Comstock Resources (CRK) Q3 2025 earnings summary

Executive summary

• Higher natural gas prices and derivative gains in Q3 2025 led to improved financial results, with natural gas and oil sales (including hedging gains) reaching $335 million and operating cash flow at $190 million.

• Net income for Q3 2025 was $118.1 million, reversing a prior year loss, and adjusted EBITDAX was $249 million.

• Divested non-strategic assets, including Cotton Valley wells for $15–$15.2 million and agreed to sell Shelby Trough assets for $430 million, with proceeds targeted for debt reduction.

• Maintained a balanced drilling program in Western and Legacy Haynesville, with operational efficiencies and technological advancements.

• Net cash provided by operating activities for the first nine months of 2025 increased 91% to $675.4 million.

Financial highlights

• Q3 2025 oil and gas sales rose to $335 million, with operating cash flow at $190 million and adjusted net income at $28 million ($0.09/share); net income including hedging gains was $118.1 million ($0.40/share).

• Year-to-date oil and gas sales reached $1.1 billion, with EBITDA/EBITDAX at $802 million and net income at $122–$133.4 million.

• Realized gas price averaged $2.75/Mcf in Q3, with hedging raising it to $2.99/Mcf; production cost per Mcfe was $0.77.

• Gas services revenue for Q3 2025 was $141.3 million, up 178% year-over-year.

• Free cash deficit after acquisitions for Q3 was $(75.4) million.

Outlook and guidance

• 2025 focus remains on Western Haynesville, with plans to drill 19 wells and turn 13 to sales; Legacy Haynesville to see 33 wells drilled and 35 turned to sales.

• Guidance for Q4 2025: production of 1,200–1,300 MMcfe/d, D&C costs of $250–$350 million, lease operating expenses of $0.25–$0.29/Mcfe.

• Proceeds from Shelby Trough divestiture expected to reduce long-term debt; sale expected to close in December 2025.

• Management believes current liquidity and cash flow will cover foreseeable needs for at least the next twelve months.

• Drilling efficiencies and cost reductions expected to persist into 2025.