Comstock Resources, Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenues of $1.25 billion, down 20% from $1.57 billion in 2023. The decrease was primarily attributed to lower natural gas prices, which averaged $1.98 per Mcf compared to $2.40 in the previous year. The company experienced a net loss of $218.8 million, or $(0.76) per diluted share, contrasting with a net income of $211.9 million, or $0.76 per diluted share, in 2023. This shift in profitability was compounded by unrealized losses on derivative financial instruments amounting to $197.6 million.
In terms of operational metrics, Comstock's natural gas production increased slightly to 527.5 Bcf, while oil production fell to 50 MBbls. The company drilled 50 wells in 2024, maintaining a focus on its Haynesville and Bossier shale properties, which are critical to its production strategy. The total proved reserves as of December 31, 2024, were reported at 3.76 Tcfe, a decrease from 4.94 Tcfe in 2023, largely due to lower natural gas prices impacting the economic viability of certain reserves.
Strategically, Comstock has continued to expand its operations, acquiring 265,290 net acres in the Western Haynesville area for $106.4 million in 2024. The company also formed a midstream partnership, Pinnacle Gas Services, to enhance its gas gathering and treating capabilities. This partnership is expected to support the anticipated growth in production from the Western Haynesville area. Additionally, Comstock's employee headcount stood at 256 as of December 31, 2024, reflecting its commitment to maintaining a skilled workforce amid operational challenges.
Looking ahead, Comstock plans to invest between $1.0 billion and $1.1 billion in 2025, primarily focused on the continued development of its Haynesville and Bossier shale properties. The company aims to drill 46 operated horizontal wells in 2025, with expectations of turning them to sales within the same year. However, the outlook remains cautious due to the volatility of natural gas prices and the potential need for additional capital to fund its operations and development activities. The company has indicated that it will rely on operating cash flow to finance its exploration and development efforts, while also managing its debt levels, which stood at $3.0 billion as of December 31, 2024.
About COMSTOCK RESOURCES INC
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