FRISCO, TX, April 02, 2024 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE:CRK) announced today that, subject to market conditions, it intends to offer $375.0 million principal amount of its 6.75% senior notes due in 2029 (the "New Notes") in a private placement to eligible purchasers. The New Notes are a mirror issue to the Company's existing 6.75% senior notes due 2029 (the "Original Notes"), of which $1,223.9 million aggregate principal amount is currently outstanding. Th ...

Huge Insider Buying From Buffett, an NFL Team Owner, a New CEO frender / iStock via Getty Images Yet again, the Oracle of Omaha has bolstered his stake in a media giant’s tracking stocks. However, Warren Buffett was not the only one making notable insider purchases in the past week or so. An NFL team owner also picked up shares in a local energy company, a beneficial owner made big buys in two separate biopharmaceutical companies, and a new CEO showed his love for his company as well.A well-known adage re ...

A large cash injection by an obviously dedicated shareholder provided quite the lift for Comstock Resources (CRK 0.22%) stock this week. The completion of the arrangement brought the bulls rushing into the energy company's stock -- it was trading nearly 11% higher week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.A Cowboy rides to the rescueThat shareholder is the man who already controlled much of Comstock's equity, veteran oil and gas tycoon Jerry Jones ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) Comstock Resources is an independent natural gas producer focused on Haynesville and Bossier shale, strategically developing reserves and managing risk, with 4.9 Tcfe proved reserves [Business Overview and Strategy](index=7&type=section&id=Business%20Overview%20and%20Strategy) The company is a leading natural gas producer focused on the Haynesville and Bossier shale, pursuing strategic growth and financial discipline - Comstock is a leading independent natural gas producer with operations primarily in the Haynesville and Bossier shale, which constituted **99% of its proved reserves** as of December 31, 2023[58](index=58&type=chunk) - The company's business strategy focuses on prudently growing cash flow and reserves through developing high-return drilling locations, expanding its reserve base via exploration in the Western Haynesville play, pursuing strategic acquisitions, maintaining financial discipline, focusing on environmental stewardship, and managing commodity price exposure through hedging[65](index=65&type=chunk) - As of December 31, 2023, Comstock has identified **2,959 drilling locations (1,463 net)**, providing decades of potential drilling activity[65](index=65&type=chunk) - In 2023, the company spent **$1.3 billion** on exploration and development, drilling **71 wells (55.5 net)** and replacing **109%** of its 2023 production[63](index=63&type=chunk) [Property Transactions and Midstream Ventures](index=8&type=section&id=Property%20Transactions%20and%20Midstream%20Ventures) The company expanded acreage in Western Haynesville and formed a midstream partnership for development financing - In 2023, Comstock added **79,741 net acres** in the Western Haynesville through a leasing program at a cost of **$98.6 million**[65](index=65&type=chunk) - The company sold non-operated wells for **$41.3 million** in 2023, following a **$138.1 million** sale of its Bakken shale properties in 2021[68](index=68&type=chunk) - On October 31, 2023, Comstock formed Pinnacle Gas Services LLC, a midstream partnership with Quantum Capital Solutions, to finance the buildout of natural gas gathering and treating facilities for its Western Haynesville development, with Quantum agreeing to fund up to **$300 million**[67](index=67&type=chunk) [Natural Gas and Oil Reserves](index=9&type=section&id=Natural%20Gas%20and%20Oil%20Reserves) Proved reserves as of 2023 totaled 4.9 Tcfe with a PV-10 value of $2.5 billion, impacted by lower gas prices Proved Reserves as of December 31, 2023 (SEC Prices) | Reserve Type | Oil (Thousand Barrels) | Natural Gas (Million Cubic Feet) | Total (Million Cubic Feet Equivalent) | PV-10 Value (Thousands of Dollars) | | :--- | :--- | :--- | :--- | :--- | | **Proved Developed** | 548 | 2,734,175 | 2,737,466 | $2,185,796 | | **Proved Undeveloped** | — | 2,206,051 | 2,206,051 | $315,900 | | **Total Proved** | **548** | **4,940,226** | **4,943,517** | **$2,501,696** | Historical Proved Reserves (Total) | Year | Oil (Thousand Barrels) | Natural Gas (Million Cubic Feet) | | :--- | :--- | :--- | | **2023** | 548 | 4,940,226 | | **2022** | 549 | 6,697,570 | | **2021** | 627 | 6,118,083 | - Proved undeveloped reserves decreased by **2.0 Trillion cubic feet** in 2023, primarily because 164 undeveloped locations were no longer economic at the SEC-prescribed low natural gas prices[78](index=78&type=chunk) - A sensitivity analysis using alternative higher prices ($3.24 per Mcf gas, $69.39 per Barrel oil) shows total proved reserves would be **6.6 Tcfe** with a PV-10 value of **$5.2 billion**, compared to **4.9 Tcfe** and **$2.5 billion** under SEC prices[85](index=85&type=chunk) [Production, Drilling, and Acreage](index=14&type=section&id=Production,%20Drilling,%20and%20Acreage) The company increased natural gas production in 2023 despite lower prices, maintaining significant acreage Annual Production and Average Prices | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Natural Gas Production (Thousand Cubic Feet)** | 524,467 | 500,616 | 489,274 | | **Oil Production (Barrel)** | 70 | 82 | 1,210 | | **Avg. Gas Price ($/Thousand Cubic Feet)** | $2.40 | $6.23 | $3.63 | | **Avg. Oil Price ($/Barrel)** | $73.73 | $92.65 | $61.95 | Drilling Activity (Gross Wells) | Well Type | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Development** | 64 | 116 | 100 | | **Exploratory** | 7 | 2 | 0 | | **Total** | **71** | **118** | **100** | - As of December 31, 2023, the company held **319,274 net developed acres** and **292,832 net undeveloped acres**, primarily in Louisiana and Texas[100](index=100&type=chunk) [Markets, Customers, and Regulation](index=17&type=section&id=Markets,%20Customers,%20and%20Regulation) Sales are concentrated among a few customers, and operations are subject to extensive federal and state regulations - In 2023, three customers accounted for a significant portion of total sales: Enterprise Products Operating (**20%**), Southwest Energy L.P. (**17%**), and Venture Global LNG, Inc. (**10%**)[104](index=104&type=chunk) - The company's operations are subject to extensive federal and state regulations covering natural gas transportation (FERC), environmental protection (EPA rules on air, water, and waste), and production practices[107](index=107&type=chunk)[109](index=109&type=chunk)[120](index=120&type=chunk) - The Inflation Reduction Act (IRA) established the Methane Emission Reduction Program, imposing a federal fee on methane emissions from the oil and gas sector starting in 2024, which the company does not expect to have a material adverse effect[142](index=142&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from volatile natural gas prices, reserve replacement challenges, substantial capital needs, and stringent environmental regulations - The business is heavily dependent on volatile natural gas prices, and a prolonged period of depressed prices would adversely affect financial condition, cash flow, and ability to fund capital expenditures[174](index=174&type=chunk) - Future production and revenue depend on the ability to find, develop, or acquire additional economically recoverable reserves, which requires significant capital and is not guaranteed to be successful[175](index=175&type=chunk)[177](index=177&type=chunk) - The company is subject to stringent and changing environmental regulations, including those related to climate change and ESG practices, which could increase costs, restrict operations, and impact access to capital[179](index=179&type=chunk)[181](index=181&type=chunk)[186](index=186&type=chunk) - As of December 31, 2023, the company had **$2.7 billion** in principal debt, and its debt agreements contain covenants that limit borrowing, investments, and dividend payments[195](index=195&type=chunk)[197](index=197&type=chunk) - Cybersecurity threats pose a risk of operational disruptions, unauthorized release of confidential information, and corruption of data, which could have a material adverse effect on the business[210](index=210&type=chunk) [Unresolved Staff Comments](index=37&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[218](index=218&type=chunk) [Cybersecurity](index=37&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk management is integrated into the enterprise framework with Board oversight, despite past compromise attempts - The company's cybersecurity risk management is integrated into its enterprise risk framework and includes regular assessments, vulnerability scans, and penetration tests[220](index=220&type=chunk)[221](index=221&type=chunk) - The Audit Committee of the Board of Directors provides oversight for cybersecurity risk management, receiving regular updates from IT management[225](index=225&type=chunk) - The company has experienced attempts to compromise its systems, such as phishing and malware, but does not believe these have resulted in a material adverse effect on the business[223](index=223&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) Information regarding the company's properties is incorporated by reference from Item 1 - The information required for this item is incorporated by reference from Item 1. Business[226](index=226&type=chunk) [Legal Proceedings](index=38&type=section&id=Item%203.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect - The company is not a party to any legal proceedings expected to have a material adverse effect[227](index=227&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[228](index=228&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under 'CRK', paying quarterly dividends, with performance compared to market indices - Common stock is listed on the New York Stock Exchange under the symbol "**CRK**"[232](index=232&type=chunk) - During 2023, the company paid quarterly cash dividends on its common stock of **$0.125 per share**[232](index=232&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased significantly in 2023 due to lower natural gas prices, despite increased production, with strong liquidity and planned 2024 capital expenditures [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Natural gas and oil sales significantly decreased in 2023 due to lower prices, despite increased production volume Financial Performance Comparison (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Natural Gas & Oil Sales** | $1.3 billion | $3.1 billion | | **Net Income to Common Stockholders** | $211.9 million | $1.1 billion | | **Diluted EPS** | $0.76 | $4.11 | | **Average Realized Gas Price (per Thousand Cubic Feet)** | $2.40 | $6.23 | | **Gas Production (Billion Cubic Feet)** | 524.5 | 500.6 | - The **60% decrease** in natural gas and oil sales in 2023 was primarily due to lower realized prices for natural gas production, which was partially offset by a **5% increase** in production volume[246](index=246&type=chunk) - DD&A expense increased by **24%** to **$607.9 million** in 2023, with the rate rising to **$1.16 per Mcfe** from **$0.98 per Mcfe** in 2022, due to higher drilling costs for new wells and lower estimated proved reserves from low year-end gas prices[254](index=254&type=chunk) - The company recognized a net gain on derivative financial instruments of **$187.6 million** in 2023, compared to a net loss of **$662.5 million** in 2022[256](index=256&type=chunk) [Cash Flows, Liquidity and Capital Resources](index=44&type=section&id=Cash%20Flows,%20Liquidity%20and%20Capital%20Resources) Operating cash flow decreased due to lower gas prices, while liquidity remains strong with planned 2024 capital expenditures - Net cash from operating activities decreased by **40%** to **$1.0 billion** in 2023 from **$1.7 billion** in 2022, primarily due to lower realized natural gas prices[263](index=263&type=chunk) Capital Expenditures (in thousands) | Category | 2023 | 2022 | | :--- | :--- | :--- | | **Acquisitions (Unproved)** | $98,553 | $54,120 | | **Exploration & Development** | $1,370,362 | $1,087,272 | | **Total Capital Expenditures** | **$1,406,547** | **$1,106,047** | - For 2024, the company expects to spend approximately **$750 million to $850 million** on development and exploration projects, primarily in the Haynesville/Bossier shale[268](index=268&type=chunk) - As of December 31, 2023, the company had **$1.0 billion** of liquidity, consisting of **$1.0 billion** of unused capacity under its bank credit facility and **$16.7 million** in cash[272](index=272&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies involve the successful efforts method, reserve estimation, impairment assessments, and goodwill review - The company uses the successful efforts method of accounting, capitalizing costs for successful exploration and development while expensing costs for unsuccessful exploration[280](index=280&type=chunk) - The estimation of proved natural gas and oil reserve quantities is a critical and subjective process that significantly impacts depreciation, depletion, and amortization (DD&A) expense and impairment calculations[281](index=281&type=chunk) - Proved properties are evaluated for impairment when circumstances indicate the carrying value may not be recoverable, with assessment involving significant judgment using estimated future cash flows based on projections of prices, production volumes, and costs[285](index=285&type=chunk) - Goodwill of **$335.9 million** is reviewed annually for impairment, with a quantitative assessment as of October 1, 2023, determining there was no impairment[286](index=286&type=chunk)[287](index=287&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are volatile commodity prices, mitigated by hedging, and interest rate exposure on variable-rate debt - The company's financial condition is highly dependent on volatile natural gas and oil prices[292](index=292&type=chunk) - As of December 31, 2023, the company had natural gas price swap agreements to hedge **146.4 Billion cubic feet** of its 2024 production at an average price of **$3.55 per Million British thermal units**[293](index=293&type=chunk) - At year-end 2023, the company had **$2.7 billion** in long-term debt, of which **$480.0 million** under the bank credit facility is subject to variable interest rates tied to SOFR or an alternate base rate[295](index=295&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements are included in the report and have been audited by Ernst & Young LLP - The company's consolidated financial statements are included on pages F-1 to F-25 of the report[296](index=296&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=52&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants - None[302](index=302&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[305](index=305&type=chunk) - Management assessed the company's internal control over financial reporting as effective as of December 31, 2023, based on the COSO criteria[307](index=307&type=chunk) - Ernst & Young LLP, the independent registered public accounting firm, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[308](index=308&type=chunk)[311](index=311&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=54&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the proxy statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming definitive proxy statement[322](index=322&type=chunk) - The company has adopted a Code of Business Conduct and Ethics and a Code of Ethics for Senior Financial Officers, both available on its website[324](index=324&type=chunk) [Executive Compensation](index=54&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the definitive proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement[325](index=325&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=54&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Equity compensation plan information as of December 31, 2023, is provided, with further details incorporated by reference Equity Compensation Plan Information as of December 31, 2023 | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Securities authorized for future issuance under equity compensation plans | | :--- | :--- | :--- | | **Equity compensation plans approved by stockholders** | 1,521,802 | 3,262,987 | - The company does not have any equity compensation plans that were not approved by stockholders[327](index=327&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=55&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference - Information required by this item is incorporated by reference from the company's definitive proxy statement[329](index=329&type=chunk) [Principal Accountant Fees and Services](index=55&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the definitive proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement[330](index=330&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and provides an index of all exhibits filed with the Form 10-K - This section lists the consolidated financial statements and all exhibits filed with the report[333](index=333&type=chunk)[334](index=334&type=chunk) [Form 10-K Summary](index=58&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - Not applicable[339](index=339&type=chunk)

Comstock Resources, Inc. (CRK) is caught in plunging commodity prices. This Zacks Rank #5 (Strong Sell) has suspended its dividend due to weak natural gas prices.Comstock Resources is an independent natural gas producer with operations in the Haynesville shale in North Louisiana and East Texas. It has a $2 billion market cap.Third Miss in a Row in the Fourth Quarter 2023On Feb 13, 2024, Comstock Resources reported its fourth quarter 2023 results and missed for the third quarter in a row. Earnings were $0.10 ...

Financial Data and Key Metrics Changes - The company generated cash flow from operations of $207 million or $0.75 per share, with adjusted EBITDAX at $244 million for the fourth quarter [8][10] - Adjusted net income was $28 million or $0.10 per share for the fourth quarter, compared to $12 million in the third quarter of 2023 and $288 million in the fourth quarter of 2022 [18] - Oil and gas sales totaled $354 million in the fourth quarter, a decline of 37% from the same period in 2022, despite higher production levels [10][15] - The average realized gas price during the fourth quarter was $2.48, reflecting a $0.40 differential to the settlement price [20] Business Line Data and Key Metrics Changes - The company drilled 14 successful operated horizontal wells in the fourth quarter, with an average lateral length of 8,994 feet [8] - In 2023, the company drilled a total of 67 wells, with an average initial production (IP) rate of 25 million cubic feet per day per well [22] - The average lateral length of wells turned to sales in 2023 was 10,820 feet, an increase of 8% from 2022 [58] Market Data and Key Metrics Changes - The company added 23,000 net acres to its Western Haynesville acreage position in the fourth quarter, increasing the total to over 250,000 net acres [16][33] - The SEC-approved reserves decreased by 26% in 2023 to 4.9 Tcfe due to low gas prices used in the determination [51] Company Strategy and Development Direction - The company is focused on preserving its balance sheet in the current low gas price environment and plans to fund its drilling program within operating cash flow [34] - The company has formed a midstream joint venture to fund the build-out of midstream assets in Western Haynesville, which will not burden its operating cash flow [42][33] - The company aims to benefit from the long-term growth in natural gas demand, particularly with the expected increase in LNG exports [12][86] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by low natural gas prices and emphasized the need for decisive actions to weather volatility [12] - The company is optimistic about the long-term demand for natural gas and is positioning itself to benefit from this growth [14][86] - Management indicated that they are actively managing drilling activity levels in response to the current market conditions [63] Other Important Information - The company ended the quarter with $580 million in borrowings under its credit facility, totaling $2.7 billion in debt [24] - The company expects to run five rigs for the rest of 2024 and maintain one to two frac crews [32] Q&A Session Summary Question: What is the average gas price that underpins your spending within cash flow view? - Management indicated that they are monitoring service costs and may drop another rig to reduce capital expenditures if necessary [70] Question: Can you speak to the gains you're experiencing in operational efficiency in the Western Haynesville? - Management noted that they are gaining ground in operational efficiency and expect breakeven costs to improve over time [71] Question: What is the plan for completion crews for the remainder of the year? - Management confirmed that they plan to run between one and two completion crews for the remainder of the year [76] Question: How do you view the current leverage ratio covenant risk? - Management does not foresee reaching the leverage ratio covenant risk and will continue to monitor spending levels [113] Question: What is the expected net well count for the year in terms of wells drilled and turned to sales? - The company plans to drill 46 gross wells and turn to sales 44 gross wells for the year [115]

Comstock Resources (CRK) reported $410.58 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 55.5%. EPS of $0.10 for the same period compares to $1.05 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $418.94 million, representing a surprise of -2.00%. The company delivered an EPS surprise of -37.50%, with the consensus EPS estimate being $0.16.While investors closely watch year-over-year changes in headline numbers -- revenue and earni ...

Comstock Resources (CRK) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -37.50%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.06 per share when it actually produced earnings of $0.04, delivering a surprise of -33.33%.Over the last four quarte ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Comstock Resources (CRK) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Februa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-03262 COMSTOCK RESOURCES, INC. Yes ☒ No ☐ (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) N ...