Comstock Resources Inc.: Q3 FY2025 earnings call

What management said about Q3 FY2025, from the documents filed with the SEC on 3 November 2025: press release. The quarter’s numbers.

Key takeaways

Higher gas prices lifted quarter results: Natural gas and oil sales including realized hedging gains rose from $305.0 million a year earlier. Management attributed the quarter's financial results to higher natural gas prices. Source
Net income included non-cash hedge gain: Net income was $118.1 million, or $0.40 per diluted share, against a loss of $25.7 million a year earlier. Adjusted net income, which excludes the unrealized hedging gain, was $27.9 million, or $0.09 per diluted share. Source
Western Haynesville wells averaged 32 MMcf/d: Three Western Haynesville wells turned to sales with an 8,566-foot average lateral. Hughes SC #1 reached 35 MMcf per day; McCullough GLR #1 and #3 reached 31 MMcf per day each. Source
Shelby Trough asset base: The Shelby Trough sale covers 155 producing wells (74.5 net) and about 36,000 net acres that are primarily undeveloped. Source
Production cost flat year on year: Total production costs were $0.77 per Mcfe, the same as a year earlier, against $0.80 in the second quarter. Source
Exploration and development spending rose: Exploration and development capital expenditures were $267.1 million, against $184.4 million a year earlier, including $114.2 million on exploratory drilling and completion. Source
Long-term debt rose since year-end: Long-term debt was $3,126.0 million at September 30, 2025, against $2,952.1 million at December 31, 2024. Cash and cash equivalents were $19.2 million, against $6.8 million. Source

“Higher natural gas prices in the third quarter drove improved financial results in the quarter.”
Comstock Resources Inc., press release

What changed from last quarter

New: Agreement to sell Shelby Trough properties in Texas for $430.0 million in cash, dated October 10, 2025. Source
New: Legacy Cotton Valley interests in East Texas and North Louisiana were divested on September 2, 2025, for net proceeds of $15.2 million. Source

Results and earnings

Higher gas prices lifted quarter results: Natural gas and oil sales including realized hedging gains rose from $305.0 million a year earlier. Management attributed the quarter's financial results to higher natural gas prices. Source
Net income included non-cash hedge gain: Net income was $118.1 million, or $0.40 per diluted share, against a loss of $25.7 million a year earlier. Adjusted net income, which excludes the unrealized hedging gain, was $27.9 million, or $0.09 per diluted share. Source
Operating cash flow and adjusted EBITDAX: Operating cash flow excluding working capital changes was $190.4 million, or $0.65 per diluted share. Adjusted EBITDAX was $249.1 million, against $201.7 million a year earlier. Source
Nine-month net income and adjusted earnings: For the nine months, net income was $133.4 million, or $0.45 per diluted share, and adjusted net income was $121.8 million, or $0.41 per diluted share. Source

Drilling and well results

Seventeen wells drilled; twelve turned to sales: The company drilled 17 operated Haynesville/Bossier wells (14.2 net), averaging an 11,692-foot lateral, and turned 12 operated wells (10.6 net) to sales. Source
Western Haynesville wells averaged 32 MMcf/d: Three Western Haynesville wells turned to sales with an 8,566-foot average lateral. Hughes SC #1 reached 35 MMcf per day; McCullough GLR #1 and #3 reached 31 MMcf per day each. Source
Post-July wells averaged 28 MMcf/d: Ten operated wells (8.6 net) turned to sales since the July update, with completed laterals averaging 11,156 feet and initial rates averaging 28 MMcf per day. Source
Legacy Haynesville year-to-date wells: Year to date, 28 Legacy Haynesville wells were turned to sales, with an 11,919-foot average lateral and 25 MMcf per day initial production per well. Source

“Divested non-strategic Cotton Valley wells in East Texas and North Louisiana for net proceeds of $15 million.”
Comstock Resources Inc., press release

Divestitures and portfolio

Cotton Valley wells sold for $15.2 million: Legacy Cotton Valley wells in East Texas and North Louisiana were sold, including 883 wells (770.9 net) and 46 inactive wells (27.3 net), producing 7.9 MMcfe per day in August. Source
Shelby Trough asset base: The Shelby Trough sale covers 155 producing wells (74.5 net) and about 36,000 net acres that are primarily undeveloped. Source
Shelby Trough net production in September: Net production from these properties was 9.3 MMcf of gas per day in September 2025. Source

Production and realized prices

Gas output near second-quarter level: Natural gas production was 111,770 MMcf, against 133,116 MMcf a year earlier and 112,164 MMcf in the second quarter. Oil production was 11 Mbbls. Source
Gas price rose from prior year: Average gas price was $2.75 per Mcf before hedging and $2.99 after, against $1.90 and $2.28 a year earlier; the second quarter was $3.02 before hedging. Source
Oil price below year-earlier level: Average oil price was $61.91 per barrel, against $75.00 a year earlier and $57.00 in the second quarter. Source
Nine-month gas volume and price: For the nine months, gas production was 339 Bcf and the average price after hedging was $3.19 per Mcf, against $2.27 a year earlier. Source

Costs and margins

Production cost flat year on year: Total production costs were $0.77 per Mcfe, the same as a year earlier, against $0.80 in the second quarter. Source
Gathering cost largest component: Gathering and transportation was $0.36 per Mcfe, lease operating $0.26, production and other taxes $0.10 and cash G&A $0.05. Lease operating cost rose from $0.22 a year earlier. Source
Operating margin rose from year earlier: Unhedged operating margin was 72%, against 60% a year earlier; hedged margin was 74%, against 67%. Nine-month margins were 74% unhedged and 75% hedged. Source

Hedging and derivative gains

Derivative gain rose year on year: Gain from derivative financial instruments was $142.8 million, against $75.2 million a year earlier. It includes a non-cash unrealized gain that adjusted net income excludes. Source
Realized hedging gains lower than last year: Realized hedging gains were lower than the $51.4 million recorded a year earlier, and the second-quarter settlements were $4.3 million. Source
Nine-month hedging was a loss: For the nine months, realized hedging was a loss of $22.7 million, against a gain of $160.0 million a year earlier. Source

Gas services and midstream

Gas services revenue rose year on year: Gas services revenue was $141.3 million, against $50.8 million a year earlier, and gas services expenses were $141.7 million. Source
Gas services margin remained negative: Gas services margin was $(0.4) million, against $(1.8) million a year earlier; the nine-month margin was $(13.7) million. Source
Midstream partner funded part of spend: Midstream capital expenditures were $60.0 million, and contributions from the midstream partner were $64.0 million, against $19.0 million a year earlier. Source

Capital spending and free cash

Exploration and development spending rose: Exploration and development capital expenditures were $267.1 million, against $184.4 million a year earlier, including $114.2 million on exploratory drilling and completion. Source
Development drilling and leasehold spend: Development drilling and completion was $145.9 million, development leasehold $1.1 million and unproved property acquisitions $16.9 million. Source
Free cash deficit from operations: Free cash deficit from operations was $73.7 million, and $75.4 million after acquisitions, against deficits of $44.1 million and $51.7 million a year earlier. Source

Balance sheet and debt

Long-term debt rose since year-end: Long-term debt was $3,126.0 million at September 30, 2025, against $2,952.1 million at December 31, 2024. Cash and cash equivalents were $19.2 million, against $6.8 million. Source
Noncontrolling interest increased: Noncontrolling interest was $257.5 million, against $92.5 million at year-end 2024. Net income attributable to noncontrolling interest was $7.0 million in the quarter. Source
Interest expense rose year on year: Interest expense was $56.7 million, against $54.5 million a year earlier; nine-month interest expense was $166.7 million. Source
Derivative liabilities shifted between current and long-term: Current derivative liabilities were $22.3 million, against $8.9 million at year-end 2024, while long-term derivative liabilities fell to $31.2 million from $66.8 million. Source

Coming up, as management said on 3 November 2025

Shelby Trough sale expected to close: Closing is expected in December 2025, and proceeds are intended to reduce long-term debt. Source

Figures management reported

Figure	Reported
Natural gas production Source	111,770 MMcf (112 Bcf)
Total production Source	111,837 MMcfe
Average natural gas price Source	$2.75 per Mcf before hedging; $2.99 after hedging
Average oil price Source	$61.91 per barrel
Total production costs Source	$0.77 per Mcfe
Exploration and development capital expenditures Source	$267.1 million

Risks management discussed

External: Reported net income moves with future gas prices through non-cash hedge gains and losses, which management excludes from adjusted measures. Source
External: The Shelby Trough sale is subject to customary closing conditions. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.

As filed with the SEC

Open the filing on EDGAR

COMSTOCK RESOURCES, INC. REPORTS

THIRD QUARTER 2025 FINANCIAL AND OPERATING RESULTS

FRISCO, TEXAS, November 3, 2025 - 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)	CompletedLateral (feet)	InitialProductionRate (MMcfper 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 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/BI7df9635a192e4021a7e3fa6c51387c86.

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/7ikyc57y.

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: https://edge.media-server.com/mmc/p/7ikyc57y.

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 NYSE and the NYSE Texas under the symbol CRK.

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

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	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	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.

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)	$27,904	$(48,509)	$121,789	$(121,276)
Adjusted net income (loss) per share	$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	$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.

NON-GAAP FINANCIAL MEASURES

(In thousands)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2025	2024	2025	2024
OPERATING CASH FLOW :
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):
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.

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

Contacts
5300 Town and Country Blvd., Suite 500
Frisco, Texas 75034
Telephone: (972) 668-8834
Ron Mills
VP of Finance and Investor Relations
Web Site: www.comstockresources.com