales during the first quarter with an average lateral length of 12,312 feet and an average per well initial production rate of 31 MMcf per day.
Financial Results for the Three Months Ended March 31, 2026
Comstock's natural gas and oil sales in the first quarter of 2026 were $338.6 million (including realized hedging losses of $80.4 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2026 was $191.9 million, and net income for the first quarter was $112.5 million or $0.38 per diluted share. The net income in the quarter included a pre-tax $82.8 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the fourth quarter of 2025. Excluding this item, exploration expense and gain from sale of assets, adjusted net income for the first quarter of 2026 was $44.5 million, or $0.15 per diluted share.
Comstock's production cost per Mcfe in the first quarter averaged $0.93 per Mcfe, which was comprised of $0.43 for gathering and transportation costs, $0.29 for lease operating costs, $0.10 for production and other taxes and $0.11 for cash general and administrative expenses. Comstock's unhedged operating margin was 78% in the first quarter of 2026 and 73% after hedging.
Drilling Results
Comstock drilled 17 (15.3 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2026, which had an average lateral length of 10,714 feet. Comstock turned 13 (11.7 net) operated wells to sales in the first quarter of 2026.
Since its last operational update in February 2026, Comstock has turned 16 (14.6 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 30 MMcf per day. The completed lateral length of these wells averaged 11,773 feet.
Included in the wells turned to sales were six more successful Western Haynesville wells:
Well
Vertical
Depth
(feet)
Completed
Lateral (feet) Initial
Production
Rate (MMcf
per day) Hutto Rodell #1 17,408 8,261 20Bumpurs BHGJ #1 16,074 12,341 32Bumpurs NMH #1 14,272 11,325 32Pollard MBK #1 15,850 11,249 25Pollard TFG #1 14,427 12,710 31Kiker BK #1 17,956 9,355 35
Earnings Call Information
Comstock has planned a conference call for 10:00 a.m. Central Time on May 6, 2026, to discuss the first 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/BIfdab657d67b245688283195b41fda6fb.
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/p77w7mi4.
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 May 6, 2026. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/p77w7mi4.
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)
March 31, 2026 2025 Revenues: Natural gas sales $418,275 $412,286 Oil sales 758 702 Total natural gas and oil sales 419,033 412,988 Gas services 166,501 99,866 Gain on sale of assets 1,820 — Total revenues and other operating income 587,354 512,854 Operating expenses: Production and ad valorem taxes 10,425 11,179 Gathering and transportation 41,804 42,617 Lease operating 28,281 35,000 Exploration 9,343 2,150 Depreciation, depletion and amortization 141,532 167,891 Gas services 162,856 116,769 General and administrative 18,222 11,080 Total operating expenses 412,463 386,686 Operating income 174,891 126,168 Other Expenses: Gain (loss) from derivative financial instruments 2,396 (330,339)Other income 263 339 Interest expense (53,061) (54,837)Total other expenses (50,402) (384,837)Income (loss) before income taxes 124,489 (258,669)(Provision for) benefit from income taxes (11,990) 143,276 Net income (loss) 112,499 (115,393)Net income attributable to noncontrolling interest (5,049) (5,885)Net income (loss) available to the Company $107,450 $(121,278) Net income (loss) per share: Basic $0.38 $(0.40)Diluted $0.38 $(0.40)Weighted average shares outstanding: Basic 291,317 290,303 Diluted 291,317 290,303
COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)
(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)
March 31, 2026 2025 ADJUSTED NET INCOME: Net income (loss) $112,499 $(115,393)Unrealized (gain) loss from derivative financial instruments (82,784) 322,380 Exploration expense 9,343 2,150 Gain on sale of assets (1,820) — Adjustment to income taxes 7,249 (155,292)Adjusted net income (1) $44,487 $53,845 Adjusted net income per share (2) $0.15 $0.18 Diluted shares outstanding 291,317 293,633 ADJUSTED EBITDAX: Net income (loss) $112,499 $(115,393)Interest expense 53,061 54,837 Income taxes 11,990 (143,276)Depreciation, depletion, and amortization 141,532 167,891 Exploration 9,343 2,150 Unrealized (gain) loss from derivative financial instruments (82,784) 322,380 Stock-based compensation 7,444 4,442 Gain on sale of assets (1,820) — Total Adjusted EBITDAX (3) $251,265 $293,031
(1) Adjusted net income 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 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)
March 31, 2026 2025 OPERATING CASH FLOW (1): Net income (loss) $112,499 $(115,393)Reconciling items: Unrealized (gain) loss from derivative financial instruments (82,784) 322,380 Deferred income taxes 11,990 (143,276)Depreciation, depletion and amortization 141,532 167,891 Amortization of debt discount and issuance costs 3,037 2,944 Stock-based compensation 7,444 4,442 Gain on sale of assets (1,820) — Operating cash flow $191,898 $238,988 (Increase) decrease in accounts receivable 73,494 (33,660)Decrease in other current assets 9,199 559 Decrease in accounts payable and accrued expenses (2,626) (31,141)Net cash provided by operating activities $271,965 $174,746
March 31, 2026 2025 FREE CASH FLOW (DEFICIT)(2): Operating cash flow $191,898 $238,988 Less: Exploration and development capital expenditures (343,272) (249,756)Midstream capital expenditures (54,692) (48,668)Other capital expenditures (60) (86)Contributions from midstream partner — 59,500 Free cash deficit from operations $(206,126) $(22)Acquisitions (19,040) (9,684)Proceeds from divestitures 1,820 — Free cash deficit after acquisition and divestiture activities $(223,346) $(9,706)
(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)
2026 December 31,
2025 ASSETS Cash and cash equivalents $14,785 $23,930 Accounts receivable 169,051 242,545 Derivative financial instruments 50,178 19,206 Other current assets 56,050 75,257 Total current assets 290,064 360,938 Property and equipment, net 6,491,565 6,215,494 Goodwill 335,897 335,897 Operating lease right-of-use assets 83,112 94,733 Derivative financial instruments 39,058 — $7,239,696 $7,007,062 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $552,967 $501,695 Accrued costs 100,810 153,248 Operating leases 43,263 46,937 Derivative financial instruments 14,882 27,636 Total current liabilities 711,922 729,516 Long-term debt 2,947,607 2,809,066 Deferred income taxes 449,088 437,098 Long-term operating leases 39,538 47,692 Asset retirement obligation 21,125 20,787 Total liabilities 4,169,280 4,044,159 Stockholders' Equity: Common stock 146,848 146,527 Additional paid-in capital 1,378,963 1,376,053 Accumulated earnings 1,231,680 1,124,230 Total stockholders' equity attributable to Comstock 2,757,491 2,646,810 Noncontrolling interest 312,925 316,093 Total stockholders' equity 3,070,416 2,962,903 $7,239,696 $7,007,062