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FRISCO, TX, May 01, 2024 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2024.

Highlights of 2024's First Quarter

  • Continued weak natural gas prices weighed heavily on the first quarter results.
  • Natural gas and oil sales, including realized hedging gains, were $336 million.
  • Operating cash flow was $182 million or $0.65 per diluted share.
  • Adjusted EBITDAX for the quarter was $230 million.
  • Adjusted net loss was $8.5 million for the quarter.
  • Added $100.5 million of liquidity with a private placement equity offering to majority stockholder.
  • Solid results from the Haynesville shale drilling program with 14 (13.5 net) operated wells turned to sales since the Company's last update with an average initial production of 25 MMcf per day.
  • Added 198,000 net acres to Western Haynesville, increasing leasehold in the emerging play to over 450,000 net acres.
  • Latest four Western Haynesville wells were successful with initial production rates between 35 to 38 MMcf per day.

Financial Results for the Three Months Ended March 31, 2024

Comstock's natural gas and oil sales in the first quarter of 2024 totaled $336.0 million (including realized hedging gains of $48.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2024 was $182.0 million, and net loss available to common stockholders for the first quarter was $14.5 million or $0.05 per share. Net loss in the quarter included a pre-tax $8.7 million unrealized loss on hedging contracts held for risk management. Excluding this item, adjusted net loss for the first quarter of 2024 was $8.5 million, or $0.03 per share.

Comstock's production cost per Mcfe in the first quarter averaged $0.76 per Mcfe, which was comprised of $0.34 for gathering and transportation costs, $0.25 for lease operating costs, $0.13 for production and other taxes and $0.04 for cash general and administrative expenses. Comstock's unhedged operating margin was 63% in the first quarter of 2024 and 68% after hedging.

Drilling Results

Comstock drilled 16 (14.3 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2024 which had an average lateral length of 9,845 feet. Comstock turned 18 (16.3 net) operated wells to sales in the first quarter of 2024.

Since its last operational update in February, Comstock has turned 14 (13.5 net) operated Haynesville/Bossier shale wells to sales. These wells had initial daily production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 8,031 feet.

Included in the wells turned to sales were four more successful Western Haynesville wells – the Glass RT #1, the Harrison WA #1, the Farley GD #1 and the Ingram Martin #1. The Glass RT #1 well was drilled to a total vertical depth of 18,346 feet and has a 9,292 foot completed lateral. The well's initial production rate was 36 MMcf per day. The Harrison WA #1 well was drilled to a total vertical depth of 19,361 feet and has an 8,866 foot completed lateral. The well's initial production rate was 35 MMcf per day. The Farley GD #1 well was drilled to a total vertical depth of 18,700 feet and has a 9,837 foot completed lateral. The well's initial production rate was 38 MMcf per day. The Ingram Martin #1 well was drilled to a total vertical depth of 17,748 feet and has a 7,764 foot completed lateral. The well's initial production rate was 38 MMcf per day. All of these wells were completed in the Haynesville Shale formation.


Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility on April 30, 2024.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on May 2, 2024, to discuss the first quarter 2024 operational and financial results. Investors wishing to listen should visit the Company's website at for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at e39bfd6cb5. 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:

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 2, 2024. The replay of the conference can be accessed using the webcast link:

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

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 New York Stock Exchange under the symbol CRK.

(In thousands, except per share amounts)

  Three Months Ended
March 31,
  2024  2023 
Natural gas sales $287,083  $378,032 
Oil sales  876   1,942 
Total natural gas and oil sales  287,959   379,974 
Gas services  47,813   109,604 
Total revenues  335,772   489,578 
Operating expenses:      
Production and ad valorem taxes  17,908   14,906 
Gathering and transportation  47,099   45,574 
Lease operating  35,072   34,830 
Exploration     1,775 
Depreciation, depletion and amortization  190,689   133,983 
Gas services  48,680   101,295 
General and administrative  9,171   12,368 
Gain on sale of assets     (773)
Total operating expenses  348,619   343,958 
Operating income (loss)  (12,847)  145,620 
Other income (expenses):      
Gain from derivative financial instruments  39,307   66,409 
Other income  331   460 
Interest expense  (49,557)  (38,270)
Total other income (expenses)  (9,919)  28,599 
Income (loss) before income taxes  (22,766)  174,219 
(Provision for) benefit from income taxes  8,292   (39,716)
Net income (loss)  (14,474)  134,503 
Net loss attributable to noncontrolling interest  (1,847)   
Net income (loss) available to Comstock $(16,321) $134,503 
Net income (loss) per share      
Basic $(0.05) $0.49 
Diluted $(0.05) $0.49 
Weighted average shares outstanding:      
Basic  277,962   276,551 
Diluted  277,962   276,551 
Dividends per share $  $0.125 

(In thousands, except per unit amounts)

  Three Months Ended March 31, 
  2024  2023 
Natural gas production (MMcf)  139,443   127,067 
Oil production (Mbbls)  12   27 
Total production (MMcfe)  139,515   127,226 
Natural gas sales $287,083  $378,032 
Natural gas hedging settlements (1)  47,995   10,383 
Total natural gas including hedging  335,078   388,415 
Oil sales  876   1,942 
Total natural gas and oil sales including hedging $335,954  $390,357 
Average natural gas price (per Mcf) $2.06  $2.98 
Average natural gas price including hedging (per Mcf) $2.40  $3.06 
Average oil price (per barrel) $73.00  $71.93 
Average price (per Mcfe) $2.06  $2.99 
Average price including hedging (per Mcfe) $2.41  $3.07 
Production and ad valorem taxes $17,908  $14,906 
Gathering and transportation  47,099   45,574 
Lease operating  35,072   34,830 
Cash general and administrative (2)  5,755   10,321 
Total production costs $105,834  $105,631 
Production and ad valorem taxes (per Mcfe) $0.13  $0.12 
Gathering and transportation (per Mcfe)  0.34   0.36 
Lease operating (per Mcfe)  0.25   0.27 
Cash general and administrative (per Mcfe)  0.04   0.08 
Total production costs (per Mcfe) $0.76  $0.83 
Unhedged operating margin  63%  72%
Hedged operating margin  68%  73%
Gas services revenue $47,813  $109,604 
Gas services expenses  48,680   101,295 
Gas services margin $(867) $8,309 
Natural Gas and Oil Capital Expenditures:      
Unproved property acquisitions $69,444  $40,695 
Total natural gas and oil properties acquisitions $69,444  $40,695 
Exploration and Development:      
Development leasehold $3,938  $8,743 
Exploratory drilling and completion  106,456   29,690 
Development drilling and completion  145,793   280,176 
Other development costs  37   6,097 
Total exploration and development capital expenditures $256,224  $324,706 

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

(2)   Excludes stock-based compensation.

(In thousands, except per share amounts)

  Three Months Ended
March 31,
  2024  2023 
Net income (loss) $(14,474) $134,503 
Unrealized (gain) loss from derivative financial instruments  8,688   (56,026)
Exploration expense     1,775 
Gain on sale of assets     (773)
Adjustment to income taxes  (2,752)  12,528 
Adjusted net income (loss) $(8,538) $92,007 
Adjusted net income (loss) per share (2) $(0.03) $0.33 
Diluted shares outstanding  277,962   276,551 
Net income (loss) $(14,474) $134,503 
Interest expense  49,557   38,270 
Income taxes  (8,292)  39,716 
Depreciation, depletion, and amortization  190,689   133,983 
Exploration     1,775 
Unrealized (gain) loss from derivative financial instruments  8,688   (56,026)
Stock-based compensation  3,415   2,046 
Gain on sale of assets     (773)
Total Adjusted EBITDAX (3) $229,583  $293,494 

(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, gains and losses on sales of assets 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 and preferred stock 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.

(In thousands)

  Three Months Ended
March 31,
  2024  2023 
Net income (loss) $(14,474) $134,503 
Reconciling items:      
Unrealized (gain) loss from derivative financial instruments  8,688   (56,026)
Deferred income taxes  (8,287)  39,180 
Depreciation, depletion and amortization  190,689   133,983 
Amortization of debt discount and issuance costs  1,984   1,997 
Stock-based compensation  3,415   2,046 
Gain on sale of assets     (773)
Operating cash flow $182,015  $254,910 
Decrease in accounts receivable  99,418   255,992 
(Increase) decrease in other current assets  5,576   (1,514)
Decrease in accounts payable and accrued expenses  (115,470)  (123,024)
Net cash provided by operating activities $171,539  $386,364 

  Three Months Ended
March 31,
  2024  2023 
Operating cash flow $182,015  $254,910 
Exploration and development capital expenditures  (256,224)  (324,706)
Midstream capital expenditures  (5,298)  (4,187)
Other capital expenditures  (29)  (356)
Contributions from midstream partner  6,000    
Free cash deficit from operations $(73,536) $(74,339)
Acquisitions  (69,444)  (40,695)
Proceeds from divestitures     130 
Free cash deficit after acquisition and divestiture activity $(142,980) $(114,904)

(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 flow (deficit) from operations and free cash flow (deficit) after acquisition and divestiture activity 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.

(In thousands)

  March 31,
  December 31,
Cash and cash equivalents $6,420  $16,669 
Accounts receivable  132,012   231,430 
Derivative financial instruments  141,821   126,775 
Other current assets  77,811   86,619 
Total current assets  358,064   461,493 
Property and equipment, net  5,525,553   5,384,771 
Goodwill  335,897   335,897 
Operating lease right-of-use assets  97,728   71,462 
  $6,317,242  $6,253,623 
Accounts payable $440,956  $523,260 
Accrued costs  80,863   134,466 
Operating leases  34,199   23,765 
Total current liabilities  556,018   681,491 
Long-term debt  2,702,375   2,640,391 
Deferred income taxes  461,748   470,035 
Derivative financial instruments  23,734    
Long-term operating leases  63,536   47,742 
Asset retirement obligation  31,249   30,773 
Total liabilities  3,838,660   3,870,432 
Stockholders' Equity:      
Common stock  146,101   139,214 
Additional paid-in capital  1,357,908   1,260,930 
Accumulated earnings  941,949   958,270 
Total stockholders' equity attributable to Comstock  2,445,958   2,358,414 
Noncontrolling interest  32,624   24,777 
Total stockholders' equity  2,478,582   2,383,191 
  $6,317,242  $6,253,623 

Ron Mills
Vice President of Finance and Investor Relations
Comstock Resources

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