Comstock Resources (CRK) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw significant operational and financial progress, with higher natural gas prices and successful delineation of Western Haynesville, including the Olajuwon Pickens #1 well achieving a 41 MMcf/d IP and extending proven acreage in Freestone County.

• Revenue rose 53% year-over-year to $512.9 million, despite an 18% drop in production volume, and gas services revenue more than doubled to $99.9 million.

• Adjusted EBITDAX was $293 million, and adjusted net income was $53.8 million ($0.18 per share), reversing a loss from Q1 2024.

• Net loss for the quarter was $115.4 million, primarily due to $322.4–$330.3 million in unrealized derivative losses.

• Focus remains on expanding drilling inventory, cost efficiency, and carbon capture initiatives.

Financial highlights

• Natural gas and oil sales increased to $405 million in Q1 2025, up from $336 million in Q1 2024.

• Realized natural gas price after hedging was $3.52–$3.58/Mcf, up from $2.40/Mcf in Q1 2024.

• Operating cash flow was $239 million, up from $182 million year-over-year.

• Capital expenditures totaled $250–$298.3 million in Q1 2025.

• EBITDAX margin improved to 76% from 73% in the previous quarter.

Outlook and guidance

• 2025 guidance: production of 1,300–1,400 MMcfe/d; Q2 2025: 1,225–1,325 MMcfe/d.

• Plan to drill 20 wells and turn 15–16 to sales in Western Haynesville; 25 drilled and 31 turned to sales in legacy Haynesville.

• D&C costs for 2025 expected at $1.0–$1.1 billion; Western Haynesville midstream spend of $130–$150 million, fully funded by partners.

• Drilling program to be funded from operating cash flow, with excess cash flow used to pay down debt.

• Continued focus on cost efficiencies and maintaining industry-lowest cost structure.