4th Quarter 2025 Results February 11, 2026 Our production forecasts are dependent upon many assumptions, including estimates of production decline rates from existing wells and the outcome of future drilling activity. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include the timing and extent of changes in market prices for oil and gas, operating risks, liquidity risks, including risks relating to our debt, political and regulatory ...

Core Viewpoint - The company is strategically focusing on balance sheet strength by reducing production during low gas price periods, resulting in a 14% year-over-year production decline [1] Production and Reserves - The company successfully replaced 229% of its production through drilling, adding 1.1 trillion cubic feet equivalent (Tcfe) of proved reserves at a finding cost of $1.02 per thousand cubic feet equivalent (Mcfe) [1] Asset Management - Divestitures of legacy Cotton Valley and Shelby Trough assets for $445 million were executed to reduce debt and redirect capital towards higher-growth opportunities in the Western Haynesville [1] Resource Potential - The Western Haynesville is being positioned as a distinct new basin with an estimated resource potential of 99 trillion cubic feet (Tcf), significantly higher than legacy Haynesville sections due to greater pay thickness and pressure [1] Operational Challenges - Operational challenges in Q4 included drilling within the Visonia Gas Storage Field and executing complex horseshoe laterals, leading to temporary increases in drilling costs and lower footage per day [1] Strategic Focus - The company's future strategy emphasizes becoming a pure-play natural gas provider located near primary demand centers for LNG exports and AI data centers [1]

分组1 - Comstock Resources reported quarterly earnings of $0.16 per share, exceeding the Zacks Consensus Estimate of $0.11 per share, with an earnings surprise of +48.15% [1] - The company achieved revenues of $789.81 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 68.79%, compared to $366.51 million in the same quarter last year [2] - Comstock has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed, losing about 11.9% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $499.81 million, and for the current fiscal year, it is $0.63 on revenues of $2.08 billion [7] - The Zacks Industry Rank for Oil and Gas - Exploration and Production - United States is currently in the bottom 5% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - In Q4 2025, Comstock realized $3.27 per Mcf for natural gas production of 111 Bcf, leading to total natural gas and oil sales of $364.0 million[5]. - Operating cash flow for Q4 2025 was $222.3 million, with net income of $286.8 million or $0.97 per diluted share, including a pre-tax gain of $292.3 million from the sale of Shelby Trough properties[5][6]. - Total revenues for the three months ended December 31, 2025, were $789.814 million, a significant increase from $366.471 million in the same period of 2024, representing a growth of 115.5%[29]. - Natural gas sales reached $366.440 million for the three months ended December 31, 2025, compared to $287.626 million in 2024, marking a 27.4% increase[29]. - Operating income for the year ended December 31, 2025, was $645.852 million, a turnaround from an operating loss of $168.615 million in 2024[29]. - Net income attributable to Comstock for the three months ended December 31, 2025, was $280.919 million, compared to a net loss of $58.129 million in the same period of 2024[29]. - Net income for Q4 2025 was $286.8 million, a significant improvement from a net loss of $55.3 million in Q4 2024[38]. - Operating cash flow for the year ended December 31, 2025, reached $861.3 million, up from $675.2 million in 2024, reflecting a 27.5% increase[38]. - Free cash flow after acquisition and divestiture activity for the year was $154.6 million, a turnaround from a deficit of $359.2 million in 2024[38]. Production and Reserves - Comstock turned 35 wells to sales in 2025 in its legacy Haynesville area, with an average initial production rate of 25 MMcf per day[6]. - Proved natural gas and oil reserves as of December 31, 2025, were estimated at 7.0 trillion cubic feet equivalent (Tcfe), up from 3.8 Tcfe in 2024[17]. - Comstock replaced 823% of its 2025 production under SEC pricing and 229% under NYMEX pricing[19]. - Comstock's average initial production rate for wells turned to sales in 2025 was 27 MMcf per day, with an average lateral length of 11,187 feet[13]. - Natural gas production for the year ended December 31, 2025, was 450.202 MMcf, down from 527.548 MMcf in 2024, indicating a decrease of 14.7%[31]. Costs and Margins - Average production cost per Mcfe in Q4 2025 was $0.77, with unhedged and hedged operating margins at 77%[8]. - Total production costs per Mcfe for the year ended December 31, 2025, were $0.79, slightly up from $0.78 in 2024[31]. - The company reported a hedged operating margin of 77% for Q4 2025, up from 73% in Q4 2024[31]. - Adjusted net income for Q4 2025 was $46 million or $0.16 per diluted share, excluding certain items[7]. - Adjusted net income for the three months ended December 31, 2025, was $46.118 million, compared to $46.258 million in the same period of 2024[34]. Capital Expenditures and Investments - The company plans to increase the number of operating drilling rigs from eight to nine in 2026, with a budget of approximately $1.4 billion to $1.5 billion for development and exploration projects[21]. - Capital expenditures for exploration and development totaled $269.791 million for the three months ended December 31, 2025, compared to $240.433 million in 2024[31]. Assets and Liabilities - Total current assets increased to $360.9 million in December 2025, compared to $284.0 million in December 2024, marking a 27% growth[41]. - Property and equipment, net, rose to $6.2 billion in December 2025, up from $5.7 billion in December 2024, indicating a 9.3% increase[41]. - Total liabilities decreased slightly to $4.0 billion in December 2025 from $4.0 billion in December 2024, showing a stable financial position[41]. - Cash and cash equivalents increased to $23.9 million in December 2025, compared to $6.8 million in December 2024, representing a 251% increase[41]. - Accounts receivable rose to $242.5 million in December 2025, up from $174.8 million in December 2024, reflecting a 38.8% increase[41]. Other Financial Metrics - The company reported a free cash deficit from operations of $66.8 million for Q4 2025, compared to a deficit of $32.3 million in Q4 2024[38]. - Contributions from midstream partnerships increased significantly to $59.0 million in Q4 2025, compared to $24.5 million in Q4 2024, a 140% increase[38].

Core Insights - Comstock Resources reported strong financial results for Q4 and the full year 2025, driven by higher natural gas prices and successful drilling operations [4][7][9]. Financial Results for Q4 2025 - Comstock realized $3.27 per Mcf for natural gas production of 111 Bcf, leading to total natural gas and oil sales of $364 million, including hedging losses of $2.6 million [4]. - Operating cash flow for Q4 2025 was $222.3 million, with a net income of $286.8 million or $0.97 per diluted share, which included a pre-tax gain of $292.3 million from the sale of Shelby Trough properties [4][9]. - Adjusted net income for Q4 2025 was $46.1 million or $0.16 per diluted share, excluding certain one-time items [4][9]. Financial Results for the Year Ended December 31, 2025 - For the full year, Comstock realized $3.21 per Mcf from natural gas production of 450 Bcf, resulting in total sales of $1.4 billion, including hedging gains of $20.1 million [7]. - Operating cash flow for the year was $861.3 million, with a net income of $420.2 million or $1.43 per diluted share [7]. - Adjusted net income for the year was $159.9 million or $0.54 per diluted share, after excluding specific items [7]. Production Costs and Margins - Production cost per Mcfe in Q4 2025 averaged $0.77, with unhedged and hedged operating margins at 77% [5]. - For the year, average production cost per Mcfe was $0.79, with operating margins at 75% [8]. Drilling and Production Highlights - In Q4 2025, Comstock turned four successful wells to sales in the Western Haynesville, with an average initial production rate of 29 MMcf per day [9]. - A total of 12 wells were turned to sales in the Western Haynesville during 2025, with an average initial production rate of 33 MMcf per day [9]. - Comstock drilled 52 operated horizontal Haynesville/Bossier shale wells in 2025, achieving an average lateral length of 11,187 feet [11]. Proved Reserves - As of December 31, 2025, proved natural gas and oil reserves were estimated at 7.0 trillion cubic feet equivalent (Tcfe), significantly up from 3.8 Tcfe in 2024 [14]. - The present value of future net cash flows from these proved reserves was approximately $4.5 billion, based on average prices of $3.07 per Mcf for natural gas and $61.98 per barrel for oil [14]. 2026 Budget and Plans - In response to improved natural gas prices, Comstock plans to increase its drilling rigs from eight to nine in 2026, with a budget of approximately $1.4 billion to $1.5 billion for development and exploration projects [18].

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - U.S. natural gas prices experienced a significant rally in late January due to extreme cold, supply disruptions, and changes in trader sentiment, despite inventories being above the five-year average [1][2][3] Market Dynamics - Natural gas prices surged, with the March Henry Hub contract finishing around mid-$4 per million British thermal units, marking a recovery from three-month lows earlier in January [2] - The market reacted to colder weather forecasts and supply losses, with daily gains exceeding 10% at one point [2] Weather Impact - Weather forecasts predicting sub-normal temperatures in early February across key regions shifted market sentiment, highlighting the sensitivity of natural gas demand to temperature changes [3] - Even small changes in temperature expectations can significantly impact heating and power generation demand [3] Storage and Supply - Working gas in storage fell by 242 billion cubic feet for the week ended Jan. 23, exceeding market expectations and indicating a faster-than-normal draw compared to the five-year average [4] - Despite inventories being 143 billion cubic feet above the five-year norm, the pace of withdrawals raised concerns about potential late-winter supply tightness [4] Production Disruptions - Freeze-offs in late January temporarily reduced production across key regions, impacting deliverability despite overall high output levels [5] - Temporary disruptions can have immediate pricing effects when demand surges, overshadowing broader production trends [5] Investment Opportunities - Companies such as The Williams Companies (WMB), Expand Energy (EXE), and Comstock Resources (CRK) are positioned to benefit from tighter supply and increased demand during winter market volatility [1][7] - WMB is expected to grow significantly due to its extensive network and large-scale projects, with a projected EPS growth rate of 18.6% over three to five years [9][10] - EXE, as the largest natural gas producer in the U.S., is well-positioned to capitalize on rising demand driven by LNG exports and electrification trends, with a projected EPS growth of 29.5% [11][12] - CRK focuses on the Haynesville and Bossier shales, with a 100% natural gas production profile, and is expected to see a 25% year-over-year EPS surge [13][14]

Core Insights - U.S. natural gas prices have surged dramatically, reaching multi-year highs due to a sudden shift in weather forecasts and increased heating demand [2][3][4] Natural Gas Market Dynamics - Natural gas futures rose from approximately $3 per million British thermal units (MMBtu) to around $5.27 per MMBtu, marking a weekly gain of about 70%, the strongest increase in over three decades [3] - The surge in prices is attributed to colder weather forecasts, which heightened expectations for heating demand and tightened supply-demand balances [3][4] - A significant withdrawal of 120 billion cubic feet from U.S. storage levels was reported, leaving inventories slightly above the five-year average, which does not fully mitigate the risks posed by prolonged cold weather [5] Investment Opportunities - The recent price movements have reset expectations for natural gas, creating a constructive environment for gas-focused investors [6] - Companies such as Expand Energy, Comstock Resources, and Antero Resources have shown solid gains, reflecting improved sentiment in the market [7] Company Highlights - **Expand Energy**: The largest natural gas producer in the U.S. post-merger, with key assets in the Haynesville and Marcellus basins. The Zacks Consensus Estimate for its 2026 earnings per share indicates a 31% year-over-year increase [8][9] - **Comstock Resources**: An independent producer focused on the Haynesville and Bossier shales, with a Zacks Consensus Estimate for 2026 earnings per share showing a 32.6% year-over-year surge [10][11] - **Antero Resources**: Focused on natural gas and liquids in the Appalachian Basin, with a low debt profile and strong production mix. The Zacks Consensus Estimate for its 2026 earnings per share indicates an 87% year-over-year increase [12][13]

Industry Overview - U.S. natural gas prices experienced a significant surge, climbing from near $3 per million British thermal units (MMBtu) to approximately $5.27 per MMBtu, marking a weekly gain of roughly 70%, the strongest in over three decades [2][7] - The increase in prices was driven by colder weather forecasts, which heightened expectations for heating demand and tightened supply-demand balances [2][3] Market Dynamics - The surge in natural gas prices was attributed to a classic winter squeeze, with Winter Storm Fern and an Arctic blast raising heating and power demand while increasing the risk of production freeze-offs [3][7] - U.S. storage levels showed a withdrawal of 120 billion cubic feet, leaving inventories modestly above the five-year average, which provides limited reassurance against prolonged cold [4] Investment Opportunities - The recent price movements have reset expectations for natural gas, with strong winter demand and rising supply risks improving the outlook for producers directly exposed to gas prices [5][6] - Companies such as Expand Energy (EXE), Comstock Resources (CRK), and Antero Resources (AR) have shown solid gains, reflecting the renewed momentum in gas prices [6][7] Company Profiles - **Expand Energy (EXE)**: The largest natural gas producer in the U.S., well-positioned to benefit from increasing demand driven by LNG exports and electrification trends. The Zacks Consensus Estimate for its 2026 earnings per share indicates a 31% year-over-year surge [9][10] - **Comstock Resources (CRK)**: Focused on the Haynesville and Bossier shales, with a Zacks Consensus Estimate for its 2026 earnings per share indicating a 32.6% year-over-year surge. The company has a trailing four-quarter earnings surprise of approximately 220.5% [11][12] - **Antero Resources (AR)**: Concentrated on natural gas and liquids in the Appalachian Basin, with a Zacks Consensus Estimate for its 2026 earnings per share indicating an 87% year-over-year surge. The company benefits from a low debt profile and an integrated setup with its midstream affiliate [13][14]

Core Viewpoint - Comstock Resources (CRK) has consistently surpassed earnings estimates and is well-positioned for future earnings reports, making it a strong candidate for investors in the oil and gas sector [1]. Earnings Performance - Comstock has recorded an average earnings surprise of 84.72% over the last two quarters, with a recent report showing earnings of $0.09 per share against an expectation of $0.04, resulting in a surprise of 125.00% [2]. - In the previous quarter, the company reported earnings of $0.13 per share, exceeding the consensus estimate of $0.09 by 44.44% [2]. Earnings Estimates - There has been a favorable change in earnings estimates for Comstock, indicated by a positive Zacks Earnings ESP (Expected Surprise Prediction), which is a strong indicator of potential earnings beats [5]. - The current Earnings ESP for Comstock is +13.64%, suggesting that analysts have recently become more optimistic about the company's earnings prospects [8]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise, indicating a high likelihood of beating consensus estimates [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]. Upcoming Earnings Report - Comstock's next earnings report is expected to be released on February 11, 2026, and the combination of a positive Earnings ESP and a solid Zacks Rank suggests another potential earnings beat [8].