Comstock Resources(CRK) - 2025 Q3 - Quarterly Results

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].