Comstock Resources(US:CRK)2026-02-11 21:23Financial Performance - In Q4 2025, Comstock realized $3.27 per Mcf for natural gas production of 111 Bcf, leading to total natural gas and oil sales of $364.0 million[5]. - Operating cash flow for Q4 2025 was $222.3 million, with net income of $286.8 million or $0.97 per diluted share, including a pre-tax gain of $292.3 million from the sale of Shelby Trough properties[5][6]. - Total revenues for the three months ended December 31, 2025, were $789.814 million, a significant increase from $366.471 million in the same period of 2024, representing a growth of 115.5%[29]. - Natural gas sales reached $366.440 million for the three months ended December 31, 2025, compared to $287.626 million in 2024, marking a 27.4% increase[29]. - Operating income for the year ended December 31, 2025, was $645.852 million, a turnaround from an operating loss of $168.615 million in 2024[29]. - Net income attributable to Comstock for the three months ended December 31, 2025, was $280.919 million, compared to a net loss of $58.129 million in the same period of 2024[29]. - Net income for Q4 2025 was $286.8 million, a significant improvement from a net loss of $55.3 million in Q4 2024[38]. - Operating cash flow for the year ended December 31, 2025, reached $861.3 million, up from $675.2 million in 2024, reflecting a 27.5% increase[38]. - Free cash flow after acquisition and divestiture activity for the year was $154.6 million, a turnaround from a deficit of $359.2 million in 2024[38]. Production and Reserves - Comstock turned 35 wells to sales in 2025 in its legacy Haynesville area, with an average initial production rate of 25 MMcf per day[6]. - Proved natural gas and oil reserves as of December 31, 2025, were estimated at 7.0 trillion cubic feet equivalent (Tcfe), up from 3.8 Tcfe in 2024[17]. - Comstock replaced 823% of its 2025 production under SEC pricing and 229% under NYMEX pricing[19]. - Comstock's average initial production rate for wells turned to sales in 2025 was 27 MMcf per day, with an average lateral length of 11,187 feet[13]. - Natural gas production for the year ended December 31, 2025, was 450.202 MMcf, down from 527.548 MMcf in 2024, indicating a decrease of 14.7%[31]. Costs and Margins - Average production cost per Mcfe in Q4 2025 was $0.77, with unhedged and hedged operating margins at 77%[8]. - Total production costs per Mcfe for the year ended December 31, 2025, were $0.79, slightly up from $0.78 in 2024[31]. - The company reported a hedged operating margin of 77% for Q4 2025, up from 73% in Q4 2024[31]. - Adjusted net income for Q4 2025 was $46 million or $0.16 per diluted share, excluding certain items[7]. - Adjusted net income for the three months ended December 31, 2025, was $46.118 million, compared to $46.258 million in the same period of 2024[34]. Capital Expenditures and Investments - The company plans to increase the number of operating drilling rigs from eight to nine in 2026, with a budget of approximately $1.4 billion to $1.5 billion for development and exploration projects[21]. - Capital expenditures for exploration and development totaled $269.791 million for the three months ended December 31, 2025, compared to $240.433 million in 2024[31]. Assets and Liabilities - Total current assets increased to $360.9 million in December 2025, compared to $284.0 million in December 2024, marking a 27% growth[41]. - Property and equipment, net, rose to $6.2 billion in December 2025, up from $5.7 billion in December 2024, indicating a 9.3% increase[41]. - Total liabilities decreased slightly to $4.0 billion in December 2025 from $4.0 billion in December 2024, showing a stable financial position[41]. - Cash and cash equivalents increased to $23.9 million in December 2025, compared to $6.8 million in December 2024, representing a 251% increase[41]. - Accounts receivable rose to $242.5 million in December 2025, up from $174.8 million in December 2024, reflecting a 38.8% increase[41]. Other Financial Metrics - The company reported a free cash deficit from operations of $66.8 million for Q4 2025, compared to a deficit of $32.3 million in Q4 2024[38]. - Contributions from midstream partnerships increased significantly to $59.0 million in Q4 2025, compared to $24.5 million in Q4 2024, a 140% increase[38].