Financial Data and Key Metrics Changes - Natural gas and oil sales increased to $335 million, a 10% rise from Q3 2024 [6][11] - Adjusted EBITDA for the quarter was $249 million, with adjusted net income reported at $28 million or $0.09 per diluted share, compared to a loss in the same period in 2024 [7][11] - Operating cash flow generated was $190 million, equating to $0.65 per diluted share [7][11] Business Line Data and Key Metrics Changes - Production averaged 1.22 BCFE per day in Q3 2025, with a total of 36 wells turned to sales in the first nine months of the year [11][14] - Three new Western Haynesville wells were brought online, increasing the total to eight wells for 2025, with an average initial production rate of 32 million cubic feet per day [7][25] - In the legacy Haynesville, 28 wells were turned to sales with an average initial production rate of 25 million cubic feet per day [7][24] Market Data and Key Metrics Changes - The quarterly NYMEX settlement gas price averaged $3.07, while the average Henry Hub spot price was $3.03 [12] - Realized gas price during Q3 averaged $2.75, reflecting a $0.32 basis differential compared to the NYMEX settlement price [12] Company Strategy and Development Direction - The company is focusing on expanding its operations in the Western Haynesville to meet growing natural gas demand driven by LNG exports and AI data center power needs [4][32] - A divestiture of non-strategic assets is underway to improve the balance sheet, with proceeds aimed at retiring long-term debt [6][10] - The company plans to drill 19 wells and turn 13 wells to sales in the Western Haynesville in 2025, while also maintaining production in the legacy Haynesville [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future of natural gas, citing record LNG exports and the increasing demand for power generation [4][5] - The company anticipates continued improvements in drilling efficiencies and cost reductions in both the Western and legacy Haynesville areas [32] - Liquidity is strong, totaling over $900 million, which will be enhanced by the upcoming Shelby Trough divestiture [32] Other Important Information - The company has a total of 1,055,386 gross and 797,440 net acres in the Haynesville Bossier Shale, with significant resource potential identified [16] - The average lateral length of drilled wells has increased, with a focus on longer laterals to enhance production efficiency [20][23] Q&A Session Summary Question: Broader question around 2026 capital efficiency - Management indicated that efficiency gains in the legacy Haynesville are nearing their peak, while improvements in the Western Haynesville are still being realized [34][35] Question: Perspective on gas competition along the Gulf Coast - Management highlighted the advantage of owning midstream assets in the Western Haynesville, allowing for direct sales to end users and establishing reliable supply relationships [37][38] Question: Characterization of the Shelby Trough sale - Management described the sale as a win-win, allowing for debt reduction while maintaining a strong inventory position in the Western Haynesville [40][42] Question: Assumptions regarding Western Haynesville inventory - Management acknowledged conservative assumptions in inventory estimates, with ongoing efforts to optimize well spacing and unitization [44][45] Question: Optimization of acreage around 10,000-foot laterals - Management noted that geological structures and ownership issues currently limit the ability to optimize the entire position for longer laterals [46][48] Question: Update on Marquette Gas Treating Plant expansion - Management confirmed that the expansion to 1.3 Bcf/d was part of the original plan, with long lead times for equipment manufacturing [50][51] Question: Potential collaboration with Aethon - Management mentioned ongoing acreage swaps with Aethon to facilitate longer laterals, indicating a collaborative approach to enhance production [58][59]

Financial Performance - Natural gas and oil sales, including realized hedging gains, reached $335 million in Q3 2025[7] - Operating cash flow was $190 million, equivalent to $0.65 per diluted share[7] - Adjusted EBITDAX for Q3 2025 stood at $249 million[7] - Adjusted net income was $28 million, or $0.09 per diluted share, for the third quarter[7] Asset Divestitures - The company divested non-strategic Cotton Valley wells in East Texas and North Louisiana, generating net proceeds of $15 million[7,10] - An agreement was made to sell Shelby Trough assets in East Texas for $430 million in cash[7,10] Drilling and Production - Three Western Haynesville wells were brought online in Q3 2025, featuring an average lateral length of 8,566 feet and an average initial production rate of 32 MMcf per day[7] - In 2025, 28 wells were turned to sales in the Legacy Haynesville area, with an average lateral length of 11,919 feet and a per-well initial production rate of 25 MMcf per day[7,43] Capitalization and Liquidity - As of September 30, 2025, the company's total debt was $3169 million, with common equity at $2618 million[25] - The company maintains strong financial liquidity, exceeding $900 million, which is expected to increase following the Shelby Trough divestiture in December 2025[65]

Financial Performance - Comstock reported natural gas and oil sales of $335.0 million for Q3 2025, including realized hedging gains of $26.4 million[5]. - Operating cash flow for Q3 2025 was $190.4 million, translating to $0.65 per diluted share[6]. - Adjusted net income for Q3 2025 was $27.9 million, or $0.09 per diluted share, excluding a pre-tax unrealized gain on hedging contracts[5]. - Adjusted EBITDAX for Q3 2025 was $249 million[6]. - For the nine months ended September 30, 2025, total natural gas and oil sales reached $1.08 billion, including realized hedging losses of $22.7 million[9]. - Comstock's net income for the nine months ended September 30, 2025, was $133.4 million, or $0.45 per diluted share[9]. - Adjusted net income for the three months ended September 30, 2025, was $27,904,000, a significant recovery from a loss of $48,509,000 in the same period of 2024[30]. Production and Operations - The company turned 28 wells to sales in 2025 in its Legacy Haynesville area, with an average initial production rate of 25 MMcf per day[6]. - The company drilled 17 operated horizontal Haynesville/Bossier shale wells in Q3 2025, with an average lateral length of 11,692 feet[12]. - Natural gas production decreased by 16% year-over-year to 111,770 MMcf for the three months ended September 30, 2025, compared to 133,116 MMcf in 2024[27]. - Total natural gas and oil sales including hedging increased by 9.8% to $334,968,000 for the three months ended September 30, 2025, compared to $305,034,000 in 2024[27]. - Average natural gas price per Mcf rose to $2.75 for the three months ended September 30, 2025, up from $1.90 in 2024, reflecting a 44.7% increase[27]. - Gas services revenue surged to $141,265,000 for the three months ended September 30, 2025, compared to $50,847,000 in 2024, indicating a substantial growth[27]. Costs and Expenditures - Comstock's production cost per Mcfe in Q3 2025 averaged $0.77, with an unhedged operating margin of 72%[7]. - Free cash deficit from operations for the three months ended September 30, 2025, was $73,672,000, compared to a deficit of $44,125,000 in 2024[34]. - Total exploration and development capital expenditures increased to $267,110,000 for the three months ended September 30, 2025, from $184,392,000 in 2024, representing a 45% increase[34]. - Total production costs decreased to $85,843,000 for the three months ended September 30, 2025, down from $101,864,000 in 2024, reflecting a 15.7% reduction[27]. - Unhedged operating margin improved to 72% for the three months ended September 30, 2025, compared to 60% in 2024[27]. Balance Sheet and Assets - Total current assets increased to $268,853 million in September 2025 from $284,034 million in December 2024, reflecting a decrease of approximately 5.4%[37]. - Long-term debt rose to $3,126,015 million in September 2025, up from $2,952,090 million in December 2024, indicating an increase of about 5.9%[37]. - Total liabilities increased to $4,223,183 million in September 2025 compared to $4,048,553 million in December 2024, representing a growth of approximately 4.3%[37]. - Stockholders' equity attributable to Comstock grew to $2,360,264 million in September 2025, up from $2,241,023 million in December 2024, marking an increase of about 5.3%[37]. - Cash and cash equivalents significantly increased to $19,215 million in September 2025 from $6,799 million in December 2024, showing a growth of approximately 183.5%[37]. - Accounts payable rose to $455,282 million in September 2025, compared to $421,814 million in December 2024, reflecting an increase of about 7.9%[37]. - Accumulated earnings increased to $843,311 million in September 2025 from $728,619 million in December 2024, indicating a growth of approximately 15.7%[37]. - Total stockholders' equity reached $2,617,810 million in September 2025, up from $2,333,544 million in December 2024, representing an increase of about 12.2%[37]. - Other current assets decreased to $68,552 million in September 2025 from $97,524 million in December 2024, reflecting a decline of approximately 29.7%[37]. - Derivative financial instruments increased to $8,140 million in September 2025 from $4,865 million in December 2024, indicating a growth of about 67.5%[37].

Core Insights - Comstock Resources reported strong financial results for Q3 2025, driven by higher natural gas prices, with total natural gas and oil sales reaching $335 million, including realized hedging gains of $26.4 million [3][9] - The company achieved an operating cash flow of $190.4 million and a net income of $118.1 million, translating to $0.40 per diluted share [3][9] - Adjusted net income for the quarter was $27.9 million, or $0.09 per diluted share, after excluding certain items [3][9] Financial Performance - For Q3 2025, Comstock realized an average price of $2.99 per Mcf after hedging for its natural gas production of 112 Bcf [3][4] - The production cost per Mcfe averaged $0.77, with an unhedged operating margin of 72% and a hedged operating margin of 74% [4][7] - For the nine months ended September 30, 2025, total natural gas and oil sales amounted to $1.08 billion, with an operating cash flow of $639 million and a net income of $133.4 million [6][7] Production and Drilling Activities - Comstock turned 28 wells to sales in 2025, with an average lateral length of 11,919 feet and an initial production rate of 25 MMcf per day [9][10] - In Q3 2025, the company drilled 17 operated horizontal Haynesville/Bossier shale wells, achieving an average lateral length of 11,692 feet [10] - The company divested non-strategic Cotton Valley wells for net proceeds of $15 million and entered into an agreement to sell Shelby Trough assets for $430 million [9][14] Divestitures - On September 2, 2025, Comstock sold its legacy Cotton Valley wells for net proceeds of $15.2 million, which included interests in 883 wells [13] - The agreement to divest Shelby Trough properties includes interests in 155 producing wells and approximately 36,000 net acres, with expected proceeds to reduce long-term debt [14] Operational Metrics - The average natural gas price for Q3 2025 was $2.75 per Mcf, compared to $1.90 in Q3 2024, reflecting a significant year-over-year increase [24] - Total production for Q3 2025 was 111,837 MMcfe, down from 133,198 MMcfe in Q3 2024 [24] - The company reported a total of 111,770 MMcf of natural gas production for Q3 2025, compared to 133,116 MMcf in the same period last year [24]

Core Insights - The third-quarter earnings season is underway, with energy companies like Comstock Resources Inc., Williams, and Marathon Petroleum Corp. expected to report better-than-expected earnings due to a favorable energy business environment in the September quarter [1] Oil & Gas Pricing Analysis - Average WTI spot prices for July, August, and September were $68.39, $64.86, and $63.96 per barrel, respectively, indicating a healthier pricing environment compared to the previous quarter [2] - Year-over-year, the pricing environment was less favorable, with average prices in July, August, and September 2024 at $81.80, $76.68, and $70.24 per barrel, respectively [3] - Natural gas prices in the September quarter of 2025 were higher than in the same period of 2024, with Henry Hub average prices at $3.20, $2.91, and $2.97 per million Btu [4] Stock Selection Strategy - Identifying stocks with potential for better-than-expected earnings is challenging, but a combination of positive Earnings ESP and Zacks Rank can help [5] - Stocks with this combination have a 70% chance of delivering an earnings surprise [6] Company-Specific Insights - Comstock Resources, a leading natural gas producer, is expected to benefit from favorable commodity pricing, with an Earnings ESP of +2.86% and a Zacks Rank of 3, scheduled to report on Nov. 3 [8] - Williams, known for its midstream operations, is anticipated to benefit from stable cash flows and higher natural gas prices, with an Earnings ESP of +0.56% and a Zacks Rank of 3, also reporting on Nov. 3 [9] - Marathon Petroleum, a leading refiner, is likely to gain from lower year-over-year oil prices, with an Earnings ESP of +8.68% and a Zacks Rank of 3, set to report on Nov. 4 [10]

Core Viewpoint - Comstock Resources (CRK) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, supported by a strong history of exceeding expectations [1]. Earnings Performance - Comstock has a solid track record of surpassing earnings estimates, with an average surprise of 28.47% over the last two quarters [2]. - In the last reported quarter, Comstock achieved earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, resulting in a surprise of 44.44% [3]. - For the previous quarter, the company was expected to report earnings of $0.16 per share but delivered $0.18 per share, yielding a surprise of 12.50% [3]. Earnings Estimates and Predictions - Recent estimates for Comstock have been trending upward, indicating positive sentiment among analysts [6]. - The Zacks Earnings ESP (Expected Surprise Prediction) for Comstock is currently positive, suggesting a strong likelihood of an earnings beat [6][9]. - 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 [7]. Earnings ESP Details - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [8]. - Comstock's current Earnings ESP stands at +3.17%, indicating increased analyst optimism regarding its near-term earnings potential [9]. - The next earnings report for Comstock is anticipated to be released on November 3, 2025 [9].

Core Insights - Comstock Resources, Inc. (NYSE:CRK) experienced a significant decline in share price, falling by 12.95% from October 3 to October 10, 2025, making it one of the worst-performing energy stocks during that week [1] - The company is a prominent independent natural gas producer, primarily focused on the Haynesville shale development in North Louisiana and East Texas [2] - A recent surge in natural gas prices, driven by seasonal demand for heating, was followed by a decline of over 6% in prices this week, indicating potential profit-taking by investors [3] - The overall market decline, influenced by escalating trade tensions between China and the US, also negatively affected Comstock Resources, with China imposing stricter export controls on rare-earths and the US threatening additional tariffs [4]

Core Insights - Comstock Resources, Inc. (NYSE:CRK) experienced a share price increase of 9.24% from September 25 to October 2, 2025, making it one of the top-performing energy stocks during that week [1] - The company is a prominent independent natural gas producer, primarily focused on the Haynesville shale development in North Louisiana and East Texas [2] - The surge in Comstock's share price is attributed to a significant rise in natural gas prices, with US natural gas futures increasing by over 30% during the week [3] - The increase in natural gas prices is expected as colder months approach, leading to higher demand for heating [3] - Recent EIA storage data indicated a bullish trend, with natural gas inventories rising by only 53 billion cubic feet (bcf) for the week ending September 26, which was below the expected 67 bcf and the five-year average build of 85 bcf [3] - Over the past year, Comstock's share price has appreciated by 77% [4]

Core Points - Comstock Resources, Inc. plans to release its third quarter 2025 results on November 3, 2025, after market close [1] - A conference call to discuss the results will be held on November 4, 2025, at 10:00 a.m. CT [1] - The company is a leading independent natural gas producer focused on the Haynesville Shale development in North Louisiana and East Texas [4] Conference Call Details - Interested parties must register to participate in the conference call via a provided link [2] - The conference call will be available in listen-only mode through a specific website URL [3] - A replay of the conference call will be accessible for twelve months starting at 1:00 p.m. CT on November 4, 2025 [3] Company Information - Comstock Resources operates primarily in the natural gas sector, emphasizing the Haynesville Shale region [4] - Financial results presentations will be available on the company's website [4]

Group 1 - The article discusses the analysis of oil and gas companies, specifically Comstock Resources, focusing on identifying undervalued companies in the sector [1] - It highlights the cyclical nature of the oil and gas industry, emphasizing the importance of patience and experience for investors [2] - The author has a beneficial long position in Comstock Resources, indicating a personal investment interest in the company [3] Group 2 - The article serves as an example of the detailed analysis provided to members of the Oil & Gas Value Research service, which includes insights on balance sheets, competitive positions, and development prospects [1] - The commentary on Comstock Resources includes observations about a significant stock pullback after reaching a recent high, reflecting market volatility [2]