Comstock Resources, Inc.

What they do

Comstock develops natural gas and oil properties primarily in the Haynesville and Bossier shale plays, with substantially all proved reserves located there as of December 31, 2025. It also operates a gas services business that gathers, transports, and markets natural gas. The company holds 1,069,991 gross (802,769 net) acres prospective for Haynesville and Bossier, including its Western Haynesville extension.

Revenue drivers

• Natural gas sales — The dominant revenue line; Q2 2026 natural gas sales were $287.7 million on 113.1 Bcf of production at $2.54 per Mcf, versus $339.2 million in Q2 2025.
• Oil sales — Small and shrinking relative to gas; Q2 2026 oil sales were $0.5 million on 5 MBbls, down from $0.7 million on 13 MBbls in Q2 2025.
• Gas services — Midstream-type revenue that largely offsets its own expense; Q2 2026 gas services revenue was $63.5 million against $63.0 million of gas services expense.
• Hedging — Realized hedging gains/losses materially affect realized prices: Q2 2026 included $43.3 million of realized hedging gains, while the first half of 2026 included $37.1 million of realized hedging losses.

Recent performance

For Q2 2026, Comstock reported natural gas and oil sales including realized hedging gains of $332 million, up from unhedged sales of $288.2 million, with net income available to the company of $9 million or $0.03 per share. Production was 113.1 Bcfe, up 16% from Q1 2026 but only 1% above Q2 2025, and the average realized natural gas price before hedging fell 16% year over year to $2.54 per Mcf. Cash flows from operating activities were $170.2 million and operating cash flow before working capital changes was $188.5 million or $0.65 per share. For the first six months of 2026, production fell 7% year over year to 1,166 MMcfe per day and net income available to the company was $116.2 million, including an $83.8 million pre-tax unrealized hedging gain. Adjusted net income for the first half was $47.7 million, or $0.16 per diluted share.

Strategy

Comstock's stated focus is developing its Haynesville and Bossier inventory while exploring the Western Haynesville extension, where it has turned 30 wells to sales through year-end 2025. It emphasizes longer laterals, horseshoe wells, and high-intensity completions; it drilled 41 wells with laterals of 15,000 feet or more from 2021 through 2025. In Q2 2026 it turned five Western Haynesville wells and twelve Legacy Haynesville wells to sales, and it sold a 27% noncontrolling common equity interest in Pinnacle Gas Services for $600 million, using proceeds to redeem Pinnacle's preferred equity and retire its debt. No dividends were paid in 2024 or 2025. The company is positioned to supply Gulf Coast demand tied to LNG exports, data center power generation, and petrochemicals.

Risks

• Natural gas price volatility — Comstock states an extended period of depressed natural gas prices would adversely affect its business, financial condition, cash flow, liquidity and ability to meet capital expenditure obligations.
• Realized price decline in 2026 — Q2 2026 realized natural gas price before hedging fell 16% year over year to $2.54 per Mcf, directly reducing revenue versus the prior-year quarter.
• Uneven production and hedging results — First-half 2026 production fell 7% year over year and hedging swung from gains in Q2 to losses for the six-month period, making reported results sensitive to price moves.
• Debt load — As of June 30, 2026, Comstock reported total liabilities of $4.36 billion against $2.58 billion of shareholder equity and $45.0 million of cash, leaving limited liquidity cushion.

Outlook

Management highlighted a return to production growth in Q2 2026, with output up 16% over Q1 2026, and characterized per-unit production costs of $0.77 per Mcfe as normal levels. The company continues to develop Western Haynesville wells and reported strong initial rates, including five Western wells at 33 MMcf per day and twelve Legacy wells at 31 MMcf per day. The Pinnacle transaction simplified the capital structure by retiring preferred equity and indebtedness.