Core Viewpoint - Comstock Resources, Inc. is set to release its second quarter 2025 financial results on July 30, 2025, after market close, followed by a conference call on July 31, 2025, at 10:00 a.m. CT to discuss these results [1]. Group 1 - The conference call will require participants to register online to receive the dial-in number and personal PIN [2]. - Participants are advised to join the call at least 15 minutes early for a timely connection [2]. - The conference call will also be available in listen-only mode via a live broadcast on the company's website [3]. Group 2 - A replay of the conference call will be accessible for twelve months starting at 1:00 p.m. CT on July 31, 2025 [3]. - Comstock Resources is recognized as a leading independent natural gas producer, focusing on the Haynesville Shale development in North Louisiana and East Texas [4]. - A slide show presentation detailing the financial results will be available on Comstock's website under the "Quarterly Results" section [4].

Core Viewpoint - The increasing demand for clean energy is driving investor interest in natural gas stocks, as natural gas emits lower emissions compared to crude oil and coal while providing similar energy output [1] Group 1: Natural Gas Market Outlook - The U.S. Energy Information Administration (EIA) forecasts the natural gas spot price to reach $4.10 per million BTU this year, a significant increase from $2.20 last year, primarily due to rising LNG exports and increased demand from the electric power sector [2] - EQT Corporation reported that natural gas demand remained resilient during the COVID-19 pandemic, with industrial usage declining by less than 1 billion cubic feet per day, indicating the commodity's essential role in heating, cooking, and electricity production [3] Group 2: Investment Opportunities - Upstream energy companies are incentivized to increase exploration and production of natural gas due to favorable pricing and resilient demand, leading to greater needs for transportation and storage from midstream players [4] - Investors are encouraged to consider natural gas producers and midstream companies, specifically Comstock Resources, Inc. (CRK) and Energy Transfer LP (ET), both rated with a Zacks Rank 2 (Buy) [5] Group 3: Company-Specific Insights - Comstock Resources (CRK) is well-positioned to benefit from the favorable pricing environment, with a significant drilling inventory across the Haynesville and Bossier zones, ensuring over three decades of drilling activity [6] - Energy Transfer (ET) is poised to gain from the expansion of energy-hungry data centers in Texas, driven by demand for AI and cloud computing, and has secured a natural gas supply agreement with CloudBurst, an AI-focused data center project [7]

Core Viewpoint - Comstock Resources (CRK) shows a significantly improving earnings outlook, making it a solid investment choice as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions reflects growing optimism among analysts regarding Comstock's earnings prospects, which is expected to positively impact its stock price [2]. - The current-quarter earnings estimate is projected at $0.16 per share, indicating a year-over-year increase of +180%. Over the last 30 days, the Zacks Consensus Estimate has risen by 49.54% due to two upward revisions and two downward revisions [6]. - For the full year, the earnings estimate is expected to be $0.76 per share, representing a year-over-year change of +416.67%. The consensus estimate has increased by 11.3% during this period, despite three negative revisions [7][8]. Zacks Rank - Comstock has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions that suggest strong potential for earnings growth. Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [9]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks generating an average annual return of +25% since 2008 [3]. Stock Performance - Comstock shares have increased by 23.4% over the past four weeks, reflecting investor confidence in the company's earnings growth prospects [10].

Company Overview - Comstock Resources, Inc. is an independent oil and gas exploration and production company based in Frisco, Texas, focusing on the acquisition, exploration, and development of oil and gas properties primarily in Texas and Louisiana [11]. Investment Ratings - Comstock Resources holds a Zacks Rank of 2 (Buy) and has a VGM Score of B, indicating a favorable investment outlook [11]. Momentum and Performance - The company has a Momentum Style Score of A, with shares increasing by 19.7% over the past four weeks [12]. - Four analysts have revised their earnings estimates upwards for fiscal 2025, with the Zacks Consensus Estimate rising by $0.14 to $0.73 per share [12]. - Comstock Resources has demonstrated an average earnings surprise of 172.2%, highlighting its strong performance relative to expectations [12].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Comstock Resources (CRK) - Comstock Resources currently holds a Momentum Style Score of B, indicating potential for strong performance based on price changes and earnings estimate revisions [3][12]. - The company has a Zacks Rank of 2 (Buy), suggesting it is positioned for outperformance in the market [4][12]. Performance Metrics - Over the past week, CRK shares have increased by 10.22%, significantly outperforming the Zacks Oil and Gas - Exploration and Production - United States industry, which rose by only 0.04% [6]. - In a longer timeframe, CRK's shares have risen by 25.04% over the past month, compared to the industry's 7.35% [6]. - Over the last quarter, CRK shares increased by 24.22%, and over the past year, they have gained 119.13%, while the S&P 500 has seen declines of -5.75% and gains of only 10.63% respectively [7]. Trading Volume - CRK's average 20-day trading volume is 2,086,099 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, 4 earnings estimates for CRK have been revised upwards, while only 2 have been revised downwards, leading to an increase in the consensus estimate from $0.59 to $0.73 [10]. - For the next fiscal year, 5 estimates have moved higher with no downward revisions, indicating a positive earnings outlook [10].

Group 1 - Comstock Resources (CRK) is a notable stock in the Oils-Energy sector, which consists of 246 individual stocks and holds a Zacks Sector Rank of 14 [2] - The Zacks Rank system, which emphasizes earnings estimates and revisions, currently gives Comstock Resources a Zacks Rank of 2 (Buy) [3] - Over the past 90 days, the Zacks Consensus Estimate for CRK's full-year earnings has increased by 28.1%, indicating improved analyst sentiment and a positive earnings outlook [4] Group 2 - Year-to-date, Comstock Resources has returned 11.3%, significantly outperforming the average loss of 5.8% in the Oils-Energy sector [4] - Comstock Resources is part of the Oil and Gas - Exploration and Production - United States industry, which includes 36 stocks and currently ranks 203 in the Zacks Industry Rank; this industry has seen an average loss of 26.8% this year [6] - Another stock in the Oils-Energy sector, Clearway Energy (CWEN), has also outperformed the sector with a year-to-date return of 10.7% and a Zacks Rank of 2 (Buy) [5][7]

Core Viewpoint - Comstock Resources, Inc. has announced a dual listing of its common stock on NYSE Texas, highlighting its commitment to the Texas economy and its status as a Founding Member of the new exchange [1][2]. Company Overview - Comstock Resources, Inc. is a leading independent natural gas producer, focusing on the development of the Haynesville shale in North Louisiana and East Texas [4]. - The company's stock is traded on both the New York Stock Exchange and NYSE Texas under the ticker symbol "CRK" [4]. Leadership Commentary - M. Jay Allison, CEO of Comstock, expressed pride in becoming a Founding Member of NYSE Texas and emphasized the strength and diversity of the Texas economy [2]. - Chris Taylor, Chief Development Officer of NYSE Group, welcomed Comstock as a Founding Member, underscoring the NYSE's commitment to supporting listed companies and the Texas economy [2].

Core Insights - Comstock Resources reported a revenue of $512.85 million for the quarter ended March 2025, marking a 52.7% increase year-over-year and exceeding the Zacks Consensus Estimate by 18.98% [1] - The company's EPS for the quarter was $0.18, a significant improvement from -$0.03 in the same quarter last year, also surpassing the consensus estimate of $0.16 by 12.50% [1] Financial Performance Metrics - Average natural gas price was reported at $3.58, higher than the three-analyst average estimate of $3.49 [4] - Total daily production of natural gas reached 1300 million cubic feet, exceeding the average estimate of 1287.82 million cubic feet [4] - Average oil price was $70.20, significantly above the two-analyst average estimate of $63.27 [4] - Total production was reported at 115,091 MMcfe, slightly below the two-analyst average estimate of 116,533.6 MMcfe [4] Revenue Breakdown - Revenues from oil sales were $0.70 million, which is a 19.9% decrease year-over-year and below the average estimate of $0.84 million [4] - Revenues from natural gas sales amounted to $412.29 million, representing a 43.6% increase compared to the year-ago quarter and exceeding the average estimate of $408.31 million [4] Stock Performance - Comstock shares have returned -14.9% over the past month, contrasting with the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Performance - Natural gas and oil sales for Q1 2025 were $413.0 million, an increase of $125.0 million (43%) compared to $288.0 million in Q1 2024, driven by higher natural gas prices[92]. - The company reported a net loss of $115.4 million, or $0.40 per share, for Q1 2025, compared to a net loss of $14.5 million, or $0.05 per share, in Q1 2024[104]. - Interest expense increased to $54.8 million in Q1 2025 from $49.6 million in Q1 2024, primarily due to the issuance of an additional $400.0 million in senior notes[102]. Production and Sales - The average realized price for natural gas in Q1 2025 was $3.58 per Mcf, a 74% increase from $2.06 per Mcf in Q1 2024[92]. - Natural gas production decreased by 18% to 115.0 Bcf in Q1 2025 from 139.4 Bcf in Q1 2024[92]. - Gas services revenue increased by $52.1 million (109%) to $99.9 million in Q1 2025 from $47.8 million in Q1 2024, primarily due to higher natural gas prices[94]. Capital Expenditures and Liquidity - Total capital expenditures for Q1 2025 were $298.3 million, a decrease from $348.2 million in Q1 2024[106]. - As of March 31, 2025, the company had $1.0 billion in liquidity, including $990 million of unused borrowing capacity[111]. - The company expects to spend an additional $780 million to $880 million on drilling, completion, and infrastructure activities in the remaining nine months of 2025[110]. Debt and Financial Obligations - The company had approximately $3.1 billion principal amount of long-term debt outstanding, with $965.0 million at a fixed rate of 5.875% and $1.62 billion at a fixed rate of 6.75%[121]. - The fair market value of the 5.875% senior notes due in 2030 was $909.5 million, while the 6.75% senior notes due in 2029 had a fair market value of $1.58 billion[121]. - The company is subject to financial covenants, including maintaining a leverage ratio of less than 4.0 to 1.0, which will reduce to 3.75 to 1.0 by June 30, 2025[114]. Tax and Regulatory Matters - The company reported $743.0 million in U.S. federal net operating loss (NOL) carryforwards and $1.8 billion in certain state NOL carryforwards, with an estimated $740.6 million and $1.2 billion expected to expire unused[115]. - The company is currently under examination by the IRS and the state of Louisiana, but believes its significant filing positions will be sustained[116]. Market Conditions and Risk - The company’s financial condition is highly dependent on the prevailing market prices of natural gas and oil, which are subject to wide fluctuations[118]. - An increase of 10% in the market price of natural gas would decrease the fair value of the company's natural gas price swaps and collars by approximately $154.2 million[120]. - The company had natural gas price swaps hedging approximately 149.9 Bcf of 2025 production at an average price of $3.48 per MMBtu and 116.8 Bcf of 2026 production at an average price of $3.51 per MMBtu[119]. Taxation and Fees - The company pays a commitment fee of 0.375% to 0.50% on the unused portion of the committed borrowing base under its bank credit facility[114]. - Production and ad valorem taxes decreased by $6.7 million (38%) to $11.2 million in Q1 2025 from $17.9 million in Q1 2024[95].

Financial Data and Key Metrics Changes - In Q1 2025, Comstock Resources reported natural gas and oil sales of $405 million, a 21% increase compared to the previous year [9][11] - Adjusted EBITDAX for the quarter was $293 million, with adjusted net income of $53.8 million or $0.18 per diluted share, a significant recovery from a loss in Q1 2024 [10][11] - Production averaged 1.28 Bcfe per day, reflecting a 17% decrease from Q1 2024 due to a reduction in rig count and deferred completion activities [10][11] Business Line Data and Key Metrics Changes - The company turned 14 wells to sales since the last update, with an average initial production rate of 25 million cubic feet per day [10] - The Elijah One well, turned to sales with an initial production rate of 41 million cubic feet per day, marks a significant step in delineating the Western Haynesville play [8][26] Market Data and Key Metrics Changes - The average NYMEX settlement price for natural gas was $3.65, while the average Henry Hub spot price was $4.27, with realized gas prices at $3.58 [11][12] - The company was 54% hedged, which impacted the realized gas price, resulting in a loss of $16 million on third-party gas marketing due to market volatility [12][13] Company Strategy and Development Direction - Comstock is focused on building its assets in the Western Haynesville to capitalize on the growing demand for natural gas, with plans to drill 20 wells and turn 15 to sales in 2025 [42][43] - The company aims to develop its own midstream assets to capture more value from its Western Haynesville operations [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth in natural gas demand, particularly for power generation and LNG feedstock [7][42] - The company anticipates improved leverage ratios and financial performance due to higher natural gas prices and a strong hedge position [16][44] Other Important Information - Comstock has invested over $1 billion in developing its 520,000 net acres in the Western Haynesville [7] - The company reported a greenhouse gas intensity improvement of 28% and a methane emission intensity rate improvement of 2.5% compared to 2023 [38][39] Q&A Session Summary Question: Can you discuss the reservoir quality of the Elijuan well compared to previous wells? - Management indicated that the reservoir quality of the Elijuan well appears as good as those in the core area, with good thickness and geological support for the drilling decision [50][51] Question: What is the structure and value of the BKV partnership? - The partnership aims to develop carbon capture projects, enhancing the attractiveness of the location for potential power generation facilities [59][60] Question: When can we expect another result in the Western Haynesville area? - The next well is planned to be spud in Q4 2025, with further drilling contingent on midstream infrastructure development [66] Question: How many rigs can the Western Haynesville support in the future? - Management believes that with the right conditions, the area could support 15 to 20 new wells annually, focusing on prudent development [94][95]