Comstock Resources (CRK) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were impacted by lower production due to significant winter weather, but net income rebounded to $112.5 million, reversing a prior-year loss, with revenue rising 15% to $587.4 million, driven by higher natural gas prices and gas services revenue.

• Natural gas and oil sales, including hedging, totaled $339 million, with operating cash flow of $192 million and adjusted EBITDAX of $251 million.

• Adjusted net income was $44 million, or $0.15 per share, excluding non-recurring items.

• Strong late-quarter drilling results in both Western and Legacy Haynesville are expected to drive production growth for the remainder of 2026.

• The Western Haynesville site was selected for a 5.2 GW natural gas-fired power generation hub, with up to 1 Bcf/d of gas to be supplied by 2031.

Financial highlights

• Q1 2026 production averaged 1,088 MMcfe/d, down from 1,279 MMcfe/d in Q1 2025.

• Oil and gas sales after hedging were $339 million; operating cash flow was $192 million; adjusted EBITDAX was $251 million.

• Net income available was $107.5 million, reversing a loss of $121.3 million in Q1 2025.

• Realized natural gas price after hedging was $3.45/Mcf in Q1 2026, up from $3.27/Mcf in Q4 2025.

• Free cash flow deficit after acquisition and divestiture activities was $(223.3) million.

Outlook and guidance

• Production is expected to rebound in Q2 and beyond, with anticipated 13–15% sequential growth and 2026 guidance of 1,250–1,400 MMcfe/d.

• Plans to spend an additional $1.1–$1.2 billion on drilling, completion, and infrastructure in the remainder of 2026.

• Expect to drill 71 wells and turn 68 wells to sales in 2026 across Western and Legacy Haynesville.

• Guidance is based on best estimates from drilling and completion schedules, with Western Haynesville volumes expected to become more predictable.

• Management expects to fund capital needs through operating cash flow and available credit facilities, with liquidity at quarter-end of $1.3 billion.