Comstock Resources (CRK) Q2 2025 earnings summary

Executive summary

• Higher natural gas prices in Q2 2025 led to improved financial results, with oil and gas sales reaching $344 million and operating cash flow at $210 million, supported by significant derivative gains and a return to profitability.

• Adjusted net income for Q2 2025 was $40 million ($0.13/share), while reported net income was $130.7 million, reflecting a large unrealized hedging gain.

• Five Western Haynesville wells turned to sales in Q2, averaging 36 MMcf/day initial production and 10,897 feet lateral length.

• Collaboration with NextEra Energy to explore gas-fired power generation assets for potential data center customers near Western Haynesville.

• Focus remains on long-term value creation through asset development, not short-term M&A, with resources allocated to drilling and infrastructure in Western Haynesville.

Financial highlights

• Q2 2025 oil and gas sales rose 24% year-over-year to $344 million, with adjusted net income of $40 million and reported net income of $130.7 million due to hedging gains.

• Adjusted EBITDAX for Q2 2025 was $260 million; operating cash flow reached $210 million.

• For the first half of 2025, oil and gas sales totaled $749 million, with adjusted net income of $94 million.

• Q2 2025 revenues were $340 million, up 56% year-over-year, with derivative gains of $231.6 million pre-tax.

• Cash and cash equivalents at June 30, 2025 were $25.9 million; total liquidity of $1.05 billion including unused credit facility.

Outlook and guidance

• 2025 focus is on Western Haynesville development, with plans to drill 19 wells and turn 13 to sales, and 32 wells drilled and turned to sales in Legacy Haynesville.

• Plans to divest non-core properties in 2025 to accelerate deleveraging.

• Drilling and completion costs expected to remain flat or slightly lower for the remainder of 2025; capital expenditures for the rest of 2025 expected at $550–$650 million.

• New gas treating plant started in July, doubling treating capacity.

• Management expects operating cash flow and credit facility borrowings to cover liquidity and capital needs for at least the next twelve months.