[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 ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|----------------|-------|-------|----------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | 4th NYSE:CRK | | | Quarter 2021 Results FEBRUARY 15, 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 ...

Financial Data and Key Metrics Changes - In Q4 2021, the company generated $105 million of free cash flow from operating activities, increasing total free cash flow for 2021 to $262 million, with total free cash flow including acquisition and divestiture activity at $343 million [11][12] - Adjusted net income for Q4 was $99 million or $0.37 per diluted share, a 186% increase from Q4 2020 [18][20] - Operating cash flow for the quarter was $250 million or $0.90 per diluted share, with revenues increasing 37% to $380 million [12][18] - The leverage ratio improved to 2.2 times, down from 3.8 times in 2020 [14][30] Business Line Data and Key Metrics Changes - The company completed 215,000-foot Haynesville wells in Q4, achieving new corporate records with initial production (IP) rates of 48 and 41 million cubic feet equivalent per day [12][40] - The average lateral length increased to 11,443 feet in Q4, with a significant increase in drilling footage per day by 25% to 1,001 feet [7][34] - The company drilled 64 gross or 51.9 net wells in 2021, including four 15,000-foot laterals, with an average IP rate of 23 million cubic feet equivalent per day [14][15] Market Data and Key Metrics Changes - The average NYMEX settlement price for Q4 was $5.83, while the average Henry Hub spot price was $4.74, leading to a realized pricing of $5.22, reflecting a $0.25 differential from the reference price [22][23] - The company was 72% hedged in Q4, which reduced the final realized gas price to $3 per MCF [23] Company Strategy and Development Direction - The company plans to use free cash flow to pay off debt, including redeeming $244 million of 2025 bonds, with a target leverage ratio of 1.5 or less by the second half of 2022 [5][48] - The drilling inventory has increased in value, with a 25% increase in average lateral length from 6,840 feet to 8,520 feet, providing over 25 years of future drilling locations [6][46] - The company is focused on maintaining a low-cost structure and enhancing drilling returns through longer laterals [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing the 2022 production plan, anticipating 4% to 5% production growth year-over-year and over $500 million of free cash flow at current commodity prices [47][50] - The company is working on certifying its natural gas production as responsibly sourced gas under the MiQ standard [49] - Management acknowledged challenges in the labor and service price environment but remains optimistic about operational execution [56][60] Other Important Information - The company significantly reduced its cost of capital by refinancing $2 billion of senior notes, saving $48 million in cash interest expense [13] - The company added 49,000 net acres to its acreage position in 2021 through leasing and acquisitions totaling $57.7 million [15] Q&A Session Summary Question: Confidence in executing the 2022 plan - Management expressed confidence in executing the 2022 plan, factoring in recent scheduling and cadence [56][60] Question: Return of capital plans - Management indicated that after achieving the debt reduction goal, they would consider establishing a sustainable dividend and potentially a share repurchase authorization [62][64] Question: Implications of adding rigs on production - Management noted that production growth is expected to be more weighted towards the second half of the year due to the transition to longer laterals [70][76] Question: Economics of Bossier vs. Haynesville - Management stated that while Haynesville wells generally have better economics, Bossier wells have flatter decline rates and lower RFPs [86] Question: Improvements in drilling and completion - Management highlighted that improvements in drilling performance are due to better practices and tool reliability, with longer laterals providing more significant benefits [88][90]