Part I [Business](index=7&type=section&id=Item%201.%20Business) Comstock Resources is an independent natural gas producer focused on Haynesville and Bossier shale, strategically developing reserves and managing risk, with 4.9 Tcfe proved reserves [Business Overview and Strategy](index=7&type=section&id=Business%20Overview%20and%20Strategy) The company is a leading natural gas producer focused on the Haynesville and Bossier shale, pursuing strategic growth and financial discipline - Comstock is a leading independent natural gas producer with operations primarily in the Haynesville and Bossier shale, which constituted **99% of its proved reserves** as of December 31, 2023[58](index=58&type=chunk) - The company's business strategy focuses on prudently growing cash flow and reserves through developing high-return drilling locations, expanding its reserve base via exploration in the Western Haynesville play, pursuing strategic acquisitions, maintaining financial discipline, focusing on environmental stewardship, and managing commodity price exposure through hedging[65](index=65&type=chunk) - As of December 31, 2023, Comstock has identified **2,959 drilling locations (1,463 net)**, providing decades of potential drilling activity[65](index=65&type=chunk) - In 2023, the company spent **$1.3 billion** on exploration and development, drilling **71 wells (55.5 net)** and replacing **109%** of its 2023 production[63](index=63&type=chunk) [Property Transactions and Midstream Ventures](index=8&type=section&id=Property%20Transactions%20and%20Midstream%20Ventures) The company expanded acreage in Western Haynesville and formed a midstream partnership for development financing - In 2023, Comstock added **79,741 net acres** in the Western Haynesville through a leasing program at a cost of **$98.6 million**[65](index=65&type=chunk) - The company sold non-operated wells for **$41.3 million** in 2023, following a **$138.1 million** sale of its Bakken shale properties in 2021[68](index=68&type=chunk) - On October 31, 2023, Comstock formed Pinnacle Gas Services LLC, a midstream partnership with Quantum Capital Solutions, to finance the buildout of natural gas gathering and treating facilities for its Western Haynesville development, with Quantum agreeing to fund up to **$300 million**[67](index=67&type=chunk) [Natural Gas and Oil Reserves](index=9&type=section&id=Natural%20Gas%20and%20Oil%20Reserves) Proved reserves as of 2023 totaled 4.9 Tcfe with a PV-10 value of $2.5 billion, impacted by lower gas prices Proved Reserves as of December 31, 2023 (SEC Prices) | Reserve Type | Oil (Thousand Barrels) | Natural Gas (Million Cubic Feet) | Total (Million Cubic Feet Equivalent) | PV-10 Value (Thousands of Dollars) | | :--- | :--- | :--- | :--- | :--- | | **Proved Developed** | 548 | 2,734,175 | 2,737,466 | $2,185,796 | | **Proved Undeveloped** | — | 2,206,051 | 2,206,051 | $315,900 | | **Total Proved** | **548** | **4,940,226** | **4,943,517** | **$2,501,696** | Historical Proved Reserves (Total) | Year | Oil (Thousand Barrels) | Natural Gas (Million Cubic Feet) | | :--- | :--- | :--- | | **2023** | 548 | 4,940,226 | | **2022** | 549 | 6,697,570 | | **2021** | 627 | 6,118,083 | - Proved undeveloped reserves decreased by **2.0 Trillion cubic feet** in 2023, primarily because 164 undeveloped locations were no longer economic at the SEC-prescribed low natural gas prices[78](index=78&type=chunk) - A sensitivity analysis using alternative higher prices ($3.24 per Mcf gas, $69.39 per Barrel oil) shows total proved reserves would be **6.6 Tcfe** with a PV-10 value of **$5.2 billion**, compared to **4.9 Tcfe** and **$2.5 billion** under SEC prices[85](index=85&type=chunk) [Production, Drilling, and Acreage](index=14&type=section&id=Production,%20Drilling,%20and%20Acreage) The company increased natural gas production in 2023 despite lower prices, maintaining significant acreage Annual Production and Average Prices | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Natural Gas Production (Thousand Cubic Feet)** | 524,467 | 500,616 | 489,274 | | **Oil Production (Barrel)** | 70 | 82 | 1,210 | | **Avg. Gas Price ($/Thousand Cubic Feet)** | $2.40 | $6.23 | $3.63 | | **Avg. Oil Price ($/Barrel)** | $73.73 | $92.65 | $61.95 | Drilling Activity (Gross Wells) | Well Type | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Development** | 64 | 116 | 100 | | **Exploratory** | 7 | 2 | 0 | | **Total** | **71** | **118** | **100** | - As of December 31, 2023, the company held **319,274 net developed acres** and **292,832 net undeveloped acres**, primarily in Louisiana and Texas[100](index=100&type=chunk) [Markets, Customers, and Regulation](index=17&type=section&id=Markets,%20Customers,%20and%20Regulation) Sales are concentrated among a few customers, and operations are subject to extensive federal and state regulations - In 2023, three customers accounted for a significant portion of total sales: Enterprise Products Operating (**20%**), Southwest Energy L.P. (**17%**), and Venture Global LNG, Inc. (**10%**)[104](index=104&type=chunk) - The company's operations are subject to extensive federal and state regulations covering natural gas transportation (FERC), environmental protection (EPA rules on air, water, and waste), and production practices[107](index=107&type=chunk)[109](index=109&type=chunk)[120](index=120&type=chunk) - The Inflation Reduction Act (IRA) established the Methane Emission Reduction Program, imposing a federal fee on methane emissions from the oil and gas sector starting in 2024, which the company does not expect to have a material adverse effect[142](index=142&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from volatile natural gas prices, reserve replacement challenges, substantial capital needs, and stringent environmental regulations - The business is heavily dependent on volatile natural gas prices, and a prolonged period of depressed prices would adversely affect financial condition, cash flow, and ability to fund capital expenditures[174](index=174&type=chunk) - Future production and revenue depend on the ability to find, develop, or acquire additional economically recoverable reserves, which requires significant capital and is not guaranteed to be successful[175](index=175&type=chunk)[177](index=177&type=chunk) - The company is subject to stringent and changing environmental regulations, including those related to climate change and ESG practices, which could increase costs, restrict operations, and impact access to capital[179](index=179&type=chunk)[181](index=181&type=chunk)[186](index=186&type=chunk) - As of December 31, 2023, the company had **$2.7 billion** in principal debt, and its debt agreements contain covenants that limit borrowing, investments, and dividend payments[195](index=195&type=chunk)[197](index=197&type=chunk) - Cybersecurity threats pose a risk of operational disruptions, unauthorized release of confidential information, and corruption of data, which could have a material adverse effect on the business[210](index=210&type=chunk) [Unresolved Staff Comments](index=37&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[218](index=218&type=chunk) [Cybersecurity](index=37&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk management is integrated into the enterprise framework with Board oversight, despite past compromise attempts - The company's cybersecurity risk management is integrated into its enterprise risk framework and includes regular assessments, vulnerability scans, and penetration tests[220](index=220&type=chunk)[221](index=221&type=chunk) - The Audit Committee of the Board of Directors provides oversight for cybersecurity risk management, receiving regular updates from IT management[225](index=225&type=chunk) - The company has experienced attempts to compromise its systems, such as phishing and malware, but does not believe these have resulted in a material adverse effect on the business[223](index=223&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) Information regarding the company's properties is incorporated by reference from Item 1 - The information required for this item is incorporated by reference from Item 1. Business[226](index=226&type=chunk) [Legal Proceedings](index=38&type=section&id=Item%203.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect - The company is not a party to any legal proceedings expected to have a material adverse effect[227](index=227&type=chunk) [Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company - Not applicable[228](index=228&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=39&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity,%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE under 'CRK', paying quarterly dividends, with performance compared to market indices - Common stock is listed on the New York Stock Exchange under the symbol "**CRK**"[232](index=232&type=chunk) - During 2023, the company paid quarterly cash dividends on its common stock of **$0.125 per share**[232](index=232&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net income decreased significantly in 2023 due to lower natural gas prices, despite increased production, with strong liquidity and planned 2024 capital expenditures [Results of Operations](index=41&type=section&id=Results%20of%20Operations) Natural gas and oil sales significantly decreased in 2023 due to lower prices, despite increased production volume Financial Performance Comparison (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | **Natural Gas & Oil Sales** | $1.3 billion | $3.1 billion | | **Net Income to Common Stockholders** | $211.9 million | $1.1 billion | | **Diluted EPS** | $0.76 | $4.11 | | **Average Realized Gas Price (per Thousand Cubic Feet)** | $2.40 | $6.23 | | **Gas Production (Billion Cubic Feet)** | 524.5 | 500.6 | - The **60% decrease** in natural gas and oil sales in 2023 was primarily due to lower realized prices for natural gas production, which was partially offset by a **5% increase** in production volume[246](index=246&type=chunk) - DD&A expense increased by **24%** to **$607.9 million** in 2023, with the rate rising to **$1.16 per Mcfe** from **$0.98 per Mcfe** in 2022, due to higher drilling costs for new wells and lower estimated proved reserves from low year-end gas prices[254](index=254&type=chunk) - The company recognized a net gain on derivative financial instruments of **$187.6 million** in 2023, compared to a net loss of **$662.5 million** in 2022[256](index=256&type=chunk) [Cash Flows, Liquidity and Capital Resources](index=44&type=section&id=Cash%20Flows,%20Liquidity%20and%20Capital%20Resources) Operating cash flow decreased due to lower gas prices, while liquidity remains strong with planned 2024 capital expenditures - Net cash from operating activities decreased by **40%** to **$1.0 billion** in 2023 from **$1.7 billion** in 2022, primarily due to lower realized natural gas prices[263](index=263&type=chunk) Capital Expenditures (in thousands) | Category | 2023 | 2022 | | :--- | :--- | :--- | | **Acquisitions (Unproved)** | $98,553 | $54,120 | | **Exploration & Development** | $1,370,362 | $1,087,272 | | **Total Capital Expenditures** | **$1,406,547** | **$1,106,047** | - For 2024, the company expects to spend approximately **$750 million to $850 million** on development and exploration projects, primarily in the Haynesville/Bossier shale[268](index=268&type=chunk) - As of December 31, 2023, the company had **$1.0 billion** of liquidity, consisting of **$1.0 billion** of unused capacity under its bank credit facility and **$16.7 million** in cash[272](index=272&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting policies involve the successful efforts method, reserve estimation, impairment assessments, and goodwill review - The company uses the successful efforts method of accounting, capitalizing costs for successful exploration and development while expensing costs for unsuccessful exploration[280](index=280&type=chunk) - The estimation of proved natural gas and oil reserve quantities is a critical and subjective process that significantly impacts depreciation, depletion, and amortization (DD&A) expense and impairment calculations[281](index=281&type=chunk) - Proved properties are evaluated for impairment when circumstances indicate the carrying value may not be recoverable, with assessment involving significant judgment using estimated future cash flows based on projections of prices, production volumes, and costs[285](index=285&type=chunk) - Goodwill of **$335.9 million** is reviewed annually for impairment, with a quantitative assessment as of October 1, 2023, determining there was no impairment[286](index=286&type=chunk)[287](index=287&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are volatile commodity prices, mitigated by hedging, and interest rate exposure on variable-rate debt - The company's financial condition is highly dependent on volatile natural gas and oil prices[292](index=292&type=chunk) - As of December 31, 2023, the company had natural gas price swap agreements to hedge **146.4 Billion cubic feet** of its 2024 production at an average price of **$3.55 per Million British thermal units**[293](index=293&type=chunk) - At year-end 2023, the company had **$2.7 billion** in long-term debt, of which **$480.0 million** under the bank credit facility is subject to variable interest rates tied to SOFR or an alternate base rate[295](index=295&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Consolidated financial statements are included in the report and have been audited by Ernst & Young LLP - The company's consolidated financial statements are included on pages F-1 to F-25 of the report[296](index=296&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=52&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes or disagreements with its accountants - None[302](index=302&type=chunk) [Controls and Procedures](index=52&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management and auditors concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[305](index=305&type=chunk) - Management assessed the company's internal control over financial reporting as effective as of December 31, 2023, based on the COSO criteria[307](index=307&type=chunk) - Ernst & Young LLP, the independent registered public accounting firm, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[308](index=308&type=chunk)[311](index=311&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=54&type=section&id=Item%2010.%20Directors,%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the proxy statement - Information regarding directors, executive officers, and corporate governance is incorporated by reference from the forthcoming definitive proxy statement[322](index=322&type=chunk) - The company has adopted a Code of Business Conduct and Ethics and a Code of Ethics for Senior Financial Officers, both available on its website[324](index=324&type=chunk) [Executive Compensation](index=54&type=section&id=Item%2011.%20Executive%20Compensation) Information on executive compensation is incorporated by reference from the definitive proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement[325](index=325&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=54&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Equity compensation plan information as of December 31, 2023, is provided, with further details incorporated by reference Equity Compensation Plan Information as of December 31, 2023 | Plan Category | Securities to be issued upon exercise of outstanding options, warrants and rights | Securities authorized for future issuance under equity compensation plans | | :--- | :--- | :--- | | **Equity compensation plans approved by stockholders** | 1,521,802 | 3,262,987 | - The company does not have any equity compensation plans that were not approved by stockholders[327](index=327&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=55&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference - Information required by this item is incorporated by reference from the company's definitive proxy statement[329](index=329&type=chunk) [Principal Accountant Fees and Services](index=55&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information on principal accountant fees and services is incorporated by reference from the definitive proxy statement - Information required by this item is incorporated by reference from the company's definitive proxy statement[330](index=330&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements and provides an index of all exhibits filed with the Form 10-K - This section lists the consolidated financial statements and all exhibits filed with the report[333](index=333&type=chunk)[334](index=334&type=chunk) [Form 10-K Summary](index=58&type=section&id=Item%2016.%20Form%2010-K%20Summary) This section is not applicable - Not applicable[339](index=339&type=chunk)

Comstock Resources, Inc. (CRK) is caught in plunging commodity prices. This Zacks Rank #5 (Strong Sell) has suspended its dividend due to weak natural gas prices.Comstock Resources is an independent natural gas producer with operations in the Haynesville shale in North Louisiana and East Texas. It has a $2 billion market cap.Third Miss in a Row in the Fourth Quarter 2023On Feb 13, 2024, Comstock Resources reported its fourth quarter 2023 results and missed for the third quarter in a row. Earnings were $0.10 ...

Comstock Resources, Inc. (NYSE:CRK) Q4 2023 Earnings Conference Call February 14, 2024 11:00 AM ET Company Participants Jay Allison - Chairman and Chief Executive Officer Roland Burns - President and Chief Financial Officer Daniel Harrison - Chief Operating Officer Conference Call Participants Derrick Whitfield - Stifel Financial Charles Meade - Johnson Rice Fernando Zavala - Pickering Energy Partners Jacob Roberts - TPH&Co. Bertrand Donnes - Truist Financial Phillips Johnston - Capital One Securities Leo M ...

Comstock Resources (CRK) reported $410.58 million in revenue for the quarter ended December 2023, representing a year-over-year decline of 55.5%. EPS of $0.10 for the same period compares to $1.05 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $418.94 million, representing a surprise of -2.00%. The company delivered an EPS surprise of -37.50%, with the consensus EPS estimate being $0.16.While investors closely watch year-over-year changes in headline numbers -- revenue and earni ...

Comstock Resources (CRK) came out with quarterly earnings of $0.10 per share, missing the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $1.05 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -37.50%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.06 per share when it actually produced earnings of $0.04, delivering a surprise of -33.33%.Over the last four quarte ...

Wall Street expects a year-over-year decline in earnings on lower revenues when Comstock Resources (CRK) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Februa ...

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 September 30, 2023 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. Yes ☒ No ☐ (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) N ...

Comstock Resources, Inc. (NYSE:CRK) Q3 2023 Earnings Conference Call October 31, 2023 11:00 AM ET Company Participants Miles Allison - Chairman & CEO Roland Burns - President, CFO, Secretary & Director Daniel Harrison - COO Ron Mills - VP, Finance & IR Conference Call Participants Derrick Whitfield - Stifel Charles Meade - Johnson Rice & Company Jacob Roberts - TPH & Company Bertrand Donnes - Truist Securities Phillips Johnston - Capital One Securities Fernando Zavala - Pickering Energy Partners Leo Mariani ...

Financial Performance - Natural gas and oil sales for Q2 2023 were $229.8 million, a decrease of $631.6 million (73%) compared to $861.3 million in Q2 2022, primarily due to lower natural gas prices[23] - Average realized natural gas price for Q2 2023 was $1.81 per Mcf, down from $6.93 per Mcf in Q2 2022, representing a decline of 74.9%[24] - Net loss available to common stockholders for Q2 2023 was $45.7 million or $0.17 per share, compared to net income of $372.5 million or $1.36 per diluted share in Q2 2022[45] Operating Expenses - Lease operating expenses increased by $9.0 million (36%) to $34.0 million in Q2 2023 from $25.1 million in Q2 2022, attributed to higher water disposal and production costs[25] Capital Expenditures - Total capital expenditures for the first six months of 2023 were $714.9 million, an increase of $183.6 million (34.6%) from $531.3 million in the same period of 2022[29] - The company expects to fund future development and exploration activities through operating cash flow and borrowings under its bank credit facility, indicating flexibility in capital expenditures[30] Cash Flow - Cash flows from operating activities increased by $21.3 million (3%) to $717.9 million in the first six months of 2023 from $696.5 million in the same period in 2022[46] Debt and Financing - As of June 30, 2023, the company had approximately $2.2 billion in long-term debt, with $965.0 million at a fixed interest rate of 5.875% and $1.22 billion at 6.75%[183] Hedging Activities - The company had natural gas price collars hedging approximately 46.0 Bcf of 2023 production with an average floor price of $3.00 per MMBtu and ceiling price of $10.28 per MMBtu[33] Dividends - A dividend of $0.125 per share was authorized by the board of directors to be paid on September 15, 2023, to common stockholders of record on September 1, 2023[40]

Financial Data and Key Metrics Changes - In Q2 2023, production was 1.4 Bcfe per day, a 2% increase compared to Q2 2022. However, oil and gas sales were $285 million, down 53% year-over-year due to low natural gas prices [29][30] - For the first half of 2023, production averaged 1.4 Bcf per day, a 6% increase from the same period in 2022, while oil and gas sales totaled $676 million, a 33% decrease [30] - Adjusted net income for Q2 2023 was $1 million, compared to $274 million in Q2 2022, and for the first half of 2023, it was $93 million, down from $409 million in the prior year [29][30] Business Line Data and Key Metrics Changes - The company turned 17 successful operated wells to sales in Q2 2023, with an average lateral length of 10,887 feet, and connected 15 wells to sales since the last conference call [45][46] - The average initial production (IP) rate for the wells turned to sales was 21 million cubic feet equivalent per day [45] - D&C costs averaged $1,523 per foot in Q2 2023, a 4% decrease from Q1 2023, but a 15% increase compared to the full year 2022 [38] Market Data and Key Metrics Changes - The average NYMEX settlement price for natural gas in Q2 2023 was $2.10, with realized gas prices averaging $1.81, reflecting a $0.29 differential [31][48] - The company is 49% hedged, which improved the realized gas price to $2.25 [48] Company Strategy and Development Direction - The company is focused on expanding its acreage position in the Western Haynesville and plans to turn another 37 wells to sales by year-end 2023 [24][36] - The strategy includes managing drilling activity levels in response to low natural gas prices while maintaining a strong balance sheet and financial liquidity [71][72] - The company aims to benefit from the anticipated growth in LNG demand, projecting an increase from 12 Bcf per day to 21 Bcf by 2027 [28][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future natural gas prices due to increasing LNG demand, despite current challenges from low prices and high drilling costs [27][42] - The company is committed to maintaining a strong balance sheet and financial liquidity, which totaled around $1.5 billion at the end of Q2 2023 [72] Other Important Information - The company plans to retain a quarterly dividend of $0.125 per common share [72] - D&C CapEx for Q3 2023 is expected to range between $240 million to $280 million, with full-year guidance remaining unchanged at $950 million to $1.15 billion [73] Q&A Session Summary Question: Details on Western Haynesville wells - Management highlighted the importance of well performance metrics beyond initial production rates, emphasizing ongoing evaluations of well productivity and operational efficiencies [62][64] Question: Production guidance trajectory - Management indicated that the exit rate for the year could exceed 1.5 Bcf per day, depending on the timing of well turnarounds [103][105] Question: Hedging strategy for 2024 - The company typically hedges around 40% of its production and is actively monitoring market conditions to secure revenue streams [125] Question: D&C cost changes - Management noted that efficiency improvements in frac crews and longer lateral lengths contributed to a decrease in D&C costs, despite some costs remaining stable [131][133]