Comstock Resources Reports 53% Revenue Growth to $512.9 Million in Q1 2025

Comstock Resources, Inc. reported significant financial results for the first quarter of 2025, with total revenues reaching $512.9 million, a 53% increase from $335.8 million in the same period of 2024. This growth was primarily driven by a substantial rise in natural gas sales, which amounted to $413.0 million, up from $288.0 million year-over-year. The average realized price for natural gas surged to $3.58 per thousand cubic feet (Mcf), a 74% increase compared to $2.06 per Mcf in the first quarter of 2024. Despite the revenue growth, the company reported a net loss of $121.3 million, or $0.40 per share, compared to a net loss of $16.3 million, or $0.05 per share, in the prior year.

The company's operating income for the quarter was $126.2 million, a notable recovery from an operating loss of $12.8 million in the first quarter of 2024. However, Comstock faced significant losses related to derivative financial instruments, totaling $330.3 million, which contrasted sharply with a gain of $39.3 million in the previous year. This volatility in derivative performance contributed to the overall net loss for the quarter. Additionally, total operating expenses increased to $386.7 million from $348.6 million, largely due to higher gas service expenses, which rose to $116.8 million from $48.7 million.

In terms of operational metrics, Comstock's natural gas production decreased by 18% to 115.0 billion cubic feet (Bcf) from 139.4 Bcf in the first quarter of 2024. The company drilled seven wells and completed eleven during this period, indicating ongoing investment in its operational capabilities. As of March 31, 2025, Comstock had $32.9 million in cash and cash equivalents, a significant increase from $6.8 million at the end of 2024, and $1.0 billion in liquidity, including unused borrowing capacity under its bank credit facility.

Strategically, Comstock has been active in expanding its operations, particularly in the Western Haynesville area, where it has made significant investments in drilling and infrastructure. The company anticipates spending between $780 million and $880 million on drilling, completion, and infrastructure activities for the remainder of 2025. Furthermore, Comstock's capital expenditures for the first quarter totaled $298.3 million, down from $348.2 million in the same period last year, reflecting a strategic focus on managing costs while pursuing growth opportunities.

Looking ahead, Comstock Resources remains optimistic about its operational and financial outlook, emphasizing its ability to adapt to market conditions and capitalize on favorable pricing environments. The company plans to fund its future development and exploration activities primarily through operating cash flow and available borrowings, maintaining a flexible approach to capital expenditures. However, the company acknowledges the inherent risks associated with fluctuating commodity prices and market conditions, which could impact its financial performance in the future.