Comstock Resources Stock Earnings Reports

Comstock reported Q1 2026 results impacted by significant winter weather that reduced production (average 1.1 Bcfe/d) and pressured near-term realizations. Key financials: $339 million oil & gas sales after hedging, $192 million operating cash flow ($0.66/sh), $251 million adjusted EBITDAX, and adjusted net income of $44 million ($0.15/sh). The company drilled 17 wells (15.3 net) in Q1 and turned 13 to sales (11.7 net) with average IPs ~31 MMcf/d for legacy Haynesville wells and ~29 MMcf/d for Western Haynesville wells; many new wells came online late in the quarter and the team expects production to rebound in Q2 and strengthen into H2. Comstock emphasized strong drilling progress and a large drilling inventory: ~807k net acres prospective across Haynesville/Bossier, including ~2,546 net locations in the Western Haynesville and multi-decade drilling inventory in the legacy area. A major commercial development: the U.S. Department of Commerce selected Comstock’s Western Haynesville site for a potential NextEra-built 5.2 GW natural gas-fired power generation hub (U.S.–Japan initiative), for which Comstock would supply gas (potentially up to ~1 Bcf/d by 2031). Costs and operations: per-Mcfe operating costs rose modestly due to lower volumes; drilling & completion costs vary by area (legacy lower cost per foot than Western), and management is deploying technologies (rotary steerable tools, larger-hole laterals, 10k PSI rig, 4th frac fleet) to lower and stabilize D&C costs. Hedging: ~72% hedged in Q1, which reduced realized pricing versus NYMEX; mark-to-market hedge gains boosted GAAP profit in the quarter. Balance sheet and liquidity: upstream borrowings $350 million on a $1.5B elected commitment (2.9x LTM leverage ratio), new $150M midstream facility for Pinnacle (about $47M drawn), and ~ $1.3 billion liquidity. Midstream: Pinnacle Gas Services is being developed to support gathering/treatment and capture midstream upside; management is pursuing an equity partner for Pinnacle. Risks and near-term dynamics: Q1 weather-related shut-ins and higher purchased gas volumes impacted results; well performance in a new Western play shows variability (e.g., water during flowback reducing IPs on some wells); management is prioritizing deliberate, value-preserving development over rapid lease-holding drilling. Overall message: short-term lumpiness due to weather, learning curve in Western Haynesville, and deliberate pace of development—but strong drilling results, large inventory, a transformative power-hub opportunity, robust liquidity, and ongoing cost-optimization initiatives position the company for production growth and long-term value capture.