Comstock Resources Stock Earnings Reports

Key points for investors: Comstock delivered production growth in Q2 2026 (up 16% sequentially; ~1.2 Bcfe/d) but lower natural gas spot prices weighed on revenues — oil & gas sales (after hedging) were $332 million. Adjusted EBITDAX was $245 million and operating cash flow (ex-WC) was $189 million ($0.65/sh). The company completed a strategic midstream equity sale on June 15, selling a 27% stake in Pinnacle Gas Services to Sixth Street for $600 million, implying a $2.2 billion Pinnacle enterprise value; Comstock retains 73% controlling interest (potentially rising to 80.5%) and Pinnacle is now debt-free, saving ~$40 million of fixed charges annually. Balance sheet and liquidity: upstream borrowings were $545 million at quarter end, last-12-month leverage averaged ~3.0x, and liquidity was nearly $1.2 billion. Operationally, the Haynesville/Bossier program continues to scale — legacy and Western Haynesville wells are returning strong initial production (~31 MMcf/d IP for many 2026 turn‑to‑sales wells), with long-lateral programs (many >10,000 ft) and 9 rigs running across the footprint. Comstock is piloting "big-hole" laterals, higher-temperature motors, and higher-spec rigs/frac equipment to reduce drilling costs, increase predictability, and boost EURs; early big-hole results have shown lower drill cost per foot and promising well performance, while completion costs rise with higher proppant loading. 2026 outlook: plans to drill ~70 total operated wells (22 in Western, 48 legacy as stated across messaging) with continued focus on delineating Western Haynesville and preserving flexibility into 2027; incremental activity growth in 2027 will depend on gas price environment and hedging opportunities (the company was ~63% hedged during the quarter). Management emphasizes the long-term demand outlook for natural gas (LNG, power/data centers) and positions Comstock to capture growth while maintaining liquidity and operational control of midstream.