Comstock Resources Reports $112.5 Million Net Income in Q1 2026, Driven by Increased Natural Gas Sales

Comstock Resources, Inc. reported a net income of $112.5 million, or $0.38 per share, for the first quarter of 2026, a significant recovery from a net loss of $115.4 million, or $0.40 per share, in the same period of 2025. Total revenues for the quarter reached $587.4 million, up from $512.9 million year-over-year, driven primarily by increased natural gas sales, which amounted to $418.3 million compared to $412.3 million in the prior year. The company attributed this revenue growth to higher natural gas prices, with the average realized price per thousand cubic feet (Mcf) rising to $4.27, a 19% increase from $3.58 in the first quarter of 2025.

In terms of operational performance, Comstock's natural gas production decreased by 15% to 97.9 billion cubic feet (Bcf) in the first quarter of 2026, down from 115.0 Bcf in the same quarter of 2025. Despite this decline in production volume, the company reported a substantial increase in gas services revenue, which surged by 67% to $166.5 million, reflecting higher natural gas prices related to sales of gas purchased for resale. The total operating expenses for the quarter were $412.5 million, an increase from $386.7 million in the previous year, largely due to higher gas service expenses and general and administrative costs.

Comstock's balance sheet showed total assets of $7.24 billion as of March 31, 2026, compared to $7.01 billion at the end of 2025. The company’s long-term debt increased to $2.95 billion from $2.81 billion, while total stockholders' equity rose to $3.07 billion, up from $2.96 billion. The increase in equity was supported by retained earnings, which grew to $1.23 billion from $1.12 billion. The company also reported a decrease in cash and cash equivalents, which fell to $14.8 million from $23.9 million at the end of the previous fiscal year.

Strategically, Comstock has been active in its capital expenditures, investing $415.8 million in the first quarter of 2026, compared to $298.3 million in the same period of 2025. This investment included significant spending on exploratory drilling and completion costs, which totaled $174.8 million, reflecting the company's commitment to expanding its operational footprint in the Haynesville and Bossier shale regions. The company drilled 17 wells and completed 13 during the quarter, indicating a robust development strategy.

Looking ahead, Comstock anticipates spending an additional $1.1 billion to $1.2 billion on drilling, completion, and infrastructure activities throughout the remainder of 2026. The company maintains a strong liquidity position, with $1.27 billion available, including $1.15 billion in unused borrowing capacity under its bank credit facilities. Comstock's management expressed confidence that its operating cash flow and available borrowings will be sufficient to meet its liquidity needs and capital expenditure requirements for the foreseeable future.