[Financial Performance](index=1&type=section&id=Financial%20Performance) Comstock's financial results improved significantly in the second quarter and first half of 2025, driven by higher natural gas prices. For Q2 2025, the company reported total sales of $344.3 million and adjusted net income of $40.0 million. For the first six months, sales reached $749.3 million with an adjusted net income of $93.9 million. Operating margins remained strong, at 74% (hedged) for the quarter and 75% for the half-year [Second Quarter 2025 Financial Results](index=1&type=section&id=Financial%20Results%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025) In Q2 2025, driven by higher natural gas prices, Comstock generated $344.3 million in natural gas and oil sales (including hedging gains) and $209.6 million in operating cash flow. The company reported a net income of $130.7 million, which included a significant $231.6 million pre-tax unrealized gain on hedging contracts. Excluding this, adjusted net income was $40.0 million, or $0.13 per diluted share Q2 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Natural Gas & Oil Sales (incl. hedging) | $344.3 million | | Operating Cash Flow | $209.6 million | | Adjusted EBITDAX | $260 million | | Net Income | $130.7 million ($0.44/share) | | Adjusted Net Income | $40.0 million ($0.13/share) | - Net income for the quarter included a pre-tax unrealized gain of **$231.6 million** on hedging contracts due to changes in future natural gas prices[5](index=5&type=chunk) Q2 2025 Production Costs (per Mcfe) | Cost Component | Value (per Mcfe) | | :--- | :--- | | Gathering & Transportation | $0.37 | | Lease Operating Costs | $0.28 | | Production & Other Taxes | $0.09 | | Cash General & Administrative | $0.06 | | **Total Production Cost** | **$0.80** | - The company's hedged operating margin for Q2 2025 was **74%**[7](index=7&type=chunk) [Six Months 2025 Financial Results](index=2&type=section&id=Financial%20Results%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) For the first six months of 2025, Comstock reported natural gas and oil sales of $749.3 million (including minor hedging losses) and operating cash flow of $448.6 million. Net income was $15.3 million, impacted by a $90.8 million pre-tax unrealized loss on hedging contracts. Adjusted net income for the period was $93.9 million, or $0.32 per diluted share Six Months Ended June 30, 2025 Key Financial Metrics | Metric | Value | | :--- | :--- | | Natural Gas & Oil Sales (incl. hedging) | $749.3 million | | Operating Cash Flow | $448.6 million | | Net Income | $15.3 million ($0.05/share) | | Adjusted Net Income | $93.9 million ($0.32/share) | - The average production cost for the first six months was **$0.82 per Mcfe**, with a **75% operating margin** on both a hedged and unhedged basis[10](index=10&type=chunk) [Operational Highlights and Strategic Initiatives](index=2&type=section&id=Operational%20Highlights%20and%20Strategic%20Initiatives) Operationally, Comstock continued its successful drilling program in the Haynesville/Bossier shale, turning 13 operated wells to sales in Q2 2025. The Western Haynesville wells showed particularly strong results with high initial production rates. Strategically, the company announced a collaboration with NextEra Energy Resources to explore developing power generation assets to serve potential data center customers in the Western Haynesville area [Drilling Results](index=2&type=section&id=Drilling%20Results) In Q2 2025, Comstock drilled 12 (10.6 net) operated horizontal wells and turned 13 (12.0 net) wells to sales. The five new Western Haynesville wells turned to sales in the quarter were highly productive, with an average initial production rate of 36 MMcf per day and an average lateral length of 10,897 feet - Five Western Haynesville wells turned to sales in Q2 2025 had an average initial production rate of **36 MMcf per day**[6](index=6&type=chunk) - To date in 2025, **21 wells** in the Legacy Haynesville area have been turned to sales, with an average initial production rate of **25 MMcf per day**[6](index=6&type=chunk) Recent Western Haynesville Well Results | Well | Completed Lateral (feet) | Initial Production Rate (MMcf per day) | | :--- | :--- | :--- | | Menn PB 1 | 10,926 | 38 | | Jennings Loehr 1 | 12,106 | 34 | | Jennings FSRA 1 | 12,045 | 28 | | Bell Meyer 1 | 9,100 | 41 | [Strategic Initiatives](index=2&type=section&id=Other) Comstock is collaborating with NextEra Energy Resources to explore the development of power generation assets near its Western Haynesville operations. The project aims to leverage Comstock's natural gas supply and infrastructure to provide reliable energy for potential data center customers - Comstock and a unit of NextEra Energy, Inc. are collaborating to explore developing power generation assets in the Western Haynesville area[15](index=15&type=chunk) - The joint project aims to integrate Comstock's natural gas supply and infrastructure to support energy solutions for potential data center customers[15](index=15&type=chunk) [Financial Statements](index=4&type=section&id=Financial%20Statements) The consolidated financial statements detail the company's performance. The Statement of Operations shows a significant turnaround from a net loss in the prior year period. The Operating Results table breaks down production volumes, pricing, and per-unit costs. The Balance Sheet indicates an increase in total assets to $6.7 billion and total liabilities to $4.3 billion as of June 30, 2025 [Consolidated Statements of Operations](index=4&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the three months ended June 30, 2025, Comstock reported total revenues of $470.3 million and a net income of $130.7 million, a substantial improvement from a net loss of $123.2 million in the same period of 2024. For the six-month period, revenues were $983.1 million with a net income of $15.3 million, compared to a net loss of $137.7 million in the prior year Statement of Operations Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $470,262 | $246,830 | $983,116 | $582,602 | | Operating Income (Loss) | $89,446 | $(92,493) | $215,614 | $(105,340) | | Net Income (Loss) | $130,728 | $(123,249) | $15,335 | $(137,723) | | Diluted EPS | $0.44 | $(0.43) | $0.05 | $(0.49) | [Operating Results](index=5&type=section&id=OPERATING%20RESULTS) In Q2 2025, total production was 112.2 Bcf-equivalent, down from 130.9 Bcf-equivalent in Q2 2024. The average realized natural gas price, including hedging, was $3.06 per Mcf, up from $2.12 per Mcf in the prior-year quarter. Total production costs were $0.80 per Mcfe. Capital expenditures on exploration and development totaled $268.2 million for the quarter Production and Pricing Comparison | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Production (MMcfe) | 112,238 | 130,949 | | Avg. Gas Price incl. Hedging (per Mcf) | $3.06 | $2.12 | | Total Production Costs (per Mcfe) | $0.80 | $0.84 | Capital Expenditures (in thousands) | Category | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Exploration and Development | $268,202 | $221,019 | [Consolidated Balance Sheets](index=8&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Comstock's balance sheet showed total assets of $6.69 billion, up from $6.38 billion at year-end 2024. Total liabilities increased to $4.26 billion from $4.05 billion over the same period, primarily due to an increase in long-term debt. Total stockholders' equity stood at $2.43 billion Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $268,979 | $284,034 | | Property and Equipment, net | $6,002,010 | $5,688,389 | | **Total Assets** | **$6,694,863** | **$6,382,097** | | Total Current Liabilities | $748,147 | $612,854 | | Long-term Debt | $3,018,009 | $2,952,090 | | **Total Liabilities** | **$4,259,996** | **$4,048,553** | | **Total Stockholders' Equity** | **$2,434,867** | **$2,333,544** | [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP measures to offer additional insight into its profitability and cash flow. For Q2 2025, Adjusted Net Income was $40.0 million, and Adjusted EBITDAX was $259.7 million. Operating Cash Flow was $209.6 million, while the company reported a free cash flow deficit of $79.0 million for the quarter, reflecting significant capital investment [Adjusted Net Income and Adjusted EBITDAX](index=6&type=section&id=Adjusted%20Net%20Income%20and%20Adjusted%20EBITDAX) After excluding a $231.6 million unrealized gain on derivatives, Q2 2025 Adjusted Net Income was $40.0 million, compared to an adjusted net loss of $58.2 million in Q2 2024. Adjusted EBITDAX for Q2 2025 increased to $259.7 million from $166.7 million in the prior-year quarter, reflecting improved operational performance before interest, taxes, and non-cash items Reconciliation of Adjusted Net Income (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net Income (Loss) | $130,728 | $(123,249) | | Unrealized (Gain) Loss on Derivatives | $(231,561) | $85,804 | | **Adjusted Net Income (Loss)** | **$40,040** | **$(58,214)** | Adjusted EBITDAX (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total Adjusted EBITDAX** | **$259,740** | **$166,705** | [Operating Cash Flow and Free Cash Flow](index=7&type=section&id=Operating%20Cash%20Flow%20and%20Free%20Cash%20Flow) Operating cash flow for Q2 2025 was $209.6 million, a significant increase from $118.1 million in Q2 2024. After accounting for $268.2 million in exploration and development capital expenditures and other items, the company had a free cash flow deficit from operations of $79.0 million for the quarter Cash Flow Summary (in thousands) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Operating Cash Flow | $209,636 | $118,134 | | Free Cash Deficit from Operations | $(78,990) | $(104,017) | [Earnings Call Information](index=3&type=section&id=Earnings%20Call%20Information) Comstock will host a conference call on July 31, 2025, at 10:00 a.m. Central Time to discuss the second quarter 2025 results. A live webcast and a subsequent replay will be available on the company's website - A conference call is scheduled for 10:00 a.m. Central Time on July 31, 2025[17](index=17&type=chunk) - Investors can access a live webcast and a replay via the company's website[17](index=17&type=chunk)[19](index=19&type=chunk)

Financial Performance - Comstock Resources reported natural gas production of 112 Bcf in Q2 2025, with sales totaling $344.3 million, including hedging gains of $4.3 million [4][10] - The company achieved an operating cash flow of $209.6 million and a net income of $130.7 million, translating to $0.44 per diluted share for the quarter [4][10] - For the first half of 2025, Comstock realized $3.31 per Mcf before hedging and $3.29 per Mcf after hedging, with total sales of $749.3 million [7][8] Cost and Margin Analysis - The average production cost per Mcfe in Q2 2025 was $0.80, with an unhedged operating margin of 73% and a hedged operating margin of 74% [5][8] - For the first six months of 2025, the average production cost per Mcfe was $0.82, maintaining a 75% operating margin [8] Drilling and Production Results - Comstock drilled twelve operated horizontal Haynesville/Bossier shale wells in Q2 2025, achieving an average lateral length of 10,388 feet and initial production rates averaging 36 MMcf per day [10][11] - The company has turned 21 wells to sales in 2025 in its Legacy Haynesville area, with an average lateral length of 11,803 feet and initial production rates of 25 MMcf per day [10] Strategic Initiatives - Comstock is collaborating with NextEra Energy Resources to explore the development of power generation assets near its Western Haynesville area, aiming to integrate its natural gas supply with energy solutions for data center customers [12]

Core Viewpoint - Comstock Resources (CRK) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with a consensus outlook suggesting a significant earnings picture that could influence its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.09 per share, reflecting a year-over-year increase of +145% [3]. - Revenues are projected to reach $415.32 million, marking a 68.3% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 15.96% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the deviation of actual earnings from consensus estimates, with positive readings being more reliable [9][10]. - Comstock currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Comstock exceeded the expected earnings of $0.16 per share by delivering $0.18, resulting in a surprise of +12.50% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [14]. Conclusion - While Comstock does not appear to be a strong candidate for an earnings beat, investors should consider other factors influencing stock performance ahead of the earnings release [17].

2024 Accomplishments - Natural gas prices averaged $1.98 per Mcf, a 30-year low excluding 2020[6] - The company increased its hedging program, improving realized gas price by 20% in 2024 and targeting 50% of expected production for 2025 and 2026[6] - The company added $100.5 million through an equity private placement and enhanced liquidity with a $400 million senior notes offering[6] - The company more than doubled its Western Haynesville acreage by adding 265,000 net acres at a cost of $401 per acre[6] - The company's drilling program replaced 170% of 2024 production and drove 6% reserve growth with 899 Bcfe of drilling related proved reserve additions, achieving an overall finding cost of $1.00 per Mcfe[6] Drilling and Efficiency - The company completed its first horseshoe well, the Sebastian 11 5, with a 9,382-foot lateral and a 31 MMcf per day initial production rate[11] - D&C costs for two 9,200-foot horseshoe laterals is $32 million or $1,740 per lateral foot, resulting in D&C Savings of $530 per lateral foot or 23%[11] - 13 operated Legacy Haynesville wells were turned to sales in Q1 2025 with an average lateral length of 12,367 ft and an average IP rate of 24 Mmcf/d[25] - One operated Western Haynesville well was turned to sales in Q1 2025 with a lateral length of 10,306 ft and an IP rate of 41 Mmcf/d[29] Financials and Outlook - The company spent $902 million in 2024 to add 899 Bcfe of Proved Reserves achieving all in finding costs of $1.00 per Mcfe[58] - As of March 31, 2025, the company had $33 million in cash and cash equivalents and $3.099 billion in total debt[62] - The company has strong financial liquidity of $1.0 billion[73]

Weather Forecasting and AI - The evolution of weather forecasting has transitioned from manual observation to advanced computer models, with AI significantly enhancing accuracy [2][20][21] - AI systems, like those developed by Google's DeepMind, outperform traditional models in 90% of tested cases, indicating a shift towards data-driven predictions [21] Financial Market Modeling - TradeSmith has developed an AI-powered system, TradeSmithGPT, which models market movements based on millions of financial data points, predicting optimal trading windows for stocks [4][5][22] - The system boasts a 75% accuracy rate for target prices, leveraging data to create real-world models of market behavior [22] Stock Picks and Market Trends - Comstock Resources Inc. (CRK) is projected to rise by 22% in the next 30 days, supported by an 85.2% historical target accuracy from TradeSmith's model [7][8] - e.l.f. Beauty Inc. (ELF) is expected to see a 15% upside due to its reliance on TikTok for marketing and recent positive developments regarding U.S.-China relations [15] - Robinhood Markets Inc. (HOOD) is forecasted to have a 13% upside, driven by its significant revenue from cryptocurrency trades, which accounted for 43% of total transaction-based revenues in Q1 2025 [16][17] Market Conditions and Investor Sentiment - Recent geopolitical events have led to an 18% increase in crude oil prices and a 27% rise in natural gas prices, impacting energy markets [7] - The share of bullish investors has increased to 37%, up from 21% in April, indicating improving investor sentiment [26]

Group 1: Stock Performance - Comstock Resources (CRK) shares increased by 9.1% to $28.86 in the last trading session, matching the same percentage gain over the past four weeks, with higher-than-average trading volume [1] - The stock price surge was influenced by Wolfe Research upgrading CRK from "Peer Perform" to "Outperform" and raising the price target to $34, indicating stronger long-term prospects for the company [2] Group 2: Company Developments - CRK's upgrade was based on positive developments, including successful resource expansion in the Western Haynesville region, recent land acquisitions, and technical improvements that have opened new drilling opportunities [2] - Encouraging well results suggest higher resource density and a larger inventory of future drilling sites, which are key drivers for future growth [2] - Analysts adjusted their valuation approach to emphasize the long-term resource base value, reflecting confidence in CRK's ability to benefit from expected natural gas price increases over the next year and a half [2] Group 3: Earnings Expectations - Comstock is expected to report quarterly earnings of $0.16 per share, representing a year-over-year increase of 180%, with revenues projected at $423.99 million, up 71.8% from the previous year [3] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Group 4: Industry Context - Comstock is part of the Zacks Oil and Gas - Exploration and Production - United States industry, which includes other companies like Viper Energy Partners (VNOM) [4] - VNOM's consensus EPS estimate has changed by +10.5% over the past month to $0.32, representing a decline of 47.5% from the previous year [5]

Core Insights - Zacks Premium provides various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [3] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [4][5][6][7] - Value Score identifies undervalued stocks using financial ratios [4] - Growth Score assesses a company's financial health and future growth potential [5] - Momentum Score capitalizes on existing price trends and earnings outlook [6] - VGM Score combines all three styles to provide a comprehensive evaluation of stocks [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that utilizes earnings estimate revisions to guide investment decisions [8] - Stocks rated 1 (Strong Buy) have historically achieved an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [9] - There are over 800 top-rated stocks available, making it essential for investors to utilize Style Scores for effective selection [10] Stock Example: Comstock Resources - Comstock Resources, Inc. is an independent oil and gas exploration and production company primarily operating in Texas and Louisiana [13] - The company currently holds a 3 (Hold) Zacks Rank with a VGM Score of B [13] - Comstock Resources has a Momentum Style Score of B, with shares increasing by 4.5% over the past four weeks [14] - Recent earnings estimates for fiscal 2025 have been revised upward, with the Zacks Consensus Estimate rising by $0.18 to $0.73 per share [14] - The company has an impressive average earnings surprise of 172.2%, making it a noteworthy option for investors [14]

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

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

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