COMSTOCK RESOURCES, INC. REPORTS THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS

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]