Comstock Resources Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 11 February 2026: press release. Guidance figures: 1 raised, 2 new. The quarter’s numbers.

Read the filing

Key takeaways

• Higher gas prices lifted results: Management said higher natural gas prices drove the quarter's improved results. Adjusted EBITDAX was $277 million and adjusted net income $46 million, or $0.16 per diluted share. Source
• Western Haynesville wells turned to sales: Four Western Haynesville wells were turned to sales in the fourth quarter, with 8,399-foot average laterals and 29 MMcf per day initial rates. Source
• Realized gas price after hedging: Comstock realized $3.27 per Mcf after hedging on fourth quarter natural gas production of 111 Bcf. For 2025 the realized price was $3.21 per Mcf on 450 Bcf. Source
• Proved reserves reached 7.0 Tcfe: Proved reserves were 7.0 Tcfe at December 31, 2025, against 3.8 Tcfe a year earlier, substantially all natural gas, 41% developed and 99% operated. Source
• Free cash flow after divestitures: Free cash flow after acquisitions and divestitures was $328.8 million in the fourth quarter and $154.6 million for 2025, with $413.7 million of divestiture proceeds in the quarter. Source
• Shelby Trough sale completed: The Shelby Trough sale agreed in October 2025 for $430.0 million was completed, with net proceeds of $417 million after selling expenses. Source
• 2026 capital budget set: Management plans $1.4 billion to $1.5 billion on 2026 development and exploration, and $100 million to $150 million on the Western Haynesville midstream system. Source
• Western Haynesville delineation continues: Four of the rigs will go to the Western Haynesville, which management described as continuing delineation of the new play. Source

“Higher natural gas prices in the fourth quarter drove improved financial results in the quarter.”

Comstock Resources Inc., press release

Guidance

What changed from last quarter

• New guidance: A 2026 capital budget is given, with development and exploration spend and Western Haynesville midstream spend ranges. The previous release contained no 2026 budget. Source
• Guidance raised: Planned operating rigs rise from eight to nine during 2026. The previous release gave no rig plan. Source
• New: The Shelby Trough sale agreed in October 2025 for $430.0 million was completed, with net proceeds of $417 million after selling expenses. Source

Quarter and full-year results

• Higher gas prices lifted results: Management said higher natural gas prices drove the quarter's improved results. Adjusted EBITDAX was $277 million and adjusted net income $46 million, or $0.16 per diluted share. Source
• Reported net income included gains: Net income was $286.8 million, or $0.97 per diluted share, including a $292.3 million pre-tax Shelby Trough gain and a $36.8 million unrealized hedging gain. Source
• Full-year adjusted net income reported: For 2025, reported net income was $420.2 million, or $1.43 per diluted share. Adjusted net income, excluding gains, impairment and exploration expense, was $159.9 million, or $0.54. Source
• Operating cash flow for quarter and year: Operating cash flow excluding working capital changes was $222.3 million in the quarter and $861.3 million for 2025. Source

Haynesville and Western Haynesville drilling

• Western Haynesville wells turned to sales: Four Western Haynesville wells were turned to sales in the fourth quarter, with 8,399-foot average laterals and 29 MMcf per day initial rates. Source
• Western Haynesville 2025 well count: Across 2025, 12 Western Haynesville wells were turned to sales, averaging 33 MMcf per day initial production per well. Source
• Operated drilling totals for 2025: Comstock drilled 52 (44.2 net) operated Haynesville/Bossier wells in 2025, with an average lateral of 11,187 feet. Source
• Legacy Haynesville turned 35 wells: In the legacy Haynesville area, 35 wells were turned to sales in 2025 at 25 MMcf per day initial rates on 11,738-foot average laterals. Source

“In response to improved natural gas prices, the Company currently plans to increase the number of operating drilling rigs it is running from eight to nine during 2026.”

Comstock Resources Inc., press release

Realized prices, hedging and unit costs

• Realized gas price after hedging: Comstock realized $3.27 per Mcf after hedging on fourth quarter natural gas production of 111 Bcf. For 2025 the realized price was $3.21 per Mcf on 450 Bcf. Source
• Unit production cost per Mcfe: Production cost averaged $0.77 per Mcfe in the fourth quarter: $0.38 gathering and transportation, $0.25 lease operating, $0.07 production taxes and $0.07 cash G&A. Source
• Hedging losses in the quarter: Realized hedging losses were $2.6 million in the fourth quarter. For 2025, realized hedging gains totaled $20.1 million. Source
• Operating margins at 77%: Unhedged and hedged operating margins were both 77% in the fourth quarter, with 2025 margins at 75%. Source

Gas services and midstream

• Gas services margin negative: Gas services margin was a $2.3 million loss in the fourth quarter and a $16.0 million loss for 2025, against a $5.6 million gain in the fourth quarter of 2024. Source
• Midstream partner contributions rose: Contributions from the midstream partnership were $59.0 million in the fourth quarter and $215.5 million for 2025, against $24.5 million and $60.5 million a year earlier. Source
• Midstream capital spending: Midstream capital expenditures were $60.5 million in the fourth quarter and $223.6 million for 2025. Source

“Comstock replaced 823% of its 2025 production under SEC pricing and replaced 229% of its 2025 production under NYMEX pricing.”

Comstock Resources Inc., press release

Proved reserves and pricing

• Proved reserves reached 7.0 Tcfe: Proved reserves were 7.0 Tcfe at December 31, 2025, against 3.8 Tcfe a year earlier, substantially all natural gas, 41% developed and 99% operated. Source
• Reserve replacement under two prices: Comstock replaced 823% of 2025 production under SEC pricing and 229% under NYMEX pricing. Source
• Price assumption lifted reserves: The 2025 reserve report used a gas price substantially above the 2024 price of $1.84 per Mcf, which allowed certain proved undeveloped locations to be included. Source
• PV-10 value at two price decks: The PV-10 value was about $4.5 billion at SEC pricing. At NYMEX pricing, proved reserves would be 7.2 Tcfe with a PV-10 value of $5.2 billion. Source

Capital spending and free cash flow

• Development capital totals $1.05 billion: Exploration and development capital expenditures were $1.05 billion in 2025 and $269.8 million in the fourth quarter. Development drilling and completion was the largest item at $517.4 million for 2025. Source
• Free cash flow after divestitures: Free cash flow after acquisitions and divestitures was $328.8 million in the fourth quarter and $154.6 million for 2025, with $413.7 million of divestiture proceeds in the quarter. Source
• Long-term debt down from September: Long-term debt was $2.81 billion at December 31, 2025, against $3.13 billion at September 30, 2025.

Asset sales and impairment

• Shelby Trough sale completed: The Shelby Trough sale agreed in October 2025 for $430.0 million was completed, with net proceeds of $417 million after selling expenses. Source
• Eagle Ford impairment recorded: A $29.1 million impairment was recorded on Eagle Ford shale properties in the fourth quarter. No impairment was recorded in 2024. Source
• Unproved acquisitions continued: Unproved property acquisitions were $18.1 million in the fourth quarter and $54.7 million for 2025, against $106.4 million in 2024. Source

2026 capital plan and rigs

• 2026 capital budget set: Management plans $1.4 billion to $1.5 billion on 2026 development and exploration, and $100 million to $150 million on the Western Haynesville midstream system. Source
• Rig count rises to nine: Operating rigs rise from eight to nine during 2026, reflecting improved natural gas prices. Source
• Western Haynesville delineation continues: Four of the rigs will go to the Western Haynesville, which management described as continuing delineation of the new play. Source

Figures management reported

Risks management discussed

• External: Quarterly results moved with natural gas prices, which management cited as the reason results improved. Source
• Financial: A $29.1 million impairment on Eagle Ford properties was recorded in the quarter. Source
• Operational: Gas services produced a negative margin in the quarter and for 2025, as expenses exceeded revenue. Source

Earlier plans management reported on

• Not stated: The fourth quarter release reports the sale completed but does not give the closing date or confirm debt repayment with the proceeds.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

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.