Comstock Resources Reports Strong Financial Performance and Strategic Initiatives for 2025

In its recent earnings call, Comstock Resources showcased a significant turnaround with a reported adjusted net income of $160 million for the year 2025, translating to $0.54 per diluted share. This marks a notable recovery from a net loss in 2024. With strategic initiatives in place and a robust future outlook, the company is poised for continued growth in the competitive natural gas market.

Financial Performance

During the fourth quarter of 2025, Comstock Resources highlighted several key financial metrics:

• Adjusted Net Income: $160 million or $0.54 per diluted share, compared to a net loss in 2024.
• Natural Gas Price Realizations: The quarterly NYMEX settlement price averaged $3.55, while the average Henry Hub spot price was $3.69, approximately 4% above the NYMEX settlement price.
• Operating Costs: The company maintained its operating cost per MCFE at around 77 cents, similar to the previous quarter.
• EBITDAX Margin: The margin improved to 77%, a 3% increase from the third quarter.

In 2025, Comstock invested $1.055 billion in development activities, drilling a total of 52 wells, and achieving an impressive average initial production (IP) rate of 27 million cubic feet per day. With a focus on cost efficiency, the company reported overall finding costs of $1.02 per Mcfe for its drilling program.

Strategic Initiatives

Comstock Resources is actively pursuing strategic initiatives to enhance its market position and operational efficiency:

• Drilling and Development: The company drilled 36 horizontal Haynesville Shale wells and 16 Bossier Shale wells in 2025, showcasing its commitment to expanding its production capabilities.
• Innovative Technology: The introduction of rotary steerable drilling technology has demonstrated promising results in high-temperature environments, positioning the company to further reduce drilling costs and improve efficiency.
• Midstream Partnerships: Comstock is collaborating with NXTERRA on a data center project, which could potentially lead to significant growth in natural gas demand, driven by increasing LNG exports and the burgeoning data center market.
• Focused Asset Management: The company successfully executed asset sales, including the Cotton Valley and Shelby Trough, totaling 419 BCFE, while maintaining liquidity of $1.3 billion at year-end 2025.

These initiatives reflect Comstock's strategic focus on enhancing its asset base and maximizing resource potential in the Haynesville Basin, positioning it for sustainable growth and profitability.

Future Outlook

Looking ahead to 2026, management provided a robust outlook:

• Production Growth: The company plans to operate four rigs in the Western Haynesville and five rigs in the Legacy Haynesville, with expectations to drill 47 wells and turn 48 wells to sales in 2026.
• Market Demand: Comstock anticipates that natural gas demand will grow by 3 BCF annually through 2030, fueled by LNG facilities and data centers.
• Financial Flexibility: The company has the ability to adjust its capital spending based on market conditions, ensuring it can respond effectively to fluctuations in gas prices.
• Cost Reduction Initiatives: Continued investments in technology and operational efficiencies are expected to further lower drilling and completion costs.

Management emphasized that Comstock is well-equipped to capitalize on the growing natural gas demand, particularly in the context of its strategic partnerships and innovative drilling techniques.

“We believe the western Haynesville Basin is crucial to supply the natural gas for growing industrial demand,” said management during the call, reinforcing its commitment to sustainable growth.

Conclusion

Overall, Comstock Resources has demonstrated impressive financial performance and strategic foresight in navigating the complexities of the natural gas market. With a strong focus on operational efficiency, innovative technology adoption, and strategic partnerships, the company is well-positioned for future growth. Investors should keep an eye on Comstock as it continues to leverage its assets and strategies to capitalize on emerging opportunities in the energy sector.

As the demand for natural gas surges, particularly from LNG and data centers, Comstock Resources stands ready to meet these challenges head-on, ensuring its place as a leader in the energy landscape.