EX-99.1 2 crk-ex99_1.htm EX-99.1 EX-99.1

 

Exhibit 99.1

img15376905_0.jpg

5300 Town and Country Blvd., Suite 500

Frisco, Texas 75034

Telephone: (972) 668-8834

Contact: Ron Mills

VP of Finance and Investor Relations

Web Site: www.comstockresources.com

 

NEWS RELEASE

For Immediate Release

COMSTOCK RESOURCES, INC. REPORTS

FIRST QUARTER 2025 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, April 30, 2025 – Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter ended March 31, 2025.

Highlights of 2025's First Quarter

•
Higher natural gas prices in the first quarter drove improved financial results in the quarter.
•
Natural gas and oil sales, including realized hedging gains, were $405 million for the quarter.
•
Operating cash flow was $239 million or $0.81 per diluted share.
•
Adjusted EBITDAX for the quarter was $293 million.
•
Adjusted net income was $53.8 million or $0.18 per diluted share for the quarter.
•
Comstock resumed completion activity in late 2024 allowing it to turn fourteen (11.3 net) operated wells to sales since the last update with an average per well initial production rate of 25 MMcf per day.
•
The successful results of Comstock’s step out Western Haynesville well drilled in Freestone County, Texas substantially extended the success the Company has had in proving up its Western Haynesville acreage.

Financial Results for the Three Months Ended March 31, 2025

Natural gas prices improved substantially in the first quarter of 2025 and Comstock realized $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its natural gas production of 115 Bcf in the quarter. Comstock's natural gas and oil sales in the first quarter of 2025 increased to $405.0 million (including realized hedging losses of $8.0 million). Operating cash flow (excluding changes in working capital) generated in the first quarter of 2025 was $239.0 million, and net loss for the first quarter was $115.4 million or $0.40 per share. The net loss in the quarter included a pre-tax $322.4 million unrealized loss on hedging contracts held for price risk management resulting from the rise in future natural gas prices since the end of 2024. Excluding this item and exploration expense, adjusted net income for the first quarter of 2025 was $53.8 million, or $0.18 per diluted share.

Comstock's production cost per Mcfe in the first quarter averaged $0.83 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.30 for lease operating costs, $0.10 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 77% in the first quarter of 2025 and 76% after hedging.

 

 

Drilling Results

Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in the first quarter of 2025, which had an average lateral length of 11,660 feet. Comstock turned eleven (8.3 net) operated wells to sales in the first quarter of 2025.

Since its last operational update in February, Comstock has turned fourteen (11.3 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 25 MMcf per day. The completed lateral length of these wells averaged 12,220 feet. Included in the wells turned to sales was our first Western Haynesville well drilled in Freestone county, the Olajuwon Pickens #1, which had a 10,306 foot completed lateral. This well is 24.4 miles away from the closest producing Western Haynesville well and represents a major milestone in Comstock's progress in delineating its Western Haynesville acreage. The Olajuwon Pickens #1 was turned to sales at an initial production rate of 41 MMcf per day.

Other

On April 29, 2025, Comstock also announced that its bank group reaffirmed the $2.0 billion borrowing base under its $1.5 billion revolving credit facility.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on May 1, 2025, to discuss the first quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:

https://register-conf.media-server.com/register/BIe794f2ba5583499f970858176fd39094.

Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/99m3j47q.

If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on May 1, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/99m3j47q.

This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov.

Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK.

 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

2025

 

 

2024

 

Revenues:

 

 

 

 

 

 

Natural gas sales

 

$

412,286

 

 

$

287,083

 

Oil sales

 

 

702

 

 

 

876

 

Total natural gas and oil sales

 

 

412,988

 

 

 

287,959

 

Gas services

 

 

99,866

 

 

 

47,813

 

Total revenues

 

 

512,854

 

 

 

335,772

 

Operating expenses:

 

 

 

 

 

 

Production and ad valorem taxes

 

 

11,179

 

 

 

17,908

 

Gathering and transportation

 

 

42,617

 

 

 

47,099

 

Lease operating

 

 

35,000

 

 

 

35,072

 

Exploration

 

 

2,150

 

 

 

—

 

Depreciation, depletion and amortization

 

 

167,891

 

 

 

190,689

 

Gas services

 

 

116,769

 

 

 

48,680

 

General and administrative

 

 

11,080

 

 

 

9,171

 

Total operating expenses

 

 

386,686

 

 

 

348,619

 

Operating income (loss)

 

 

126,168

 

 

 

(12,847

)

Other income (expenses):

 

 

 

 

 

 

Gain (loss) from derivative financial instruments

 

 

(330,339

)

 

 

39,307

 

Other income

 

 

339

 

 

 

331

 

Interest expense

 

 

(54,837

)

 

 

(49,557

)

Total other expenses

 

 

(384,837

)

 

 

(9,919

)

Loss before income taxes

 

 

(258,669

)

 

 

(22,766

)

Benefit from income taxes

 

 

143,276

 

 

 

8,292

 

Net loss

 

 

(115,393

)

 

 

(14,474

)

Net income attributable to noncontrolling interest

 

 

(5,885

)

 

 

(1,847

)

Net loss available to the Company

 

$

(121,278

)

 

$

(16,321

)

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

Basic

 

$

(0.40

)

 

$

(0.05

)

Diluted

 

$

(0.40

)

 

$

(0.05

)

Weighted average shares outstanding:

 

 

 

 

 

 

Basic

 

 

290,303

 

 

 

277,962

 

Diluted

 

 

290,303

 

 

 

277,962

 

 

 

 

COMSTOCK RESOURCES, INC.

OPERATING RESULTS

(In thousands, except per unit amounts)

 

 

 

 

Three Months Ended March 31,

 

 

 

2025

 

 

2024

 

Natural gas production (MMcf)

 

 

115,029

 

 

 

139,443

 

Oil production (Mbbls)

 

 

10

 

 

 

12

 

Total production (MMcfe)

 

 

115,091

 

 

 

139,515

 

 

 

 

 

 

 

 

Natural gas sales

 

$

412,286

 

 

$

287,083

 

Natural gas hedging settlements (1)

 

 

(7,959

)

 

 

47,995

 

Total natural gas including hedging

 

 

404,327

 

 

 

335,078

 

Oil sales

 

 

702

 

 

 

876

 

Total natural gas and oil sales including hedging

 

$

405,029

 

 

$

335,954

 

 

 

 

 

 

 

 

Average natural gas price (per Mcf)

 

$

3.58

 

 

$

2.06

 

Average natural gas price including hedging (per Mcf)

 

$

3.52

 

 

$

2.40

 

Average oil price (per barrel)

 

$

70.20

 

 

$

73.00

 

Average price (per Mcfe)

 

$

3.59

 

 

$

2.06

 

Average price including hedging (per Mcfe)

 

$

3.52

 

 

$

2.41

 

 

 

 

 

 

 

 

Production and ad valorem taxes

 

$

11,179

 

 

$

17,908

 

Gathering and transportation

 

 

42,617

 

 

 

47,099

 

Lease operating

 

 

35,000

 

 

 

35,072

 

Cash general and administrative (2)

 

 

6,640

 

 

 

5,755

 

Total production costs

 

$

95,436

 

 

$

105,834

 

 

 

 

 

 

 

 

Production and ad valorem taxes (per Mcfe)

 

$

0.10

 

 

$

0.13

 

Gathering and transportation (per Mcfe)

 

 

0.37

 

 

 

0.34

 

Lease operating (per Mcfe)

 

 

0.30

 

 

 

0.25

 

Cash general and administrative (per Mcfe)

 

 

0.06

 

 

 

0.04

 

Total production costs (per Mcfe)

 

$

0.83

 

 

$

0.76

 

 

 

 

 

 

 

 

Unhedged operating margin

 

 

77

%

 

 

63

%

Hedged operating margin

 

 

76

%

 

 

68

%

 

 

 

 

 

 

 

Gas services revenue

 

$

99,866

 

 

$

47,813

 

Gas services expenses

 

 

116,769

 

 

 

48,680

 

Gas services margin

 

$

(16,903

)

 

$

(867

)

 

 

 

 

 

 

 

Natural Gas and Oil Capital Expenditures:

 

 

 

 

 

 

Unproved property acquisitions

 

$

9,684

 

 

$

69,444

 

Total natural gas and oil properties acquisitions

 

$

9,684

 

 

$

69,444

 

Exploration and Development:

 

 

 

 

 

 

Development leasehold

 

$

3,556

 

 

$

3,938

 

Exploratory drilling and completion

 

 

100,107

 

 

 

106,456

 

Development drilling and completion

 

 

145,578

 

 

 

145,793

 

Other development costs

 

 

515

 

 

 

37

 

Total exploration and development capital expenditures

 

$

249,756

 

 

$

256,224

 

 

(1)
Included in gain (loss) from derivative financial instruments in operating results.
(2)
Excludes stock-based compensation.

 

 

COMSTOCK RESOURCES, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands, except per share amounts)

 

 

 

 

Three Months Ended
March 31,

 

 

 

2025

 

 

2024

 

ADJUSTED NET INCOME (LOSS):

 

 

 

 

 

 

Net loss

 

$

(115,393

)

 

$

(14,474

)

Unrealized loss from derivative financial instruments

 

 

322,380

 

 

 

8,688

 

Exploration expense

 

 

2,150

 

 

 

—

 

Adjustment to income taxes

 

 

(155,292

)

 

 

(2,752

)

Adjusted net income (loss)

 

$

53,845

 

 

$

(8,538

)

 

 

 

 

 

 

 

Adjusted net income (loss) per share (2)

 

$

0.18

 

 

$

(0.03

)

Diluted shares outstanding

 

 

293,633

 

 

 

277,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EBITDAX:

 

 

 

 

 

 

Net loss

 

$

(115,393

)

 

$

(14,474

)

Interest expense

 

 

54,837

 

 

 

49,557

 

Income taxes

 

 

(143,276

)

 

 

(8,292

)

Depreciation, depletion, and amortization

 

 

167,891

 

 

 

190,689

 

Exploration

 

 

2,150

 

 

 

—

 

Unrealized loss from derivative financial instruments

 

 

322,380

 

 

 

8,688

 

Stock-based compensation

 

 

4,442

 

 

 

3,415

 

Total Adjusted EBITDAX (3)

 

$

293,031

 

 

$

229,583

 

 

(1)
Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding non-cash unrealized gains and losses on derivative financial instruments, exploration expense and other unusual items.
(2)
Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units pursuant to the treasury stock method.
(3)
Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized gains and losses on derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

 

 

COMSTOCK RESOURCES, INC.

NON-GAAP FINANCIAL MEASURES

(In thousands)

 

 

 

 

Three Months Ended
March 31,

 

 

 

2025

 

 

2024

 

OPERATING CASH FLOW (1):

 

 

 

 

 

 

Net loss

 

$

(115,393

)

 

$

(14,474

)

Reconciling items:

 

 

 

 

 

 

Unrealized loss from derivative financial instruments

 

 

322,380

 

 

 

8,688

 

Deferred income taxes

 

 

(143,276

)

 

 

(8,287

)

Depreciation, depletion and amortization

 

 

167,891

 

 

 

190,689

 

Amortization of debt discount and issuance costs

 

 

2,944

 

 

 

1,984

 

Stock-based compensation

 

 

4,442

 

 

 

3,415

 

Operating cash flow

 

$

238,988

 

 

$

182,015

 

(Increase) decrease in accounts receivable

 

 

(33,660

)

 

 

99,418

 

Decrease in other current assets

 

 

559

 

 

 

5,576

 

Decrease in accounts payable and accrued expenses

 

 

(31,141

)

 

 

(115,470

)

Net cash provided by operating activities

 

$

174,746

 

 

$

171,539

 

 

 

 

Three Months Ended
March 31,

 

 

 

2025

 

 

2024

 

FREE CASH FLOW (DEFICIT)(2):

 

 

 

 

 

 

Operating cash flow

 

$

238,988

 

 

$

182,015

 

Less:

 

 

 

 

 

 

Exploration and development capital expenditures

 

 

(249,756

)

 

 

(256,224

)

Midstream capital expenditures

 

 

(48,668

)

 

 

(5,298

)

Other capital expenditures

 

 

(86

)

 

 

(29

)

Contributions from midstream partner

 

 

59,500

 

 

 

6,000

 

Free cash deficit from operations

 

$

(22

)

 

$

(73,536

)

Acquisitions

 

 

(9,684

)

 

 

(69,444

)

Free cash deficit after acquisitions

 

$

(9,706

)

 

$

(142,980

)

 

(1)
Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.
(2)
Free cash deficit from operations and free cash deficit after acquisitions are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, contributions from its midstream partner, proved and unproved property acquisitions, and proceeds from divestiture of natural gas and oil properties.

 

 

COMSTOCK RESOURCES, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands)

 

 

 

 

 

March 31,
2025

 

 

December 31,
2024

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

 

$

32,875

 

 

$

6,799

 

Accounts receivable

 

 

208,506

 

 

 

174,846

 

Derivative financial instruments

 

 

—

 

 

 

4,865

 

Other current assets

 

 

97,595

 

 

 

97,524

 

Total current assets

 

 

338,976

 

 

 

284,034

 

Property and equipment, net

 

 

5,828,842

 

 

 

5,688,389

 

Goodwill

 

 

335,897

 

 

 

335,897

 

Operating lease right-of-use assets

 

 

97,832

 

 

 

73,777

 

 

 

$

6,601,547

 

 

$

6,382,097

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Accounts payable

 

$

433,797

 

 

$

421,814

 

Accrued costs

 

 

113,231

 

 

 

146,173

 

Operating leases

 

 

47,256

 

 

 

35,927

 

Derivative financial instruments

 

 

263,796

 

 

 

8,940

 

Total current liabilities

 

 

858,080

 

 

 

612,854

 

Long-term debt

 

 

3,050,034

 

 

 

2,952,090

 

Deferred income taxes

 

 

201,841

 

 

 

345,116

 

Derivative financial instruments

 

 

129,416

 

 

 

66,757

 

Long-term operating leases

 

 

50,485

 

 

 

37,740

 

Asset retirement obligation

 

 

34,507

 

 

 

33,996

 

Total liabilities

 

 

4,324,363

 

 

 

4,048,553

 

Stockholders' Equity:

 

 

 

 

 

 

Common stock

 

 

146,460

 

 

 

146,130

 

Additional paid-in capital

 

 

1,367,696

 

 

 

1,366,274

 

Accumulated earnings

 

 

607,341

 

 

 

728,619

 

Total stockholders' equity attributable to Comstock

 

 

2,121,497

 

 

 

2,241,023

 

Noncontrolling interest

 

 

155,687

 

 

 

92,521

 

Total stockholders' equity

 

 

2,277,184

 

 

 

2,333,544

 

 

 

$

6,601,547

 

 

$

6,382,097