Comstock Resources (CRK) investor relations material

Executive summary

• Achieved 16% sequential and 1% year-over-year production growth in Q2 2026, driven by strong drilling in Haynesville and Bossier shale.

• Lower natural gas prices led to reduced financial results despite higher production.

• Sold a 27% equity stake in Pinnacle Gas Services for $600 million, retiring all Pinnacle debt and preferred equity, and strengthening the balance sheet.

• Net income available for Q2 2026 was $8.8 million, down from $124.8 million in Q2 2025, primarily due to lower realized natural gas prices.

• Turned 17 Haynesville/Bossier shale wells to sales, averaging 31 MMcf/d initial production.

Financial highlights

• Q2 2026 oil and gas sales after hedging were $332 million; EBITDAX was $245 million; operating cash flow was $189 million.

• Adjusted net income for Q2 2026 was $8 million ($0.03 per share); year-to-date adjusted net income was $48 million ($0.16 per share).

• Operating cost per Mcfe improved to $0.77, with EBITDAX margin at 74%.

• Average realized gas price after hedging was $2.93/Mcf, with 63% of production hedged.

• Cash and cash equivalents at quarter-end were $45 million; long-term debt stood at $3.1 billion.

Outlook and guidance

• 2026 production guidance: 1,250–1,400 MMcfe/d; Q3 2026 guidance: 1,300–1,400 MMcfe/d.

• 2026 total capex guidance: $1,450–$1,550 million; capital expenditures for H1 2026 totaled $829.5 million.

• Plans to drill 70 wells and turn 69 wells to sales in 2026 across Western and Legacy Haynesville.

• Focus on drilling efficiencies, completion design changes, and cost reductions to boost productivity.

• Management expects to fund future development with operating cash flow and available credit, maintaining flexibility to adjust capital spending.