(MENAFN- GlobeNewsWire - Nasdaq) FRISCO, TX, Nov. 03, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE; NYSE Texas: CRK) today reported financial and operating results for the quarter ended September 30, 2025.

Highlights of 2025 's Third Quarter

• Higher natural gas prices in the third quarter drove improved financial results in the quarter.
  • Natural gas and oil sales, including realized hedging gains, were $335 million for the quarter.
  • Operating cash flow was $190 million or $0.65 per diluted share.
  • Adjusted EBITDAX for the quarter was $249 million.
  • Adjusted net income was $28 million or $0.09 per diluted share for the quarter.
• Three Western Haynesville wells turned to sales in the third quarter.
  • These wells had an average lateral length of 8,566 feet and an average per well initial production rate of 32 MMcf per day.
• Comstock has turned 28 wells to sales to date in 2025 in its Legacy Haynesville area with an average lateral length of 11,919 feet and a per well initial production rate of 25 MMcf per day.
• Divested non-strategic Cotton Valley wells in East Texas and North Louisiana for net proceeds of $15 million.
• Entered into an agreement to divest Shelby Trough assets in East Texas for $430 million in cash.

Financial Results for the Three Months Ended September 30, 2025

During the third quarter of 2025, Comstock realized $2.99 per Mcf after hedging for its natural gas production of 112 Bcf. As a result, Comstock's natural gas and oil sales in the third quarter of 2025 increased to $335.0 million (including realized hedging gains of $26.4 million). Operating cash flow (excluding changes in working capital) generated in the third quarter of 2025 was $190.4 million, and net income for the third quarter was $118.1 million or $0.40 per diluted share. The net income in the quarter included a pre-tax $116.4 million unrealized gain on hedging contracts held for price risk management resulting from the change in future natural gas prices since the second quarter of 2025. Excluding this item, exploration expense and loss from sale of assets, adjusted net income for the third quarter of 2025 was $27.9 million, or $0.09 per diluted share.

Comstock's production cost per Mcfe in the third quarter averaged $0.77 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.26 for lease operating costs, $0.10 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 72% in the third quarter of 2025 and 74% after hedging.

Financial Results for the Nine Months Ended September 30, 2025

For the nine months ended September 30, 2025, Comstock realized $3.19 per Mcf after hedging for its natural gas production of 339 Bcf. Natural gas and oil sales for the nine months ended September 30, 2025 totaled $1.08 billion (including realized hedging losses of $22.7 million). Operating cash flow (excluding changes in working capital) generated during the first nine months of 2025 was $639.0 million, and net income was $133.4 million or $0.45 per diluted share. Net income during the first nine months of 2025 included a pre-tax $25.6 million unrealized gain on hedging contracts held for risk management. Excluding this item, exploration expense and loss from sale of assets, adjusted net income for the nine months ended September 30, 2025 was $121.8 million or $0.41 per diluted share.

Comstock's production cost per Mcfe during the nine months ended September 30, 2025 averaged $0.80 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.28 for lease operating costs, $0.09 for production and other taxes and $0.06 for cash general and administrative expenses. Comstock's unhedged operating margin was 74% during the first nine months of 2025 and 75% after hedging.

Drilling Results

Comstock drilled seventeen (14.2 net) operated horizontal Haynesville/Bossier shale wells in the third quarter of 2025, which had an average lateral length of 11,692 feet. Comstock turned twelve (10.6 net) operated wells to sales in the third quarter of 2025.

Since its last operational update in July 2025, Comstock has turned ten (8.6 net) operated Haynesville/Bossier shale wells to sales. These wells had initial production rates that averaged 28 MMcf per day. The completed lateral length of these wells averaged 11,156 feet.

Included in the wells turned to sales were three more successful Western Haynesville wells:

Well		Vertical Depth (feet)		Completed Lateral (feet)		Initial Production Rate (MMcf per day)
Hughes SC #1		15,741		11,062		35
McCullough GLR #1		18,720		6,708		31
McCullough GLR #3		19,236		7,927		31

Divestitures

On September 2, 2025, Comstock divested of its interest in its legacy Cotton Valley wells in East Texas and North Louisiana for net proceeds, after selling expenses, of $15.2 million. The properties sold include interests in 883 (770.9 net to Comstock) wells and 46 (27.3 net to Comstock) inactive wells. The properties were producing 7.9 MMcfe of natural gas equivalent in August 2025.

On October 10, 2025, the Company entered into an agreement to sell its Shelby Trough properties in Nacogdoches, San Augustine and Shelby counties in Texas for $430.0 million to an unaffiliated third party. The transaction has an effective date of October 1, 2025, and is subject to customary closing conditions. The properties being sold include interests in 155 (74.5 net to Comstock) producing wells and approximately 36,000 net acres that are primarily undeveloped. Production net to Comstock's interest in these properties was 9.3 MMcf of natural gas per day in September 2025. Comstock expects to close the divestiture in December 2025 and intends to use the proceeds to reduce long-term debt.

Earnings Call Information

Comstock has planned a conference call for 10:00 a.m. Central Time on November 4, 2025, to discuss the third quarter 2025 operational and financial results. Investors wishing to listen should visit the Company's website at for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
.
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: .

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 November 4, 2025. The replay of the conference can be accessed using the webcast link: .

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.

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 NYSE and the NYSE Texas under the symbol CRK.

COMSTOCK RESOURCES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)

		Three Months Ended September 30,			Nine Months Ended September 30,
		2025			2024			2025			2024
Revenues:
Natural gas sales		$	307,906			$	252,650			$	1,059,417			$	756,260
Oil sales			681				975				2,124				2,925
Total natural gas and oil sales			308,587				253,625				1,061,541				759,185
Gas services			141,265				50,847				371,427				127,889
Total revenues			449,852				304,472				1,432,968				887,074
Operating expenses:
Production and ad valorem taxes			11,216				12,578				32,950				49,730
Gathering and transportation			39,969				53,996				124,345				150,456
Lease operating			28,778				29,248				94,887				99,125
Exploration			6,600				-				8,750				-
Depreciation, depletion and amortization			157,395				208,350				483,665				593,281
Gas services			141,684				52,622				385,167				132,796
General and administrative			11,504				9,923				34,884				29,271
Loss (gain) on sale of assets			2,493				(910	)			2,493				(910	)
Total operating expenses			399,639				365,807				1,167,141				1,053,749
Operating income (loss)			50,213				(61,335	)			265,827				(166,675	)
Other income (expenses):
Gain from derivative financial instruments			142,822				75,163				48,330				89,218
Other income			409				274				2,848				927
Interest expense			(56,722	)			(54,516	)			(166,737	)			(156,005	)
Total other income (expenses)			86,509				20,921				(115,559	)			(65,860	)
Income (loss) before income taxes			136,722				(40,414	)			150,268				(232,535	)
(Provision for) benefit from income taxes			(18,623	)			14,696				(16,834	)			69,094
Net income (loss)			118,099				(25,718	)			133,434				(163,441	)
Net income attributable to noncontrolling interest			(6,971	)			(3,173	)			(18,742	)			(8,081	)
Net income (loss) available to the Company		$	111,128			$	(28,891	)		$	114,692			$	(171,522	)
Net income (loss) per share
Basic		$	0.40			$	(0.09	)		$	0.46			$	(0.57	)
Diluted		$	0.40			$	(0.09	)		$	0.45			$	(0.57	)
Weighted average shares outstanding:
Basic			291,097				290,170				290,671				285,949
Diluted			293,952				290,170				294,004				285,949

COMSTOCK RESOURCES, INC.
OPERATING RESULTS
(In thousands, except per unit amounts)

		Three Months Ended September 30,			Nine Months Ended September 30,
		2025			2024			2025			2024
Natural gas production (MMcf)			111,770				133,116				338,963				403,420
Oil production (Mbbls)			11				13				34				40
Total production (MMcfe)			111,837				133,198				339,166				403,662
Natural gas sales		$	307,906			$	252,650			$	1,059,417			$	756,260
Natural gas hedging settlements (1)			26,381				51,409				22,708				159,956
Total natural gas including hedging			334,287				304,059				1,082,125				916,216
Oil sales			681				975				2,124				2,925
Total natural gas and oil sales including hedging		$	334,968			$	305,034			$	1,084,249			$	919,141
Average natural gas price (per Mcf)		$	2.75			$	1.90			$	3.13			$	1.87
Average natural gas price including hedging (per Mcf)		$	2.99			$	2.28			$	3.19			$	2.27
Average oil price (per barrel)		$	61.91			$	75.00			$	62.47			$	73.13
Average price (per Mcfe)		$	2.76			$	1.90			$	3.13			$	1.88
Average price including hedging (per Mcfe)		$	3.00			$	2.29			$	3.20			$	2.28
Production and ad valorem taxes		$	11,216			$	12,578			$	32,950			$	49,730
Gathering and transportation			39,969				53,996				124,345				150,456
Lease operating			28,778				29,248				94,887				99,125
Cash general and administrative (2)			5,880				6,042				19,291				17,892
Total production costs		$	85,843			$	101,864			$	271,473			$	317,203
Production and ad valorem taxes (per Mcfe)		$	0.10			$	0.09			$	0.09			$	0.12
Gathering and transportation (per Mcfe)			0.36				0.41				0.37				0.37
Lease operating (per Mcfe)			0.26				0.22				0.28				0.25
Cash general and administrative (per Mcfe)			0.05				0.05				0.06				0.04
Total production costs (per Mcfe)		$	0.77			$	0.77			$	0.80			$	0.78
Unhedged operating margin			72	%			60	%			74	%			58	%
Hedged operating margin			74	%			67	%			75	%			65	%
Gas services revenue		$	141,265			$	50,847			$	371,427			$	127,889
Gas services expenses			141,684				52,622				385,167				132,796
Gas services margin		$	(419	)		$	(1,775	)		$	(13,740	)		$	(4,907	)
Natural Gas and Oil Capital Expenditures:
Unproved property acquisitions		$	16,941			$	8,800			$	36,557			$	87,938
Total natural gas and oil properties acquisitions		$	16,941			$	8,800			$	36,557			$	87,938
Exploration and Development:
Development leasehold		$	1,095			$	5,623			$	9,946			$	12,153
Exploratory drilling and completion			114,215				57,144				345,319				215,992
Development drilling and completion			145,854				114,172				415,423				411,315
Other development costs			5,946				7,453				14,380				22,175
Total exploration and development capital expenditures		$	267,110			$	184,392			$	785,068			$	661,635

(1) Included in gain 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 September 30,			Nine Months Ended September 30,
		2025			2024			2025			2024
ADJUSTED NET INCOME (LOSS):
Net income (loss)		$	118,099			$	(25,718	)		$	133,434			$	(163,441	)
Unrealized (gain) loss from derivative financial instruments			(116,441	)			(23,754	)			(25,622	)			70,738
Exploration expense			6,600				-				8,750				-
Loss (gain) on sale of assets			2,493				(910	)			2,493				(910	)
Adjustment to income taxes			17,153				1,873				2,734				(27,663	)
Adjusted net income (loss) (1)		$	27,904			$	(48,509	)		$	121,789			$	(121,276	)
Adjusted net income (loss) per share (2)		$	0.09			$	(0.17	)		$	0.41			$	(0.42	)
Diluted shares outstanding			293,952				290,170				294,004				285,949
ADJUSTED EBITDAX:
Net income (loss)		$	118,099			$	(25,718	)		$	133,434			$	(163,441	)
Interest expense			56,722				54,516				166,737				156,005
Income taxes			18,623				(14,696	)			16,834				(69,094	)
Depreciation, depletion, and amortization			157,395				208,350				483,665				593,281
Exploration			6,600				-				8,750				-
Unrealized (gain) loss from derivative financial instruments			(116,441	)			(23,754	)			(25,622	)			70,738
Stock-based compensation			5,624				3,883				15,595				11,380
Loss (gain) on sale of assets			2,493				(910	)			2,493				(910	)
Total Adjusted EBITDAX (3)		$	249,115			$	201,671			$	801,886			$	597,959

(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 September 30,			Nine Months Ended September 30,
		2025			2024			2025			2024
OPERATING CASH FLOW (1) :
Net income (loss)		$	118,099			$	(25,718	)		$	133,434			$	(163,441	)
Reconciling items:
Unrealized (gain) loss from derivative financial instruments			(116,441	)			(23,754	)			(25,622	)			70,738
Deferred income taxes			20,175				(12,734	)			20,485				(67,165	)
Depreciation, depletion and amortization			157,395				208,350				483,665				593,281
Amortization of debt discount and issuance costs			3,006				3,136				8,925				8,519
Stock-based compensation			5,624				3,883				15,595				11,380
Loss (gain) on sale of assets			2,493				(910	)			2,493				(910	)
Operating cash flow		$	190,351			$	152,253			$	638,975			$	452,402
(Increase) decrease in accounts receivable			582				(658	)			1,900				75,573
(Increase) decrease in other current assets			(1,729	)			(5,595	)			24,152				(749	)
Increase (decrease) in accounts payable and accrued expenses			(36,111	)			(47,830	)			10,376				(173,942	)
Net cash provided by operating activities		$	153,093			$	98,170			$	675,403			$	353,284

		Three Months Ended September 30,			Nine Months Ended September 30,
		2025			2024			2025			2024
FREE CASH FLOW (DEFICIT) ( 2) :
Operating cash flow		$	190,351			$	152,253			$	638,975			$	452,402
Less:
Exploration and development capital expenditures			(267,110	)			(184,392	)			(785,068	)			(661,635	)
Midstream capital expenditures			(60,038	)			(30,251	)			(162,978	)			(46,739	)
Other capital expenditures			(875	)			(735	)			(113	)			(1,706	)
Contributions from midstream partner			64,000				19,000				156,500				36,000
Free cash deficit from operations		$	(73,672	)		$	(44,125	)		$	(152,684	)		$	(221,678	)
Acquisitions			(16,941	)			(8,800	)			(36,557	)			(87,938	)
Proceeds from divestitures			15,166				1,214				15,166				1,214
Free cash deficit after acquisitions		$	(75,447	)		$	(51,711	)		$	(174,075	)		$	(308,402	)

(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 divestitures of natural gas and oil properties.

COMSTOCK RESOURCES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

		September 30, 2025			December 31, 2024
ASSETS
Cash and cash equivalents		$	19,215			$	6,799
Accounts receivable			172,946				174,846
Derivative financial instruments			8,140				4,865
Other current assets			68,552				97,524
Total current assets			268,853				284,034
Property and equipment, net			6,158,898				5,688,389
Goodwill			335,897				335,897
Operating lease right-of-use assets			77,179				73,777
Derivative financial instruments			166				-
		$	6,840,993			$	6,382,097
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable		$	455,282			$	421,814
Accrued costs			123,912				146,173
Operating leases			48,332				35,927
Derivative financial instruments			22,284				8,940
Total current liabilities			649,810				612,854
Long-term debt			3,126,015				2,952,090
Deferred income taxes			365,601				345,116
Derivative financial instruments			31,232				66,757
Long-term operating leases			28,795				37,740
Asset retirement obligation			21,730				33,996
Total liabilities			4,223,183				4,048,553
Stockholders' Equity:
Common stock			146,527				146,130
Additional paid-in capital			1,370,426				1,366,274
Accumulated earnings			843,311				728,619
Total stockholders' equity attributable to Comstock			2,360,264				2,241,023
Noncontrolling interest			257,546				92,521
Total stockholders' equity			2,617,810				2,333,544
		$	6,840,993			$	6,382,097

CONTACT: Ron Mills VP - Finance & Investor Relations Comstock Resources 972-668-8834...

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