[PART I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) This section presents the company's unaudited consolidated financial statements, management's discussion and analysis, and market risk disclosures [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Comstock Resources' unaudited consolidated financial statements for Q3 and nine months ended September 30, 2022, and related accounting notes [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific points in time | ASSETS (In thousands) | Sep 30, 2022 | Dec 31, 2021 | | :-------------------- | :----------- | :----------- | | Total current assets | $708,824 | $318,736 | | Net property & equipment | $4,440,022 | $4,007,146 | | Goodwill | $335,897 | $335,897 | | Total Assets | $5,584,365 | $4,668,229 | | **LIABILITIES & EQUITY** | | | | Total current liabilities | $1,091,527 | $633,984 | | Long-term debt | $2,261,697 | $2,615,235 | | Total liabilities | $3,789,949 | $3,480,450 | | Total stockholders' equity | $1,619,416 | $1,012,779 | - **Total assets increased by 19.6% from $4.67 billion to $5.58 billion**, primarily driven by a **122% increase in total current assets** and a **10.8% increase in net property and equipment**[9](index=9&type=chunk) - **Total stockholders' equity increased by 59.9% from $1.01 billion to $1.62 billion**[9](index=9&type=chunk) [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) This section outlines the company's financial performance over specific periods, detailing revenues, expenses, and net income or loss | (In thousands, except per share) | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Total revenues | $1,190,005 | $511,176 | $2,705,673 | $1,195,354 | | Operating income | $771,078 | $295,746 | $1,760,865 | $601,968 | | Loss from derivative financial instruments | $(271,335) | $(510,319) | $(781,654) | $(756,026) | | Net income (loss) | $355,596 | $(288,306) | $621,063 | $(602,126) | | Net income (loss) available to common stockholders | $351,185 | $(292,717) | $607,974 | $(615,215) | | Basic EPS | $1.50 | $(1.26) | $2.61 | $(2.66) | | Diluted EPS | $1.28 | $(1.26) | $2.24 | $(2.66) | - **Total revenues for Q3 2022 increased by 132.8% to $1.19 billion** from $511.2 million in Q3 2021, and for the nine months, **total revenues increased by 126.3% to $2.71 billion** from $1.2 billion[13](index=13&type=chunk) - The company reported a **net income of $355.6 million for Q3 2022**, a significant turnaround from a net loss of $(288.3) million in the prior year, and for the nine months, **net income was $621.1 million** compared to a net loss of $(602.1) million in 2021[13](index=13&type=chunk) [Consolidated Statements of Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated earnings | (In thousands) | Balance at Jan 1, 2021 | Balance at Sep 30, 2021 | Balance at Jan 1, 2022 | Balance at Sep 30, 2022 | | :------------- | :--------------------- | :---------------------- | :--------------------- | :---------------------- | | Common Stock | $116,206 | $116,462 | $116,462 | $116,879 | | Additional Paid-in Capital | $1,095,384 | $1,098,851 | $1,100,359 | $1,098,605 | | Accumulated Earnings (Deficit) | $55,183 | $(560,032) | $(204,042) | $403,932 | | Total Stockholders' Equity | $1,266,773 | $655,281 | $1,012,779 | $1,619,416 | - **Accumulated earnings shifted from a deficit of $(204.0) million to positive accumulated earnings of $403.9 million** by September 30, 2022, primarily due to net income[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This section reports the cash generated and used by the company's operating, investing, and financing activities over specific periods | (In thousands) | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :------------- | :-------------------------- | :-------------------------- | | Net cash provided by operating activities | $1,204,483 | $618,553 | | Net cash used for investing activities | $(768,234) | $(507,790) | | Net cash used for financing activities | $(428,264) | $(113,194) | | Net increase (decrease) in cash and cash equivalents | $7,985 | $(2,431) | | Cash and cash equivalents, end of period | $38,648 | $27,841 | - **Net cash provided by operating activities increased by 95% to $1.2 billion** for the nine months ended September 30, 2022, compared to $618.6 million in the prior year, primarily due to higher realized natural gas prices[22](index=22&type=chunk)[100](index=100&type=chunk) - **Net cash used for financing activities increased significantly to $(428.3) million** for the nine months ended September 30, 2022, from $(113.2) million in the prior year, mainly due to repayments of bank credit facility and retirement of senior notes[22](index=22&type=chunk)[98](index=98&type=chunk) [Note 1: Summary of Significant Accounting Policies](index=12&type=section&id=(1)%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and methods used in preparing the financial statements, including revenue recognition and derivative instruments - The company follows the **successful efforts method of accounting** for its oil and natural gas properties, capitalizing costs for successful wells and expensing unsuccessful exploratory wells[28](index=28&type=chunk) Other Current Assets (In thousands) | Asset Type | Sep 30, 2022 | Dec 31, 2021 | | :--------- | :----------- | :----------- | | Pipe inventory | $30,588 | $5,015 | | Production tax refunds receivable | $7,084 | $7,879 | | Prepaid expenses | $1,865 | $2,183 | | Accrued treating and transportation fees | $933 | — | | Total | $40,470 | $15,077 | - Comstock utilizes **derivative financial instruments (swaps and collars) for risk management**, specifically to hedge natural gas and oil prices, with none designated as cash flow hedges[45](index=45&type=chunk) Derivative Financial Instruments (In thousands) | Type | Sep 30, 2022 | Dec 31, 2021 | | :--- | :----------- | :----------- | | Asset Derivative Financial Instruments | $2,368 | $5,258 | | Liability Derivative Financial Instruments | $285,713 | $181,945 | - The company recognized **$1.8 million of stock-based compensation expense for Q3 2022** and **$4.9 million for the nine months ended September 30, 2022**[50](index=50&type=chunk) - Revenue from oil and natural gas sales is recognized upon transfer of produced volumes to customers, net of royalties, with gas services revenues from natural gas resale and gathering/treating fees[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - The company has established **valuation allowances for deferred tax assets and U.S. federal and state net operating loss carryforwards** due to uncertainty of generating sufficient taxable income for their utilization[59](index=59&type=chunk) [Note 2: Long-Term Debt](index=21&type=section&id=(2)%20LONG-TERM%20DEBT) This section details the company's long-term debt obligations, including senior notes and bank credit facilities, and related transactions Long-Term Debt Composition at September 30, 2022 (In thousands) | Debt Type | Amount | | :-------- | :----- | | 6.75% Senior Notes due 2029 | $1,230,037 | | 5.875% Senior Notes due 2030 | $965,000 | | Bank Credit Facility | $100,000 | | Total Long-Term Debt | $2,261,697 | - The company had **$100.0 million outstanding under a bank credit facility** with a **$1.4 billion committed borrowing base**, maturing on July 16, 2024, and was in compliance with all financial covenants as of September 30, 2022[78](index=78&type=chunk) - In May 2022, the company redeemed all outstanding **7.5% senior notes due 2025 for $258.1 million**, resulting in a **$47.8 million loss on early retirement of debt**[79](index=79&type=chunk) - In June 2022, the company repurchased **$26.1 million principal amount of its 6.75% senior notes due 2029 for $24.9 million**, recognizing a **$1.0 million gain on early retirement of debt**[80](index=80&type=chunk) [Note 3: Convertible Preferred Stock](index=23&type=section&id=(3)%20CONVERTIBLE%20PREFERRED%20STOCK) This section describes the terms and characteristics of the company's outstanding convertible preferred stock - The company has **175,000 shares of Series B Convertible Preferred Stock outstanding**, held by its majority stockholder, entitled to **10% quarterly dividends** and convertible into common stock at **$4.00 per share**[83](index=83&type=chunk) [Note 4: Commitments and Contingencies](index=23&type=section&id=(4)%20COMMITMENTS%20AND%20CONTINGENCIES) This section outlines the company's contractual obligations and potential liabilities from legal proceedings or other events - In July 2022, the company entered into a **three-year hydraulic fracturing services agreement** with a **minimum commitment of $19.2 million per year**, with fleet delivery expected in 2023[84](index=84&type=chunk) - The company does not believe current litigation will have a material effect on its financial position, results of operations, or cash flows[85](index=85&type=chunk) [Note 5: Related Party Transactions](index=23&type=section&id=(5)%20RELATED%20PARTY%20TRANSACTIONS) This section discloses transactions between the company and its related parties, including partnerships owned by its majority stockholder - Comstock operates oil and gas properties for partnerships owned by its majority stockholder, charging for drilling, completion, production costs, and marketing services[86](index=86&type=chunk) - The company had a **$20.8 million receivable** from these partnerships as of September 30, 2022, and December 31, 2021[87](index=87&type=chunk) [Note 6: Subsequent Event](index=23&type=section&id=(6)%20SUBSEQUENT%20EVENT) This section reports significant events that occurred after the balance sheet date but before the financial statements were issued - On October 31, 2022, the board of directors authorized a **dividend of $0.125 per share** to common stockholders of record on December 1, 2022[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Comstock's financial performance, condition, and liquidity, highlighting revenue growth from natural gas prices and capital expenditure strategies [Results of Operations](index=24&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's revenues, expenses, and profitability for the reporting periods Key Production and Revenue Data | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Natural gas (MMcf) | 128,902 | 128,896 | 367,758 | 366,272 | | Oil (MBbls) | 21 | 346 | 66 | 1,034 | | Total oil and gas sales | $996,915 | $511,176 | $2,383,098 | $1,195,354 | | Average Natural gas price (per Mcf) | $7.72 | $3.79 | $6.46 | $3.10 | | Average Oil price (per Bbl) | $92.19 | $66.11 | $95.82 | $59.55 | - **Total oil and gas sales increased by 95% to $996.9 million for Q3 2022** and by **99% to $2.4 billion for the first nine months of 2022**, primarily due to higher natural gas prices[92](index=92&type=chunk)[93](index=93&type=chunk) Average Realized Natural Gas Price (per Mcf) | Metric | 3 Months Ended Sep 30, 2022 | 3 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :----- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Natural gas, per Mcf | $7.72 | $3.79 | $6.46 | $3.10 | | Cash settlements on derivative financial instruments, per Mcf | $(2.36) | $(0.89) | $(1.84) | $(0.38) | | Price per Mcf, including cash settlements | $5.36 | $2.90 | $4.62 | $2.72 | - **Production and ad valorem taxes increased by 47% to $24.5 million in Q3 2022** and by **65% to $60.1 million for the first nine months of 2022**, mainly due to higher natural gas sales and increased Louisiana production tax rates[95](index=95&type=chunk) - **Net income available to common stockholders was $351.2 million ($1.28 diluted EPS) for Q3 2022**, a significant improvement from a net loss of $292.7 million ($1.26 loss per share) in Q3 2021[97](index=97&type=chunk) [Cash Flows, Liquidity and Capital Resources](index=27&type=section&id=Cash%20Flows,%20Liquidity%20and%20Capital%20Resources) This section examines the company's cash generation, available liquidity, and funding sources for its operations and investments - **Net cash provided by operating activities increased by $585.9 million (95%) to $1.2 billion** for the first nine months of 2022, driven by higher realized natural gas prices[100](index=100&type=chunk) Capital Expenditure Activity (In thousands) | Category | 9 Months Ended Sep 30, 2022 | 9 Months Ended Sep 30, 2021 | | :------- | :-------------------------- | :-------------------------- | | Acquisitions (Proved & Unproved) | $37,601 | $18,649 | | Exploration and development | $767,998 | $508,422 | | Other property and equipment | $18,815 | $69 | | Total capital expenditures | $786,813 | $508,491 | | Total cash capital expenditures | $768,327 | $508,051 | - The company had **$1.3 billion in liquidity** as of September 30, 2022, comprising unused borrowing capacity under its **$1.4 billion bank credit facility** and **$38.6 million in cash**[103](index=103&type=chunk)[107](index=107&type=chunk) - Future development and exploration activities are expected to be funded by operating cash flow, with significant flexibility to adjust capital expenditures due to no material long-term commitments[104](index=104&type=chunk) [Income Taxes](index=29&type=section&id=Income%20Taxes%20(MD&A)) This section discusses the company's income tax position, including net operating loss carryforwards and their utilization limitations - As of September 30, 2022, the company had **$909.9 million in U.S. federal NOL carryforwards** and **$1.5 billion in state NOL carryforwards**[108](index=108&type=chunk) - The ability to use NOLs is limited by IRC Section 382 due to a 2018 change of control, restricting annual usage to **$3.3 million**, though a net unrealized built-in gain may increase this limitation by **$147.7 million through 2023**[108](index=108&type=chunk) - An estimated **$767.3 million of federal NOLs** and **$1.2 billion of state NOLs** are expected to expire unused due to limitations and insufficient future taxable income[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) This section discusses the company's exposure to market risks from oil and natural gas prices and interest rates, detailing hedging strategies and hypothetical impacts [Oil and Natural Gas Prices](index=29&type=section&id=Oil%20and%20Natural%20Gas%20Prices) This section analyzes the company's sensitivity to fluctuations in oil and natural gas prices and its commodity hedging strategies - The company's financial condition is highly dependent on volatile natural gas and oil prices, influenced by global demand, supply, weather, alternative fuels, and economic conditions[110](index=110&type=chunk) - As of September 30, 2022, the company hedged approximately **29.4 Bcf of its 2022 natural gas production** at an **average price of $2.68 per MMBtu** using swap agreements[111](index=111&type=chunk) - The company also used natural gas collars to hedge approximately **162.5 Bcf of its 2022 and 2023 natural gas production**, with an **average floor price of $2.91 per MMBtu** and an **average ceiling price of $8.62 per MMBtu**[111](index=111&type=chunk) - A **10% increase in natural gas market price would decrease the fair value of natural gas swaps and collars by approximately $56.2 million**, while a **10% decrease would increase it by $54.5 million**[113](index=113&type=chunk) [Interest Rates](index=30&type=section&id=Interest%20Rates) This section details the company's exposure to interest rate risk, particularly on its variable-rate debt obligations - As of September 30, 2022, the company had approximately **$2.2 billion in long-term debt**, with **$965.0 million at a fixed rate of 5.875%** and **$1.22 billion at a fixed rate of 6.75%**[114](index=114&type=chunk) - **$100.0 million outstanding under the bank credit facility is subject to variable interest rates** tied to LIBOR or the corporate base rate, making it susceptible to interest rate increases[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO evaluated disclosure controls and procedures as effective as of September 30, 2022, with no material changes in internal controls during the quarter - **Disclosure controls and procedures were deemed effective** as of September 30, 2022, ensuring timely and accurate reporting[115](index=115&type=chunk) - No material changes in internal controls over financial reporting occurred during the three months ended September 30, 2022[115](index=115&type=chunk) [PART II. Other Information](index=30&type=section&id=PART%20II.%20Other%20Information) This section includes additional required disclosures such as exhibits and official signatures [Item 6. Exhibits](index=30&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including CEO and CFO certifications and various Inline XBRL documents - Includes **Section 302 and 906 Certifications from CEO and CFO**[117](index=117&type=chunk) - Contains Inline XBRL Instance, Schema, Calculation, Labels, Presentation, and Definition Linkbase Documents[117](index=117&type=chunk) [Signatures](index=31&type=section&id=SIGNATURES) This section formally concludes the report with the required signatures of the registrant's authorized officers - Report signed by **M. Jay Allison (Chairman and CEO)** and **Roland O. Burns (President, CFO, and Secretary)** on November 3, 2022[122](index=122&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|--------------------------------------|-------|-------| | | | | | | | | | | | NYSE:CRK | | | | Investor Presentation September 2022 | | | 2 Disclaimer This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. The ...

[Part I. Financial Information](index=4&type=section&id=PART%20I.%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited financial statements for Q2 2022 show a significant turnaround from net loss to strong net income, driven by higher natural gas sales [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets increased to **$5.29 billion**, driven by oil and gas properties, with improved stockholders' equity Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $530,811 | $318,736 | | **Net Property and Equipment** | $4,313,201 | $4,007,146 | | **Total Assets** | **$5,288,193** | **$4,668,229** | | **Total Current Liabilities** | $964,661 | $633,984 | | **Long-term Debt** | $2,510,253 | $2,615,235 | | **Total Liabilities** | **$3,841,914** | **$3,480,450** | | **Total Stockholders' Equity** | $1,271,279 | $1,012,779 | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2022, the company reported a net income of **$376.9 million**, a significant turnaround from a net loss, driven by a **175% increase in total revenues** Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $946,254 | $343,693 | $1,515,668 | $684,178 | | **Operating Income** | $649,117 | $146,496 | $989,787 | $306,222 | | **Net Income (Loss)** | $376,891 | $(179,695) | $265,467 | $(313,820) | | **Diluted EPS** | $1.36 | $(0.80) | $0.96 | $(1.39) | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, net cash from operating activities increased by **78% to $685.9 million**, primarily due to higher commodity prices Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $685,933 | $385,583 | | **Net Cash used for Investing Activities** | $(515,361) | $(338,568) | | **Net Cash used for Financing Activities** | $(168,963) | $(57,560) | | **Net Increase (Decrease) in Cash** | $1,609 | $(10,545) | [Notes to Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key accounting policies and events, including a **$35.6 million acquisition**, active debt management, and significant losses from derivative instruments - In April 2022, the Company acquired a pipeline, natural gas treating plant, and undeveloped deep rights in East Texas for **$35.6 million**[78](index=78&type=chunk) - In May 2022, the company redeemed all outstanding **7.5% senior notes due 2025** for **$258.1 million**, recognizing a loss of **$47.8 million** on the early retirement of debt[81](index=81&type=chunk) - In June 2022, the company repurchased **$26.1 million** of its **6.75% senior notes due 2029** for **$24.9 million**, recognizing a **$1.0 million** gain[83](index=83&type=chunk) Derivative Losses Recognized in Earnings (in thousands) | Period | Loss on Derivatives | | :--- | :--- | | **Three Months Ended June 30, 2022** | $(72,826) | | **Six Months Ended June 30, 2022** | $(510,319) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes increased revenue and profitability to higher natural gas prices, despite hedging losses, while maintaining strong liquidity and debt covenant compliance [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Oil and gas sales for Q2 2022 surged **151% to $861.3 million**, driven by a **168% increase in natural gas prices**, leading to net income despite derivative losses Average Realized Prices (Q2 2022 vs Q2 2021) | Metric | Q2 2022 | Q2 2021 | Change | | :--- | :--- | :--- | :--- | | **Natural Gas Price (per Mcf)** | $6.93 | $2.59 | +168% | | **Price with Hedges (per Mcf)** | $4.85 | $2.46 | +97% | | **Oil Price (per Bbl)** | $104.33 | $61.25 | +70% | - Realized net losses from the oil and natural gas price risk management program were **$257.4 million** for Q2 2022, compared to **$18.8 million** in Q2 2021[95](index=95&type=chunk) - The company sold its Bakken shale properties in October 2021, which accounted for most of its oil production, leading to a significant drop in oil output[92](index=92&type=chunk) [Cash Flows, Liquidity and Capital Resources](index=28&type=section&id=Cash%20Flows%2C%20Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity of **$1.1 billion**, with cash from operations increasing **78% to $685.9 million**, supporting increased capital expenditures - As of June 30, 2022, the company had **$1.1 billion** of liquidity, including **$32.3 million** in cash and unused capacity under its **$1.4 billion** bank credit facility[104](index=104&type=chunk)[108](index=108&type=chunk) - In the first six months of 2022, the company drilled **61 (30.5 net) wells** and completed **61 (30.3 net) Haynesville and Bossier shale wells**[103](index=103&type=chunk) - The company expects to spend an additional **$440 million to $490 million** in the remainder of 2022 to drill **42 (28.9 net) more wells** and complete **33 (27.0 net) wells**[103](index=103&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=30&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company's primary market risks are natural gas and oil price volatility and interest rate changes, mitigated by derivative instruments and fixed-rate debt - The company's financial results are highly dependent on fluctuating natural gas and oil prices[111](index=111&type=chunk) - As of June 30, 2022, the company had natural gas swaps covering **58.9 Bcf of 2022 production** at an average price of **$2.68/MMBtu** and collars covering **196.1 Bcf of 2022-2023 production** with an average floor of **$2.86/MMBtu** and ceiling of **$7.81/MMBtu**[112](index=112&type=chunk) - Of the **~$2.55 billion** in total debt, **~$2.2 billion** is fixed-rate senior notes, while **$350.0 million** under the bank credit facility is subject to variable interest rates[116](index=116&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2022, the CEO and CFO concluded that disclosure controls and procedures are effective, with no material changes in internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[117](index=117&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls over financial reporting[117](index=117&type=chunk) [Part II. Other Information](index=31&type=section&id=PART%20II.%20Other%20Information) [Item 6. Exhibits](index=31&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL financial data files - The report includes required certifications from the CEO and CFO under Sarbanes-Oxley Sections 302 and 906[115](index=115&type=chunk) - Interactive Data Files (Inline XBRL) are also filed as exhibits[115](index=115&type=chunk)

| --- | --- | --- | --- | --- | --- | --- | |-------|----------------|-------|-------|-------------------------------------|-------|-------| | | | | | | | | | | 2nd NYSE:CRK | | | Quarter 2022 Results AUGUST 1, 2022 | | | 2 Disclaimer This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. These stateme ...

Financial Data and Key Metrics Changes - In Q2 2022, the company generated $190 million of operating free cash flow, a 586% increase year-over-year [12] - EBITDAX for the quarter was $515 million, up 105% from the previous year [8] - Operating cash flow increased by 133% to $458 million, or $1.65 per diluted share [8] - Revenues after hedging reached $604 million, an 86% increase compared to last year [8] - Adjusted net income for the quarter was $274 million, or $1 per diluted share, a 454% increase from Q2 2021 [11] Business Line Data and Key Metrics Changes - Production increased by 1% to 1.4 billion cubic feet equivalent per day on a pro forma basis [10] - The company reported 14 net operated wells with an average initial production rate of 26 million cubic feet per day [9] - The average lateral length for wells drilled in Q2 was 9,612 feet, with some exceeding 11,000 feet [20] Market Data and Key Metrics Changes - The average NYMEX settlement price for natural gas was $7.17, while the average Henry Hub spot price was $7.39 [13] - The realized price during the quarter averaged $6.93, reflecting a $0.28 differential [14] - The company was 54% hedged, which reduced the realized price to $4.85 [14] Company Strategy and Development Direction - The company plans to generate significantly more than the targeted $500 million of free cash flow, potentially approaching $1 billion [27] - There are plans to add two operated rigs to the Haynesville drilling program by year-end, driving additional production growth in 2023 [27] - The company aims to reinstate its shareholder dividend during Q4 2022 [27] Management's Comments on Operating Environment and Future Outlook - Management highlighted the strong financial results driven by improved natural gas prices [13] - The company expects to see a step-up in production in Q4 2022, with around 19 wells coming online [40] - Management noted that supply chain issues have caused longer drill times, impacting production timelines [40] Other Important Information - The company completed a bolt-on acquisition for $36 million, which included 60,000 net acres and a 145-mile high-pressure pipeline [9] - The company achieved certification for its natural gas production under the MiQ standard for methane emissions measurement [9] Q&A Session Summary Question: Timing for the second TITAN fleet and additional rigs - Management confirmed that the second TITAN fleet is expected to be in service in Q1 2023, with two additional rigs coming online soon [35][36] Question: Details on the Circle M well and future locations - Management explained that the Circle M well was chosen to test Bossier shale potential, with ongoing evaluations for future drilling locations [37] Question: Production outlook and completions cadence - Management indicated expectations for increased completions in Q4, with around 19 wells planned [40] Question: Recent Perryville differentials and market conditions - Management attributed the weakness in Perryville differentials to transportation tightness and maintenance, expecting improvements in October [41][42] Question: Tenure and contracts for new rigs - Management stated that current contracts for rigs are either well-to-well or six-month contracts, with rates significantly higher than a year and a half ago [49] Question: Potential new LNG contracts - Management is actively engaging with major LNG exporters and aims to position itself as a key supplier [51] Question: Acquisition of pipeline infrastructure - Management emphasized the strategic value of the acquired pipeline infrastructure in supporting future LNG demand [71][72] Question: Shut-in quantities and maintenance - Management reported a typical shut-in activity of around 4%, with no significant long-duration shut-ins expected [82]

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------|-----------|-----------------------|-------|-------| | | | | | | | | | | | | | NYSE:CRK | | | | | June 2022 | Investor Presentation | | | 2 Disclaimer This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts o ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------------|-------|-------|-------|----------------------------------|-------|-------| | | | | | | | | | | | | | | | | | | | | 1st NYSE:CRK | | | | Quarter 2022 Results MAY 3, 2022 | | | 2 Disclaimer This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts o ...

Financial Data and Key Metrics Changes - In Q1 2022, the company generated $68 million of free cash flow, a 73% increase compared to Q1 2021 [10] - Adjusted net income for the quarter was $136 million, representing a 114% increase year-over-year [9] - EBITDAX for the quarter was $333 million, a 33% increase from the same quarter in 2021, driven by stronger natural gas prices [8][9] - Operating cash flow was $297 million, or $1.07 per diluted share, a 52% increase over Q1 2021 [9][10] - The leverage ratio improved to 1.9 times, down from 2.7 times in Q1 2021 [10][17] Business Line Data and Key Metrics Changes - Production increased by 3% to 1.3 BCFE per day compared to Q1 2021 [8] - The Haynesville drilling program saw 15 operative wells turned to sales, with an average initial production rate of 29 million cubic feet per day [8][22] - The company spent $224 million on development activities, with $187 million allocated to the Haynesville and Bossier Shale drilling program [15] Market Data and Key Metrics Changes - Natural gas prices reached a 13-year high, with an outlook of $8.54 per MCF [5][6] - The average realized gas price during Q1 was $4.55 per MCF, reflecting a 29¢ differential compared to the prior quarters [12] - The company was 61% hedged in Q1, which reduced the realized price to $3.53, still 27% higher than Q1 2021 [13] Company Strategy and Development Direction - The company plans to generate $800 million to $1 billion in free cash flow in 2022, prioritizing debt reduction and potential reinstatement of dividends [25][26] - The strategy includes targeting a leverage ratio below 1.5 times before initiating a return of capital program [18][26] - The company aims to sell more production directly to LNG shippers, leveraging its proximity to LNG export facilities [36][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the 2022 plan despite inflationary pressures and tight service supply [33] - The company anticipates production growth of 4% to 5% year-over-year from its drilling program [25] - Management highlighted the importance of longer lateral lengths in drilling to improve capital efficiency and mitigate cost increases [21][28] Other Important Information - The company plans to redeem $244 million of its 2025 senior notes and expects to pay off $150 million remaining under its bank credit facility [27] - Financial liquidity at the end of Q1 was nearly $1.3 billion [18] Q&A Session Summary Question: Confidence in executing the 2022 plan amidst inflation - Management indicated strong relationships with suppliers and does not foresee significant additional risks beyond inflation [34] Question: Role in addressing European supply needs - The company is positioned as a material supplier of gas to LNG facilities, with 14% of current gas sold to LNG [36][37] Question: Managing costs and inflation - The company has implemented long-term contracts and a 100% gas-powered frack fleet to manage costs [41][42] Question: Non-operated activity impact on production - Management noted that while there are additional non-op costs, they do not expect significant production impacts [44] Question: Long-term contracts linked to international gas prices - The company is exploring opportunities for long-term contracts but emphasizes the need to own facilities for better pricing [76][77] Question: Production growth expectations - Management expects the highest growth in the third quarter, with a lag in seeing the benefits of investments made earlier in the year [80][81]

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 March 31, 2022 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. (Exact name of registrant as specified in its charter) Nevada 94-1667468 (State or other jurisdiction of incorporation or organization ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------|-------|-------|-------|-------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | NYSE:CRK | | | | Investor Presentation February 2022 | | | | 2 Disclaimer This presentation includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our ...