Comstock Resources(US:CRK)2025-11-04 20:10Revenue and Sales Performance - Natural gas and oil sales for Q3 2025 were $308.6 million, an increase of $55.0 million (22%) compared to Q3 2024's $253.6 million, primarily due to higher natural gas prices [96]. - Average realized natural gas price increased by 45% to $2.75 per Mcf in Q3 2025 from $1.90 per Mcf in Q3 2024 [96]. - For the nine months ended September 30, 2025, natural gas and oil sales reached $1.06 billion, up $302.4 million (40%) from $759.2 million in the same period of 2024 [98]. - Gas services revenue increased by $90.4 million (178%) to $141.3 million in Q3 2025 from $50.8 million in Q3 2024 [99]. Production and Operational Metrics - Natural gas production for Q3 2025 decreased by 16% to 111.8 Bcf compared to 133.1 Bcf in Q3 2024 [96]. - Production and ad valorem taxes decreased by $1.4 million (11%) to $11.2 million in Q3 2025 due to lower production levels [100]. - Gathering and transportation costs fell by $14.0 million (26%) to $40.0 million in Q3 2025 compared to $54.0 million in Q3 2024 [101]. Expenses and Financial Performance - General and administrative expenses rose to $11.5 million in Q3 2025, up from $9.9 million in Q3 2024, driven by higher employee compensation [106]. - Interest expense increased to $56.7 million in Q3 2025 from $54.5 million in Q3 2024, primarily due to increased borrowings [108]. - For the quarter ended September 30, 2025, the company reported net income of $118.1 million, or $0.40 per diluted share, compared to a net loss of $25.7 million, or $0.09 per share, for the same quarter in 2024 [112]. - Income from operations for the first nine months of 2025 was $265.8 million, a significant increase from a loss of $61.3 million in the same period of 2024 [112]. - Cash provided by operating activities increased by $322.1 million (91%) to $675.4 million in the first nine months of 2025, driven primarily by higher natural gas prices [115]. Capital and Liquidity - The company had $939.2 million in liquidity as of September 30, 2025, consisting of $920 million in unused borrowing capacity and $19.2 million in cash [123]. - Capital expenditures for the first nine months of 2025 totaled $978.4 million, compared to $788.5 million in the same period of 2024 [122]. - The company plans to spend an additional $250 million to $350 million in the remaining three months of 2025 on drilling, completion, and infrastructure activities [122]. - As of September 30, 2025, the company had $580.0 million outstanding under its bank credit facility, with total commitments of $1.5 billion [126]. Debt and Financial Instruments - As of September 30, 2025, the company had approximately $3.2 billion in long-term debt, with $965.0 million at a fixed rate of 5.875% and $1.62 billion at a fixed rate of 6.75% [137]. - The company has natural gas price swaps hedging approximately 50.1 Bcf of 2025 production at an average price of $3.48 per MMBtu [134]. - The company entered into an agreement to sell certain producing wells and undeveloped leasehold acreage in East Texas for $430 million, expected to close in Q4 2025 [129].