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What changed in COMSTOCK RESOURCES INC's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of COMSTOCK RESOURCES INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+236 added−217 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-21)

Top changes in COMSTOCK RESOURCES INC's 2025 10-K

236 paragraphs added · 217 removed · 195 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

97 edited+18 added−8 removed149 unchanged
Biggest changeThe following table presents the changes in our estimated proved undeveloped natural gas and oil reserves for the years ended December 31, 2024, 2023 and 2022: Proved Undeveloped Reserves 2024 2023 2022 Oil (MBbls) Natural Gas (MMcf) Oil (MBbls) Natural Gas (MMcf) Oil (MBbls) Natural Gas (MMcf) Beginning Balance — 2,206,051 69 4,166,108 — 3,872,423 Revisions — (996,816 ) — (1,634,178 ) (68 ) (1,545 ) Extension and Discoveries — 94,538 — 407,629 137 920,825 Conversion from Undeveloped to Developed — (273,487 ) (69 ) (733,508 ) — (625,595 ) Total Change — (1,175,765 ) (69 ) (1,960,057 ) 69 293,685 Ending Balance — 1,030,286 — 2,206,051 69 4,166,108 The timing, by year, when our proved undeveloped reserve quantities are estimated to be converted to proved developed reserves is as follows: Proved Undeveloped Reserves 2024 2023 2022 Year ended December 31, Oil (MBbls) Natural Gas (MMcf) Oil (MBbls) Natural Gas MMcf) Oil (MBbls) Natural Gas (MMcf) 2023 — — — — 69 974,476 2024 — — — 273,487 — 868,692 2025 — 162,370 — 425,458 — 961,824 2026 — 90,525 — 656,609 — 881,972 2027 — 70,859 — 509,227 — 479,144 2028 — 302,749 — 341,270 — — 2029 — 403,783 — — — — Total — 1,030,286 — 2,206,051 69 4,166,108 The following table presents the timing of our estimated future development capital costs to be incurred for the years ended December 31, 2024, 2023 and 2022: Future Development Costs Total Proved Undeveloped Reserves 2024 2023 2022 Year ended December 31, (in millions) 2023 $ — $ — $ 810.0 2024 — 184.5 890.0 2025 97.1 427.2 957.0 2026 65.7 728.7 942.4 2027 55.4 522.4 497.8 2028 279.1 351.3 — 2029 394.2 — — Total $ 891.5 $ 2,214.1 $ 4,097.2 10 COMSTOCK RESOURCES, INC.
Biggest changeThe timing, by year, when our proved undeveloped reserve quantities are estimated to be converted to proved developed reserves is as follows: Proved Undeveloped Reserves 2025 2024 2023 Year ended December 31, Oil (MBbls) Natural Gas (MMcf) Oil (MBbls) Natural Gas (MMcf) Oil (MBbls) Natural Gas (MMcf) 2024 — — — — — 273,487 2025 — — — 162,370 — 425,458 2026 — 451,393 — 90,525 — 656,609 2027 — 615,813 — 70,859 — 509,227 2028 — 900,524 — 302,749 — 341,270 2029 — 1,212,891 — 403,783 — — 2030 — 982,862 — — — — Total — 4,163,483 — 1,030,286 — 2,206,051 The following table presents the timing of our estimated future development capital costs to be incurred for the years ended December 31, 2025, 2024 and 2023: Future Development Costs Total Proved Undeveloped Reserves 2025 2024 2023 Year ended December 31, (in millions) 2024 $ — $ — $ 184.5 2025 — 97.1 427.2 2026 411.6 65.7 728.7 2027 643.2 55.4 522.4 2028 1,013.5 279.1 351.3 2029 1,458.9 394.2 — 2030 1,175.1 — — Total $ 4,702.3 $ 891.5 $ 2,214.1 The following table presents the changes in our estimated future development costs for the years ended December 31, 2025 and December 31, 2024: (in millions) Total as of December 31, 2023 $ 2,214.1 Development Costs Incurred (422.6 ) Additions 96.2 Revisions (996.2 ) Total Changes (1,322.6 ) Total as of December 31, 2024 891.5 Development Costs Incurred (393.2 ) Additions 3,645.5 Revisions 558.5 Total Changes 3,810.8 Total as of December 31, 2025 $ 4,702.3 Our estimated future capital costs to develop proved undeveloped reserves as of December 31, 2025 of $4.7 billion increased by $3.8 billion from our estimated future capital costs of $0.9 billion as of December 31, 2024.
Oil and NGLs are converted to natural gas equivalents by using a conversion factor of one barrel of oil or NGLs for six Mcf of natural gas based upon the approximate relative energy content of oil to natural gas, which is not indicative of natural gas and oil prices.
Oil and NGLs are converted to natural gas equivalents by using a conversion factor of one barrel of oil or NGLs for six Mcf of natural gas based upon the approximate relative energy content of oil to natural gas, which is not indicative of natural gas and oil prices.
(2) The PV 10 Value represents the discounted future net cash flows attributable to our proved natural gas and oil reserves before income tax, discounted at 10%.
(2) The PV 10 Value represents the discounted future net cash flows attributable to our proved natural gas and oil reserves before income tax, discounted at 10%.
Although it is a non-GAAP measure, we believe that the presentation of PV 10 Value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account corporate future income taxes and our current tax structure.
Although it is a non-GAAP measure, we believe that the presentation of PV 10 Value is relevant and useful to our investors because it presents the discounted future net cash flows attributable to our proved reserves prior to taking into account corporate future income taxes and our current tax structure.
We believe that our operations comply in all material respects with the requirements of the Clean Water Act and state statutes enacted to control water pollution and that the requirements, including those under the 2023 WOTUS rule, are not any more burdensome to us than to other similarly situated companies involved in natural gas and oil exploration and production activities.
We believe that our operations comply in all material respects with the requirements of the Clean Water Act and state statutes enacted to control water pollution and that the requirements, including those under the 2023 WOTUS rule and 2025 WOTUS rule, are not any more burdensome to us than to other similarly situated companies involved in natural gas and oil exploration and production activities.
Sanders is a Certified Professional Landman and became the nation's first Certified Professional Lease and Title Analyst in 1990. Brian C. Claunch has been our Vice President of Financial Reporting since June 2021. Mr. Claunch joined the Company in June 2020 as Director of Financial Reporting. Prior to joining Comstock, Mr.
Sanders is a Certified Professional Landman and became the nation's first Certified Professional Lease and Title Analyst in 1990. Brian C. Claunch has been our Vice President of Financial Reporting since 2021. Mr. Claunch joined the Company in 2020 as Director of Financial Reporting. Prior to joining Comstock, Mr.
Advances in drilling and completion technology have allowed us to increase the reserves recovered through drilling longer horizontal lateral lengths and applying substantially improved well stimulations, as well as successfully drilling horizontal wells in our deeper Western Haynesville extension of the Haynesville and Bossier Shale plays.
Advances in drilling and completion technology have allowed us to increase the reserves recovered through drilling longer horizontal lateral lengths, drilling horseshoe wells and applying substantially improved well stimulations, as well as successfully drilling horizontal wells in our deeper Western Haynesville extension of the Haynesville and Bossier Shale plays.
This sensitivity analysis is only meant to demonstrate the impact that changing natural gas and oil prices may have on our proved reserve estimates and the related PV 10 Value and there is no assurance this outcome will be realized.
This sensitivity analysis is meant to demonstrate the impact that changing natural gas and oil prices may have on our proved reserve estimates and the related PV 10 Value and there is no assurance this outcome will be realized.
Army Corps of Engineers issued a new rule that revises the definition of "waters of the United States" ("WOTUS"). The new rule has been challenged by several states and industry groups. If upheld, such regulations may impact certain exploration and production activities.
Army Corps of Engineers ("USACE") issued a new rule that revises the definition of "waters of the United States" ("WOTUS"). The new rule has been challenged by several states and industry groups. If upheld, such regulations may impact certain exploration and production activities.
As of December 31, 2024, we did not own an interest in any wells containing multiple completions, which means that a well is producing from more than one completed zone. Acreage The following table summarizes our developed and undeveloped leasehold acreage as of December 31, 2024, all of which is onshore in the continental United States.
As of December 31, 2025, we did not own an interest in any wells containing multiple completions, which means that a well is producing from more than one completed zone. Acreage The following table summarizes our developed and undeveloped leasehold acreage as of December 31, 2025, all of which is onshore in the continental United States.
Proved reserve information in this report is based on estimates prepared by our petroleum engineering staff and is the responsibility of management. We retained an independent petroleum consultant to conduct an audit of our December 31, 2024 reserve estimates. Netherland, Sewell & Associates, Inc. ("NSAI") audited 100% of our total PV 10 Value as of December 31, 2024.
Proved reserve information in this report is based on estimates prepared by our petroleum engineering staff and is the responsibility of management. We retained an independent petroleum consultant to conduct an audit of our December 31, 2025 reserve estimates. Netherland, Sewell & Associates, Inc. ("NSAI") audited 100% of our total PV 10 Value as of December 31, 2025.
We currently have agreements with certain natural gas midstream companies to provide us with firm transportation for an average of approximately 1.7 Bcf per day in 2025 on the long-haul pipelines. To the extent we are not able to deliver the contracted natural gas volumes, we may be responsible for the transportation costs.
We currently have agreements with certain natural gas midstream companies to provide us with firm transportation for an average of approximately 1.7 Bcf per day in 2026 on the long-haul pipelines. To the extent we are not able to deliver the contracted natural gas volumes, we may be responsible for the transportation costs.
A brief biography of each person who serves as an executive officer or director follows below. Executive Officers M. Jay Allison has been our Chief Executive Officer since 1988. Mr. Allison was elected Chairman of the Board in 1997 and has been a director since 1987. From 1988 to 2013, Mr. Allison served as our President.
Turner Director 80 A brief biography of each person who serves as an executive officer or director follows below. Executive Officers M. Jay Allison has been our Chief Executive Officer since 1988. Mr. Allison was elected Chairman of the Board in 1997 and has been a director since 1987. From 1988 to 2013, Mr. Allison served as our President.
As of December 31, 2024, substantially all of our proved natural gas and oil reserves were in the Haynesville and Bossier shale plays. We are focused on creating value through the development of our substantial inventory of highly economic drilling opportunities in the Haynesville and Bossier shales and through our exploration activities in our Western Haynesville play.
As of December 31, 2025, substantially all of our proved natural gas and oil reserves were in the Haynesville and Bossier shale plays. We are focused on creating value through the development of our substantial inventory of highly economic drilling opportunities in the Haynesville and Bossier shales and through our exploration activities in our Western Haynesville play.
NGLs are converted to natural gas equivalents by using a conversion factor of one barrel of NGLs for six Mcf of natural gas based upon the approximate relative energy content. All of our proved reserves are in the Haynesville and Bossier shales in North Louisiana and East Texas. These wells produce from depths of 10,500 to 19,000 feet.
NGLs are converted to natural gas equivalents by using a conversion factor of one barrel of NGLs for six Mcf of natural gas based upon the approximate relative energy content. Substantially all of our proved reserves are in the Haynesville and Bossier shales in North Louisiana and East Texas. These wells produce from depths of 10,500 to 19,200 feet.
We did not provide estimates of total proved natural gas and oil reserves during the three-year period ended December 31, 2024 to any federal authority or agency, other than the SEC.
We did not provide estimates of total proved natural gas and oil reserves during the three-year period ended December 31, 2025 to any federal authority or agency, other than the SEC.
Our current plan is to fund our exploration and development activity with operating cash flow that we generate. We believe our low operating cost structure combined with maximizing the capital efficiency of our drilling program and maintaining financial discipline will allow us to achieve this goal. • Focus on environmental stewardship.
Our current plan is to fund our exploration and development activity primarily with operating cash flow and we believe our low operating cost structure combined with maximizing the capital efficiency of our drilling program and maintaining financial discipline will allow us to achieve this goal. • Focus on environmental stewardship.
Our management and operating teams are instrumental in developing and optimizing some of the most effective completion techniques in the Haynesville and Bossier shales and such completion techniques have resulted in a substantial improvement in initial production rates and recoverable reserves, which has resulted in some of the highest single well rates of return when compared to results from other natural gas basins in North America. • Proximity to premium natural gas markets .
Our management and operating teams are instrumental in developing and optimizing some of the most effective completion techniques in the Haynesville and Bossier shales and such completion techniques have resulted in a substantial improvement in initial production rates and recoverable reserves, which has resulted in some of the highest single well rates of return when compared to results from other natural gas basins in North America. 6 COMSTOCK RESOURCES, INC. • Proximity to premium natural gas markets .
As the operator, we are better able to control operating costs, the timing and plans for future development, the level of drilling and lifting costs, and the marketing of production. As an operator, we receive reimbursements for overhead from other working interest owners, which reduces our general and administrative expenses.
As the operator, we are better able to control operating costs, the timing and plans for future development, the level of drilling and lifting costs, and the marketing of production. As an operator, we receive reimbursements for overhead from other working interest owners, which reduces our general and administrative expenses. • Data Center Opportunity.
The independent consultant's estimates of proved reserves and the pretax present value of such reserves discounted at 10% did not differ from our estimates by more than 2% in the aggregate.
The independent consultant's estimates of proved reserves and the pretax present value of such reserves discounted at 10% did not differ from our estimates by more than 7% in the aggregate.
Bartlett holds a Bachelor of Science degree in Petroleum Engineering and Geoscience from the University of Texas at Austin and has 12 years of engineering experience in the oil and gas industry.
Bartlett holds a Bachelor of Science degree in Petroleum Engineering and Geoscience from the University of Texas at Austin and has 13 years of engineering experience in the oil and gas industry.
Environmental laws and regulations have been subject to frequent changes over the years, and the imposition of more stringent requirements or new regulatory schemes such as carbon "cap and trade" or pricing programs could have a material adverse effect upon our capital expenditures, earnings or competitive position, including the suspension or cessation of operations in affected areas.
Environmental laws and regulations have been subject to frequent changes over the years, and the imposition of more stringent requirements or new regulatory schemes such as carbon "cap and trade" or pricing programs could have a material adverse effect upon our 16 COMSTOCK RESOURCES, INC. capital expenditures, earnings or competitive position, including the suspension or cessation of operations in affected areas.
Our natural gas production benefits from the strong regional Gulf Coast demand growth driven by a substantial increase in LNG exports, exports to Mexico and new or expanded petrochemical facilities. Producers, such as us, with access to the Gulf Coast natural gas markets are receiving higher net realized prices than most 6 COMSTOCK RESOURCES, INC. producers in other regions.
Our natural gas production benefits from the strong regional Gulf Coast demand growth driven by a substantial increase in LNG exports, exports to Mexico and new or expanded petrochemical facilities. Producers, such as us, with access to the Gulf Coast natural gas markets are receiving higher net realized prices than most producers in other regions.
This order has the potential to adversely affect our operations by restricting areas in which we may carry out future exploration and development projects and/or causing us to incur increased operating expenses. Certain flora and fauna that have officially been classified as "threatened" or "endangered" are protected by the Endangered Species Act.
This order has the potential to adversely affect our operations by restricting areas in which we may carry out future exploration and development projects and/or causing us to incur increased operating expenses. 18 COMSTOCK RESOURCES, INC. Certain flora and fauna that have officially been classified as "threatened" or "endangered" are protected by the Endangered Species Act.
Turner has served as a director since 2014. Mr. Turner currently serves as Chairman of Turner Holdings, LLC and CEO of JLT Automotive, Inc. Mr. Turner served as President and Chief Executive Officer of Dr Pepper/Seven Up Bottling Group, Inc. from its formation in 1999 through 2005, when he sold this interest in that company. Prior to that, Mr.
Jim L. Turner has served as a director since 2014. Mr. Turner currently serves as Chairman of Turner Holdings, LLC and CEO of JLT Automotive, Inc. Mr. Turner served as President and Chief Executive Officer of Dr Pepper/Seven Up Bottling Group, Inc. from its formation in 1999 through 2005, when he sold this interest in that company.
The Inflation Reduction Act (the "IRA"), which was signed into law on August 16, 2023, established a new program, the Methane Emission Reduction Program, that imposes a first-time federal fee on methane emissions for the oil and gas sector.
The Inflation Reduction Act (the "IRA"), which was signed into law on August 16, 2023, established a new program, the Methane Emission Reduction Program, that imposes a first-time federal fee on methane emissions for the oil and gas sector, the Waste Emissions Charge ("WEC").
The mandatory five-year review in 2012 revised the methodology for this index to be based on PPI-FG plus 2.65 percent for the period July 1, 2011 through June 30, 2016. The regulations provide that each year the Commission will publish the oil pipeline index after the PPI-FG becomes available. 15 COMSTOCK RESOURCES, INC.
The mandatory five-year review in 2012 revised the methodology for this index to be based on PPI-FG plus 2.65 percent for the period July 1, 2011 through June 30, 2016. The regulations provide that each year the Commission will publish the oil pipeline index after the PPI-FG becomes available.
Additional proposals and proceedings that might affect the natural gas industry are pending before Congress, the FERC, state commissions and the courts. The natural gas industry historically has been very heavily regulated; therefore, there is no assurance that the less stringent regulatory approach pursued by the FERC, Congress and state regulatory authorities will continue. Federal leases.
Additional proposals and proceedings that might affect the natural gas industry are pending before Congress, the FERC, state commissions and the courts. The natural gas industry historically has been very heavily regulated; therefore, there is no assurance that the less stringent regulatory approach pursued by the FERC, Congress and state regulatory authorities will continue. 15 COMSTOCK RESOURCES, INC. Federal leases.
We utilize cleaner burning natural gas rather than diesel fuel when possible to 7 COMSTOCK RESOURCES, INC. reduce emissions in our drilling and completion operations and design our wells to drill longer laterals and utilize multi-well pad locations to minimize our above-ground footprint. • Manage commodity price exposure.
We utilize cleaner burning natural gas rather than diesel fuel when possible to reduce emissions in our drilling and completion operations and design our wells to drill longer laterals and utilize multi-well pad locations to minimize our above-ground footprint. • Manage commodity price exposure.
Some 19 COMSTOCK RESOURCES, INC. state statutes limit the rate at which natural gas and oil can be produced from our properties. It is also possible that certain states may increase regulatory activity in response to changing federal regulations or policies. State regulation.
Some state statutes limit the rate at which natural gas and oil can be produced from our properties. It is also possible that certain states may increase regulatory activity in response to changing federal regulations or policies. State regulation.
In 2015, we restarted a drilling program in the Haynesville and Bossier shales utilizing enhanced completion well designs that have significantly improved the economics of these wells. In 2022, we started exploratory drilling in the Western Haynesville area and now have eighteen successful wells turned to sales through the end of 2024.
In 2015, we restarted a drilling program in the Haynesville and Bossier shales utilizing enhanced completion well designs that have significantly improved the economics of these wells. In 2022, we started exploratory drilling in the Western Haynesville area and now have 30 successful wells turned to sales through the end of 2025.
We use this measure when assessing the potential return on investment related to our natural gas and oil properties. The standardized measure of discounted future net cash flows represents the present value of future cash flows attributable to our proved natural gas and oil reserves after income tax, discounted at 10%. 8 COMSTOCK RESOURCES, INC.
We use this measure when assessing the potential return on investment related to our natural gas and oil properties. The standardized measure of discounted future net cash flows represents the present value of future cash flows attributable to our proved natural gas and oil reserves after income tax, discounted at 10%.
Prices used in determining quantities of natural gas and oil reserves and future cash inflows from natural gas and oil reserves represent the average first of the month prices received at the point of sale for the last twelve months. These prices have been adjusted from index prices for both location and quality differences.
Prices used in determining quantities of natural gas and oil reserves and future cash inflows from natural gas and oil reserves represent the average first of the month prices received at the point of sale for the last twelve months. These prices have been adjusted from index prices for both location and quality differences. 9 COMSTOCK RESOURCES, INC.
We use this measure when assessing the potential return on investment related to our natural gas and oil properties. The standardized measure of discounted future net cash flows represents the present value of future cash flows attributable to our proved natural gas and oil reserves after income tax, discounted at 10%. 11 COMSTOCK RESOURCES, INC.
We use this measure when assessing the potential return on investment related to our natural gas and oil properties. The standardized measure of discounted future net cash flows represents the present value of future cash flows attributable to our proved natural gas and oil reserves after income tax, discounted at 10%.
Newell has over 15 years of experience in commercial, marketing and operations experience in the midstream energy industry. Prior to joining us, Mr. Newell was responsible for producer relationships, business development, project management, scheduling and marketing as Commercial Vice President at Trace Midstream, Blue Mountain Midstream and Penntex Midstream.
Mr. Newell has over two decades of experience in commercial, marketing and operations experience in the midstream energy industry. Prior to joining us, Mr. Newell was responsible for producer relationships, business development, project management, scheduling and marketing as Commercial Vice President at Trace Midstream, Blue Mountain Midstream and Penntex Midstream.
Further, the EPA has adopted regulations requiring certain natural gas and oil exploration and production facilities to obtain permits for storm water discharges. Costs may be associated with the treatment of wastewater or developing and implementing storm water pollution prevention plans.
Further, the EPA has adopted regulations requiring certain natural gas and oil exploration and production 17 COMSTOCK RESOURCES, INC. facilities to obtain permits for storm water discharges. Costs may be associated with the treatment of wastewater or developing and implementing storm water pollution prevention plans.
If such legislation were enacted, it could have a significant 16 COMSTOCK RESOURCES, INC. impact on our operating costs, as well as the natural gas and oil industry in general. The impact of future revisions to environmental laws and regulations cannot be predicted.
If such legislation were enacted, it could have a significant impact on our operating costs, as well as the natural gas and oil industry in general. The impact of future revisions to environmental laws and regulations cannot be predicted.
Gas Wellhead Decontrol Act, which removed all remaining price and nonprice controls affecting all "first sales" of natural gas, effective January 1, 1993, subject to the terms of any private contracts that may be in effect.
In 1989, however, Congress enacted the Natural Gas Wellhead Decontrol Act, which removed all remaining price and nonprice controls affecting all "first sales" of natural gas, effective January 1, 1993, subject to the terms of any private contracts that may be in effect.
Prior to 2005, he worked in various petroleum engineering operations management positions for several independent oil and gas exploration and development companies. Mr. Harrison received a B.S. Degree in Petroleum Engineering from the Louisiana State University in 1985. Clifford D. Newell has been our Chief Commercial Officer and Vice President of Corporate Development since December 2022. Mr.
Prior to 2005, he worked in various petroleum engineering operations management positions for 21 COMSTOCK RESOURCES, INC. several independent oil and gas exploration and development companies. Mr. Harrison received a B.S. Degree in Petroleum Engineering from the Louisiana State University in 1985. Clifford "Trey" D. Newell has been our Chief Commercial Officer and Vice President of Corporate Development since 2022.
The Haynesville and Bossier shales in our legacy area has been substantially delineated since commercial operations started in 2008 and the consistent and successful results of our first eighteen wells in our Western Haynesville area indicate substantial upside to our extension of the Haynesville and Bossier shale plays.
The Haynesville and Bossier shales in our legacy area have been substantially delineated since commercial operations started in 2008 and the consistent and successful results of our first 30 wells in our Western Haynesville area indicate substantial upside to our extension of the Haynesville and Bossier shale plays.
Turner served as Owner/Chairman of the Board and Chief Executive Officer of the Turner Beverage Group, the largest privately owned independent bottler in the United States. Mr.
Prior to that, Mr. Turner served as Owner/Chairman of the Board and Chief Executive Officer of the Turner Beverage Group, the largest privately owned independent bottler in the United States. Mr.
Foster currently serves as Chairman of Stagecoach Properties Inc., a real estate holding corporation with properties in Salado, Houston and College Station, Texas and Carmel, California and as a member of the Board of Regents of Texas A&M University. In addition, Mr. Foster currently serves on the board of directors of Scott & White Medical Institute. Jim L.
Foster currently serves as Chairman of Stagecoach Properties Inc., a real estate holding corporation with properties in Salado, Houston 22 COMSTOCK RESOURCES, INC. and College Station, Texas and Carmel, California and as a member of the Board of Regents of Texas A&M University. In addition, Mr. Foster currently serves on the board of directors of Scott & White Medical Institute.
Future regulatory developments could adversely affect our 17 COMSTOCK RESOURCES, INC. operations by placing restrictions on the use of injection wells and hydraulic fracturing and/or causing us to incur increased operating expenses.
Future regulatory developments could adversely affect our operations by placing restrictions on the use of injection wells and hydraulic fracturing and/or causing us to incur increased operating expenses.
The natural gas and oil prices used for reserves estimation were as follows: Year Natural Gas Price (per Mcf) Oil Price (per Bbl) 2024 $ 1.84 $ 71.07 2023 $ 2.39 $ 72.63 2022 $ 6.03 $ 91.21 Reserves may be classified as proved undeveloped if there is a high degree of confidence that the quantities will be recovered, and they are scheduled to be drilled within five years of their initial inclusion as proved reserves, unless specific circumstances justify a longer time.
The natural gas and oil prices used for reserves estimation were as follows: Year Natural Gas Price (per Mcf) Oil Price (per Bbl) 2025 $ 3.07 $ 61.98 2024 $ 1.84 $ 71.07 2023 $ 2.39 $ 72.63 Reserves may be classified as proved undeveloped if there is a high degree of confidence that the quantities will be recovered, and they are scheduled to be drilled within five years of their initial inclusion as proved reserves, unless specific circumstances justify a longer time.
Davis has served as a director since 2014. Dr. Davis is currently the President of Furman University. Dr. Davis was the Executive Vice President and Provost for Baylor University until July 2014 and served as Interim Provost from 2008 until 2010.
Davis is currently the President of Furman University. Dr. Davis was the Executive Vice President and Provost for Baylor University until July 2014 and served as Interim Provost from 2008 until 2010.
Our Haynesville and Bossier shale acreage is located in one of the premier North American natural gas basins and has access to the growing natural gas demand in the Gulf Coast markets related to LNG exports and the petrochemical industry due to its geographic proximity.
Our Haynesville and Bossier shale acreage is located in one of the premier North American natural gas basins and has access to the growing natural gas demand in the Gulf Coast markets related to LNG exports, expansion of power generation for data centers and the petrochemical industry due to its geographic proximity.
Claunch served as Director of Financial Reporting at Guidon Energy and Controller at Pioneer Natural Resources Company. He received his Bachelor of Business Administration and Master of Science in Accounting degrees from the University of Texas at Arlington in 1999 and is a Certified Public Accountant. 21 COMSTOCK RESOURCES, INC. Outside Directors Elizabeth B.
Claunch served as Director of Financial Reporting at Guidon Energy and Controller at Pioneer Natural Resources Company. He received his Bachelor of Business Administration and Master of Science in Accounting degrees from the University of Texas at Arlington in 1999 and is a Certified Public Accountant. Outside Directors Elizabeth B. Davis has served as a director since 2014. Dr.
In general, covered facilities that emit 25,000 metric tons of carbon dioxide equivalent or more per year are required to pay for "excess" methane emissions, with the fee starting at $900 per metric ton in 2024, and increasing to $1,500 per metric ton by 2026.
In general, under the EPA's November 12, 2024 final rule implementing the WEC, covered facilities that emit 25,000 metric tons of carbon dioxide equivalent or more per year are required to pay for "excess" methane emissions, with the fee starting at $900 per metric ton in 2024, and increasing to $1,500 per metric ton by 2026.
We also own production offices and pipe yard facilities near Carthage, Franklin, Nacogdoches, Marshall, Marquez and Tennessee Colony in Texas and Bossier City, Grand Cane, Greenwood, Homer, Mansfield and Logansport in Louisiana. Human Capital As of December 31, 2024, we had 256 employees and utilized contract employees for certain of our drilling, completion and production operations.
We also own production offices and pipe yard facilities near Carthage, Franklin, Marshall, Marquez and Tennessee Colony in Texas and Bossier City, Grand Cane, Greenwood, Homer, Mansfield and Logansport in Louisiana. 20 COMSTOCK RESOURCES, INC. Human Capital As of December 31, 2025, we had 252 employees and utilized contract employees for certain of our drilling, completion and production operations.
Turner is past-Chairman and currently serves on the Board of Trustees of Baylor Scott and White Health, the largest not-for-profit healthcare system in the State of Texas, where he also serves as Chairman of the Finance Committee and as a member of the Executive Committee.
Turner is past-Chairman and served on the Board of Trustees of Baylor Scott and White Health, the largest not-for-profit healthcare system in the State of Texas from 2013 through 2025, where he also served as Chairman of the Finance Committee and as a member of the Executive Committee.
As of December 31, 2024, our proved undeveloped reserves did not include any undrilled wells with a rate of return less than 10%. As of December 31, 2024, our proved undeveloped reserves were comprised of 1.0 Tcf of natural gas consisting of 56 undeveloped locations.
As of December 31, 2025, our proved undeveloped reserves did not include any undrilled wells with a rate of return less than 10%. As of December 31, 2025, our proved undeveloped reserves were comprised of 4.2 Tcf of natural gas consisting of 332 undeveloped locations.
He is a Director of Crown Holdings where he also serves as Chairman of the Compensation Committee and as a member of the Nominating and Governance Committee. He is on the Board of Directors of INSURICA, a full-service insurance agency. Mr. Turner is former Chairman of Dean Foods Company where he also served as Chairman of the Compensation Committee.
He is a past board member of Crown Holdings where he also served as Chairman of the Compensation Committee and as a member of the Nominating and Governance Committee. He is on the Board of Directors of INSURICA, a full-service insurance agency. Mr.
As of December 31, 2024, we have 1,099,090 acres (819,489 net) prospective for the Haynesville and Bossier shale plays, located in North Louisiana and East Texas, including our extension of the plays in our Western Haynesville area. Our Haynesville/Bossier shale properties have extensive development and exploration potential.
As of December 31, 2025, we have 1,069,991 acres (802,769 net) prospective for the Haynesville and Bossier shale plays, located in North Louisiana and East Texas, including our extension of the plays in our Western Haynesville area. Our Haynesville/Bossier shale properties have extensive development and exploration potential.
We have also drilled some of the longest lateral wells in the basin. We successfully drilled 31 wells with laterals of 15,000 feet or greater from 2021 through 2024. • Attractive economic returns .
We have also drilled some of the longest lateral wells in the basin. We successfully drilled 41 wells with laterals of 15,000 feet or greater from 2021 through 2025.
Our drilling program in 2024 replaced 101% of our 2024 production based on proved reserves added in our SEC price case and 170% based on proved reserves added in our alternative price case. • Efficient Operator. We operated 98% of our proved reserve base as of December 31, 2024.
Our drilling program in 2025 replaced 830% of our 2025 production based on proved reserves added in our SEC price case and 229% based on proved reserves added in our alternative price case. • Efficient Operator. We operated 99% of our proved reserve base as of December 31, 2025.
The Federal Energy Regulatory Commission ("FERC") regulates the transportation and sale for resale of natural gas in interstate commerce pursuant to the Natural Gas Act of 1938 ("NGA") and the Natural Gas Policy Act of 1978. In 1989, however, Congress enacted the Natural 14 COMSTOCK RESOURCES, INC.
The Federal Energy Regulatory Commission ("FERC") regulates the transportation and sale for resale of natural gas in interstate commerce pursuant to the Natural Gas Act of 1938 ("NGA") and the Natural Gas Policy Act of 1978.
In 2024, we turned an additional eleven Haynesville and Bossier shale wells in this play to sales. In 2025, we currently intend to drill an additional 20 Haynesville and Bossier shale wells in this play. • Evaluate and pursue strategic acquisition opportunities and conduct an active leasing program to grow our reserves, production, and drilling location inventory.
Through December 31, 2025, we have turned 30 wells to sales in this emerging play. In 2026, we currently intend to drill an additional 19 Haynesville and Bossier shale wells in this play. • Evaluate and pursue strategic acquisition opportunities and conduct an active leasing program to grow our reserves, production, and drilling location inventory.
Beginning in 2025, we also have access to gas storage in Western Haynesville that will allow us greater operational flexibility and take advantage of seasonal natural gas pricing. Property Acquisitions In 2024, we added 265,290 net acres to our Western Haynesville area through acquisitions and an active leasing program at a cost of $106.4 million.
We also have access to gas storage in the Western Haynesville area that will allow us greater operational flexibility and take advantage of seasonal natural gas pricing. Property Acquisitions In 2025, we added 17,856 net Haynesville and Bossier shale acres in the Western Haynesville area through an active leasing program at a cost of $54.7 million.
Over the last five years we have acquired a total of approximately 517,624 net undeveloped acres prospective for the Haynesville and Bossier shales. • Successful Drilling Program. We spent $902.1 million on exploration and development activities in 2024, almost exclusively in the Haynesville and Bossier shale.
Over the last six years we have acquired a total of approximately 535,480 net undeveloped acres prospective for the Haynesville and Bossier shales. • Successful Drilling Program. We spent $1.05 billion on exploration and development activities in 2025, almost exclusively in the Haynesville and Bossier shale.
Available Information We file annual, quarterly and current reports, proxy statements and other documents with the SEC under the Securities Exchange Act of 1934. The SEC maintains a website that contains reports, proxy and information statements, and other information that is electronically filed with the SEC. The public can obtain any documents that we file with the SEC at www.sec.gov.
The SEC maintains a website that contains reports, proxy and information statements, and other information that is electronically filed with the SEC. The public can obtain any documents that we file with the SEC at www.sec.gov.
Name Position with Company Age M. Jay Allison Chief Executive Officer and Chairman of the Board of Directors 69 Roland O. Burns President, Chief Financial Officer, Secretary and Director 64 Daniel S. Harrison Chief Operating Officer 61 Clifford D. Newell Chief Commercial Officer and Vice President of Corporate Development 46 Patrick H. McGough Vice President of Operations 44 Ronald E.
Name Position with Company Age M. Jay Allison Chief Executive Officer and Chairman of the Board of Directors 70 Roland O. Burns President, Chief Financial Officer, Secretary and Director 65 Daniel S. Harrison Chief Operating Officer 62 Clifford "Trey" D. Newell Chief Commercial Officer and Vice President of Corporate Development 47 Patrick H.
Our proved reserves are principally natural gas, which were 73% developed as of December 31, 2024 with an average reserve life of approximately 7 years. Using NYMEX futures market natural gas and oil prices as of December 31, 2024, proved reserves are estimated at 7.0 Tcfe with a PV 10 Value of $5.7 billion.
Using NYMEX futures market natural gas and oil prices as of December 31, 2025, proved reserves are estimated at 7.2 Tcfe with a PV 10 Value of $5.2 billion. Using these prices, our proved reserves were 40% developed as of December 31, 2025, with an average reserve life of approximately 16 years. Strengths High Quality Properties .
The following table sets forth our year end reserves as of December 31 for each of the last three fiscal years: 2024 2023 2022 Oil (MBbls) Natural Gas (MMcf) (1) Oil (MBbls) Natural Gas (MMcf) (1) Oil (MBbls) Natural Gas (MMcf) (1) Proved Developed 331 2,731,812 548 2,734,175 480 2,531,462 Proved Undeveloped — 1,030,286 — 2,206,051 69 4,166,108 Total Proved Reserves 331 3,762,098 548 4,940,226 549 6,697,570 ______________ (1) Natural gas volumes include NGLs.
The following table sets forth our year end reserves as of December 31 for each of the last three fiscal years: 2025 2024 2023 Oil (MBbls) Natural Gas (MMcf) (1) Oil (MBbls) Natural Gas (MMcf) (1) Oil (MBbls) Natural Gas (MMcf) (1) Proved Developed 198 2,840,638 331 2,731,812 548 2,734,175 Proved Undeveloped — 4,163,483 — 1,030,286 — 2,206,051 Total Proved Reserves 198 7,004,121 331 3,762,098 548 4,940,226 ______________ (1) Natural gas volumes include NGLs.
In some cases, additional meetings are held to review identified reserve differences. All of our reserve estimates are reviewed with our executive management, our independent consultants perform an independent analysis, and ultimately our reserve estimates are approved by our Director of Reservoir Engineering, Kristine Bartlett. Ms.
All of our reserve estimates are reviewed with our executive management, our independent consultants perform an independent analysis, and ultimately our reserve estimates are approved by our Director of Reservoir Engineering, Kristine Bartlett. Ms.
We have determined that these reporting requirements apply to us and we believe we have met all of the EPA required reporting deadlines and strive to ensure accurate and consistent emissions data reporting.
We have determined that these reporting requirements apply to us and we believe we have met all of the EPA required reporting deadlines and strive to ensure accurate and consistent emissions data reporting. On September 12, 2025, the EPA announced a proposed rule to end the GHG Reporting Rule.
Given the low reference natural gas price prescribed by the SEC rules of $1.84 per Mcf for the year ended December 31, 2024, we performed an analysis to compare our proved reserve estimates as of December 31, 2024, to proved reserve estimates using a $3.26 per Mcf natural gas price and a $59.10 per Bbl oil price, which represents the NYMEX futures market prices as of December 31, 2024, adjusted for basis differentials ("alternative price case"), to show the sensitivity of our proved reserve estimates to price fluctuations.
We performed an analysis to compare our proved reserve estimates as of December 31, 2025, to proved reserve estimates using year-end market prices of $3.23 per Mcf natural gas price and a $56.82 per Bbl oil price, which represents the NYMEX futures market prices as of December 31, 2025, adjusted for basis differentials ("alternative price case"), to show the sensitivity of our proved reserve estimates to price fluctuations.
Enterprise Products Operating and its subsidiaries and Venture Global LNG, Inc. accounted for 21% and 12%, respectively, of our total 2024 sales. The loss of any of these customers would not have a material adverse effect on us as there is an available market for our natural gas and oil production from other purchasers.
The loss of any of these customers would not have a material adverse effect on us as there is an available market for our natural gas and oil production from other purchasers.
We target selling approximately 70% to 75% of our natural gas on first of month index price, with the remaining volumes on daily spot market pricing.
Our natural gas production is primarily sold under contracts with various terms and priced on first of the month index prices or on daily spot market prices or fixed prices. We target selling approximately 70% to 75% of our natural gas on first of month index price, with the remaining volumes on daily spot market pricing.
During 2024, 21 proved undeveloped locations included in our 2023 reserves were converted to proved developed reserves. As of December 31, 2023, our proved undeveloped reserves were comprised of 2.2 Tcf of natural gas, all of which were associated with our Haynesville and Bossier shales (including Western Haynesville and Bossier) properties.
As of December 31, 2024, our proved undeveloped reserves were comprised of 1.0 Tcf of natural gas consisting of 56 undeveloped locations. All of our natural gas undeveloped reserves are associated with our Haynesville and Bossier shales (including Western Haynesville and Bossier) properties. Our natural gas proved undeveloped reserves decreased by 1.2 Tcf during 2024.
Producing Well Summary The following table sets forth the gross and net producing natural gas and oil wells in which we owned an interest as of December 31, 2024: Oil Natural Gas Gross Net Gross Net Louisiana 4 2.6 1,308 742.1 Oklahoma 6 0.6 98 8.8 Texas 11 6.2 974 780.4 Wyoming — — 26 1.9 Total 21 9.4 2,406 1,533.2 We operate 1,747 of the 2,427 producing wells presented in the above table.
Producing Well Summary The following table sets forth the gross and net producing natural gas and oil wells in which we owned an interest as of December 31, 2025: Oil Natural Gas Gross Net Gross Net Louisiana — — 1,212 669.6 Oklahoma 6 0.6 98 8.8 Texas 10 5.2 372 273.6 Wyoming — — 26 1.9 Total 16 5.8 1,708 953.9 We operate 1,074 of the 1,724 producing wells presented in the above table.
We spent $858.1 million on drilling and completion activities and an additional $44.0 million on other development costs. We drilled 50 (42.9 net) wells in 2024, which had an average lateral length of approximately 10,759 feet.
We spent $1.01 billion on drilling and completion activities and an additional $47.1 million on other development costs. We drilled 52 (44.2 net) wells in 2025, which had an average lateral length of approximately 11,187 feet.
Mills Vice President of Finance and Investor Relations 52 Daniel K. Presley Vice President of Accounting, Controller and Treasurer 64 LaRae L. Sanders Vice President of Land 62 Brian C. Claunch Vice President of Financial Reporting 50 Elizabeth B. Davis Director 62 Morris E. Foster Director 82 Jim L. Turner Director 79 20 COMSTOCK RESOURCES, INC.
McGough Vice President of Operations 45 Ronald E. Mills Vice President of Finance and Investor Relations 53 Daniel K. Presley Vice President of Accounting, Controller and Treasurer 65 LaRae L. Sanders Vice President of Land 63 Brian C. Claunch Vice President of Financial Reporting 51 Elizabeth B. Davis Director 63 Morris E. Foster Director 83 Jim L.
The United States signed the Paris Agreement on April 22, 2016; although the Trump administration provided notice of its intent to withdraw from the Paris Agreement in 2017 and again in 2025. Further, the United States has made additional commitments with respect to GHG emissions through the United Nations Climate Change Conference, including with respect to reducing methane emissions.
The United States signed the Paris Agreement on April 22, 2016; although the Trump administration provided notice of its intent to withdraw from the Paris Agreement in 2017 and again in 2025.
For example, for offshore and onshore petroleum and natural gas production facilities, the fee applies to the number of reported tons of methane that exceed (i) 0.2% of the natural gas sent to sale from the facility.
For example, for offshore and onshore petroleum and natural gas production facilities, the fee applies to the number of reported tons of methane that exceed (i) 0.2% of the natural gas sent to sale from the facility. On March 14, 2025, President Trump signed a Joint Resolution of Disapproval under the Congressional Review Act overturning the EPA's WEC rule.
We are also able to realize higher margins due to our ability to access an extensive midstream infrastructure with lower cost, flexible gas marketing arrangements. • Company-owned Midstream. In 2023, we formed Pinnacle Gas Services LLC to provide gathering and treating services for our emerging Western Haynesville.
We are also able to realize higher margins due to our ability to access an extensive midstream infrastructure with lower cost, flexible gas marketing arrangements.
However, we expect that the impacts to our operations will not be materially different from other similarly situated companies involved in natural gas and oil exploration and production activities.
Future legislation or regulations adopted to address climate change could also make our products more or less desirable than competing sources of energy. However, we expect that the impacts to our operations will not be materially different from other similarly situated companies involved in natural gas and oil exploration and production activities.
Additionally, as discussed above, the EPA has promulgated rules that require reductions in volatile organic compounds ("VOCs") and methane generation from natural gas and oil operations. In addition, on April 10, 2024, the BLM finalized a rule establishing new requirements designed to reduce waste of natural gas from venting, flaring and leaks.
In addition, on April 10, 2024, the BLM finalized a rule establishing new requirements designed to reduce waste of natural gas from venting, flaring and leaks.
The U.S. has not passed legislation to expressly regulate GHG emissions; however, in recent years the EPA moved ahead with its efforts to regulate GHG emissions from certain sources by rule.
We are unable to predict at this time how much the cost of compliance with any legislation or regulation of greenhouse gas emissions will be in future periods. The U.S. has not passed legislation to expressly regulate GHG emissions; however, in recent years the EPA moved ahead with its efforts to regulate GHG emissions from certain sources by rule.
Production, Price and Cost Summary Annual production, average prices that we realized from sales of natural gas and oil and the associated lifting costs for each of the last three fiscal years were as follows: Year Ended December 31, 2024 2023 2022 Net Production Volumes: Natural gas - MMcf 527,548 524,467 500,616 Oil - MBbls 50 70 82 Average Prices: Natural Gas - $/Mcf $ 1.98 $ 2.40 $ 6.23 Oil - $/Bbl $ 71.94 $ 73.73 $ 92.65 Lifting Costs - $/Mcfe: Lease operating $ 0.25 $ 0.25 $ 0.22 Gathering and transportation $ 0.37 $ 0.35 $ 0.31 Production and ad valorem taxes $ 0.11 $ 0.18 $ 0.16 12 COMSTOCK RESOURCES, INC.
Production, Price and Cost Summary Annual production, average prices that we realized from sales of natural gas and oil and the associated lifting costs for each of the last three fiscal years were as follows: Year Ended December 31, 2025 2024 2023 Net Production Volumes: Natural gas - MMcf 450,202 527,548 524,467 Oil - MBbls 37 50 70 Average Prices: Natural Gas - $/Mcf $ 3.17 $ 1.98 $ 2.40 Oil - $/Bbl $ 61.95 $ 71.94 $ 73.73 Lifting Costs - $/Mcfe: Lease operating $ 0.27 $ 0.25 $ 0.25 Gathering and transportation $ 0.37 $ 0.37 $ 0.35 Production and ad valorem taxes $ 0.09 $ 0.11 $ 0.18 Drilling Activity Summary During the three-year period ended December 31, 2025, we drilled development and exploratory wells as set forth in the table below: 2025 2024 2023 Gross Net Gross Net Gross Net Development: Oil — — — — — — Gas 34 26.2 39 31.9 63 47.6 Dry — — — — 1 1.0 34 26.2 39 31.9 64 48.6 Exploratory: Oil — — — — — — Gas 18 18.0 11 11.0 7 6.9 Dry — — — — — — 18 18.0 11 11.0 7 6.9 Total 52 44.2 50 42.9 71 55.5 As of December 31, 2025, 2024 and 2023, we had 35 (28.8 net), 21 (17.3 net), and 30 (26.9 net), respectively, operated wells in the process of being drilled and completed. 13 COMSTOCK RESOURCES, INC.
All of our natural gas undeveloped reserves are associated with our Haynesville and Bossier shale (including Western Haynesville and Bossier) properties where our 2025 drilling program is focused.
All of our natural gas undeveloped reserves are associated with our Haynesville and Bossier shale properties where our 2026 drilling program is focused. Our natural gas and oil proved undeveloped reserves increased by 3.1 Tcf during 2025 due to higher natural gas prices used to determine the proved reserves.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeOur business could also be affected by the potential for lawsuits against companies that emit greenhouse gases, based on links drawn between greenhouse gas emissions and climate change. To the extent financial markets view climate change and GHG emissions as a financial risk, this ‎could ‎negatively impact our cost of and access to capital.
Biggest changeEnvironmental regulations relating to climate change and/or greenhouse gases could also reduce demand for our products or increase our operating and drilling costs. Our business could also be affected by the potential for lawsuits against companies that emit greenhouse gases, based on links drawn between greenhouse gas emissions and climate conditions.
The use of seismic data and other technologies and the study of producing fields in the same area will not enable us to know conclusively prior to drilling whether oil or natural gas will be present or, if present, whether oil or natural gas will be present in commercial quantities.
The use of seismic data and other technologies and the study of producing fields in the same area will not enable us to know conclusively prior to drilling whether natural gas or oil will be present or, if present, whether natural gas or oil will be present in commercial quantities.
If any of these events were to materialize, either to the Company or a third party upon which we rely, they could lead to, without limitation, any of the following: • Loss of or damage to our data, intellectual property, or other proprietary or confidential information; 27 COMSTOCK RESOURCES, INC. • Interruption or degradation of our operations, services, or systems availability; • Compromise or corruption of our data or systems integrity; • Reputational harm or loss of customer trust or confidence; • Legal liability, regulatory fines, penalties, or sanctions; • Remediation or mitigation costs, such as increased security expenditures, investigation expenses, or litigation fees; • Increased insurance premiums or difficulty in obtaining adequate insurance coverage; or • Other negative consequences.
If any of these events were to materialize, either to the Company or a third party upon which we rely, they could lead to, without limitation, any of the following: • Loss of or damage to our data, intellectual property, or other proprietary or confidential information; • Interruption or degradation of our operations, services, or systems availability; • Compromise or corruption of our data or systems integrity; 27 COMSTOCK RESOURCES, INC. • Reputational harm or loss of customer trust or confidence; • Legal liability, regulatory fines, penalties, or sanctions; • Remediation or mitigation costs, such as increased security expenditures, investigation expenses, or litigation fees; • Increased insurance premiums or difficulty in obtaining adequate insurance coverage; or • Other negative consequences.
If our actual future production is lower than the nominal amount that is subject to our derivative financial 28 COMSTOCK RESOURCES, INC. instruments, we might be forced to satisfy all or a portion of our derivative transactions without the benefit of the cash flow from our sale or purchase of the underlying physical commodity, resulting in a substantial diminution in our profitability and liquidity.
If our actual future production is lower than the nominal amount that is subject to our derivative financial instruments, we might be forced to satisfy all or a portion of our derivative transactions without the benefit of the cash flow from our sale or purchase of the underlying physical commodity, resulting in a substantial diminution in our profitability and 29 COMSTOCK RESOURCES, INC. liquidity.
We may be required to shut in wells due to a lack of market demand or because of the inadequacy or unavailability of pipelines or gathering system capacity. If that were to occur, then we would be unable to realize revenue from those wells until arrangements were made to deliver our production to market. 25 COMSTOCK RESOURCES, INC.
We may be required to shut in wells due to a lack of market demand or because of the inadequacy or unavailability of pipelines or gathering system capacity. If that were to occur, then we would be unable to realize revenue from those wells until arrangements were made to deliver our production to market. 24 COMSTOCK RESOURCES, INC.
We may be subject to physical and financial risks associated with climate change. Changing climate may create physical and financial risks to our business. ‎Energy needs vary with weather ‎conditions. To the extent weather conditions may be affected ‎by climate change, energy use could increase or decrease depending on ‎the duration and ‎magnitude of any changes.
We may be subject to physical and financial risks associated with climate-related effects. Changing climate and weather conditions may create physical and financial risks to our business. Energy needs vary with weather conditions. To the extent weather conditions may be affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes.
Our business involves a variety of operating risks, including: • unusual or unexpected geological formations; • fires; • explosions; • blow-outs and surface cratering; • uncontrollable flows of natural gas and formation water; • natural disasters, such as hurricanes, tropical storms and other adverse weather conditions; • pipe, cement, or pipeline failures; • casing collapses; • mechanical difficulties, such as lost or stuck oil field drilling and service tools; 26 COMSTOCK RESOURCES, INC. • abnormally pressured formations; and • environmental hazards, such as natural gas leaks, oil spills, pipeline ruptures and discharges of toxic gases.
Our business involves a variety of operating risks, including: • unusual or unexpected geological formations; • fires; • explosions; • blow-outs and surface cratering; • uncontrollable flows of natural gas and formation water; • natural disasters, such as hurricanes, tropical storms and other adverse weather conditions; • pipe, cement, or pipeline failures; • casing collapses; • mechanical difficulties, such as lost or stuck oil field drilling and service tools; • abnormally pressured formations; and • environmental hazards, such as natural gas leaks, oil spills, pipeline ruptures and discharges of toxic gases.
Companies that do not adapt to or comply with investor or other ‎stakeholder expectations ‎and standards, which are evolving, or that are perceived to have not ‎responded appropriately to the growing concern for ESG issues, ‎regardless of whether there is a ‎legal requirement to do so, may suffer from reputational damage and the business, financial ‎‎condition, and/or stock price of such a company could be materially and adversely affected.‎ 24 COMSTOCK RESOURCES, INC.
Companies that do not adapt to or comply with investor or other stakeholder expectations and standards, which are evolving, or that are perceived to have not responded appropriately to the growing concern for ESG issues, regardless of whether there is a legal requirement to do so, may suffer from reputational damage and the business, financial condition, and/or stock price of such a company could be materially and adversely affected.
We could also incur substantial losses as a result of: • injury or loss of life; • severe damage to and destruction of property, natural resources and equipment; • pollution and other environmental damage; • clean-up responsibilities; • regulatory investigation and penalties; • suspension of our operations; and • repairs to resume operations.
We could also incur substantial losses as a result of: 26 COMSTOCK RESOURCES, INC. • injury or loss of life; • severe damage to and destruction of property, natural resources and equipment; • pollution and other environmental damage; • clean-up responsibilities; • regulatory investigation and penalties; • suspension of our operations; and • repairs to resume operations.
Further, these hedges may be inadequate to protect us from continuing and prolonged declines in the price of natural gas.
Further, these hedges may be inadequate to protect us from prolonged declines in the price of natural gas.
The successful acquisition of producing properties requires an assessment of numerous factors beyond our control, including, without limitation: • recoverable reserves; • exploration potential; • future natural gas prices; • operating costs; and • potential environmental and other liabilities.
The successful acquisition of producing properties requires an assessment of numerous factors beyond our control, including, without limitation: • recoverable reserves; 25 COMSTOCK RESOURCES, INC. • exploration potential; • future natural gas prices; • operating costs; and • potential environmental and other liabilities.
Our growth has been attributable in part to acquisitions of producing properties and companies. Recently we have been focused on acquiring acreage for our drilling program. We expect to continue to evaluate and, where appropriate, pursue acquisition opportunities on terms we consider favorable.
We pursue acquisitions as part of our growth strategy and there are risks associated with such acquisitions. Our growth has been attributable in part to acquisitions of producing properties and companies. Recently we have been focused on acquiring acreage for our drilling program. We expect to continue to evaluate and, where appropriate, pursue acquisition opportunities on terms we consider favorable.
Cybersecurity attacks in particular are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information and corruption of data.
Cybersecurity attacks in particular are evolving and include, but are not limited to, ransomware or other malicious software, social engineering attacks, deepfakes and artificial intelligence ("AI")-enhanced phishing, attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information and corruption of data.
If we do not meet our stockholders' expectations, our business, ability to ‎access capital, and/or our stock price ‎could be harmed.‎ Additionally, adverse effects upon the oil and gas industry related to the worldwide social and ‎political environment, including ‎uncertainty or instability resulting from climate change, ‎changes in political leadership and environmental policies, changes in ‎geopolitical-social views ‎toward fossil fuels and renewable energy, concern about the environmental impact of climate ‎change, and ‎investors' expectations regarding ESG matters, may also adversely affect demand ‎for our products.
Additionally, adverse effects upon the oil and gas industry related to the worldwide social and political environment, including uncertainty or instability resulting from climate change, changes in political leadership and environmental policies, changes in geopolitical-social views toward fossil fuels and renewable energy, concern about the environmental impact of climate change, and investors' expectations regarding ESG matters, may also adversely affect demand for our products.
The prices we receive for our natural gas production depend on numerous factors beyond our control, including the following: 22 COMSTOCK RESOURCES, INC. • the domestic and foreign supply of natural gas; • weather conditions; • the price and quantity of exports of natural gas; • political conditions and events in other natural gas-producing countries, including embargoes and other sustained military campaigns, and acts of terrorism or sabotage; • domestic government regulation, legislation and policies; • the level of global natural gas inventories; • technological advances affecting energy consumption; • the price and availability of alternative fuels; and • overall U.S. and global economic and political conditions, including inflationary pressures, further increases in interest rates, a general economic slowdown or recession, political tensions and war (including future developments in the ongoing Russia-Ukraine and Israel-Hamas conflicts).
The prices we receive for our natural gas production depend on numerous factors beyond our control, including the following: • the domestic and foreign supply of natural gas; • weather conditions; • the price and quantity of exports of natural gas; • political conditions and events in other natural gas-producing countries, including embargoes and other sustained military campaigns, acts of terrorism or sabotage, and armed conflicts; • tariffs and trade restrictions that may be imposed by the United States or other countries on natural resources, including natural gas; • domestic government regulation, legislation and policies; • the level of global natural gas inventories; • technological advances affecting energy consumption; • the price and availability of alternative fuels; and • overall U.S. and global economic and political conditions, including inflationary pressures, interest rate adjustments, a general economic slowdown or recession, political tensions and war (including future developments in the ongoing Russia-Ukraine conflict and conflicts in the Middle East). 23 COMSTOCK RESOURCES, INC.
Also, we may not be able to obtain needed capital or financing on satisfactory terms, which could lead to a limitation of our future business opportunities and a decline in our natural gas and oil reserves. We expect to expend substantial capital in the acquisition of, exploration for and development of natural gas reserves.
Substantial exploration and development activities could require significant outside capital, which could dilute the value of our common shares and restrict our activities. Also, we may not be able to obtain needed capital or financing on satisfactory terms, which could lead to a limitation of our future business opportunities and a decline in our natural gas and oil reserves.
Market conditions or operational impediments may hinder our access to natural gas markets or delay our production. Market conditions or the unavailability of satisfactory natural gas transportation arrangements may hinder our access to natural gas markets or delay our production.
Further, unsuccessful drilling may impact our ability to fulfill our firm transportation commitments. Market conditions or operational impediments may hinder our access to natural gas markets or delay our production. Market conditions or the unavailability of satisfactory natural gas transportation arrangements may hinder our access to natural gas markets or delay our production.
Further, unsuccessful drilling may impact our ability to fulfill our firm transportation commitments. Our operations may incur substantial liabilities due to compliance with environmental laws and regulations. We are subject to stringent federal, state and local laws.
Our operations may incur substantial liabilities due to compliance with environmental laws and regulations. We are subject to stringent federal, state and local laws.
There are also costs associated with responding to changing regulations and policies, whether such regulations are more or less stringent. As such, there can be no assurance that material cost and liabilities will not be incurred in the future. Our hedging transactions could result in financial losses or could reduce our income.
There are also costs associated with responding to changing regulations and policies, whether such regulations are more or less stringent. As such, there can be no assurance that material cost and liabilities will not be incurred in the future. Our debt service requirements could adversely affect our operations and limit our growth.
In order to finance these activities, we may need to alter or increase our capitalization substantially through the issuance of debt or equity securities, the sale of non-strategic assets or other means.
We expect to continue to expend substantial capital in the acquisition of, exploration for and development of natural gas reserves. In order to finance these activities, we may need to alter or increase our capitalization substantially through the issuance of debt or equity securities, the sale of non-strategic assets or other means.
Any long-term material adverse ‎effect on the natural gas and oil industry could have a ‎significant financial and operational adverse impact on our business.‎ The occurrence of any of the foregoing could have a material adverse effect on the price of our ‎stock and our business and ‎financial condition.‎ We pursue acquisitions as part of our growth strategy and there are risks associated with such acquisitions.
Any long-term material adverse effect on the natural gas and oil industry could have a significant financial and operational adverse impact on our business. The occurrence of any of the foregoing could have a material adverse effect on the price of our stock and our business and financial condition.
Increased energy use due to weather changes may require us to ‎invest in more infrastructure to serve increased demand. A decrease in energy use due to ‎weather changes may affect our financial ‎condition through decreased revenues.
Increased energy use due to weather changes may require us to invest in more infrastructure to serve increased demand. A decrease in energy use due to weather changes may affect our financial condition through decreased revenues. Extreme weather conditions in general require more equipment redundancy, adding to costs, and can ‎contribute to increased risk of delivery disruptions.
Exploration activities involve numerous risks, including the risk that no commercially productive natural gas reserves will be discovered. In addition, these activities may be unsuccessful for many reasons, including weather, cost overruns, equipment shortages and mechanical difficulties. Moreover, the successful drilling of a natural gas well does not ensure we will realize a profit on our investment.
In addition, these activities may be unsuccessful for many reasons, including weather, cost overruns, equipment shortages and mechanical difficulties. Moreover, the successful drilling of a natural gas well does not ensure we will realize a profit on our investment. A variety of factors, both geological and market-related, can cause a well to become uneconomical or only marginally economical.
We seek to prevent, detect and investigate cybersecurity incidents, but in some cases, we might be unaware of an incident or its magnitude and effects.
Threat actors may leverage AI and machine learning, technologies to conduct more sophisticated surveillance, reconnaissance and attacks against our systems. We seek to prevent, detect and investigate cybersecurity incidents, but in some cases, we might be unaware of an incident or its magnitude and effects.
Prospects that we decide to drill may not yield natural gas in commercially viable quantities or quantities sufficient to meet our targeted rate of return and firm transportation commitments. 23 COMSTOCK RESOURCES, INC.
Furthermore, while our revenues may increase if prevailing natural gas and oil prices increase significantly, our finding costs for additional reserves could also increase. Prospects that we decide to drill may not yield natural gas in commercially viable quantities or quantities sufficient to meet our targeted rate of return and firm transportation commitments.
These climate-related changes could damage our physical assets, especially operations ‎located in low-lying ‎areas near coasts and riverbanks, and facilities situated in hurricane-prone ‎and rain-susceptible regions. To the extent the frequency of extreme weather events increases, ‎this could increase our cost of ‎producing products.
Additionally, extreme adverse weather conditions or volatility may lead to higher insurance costs, or a decrease in available coverage, for our assets in areas subject to severe weather. These climate-related changes could damage our physical assets, especially operations located in low-lying areas near coasts and riverbanks, and facilities situated in hurricane-prone and rain-susceptible regions.
We may not be able to pass on the higher ‎costs to our customers or recover all costs related to mitigating these ‎physical risks.‎ Regulations relating to climate change and/or greenhouse gases could also reduce demand for our products or increase our operating and drilling costs.
To the extent the frequency of extreme weather events increases, this could increase our cost of producing products. We may not be able to pass on the higher costs to our customers or recover all costs related to mitigating these physical risks.
Complying with these covenants may cause us to take actions that we otherwise would not take or not take actions that we otherwise would take. Our business involves many uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses. Our success depends on the success of our exploration and development activities.
Our business involves many uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses. Our success depends on the success of our exploration and development activities. Exploration activities involve numerous risks, including the risk that no commercially productive natural gas reserves will be discovered.
A variety of factors, both geological and market-related, can cause a well to become uneconomical or only marginally economical. In addition to their costs, unsuccessful wells can hurt our efforts to replace production and reserves.
In addition to their costs, unsuccessful wells can hurt our efforts to replace production and reserves.
Increasing scrutiny and changing expectations from stakeholders with respect to our ‎environmental, social and governance ‎practices may impose additional costs on us or expose ‎us to new or additional risks.‎ Companies across all industries are facing increasing scrutiny from stakeholders related to their ‎environmental, social and ‎governance ("ESG") practices.
To the extent financial markets view GHG emissions as a financial risk, this could negatively impact our cost of and access to capital. Scrutiny and uncertain expectations from stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks.
Removed
Furthermore, while our revenues may increase if prevailing natural gas and oil prices increase significantly, our finding costs for additional reserves could also increase. Substantial exploration and development activities could require significant outside capital, which could dilute the value of our common shares and restrict our activities.
Added
Some of our undeveloped leasehold acreage is subject to leases that will expire unless production is established on units containing the acreage. Failure to administer lease acquisitions, lease contracting, lease maintenance and timely lease payments could lead to loss of leased land.
Removed
Extreme ‎weather conditions in general require more equipment redundancy, adding to costs, and can ‎‎contribute to increased risk of delivery disruptions. ‎ Additionally, many climate models indicate that global warming is likely to result in rising sea ‎levels and increased frequency ‎and severity of weather events, which may lead to higher ‎insurance costs, or a decrease in available coverage, for our assets in areas ‎subject to severe ‎weather.
Added
A large portion of our undeveloped leasehold acreage is subject to leases with primary terms that expire prior to 2028 unless we establish and maintain production on units containing these leases during their terms or we renew them before their expiration.
Removed
Investor advocacy groups, certain ‎institutional investors, investment funds and other influential ‎investors are also increasingly ‎focused on ESG practices and in recent years have placed increasing importance on the ‎implications ‎and social cost of their investments.
Added
The cost to renew such leases could increase significantly and we may not be able to renew such leases on economically beneficial terms or at all.
Removed
Regardless of the industry, investors' increased ‎focus and activism related to ESG and similar ‎matters may hinder access to capital, as investors ‎may decide to reallocate capital or to not commit capital as a result of their ‎assessment of a ‎company's ESG practices.
Added
If our leases expire or we are unable to renew such leases, we will lose our right to develop such leasehold acreage and our exploration and development activities could materially differ from our current expectations, which could adversely affect our business.
Removed
We face pressures from our stockholders, who are increasingly focused on climate change, to ‎prioritize sustainable energy ‎practices, reduce our carbon footprint and promote sustainability. ‎Our stockholders may require us to implement new ESG procedures or ‎standards in order to continue ‎engaging with us, to remain invested in us or before they may make further investments in us. ‎‎Additionally, we may face reputational challenges in the event our ESG procedures or standards ‎do not meet the standards set by certain constituencies.
Added
The unavailability or high cost of drilling rigs, completion equipment, supplies, qualified personnel and oilfield services could adversely affect our ability to execute our exploration and development plans on a timely basis and within our budget.
Removed
We have adopted certain practices and ‎metrics as highlighted on our website, including with respect to air emissions, land use, ‎environmental, health and safety management and corporate governance. It is possible, ‎however, that our stockholders might not be satisfied with our sustainability efforts or the ‎speed ‎of their adoption.
Added
When drilling and completion activity in the United States or a particular operating area increases, associated costs also increase, including costs associated with drilling rigs, completion equipment, drill pipe, casing and other tubular goods, sand and other proppants, personnel and other related services.
Removed
Our debt service requirements could adversely affect our operations and limit our growth. We had $3.0 billion principal amount of debt as of December 31, 2024.
Added
If these costs increase, we may not be able to obtain necessary equipment, supplies and services or obtain them at economically beneficial terms. Such increases in cost could result in delays in our drilling or completion activities, which could limit our ability to establish and replace reserves, or should we choose to incur higher costs, could negatively impact our business.
Added
We face a growing regulatory landscape around data protection and cybersecurity incident reporting, including, but not limited to, new SEC rules requiring disclosure of material cybersecurity incidents within specified timeframes which may result in proposed rulemaking affecting incident reporting requirements for our industry.
Added
We had $2.8 billion principal amount of debt as of December 31, 2025. 28 COMSTOCK RESOURCES, INC.
Added
Complying with these covenants may cause us to take actions that we otherwise would not take or not take actions that we otherwise would take. Our hedging transactions could result in financial losses or could reduce our income.
Added
Companies across all industries are facing scrutiny from stakeholders related to their environmental, social and governance ("ESG") practices. Different stakeholders, including investor advocacy groups, certain institutional investors, investment funds, other influential investors, consumers and governmental agencies have varied and often conflicting perspectives on ESG practices.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThey also provide periodic awareness notifications to our employees and contractors on 29 COMSTOCK RESOURCES, INC. cybersecurity best practices and their roles and responsibilities. In addition, we have established an incident response plan to coordinate our response to and recovery from any cybersecurity incidents.
Biggest changeThey also provide periodic awareness notifications to our employees and contractors on cybersecurity best practices and their roles and responsibilities. In addition, we have established an incident response plan to coordinate our response to and recovery from any cybersecurity incidents. Our Director of Information Technology has over 20 years of experience in managing organizations in the energy and telecom industries.
ITEM 1C. CYBERSECURITY We face various cybersecurity threats that could adversely affect our business, financial condition, and results of operations.
ITEM 1C. CYBERSECURITY 30 COMSTOCK RESOURCES, INC. We face various cybersecurity threats that could adversely affect our business, financial condition, and results of operations.
Our Director of Information Technology has over 20 years of experience in managing organizations in the energy and telecom industries. We also have a Certified Information Systems Security Professional, who has eight years of experience in cyber and information security.
We also have a Certified Information Systems Security Professional, who has nine years of experience in cyber and information security.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed for trading on the New York Stock Exchange under the symbol "CRK". As of February 20, 2025, we had 292,919,009 shares of common stock outstanding, which were held by 163 holders of record.
Biggest changeITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Our common stock is listed for trading on the New York Stock Exchange and the New York Stock Exchange Texas under the symbol "CRK".
Stockholder Return Performance The following graph compares the yearly percentage change in the cumulative total stockholder return on our common stock during the five years ended December 31, 2024 with the cumulative returns during the same period for the New York Stock Exchange Index and the SPDR Standard & Poor's ("S&P") Oil and Gas Exploration and Production ETF.
Stockholder Return Performance The following graph compares the yearly percentage change in the cumulative total stockholder return on our common stock during the five years ended December 31, 2025 with the cumulative returns during the same period for the New York Stock Exchange Index and the SPDR Standard & Poor's ("S&P") Oil and Gas Exploration and Production ETF.
The graph assumes that $100.00 was invested on the last trading day of 2019, and that dividends, if any, were reinvested.
The graph assumes that $100.00 was invested on the last trading day of 2020, and that dividends, if any, were reinvested.
We have not paid a dividend on our common stock since 2023. The declaration and payment of future dividends will be at the discretion of the board of directors and will depend upon the results of our operations, capital requirements, our financial condition and such other factors as our board of directors may deem relevant.
The declaration and payment of future dividends will be at the discretion of the board of directors and will depend upon the results of our operations, capital requirements, our financial condition and such other factors as our board of directors may deem relevant.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN (1) Among Comstock, the NYSE Composite Index and the S&P Oil & Gas Exploration and Production ETF Index As of December 31, Total Return Analysis 2019 2020 2021 2022 2023 2024 Comstock $ 100.00 $ 53.10 $ 98.30 $ 167.72 $ 113.40 $ 233.45 NYSE Composite $ 100.00 $ 106.99 $ 129.11 $ 117.04 $ 133.16 $ 154.19 SPDR S&P Oil and Gas Exploration and Production ETF $ 100.00 $ 63.60 $ 106.04 $ 154.15 $ 159.64 $ 158.04 _______________ (1) The data contained in the above graph is deemed to be furnished and not filed pursuant to Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN (1) Among Comstock, the NYSE Composite Index and the S&P Oil & Gas Exploration and Production ETF Index As of December 31, Total Return Analysis 2020 2021 2022 2023 2024 2025 Comstock $ 100.00 $ 185.13 $ 315.87 $ 213.56 $ 439.66 $ 559.35 NYSE Composite $ 100.00 $ 120.68 $ 109.39 $ 124.46 $ 144.12 $ 169.62 SPDR S&P Oil and Gas Exploration and Production ETF $ 100.00 $ 166.74 $ 242.38 $ 251.01 $ 248.50 $ 243.15 _______________ (1) The data contained in the above graph is deemed to be furnished and not filed pursuant to Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Added
As of February 18, 2026, we had 294,021,740 shares of common stock outstanding, which were held by 150 holders of record. We have not paid a dividend on our common stock since 2023.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

52 edited+11 added−7 removed38 unchanged
Biggest changeCash Flows, Liquidity and Capital Resources Cash Flows The following table summarizes sources and uses of cash and cash equivalents: Year Ended December 31, 2024 2023 (in thousands) Sources of cash and cash equivalents: Operating activities $ 620,337 $ 1,016,846 Issuance of 6.75% senior notes 372,000 — Issuance of common stock 100,450 — Contributions from noncontrolling interest 60,500 24,000 Borrowings on bank credit facility, net of repayments — 480,000 Proceeds from asset sales 1,214 41,295 Total $ 1,154,501 $ 1,562,141 Uses of cash and cash equivalents: Capital expenditures $ 1,085,490 $ 1,459,096 Repayments on bank credit facility, net of borrowings 65,000 — Common stock dividends — 138,985 Debt and stock issuance costs 6,855 144 Distributions to noncontrolling interest 3,653 — Other 3,373 1,899 Total $ 1,164,371 $ 1,600,124 Cash flows from operating activities.
Biggest changeCash Flows, Liquidity and Capital Resources Cash Flows The following table summarizes sources and uses of cash and cash equivalents: Year Ended December 31, 2025 2024 (in thousands) Sources of cash and cash equivalents: Operating activities $ 899,607 $ 620,337 Proceeds from asset sales 428,868 1,214 Contributions from noncontrolling interest 215,500 60,500 Issuance of 6.75% senior notes — 372,000 Issuance of common stock — 100,450 Total $ 1,543,975 $ 1,154,501 Uses of cash and cash equivalents: Capital expenditures $ 1,344,278 $ 1,085,490 Repayments on bank credit facility, net of borrowings 155,000 65,000 Distributions to noncontrolling interest 16,520 3,653 Income tax withholdings on equity awards 11,010 3,373 Debt and stock issuance costs 36 6,855 Total $ 1,526,844 $ 1,164,371 Cash flows from operating activities.
Prices for natural gas and oil have been highly volatile in recent years but we expect our natural gas production to increase, assuming we maintain a sufficient development program to offset expected production declines from our producing wells. The level of our drilling activity is dependent on natural gas prices.
Prices for natural gas and oil have been highly volatile in recent years but we expect our natural gas production to increase in 2026, assuming we maintain a sufficient development program to offset expected production declines from our producing wells. The level of our drilling activity is dependent on natural gas prices.
If we are unable to offset production declines with the new wells we plan to drill in 2025 and future periods, our production volumes and cash flows from our operating activities may not be sufficient to fund our capital expenditures, and thus, we may need to either curtail drilling activity or seek additional borrowings, which would result in an increase in our interest expense in 2025 and future periods.
If we are unable to offset production declines with the new wells we plan to drill in 2026 and future periods, our production volumes and cash flows from our operating activities may not be sufficient to fund our capital expenditures, and thus, we may need to either curtail drilling activity or seek additional borrowings, which would result in an increase in our interest expense in 2026 and future periods.
Any future downward revisions could adversely affect our financial condition, our future prospects and the value of our common stock. 37 COMSTOCK RESOURCES, INC. Impairment of natural gas and oil properties. We evaluate our proved properties for potential impairment when circumstances indicate that the carrying value of an asset may not be recoverable.
Any future downward revisions could adversely affect our financial condition, our future prospects and the value of our common stock. 38 COMSTOCK RESOURCES, INC. Impairment of natural gas and oil properties. We evaluate our proved properties for potential impairment when circumstances indicate that the carrying value of an asset may not be recoverable.
We will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future reporting periods. 38 COMSTOCK RESOURCES, INC.
We will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future reporting periods. 39 COMSTOCK RESOURCES, INC.
We may need to recognize impairments of our natural gas and oil properties if natural gas and oil prices decline, and as a result, the expected future cash flows from these properties become insufficient to recover their carrying value. 32 COMSTOCK RESOURCES, INC.
We may need to recognize further impairments of our natural gas and oil properties if natural gas and oil prices decline, and as a result, the expected future cash flows from these properties become insufficient to recover their carrying value. 33 COMSTOCK RESOURCES, INC.
Our federal income tax returns for the years subsequent to December 31, 2020 remain subject to examination. Our income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2021.
Our federal income tax returns for the years subsequent to December 31, 2021 remain subject to examination. Our income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2022.
In April 2024, we issued $400.0 million principal amount of 6.75% senior notes due 2029 in a private placement and received net proceeds after deducting the initial purchasers' discounts of $365.2 million, which were used to pay down outstanding borrowings on our bank credit facility. We incurred $6.8 million of debt issuance costs associated with the senior note issuance.
Issuance of 6.75% senior notes and debt issuance costs. In April 2024, we issued $400.0 million principal amount of 6.75% senior notes due 2029 in a private placement and received net proceeds after deducting the initial purchasers' discounts of $365.2 million, which were used to pay down outstanding borrowings on our bank credit facility.
The availability and attractiveness of debt or equity financing will depend upon a number of factors, some of 36 COMSTOCK RESOURCES, INC. which will relate to our financial condition and performance and some of which will be beyond our control, such as prevailing interest rates, natural gas and oil prices and other market conditions.
The availability and attractiveness of debt or equity financing will depend upon a number of factors, some of which will relate to our financial condition and performance and some of which will be beyond our control, such as prevailing interest rates, natural gas and oil prices and other market conditions.
Interest expense was $210.6 million for 2024 as compared to $169.0 million for 2023. Included in interest expense was amortization of the premiums or discounts on our senior notes and the debt issuance cost amortization associated with our outstanding debt. The non-cash interest expense for 2024 totaled $11.5 million compared with $8.0 million for 2023.
Interest expense was $222.8 million for 2025 as compared to $210.6 million for 2024. Included in interest expense was amortization of the premiums or discounts on our senior notes and the debt issuance cost amortization associated with our outstanding debt. The non-cash interest expense for 2025 totaled $12.0 million compared with $11.5 million for 2024.
Our effective tax rate of 14% in 2023 differed from the federal income tax rate of 21% primarily due to changes in our valuation allowance on our federal and state net operating loss carryforwards and state income taxes. Net income.
Our effective tax rate of 41% in 2024 differed from the federal income tax rate of 21% primarily due to changes in our valuation allowance on our federal and state net operating loss carryforwards and state income taxes. Net income.
Year Ended December 31, 2023 Compared to Year Ended December 31, 2022 Discussions of 2023 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 16, 2024. 34 COMSTOCK RESOURCES, INC.
Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Discussions of 2024 items and year-to-year comparisons between 2024 and 2023 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the SEC on February 21, 2025.
We expect to fund our future development and exploration activities with future operating cash flow. The timing of most of our capital expenditures is mostly discretionary. We have a significant degree of flexibility to adjust the level of our capital expenditures as circumstances warrant.
We expect to fund our future development and exploration activities with future operating cash flow or borrowings under our bank credit facility. The timing of most of our capital expenditures is mostly discretionary. We have a significant degree of flexibility to adjust the level of our capital expenditures as circumstances warrant.
The present value of the estimated future costs to plug and abandon our natural gas and oil wells and to dismantle and remove our production facilities is included in our reserve for future abandonment costs, which was $34.0 million as of December 31, 2024.
The present value of the estimated future costs to plug and abandon our natural gas and oil wells and to dismantle and remove our production facilities is included in our reserve for future abandonment costs, which was $20.8 million as of December 31, 2025.
We use derivative financial instruments as part of our price risk management program to protect the cash flow we generate from our operating activities. We had net gains on derivative financial instruments of $10.2 million for 2024 as compared to net gains on derivative financial instruments of $187.6 million for 2023.
We use derivative financial instruments as part of our price risk management program to protect the cash flow we generate from our operating activities. We had net gains on derivative financial instruments of $82.5 million for 2025 as compared to $10.2 million for 2024.
The increase in DD&A rate was primarily due to lower estimated proved undeveloped reserves used in determining the DD&A rate, which resulted from the low natural gas price used in the estimation of proved reserves at December 31, 2024. General and administrative expenses.
The decrease in DD&A rate was primarily due to the increase in estimated proved undeveloped reserves used in determining the DD&A rate, which resulted from the higher natural gas price used in the estimation of proved reserves at December 31, 2025. General and administrative expenses.
As of December 31, 2024, we had $1.1 billion of liquidity, comprised of $1.1 billion of unused borrowing capacity under our bank credit facility and $6.8 million of cash and cash equivalents on hand. Our short and long-term capital requirements consist primarily of funding our development and exploration activities, acquisitions, payments of contractual obligations, and debt service.
As of December 31, 2025, we had $1.3 billion of liquidity, comprised of $1.2 billion of unused borrowing capacity under our bank credit facility and $23.9 million of cash and cash equivalents on hand. Our short and long-term capital requirements consist primarily of funding our development and exploration activities, acquisitions, payments of contractual obligations, and debt service.
Currently, we are under examination with the state of Louisiana and we believe that our significant filing positions are highly certain and that all of our other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on our consolidated financial statements.
Currently, we are under examination with the United States Internal Revenue Service and the state of Louisiana and we believe that our significant filing positions are highly certain and that all of our other significant income tax filing positions and deductions will be sustained under audit or the final resolution will not have a material effect on our consolidated financial statements.
Our assets are concentrated in the Haynesville and Bossier shale located in North Louisiana and East Texas, a premier natural gas basin with superior economics due to the geographic proximity to Gulf Coast natural gas markets. We own interests in 2,427 producing natural gas and oil wells (1,542.6 net to us) and we operate 1,747 of these wells.
Our assets are concentrated in the Haynesville and Bossier shale located in North Louisiana and East Texas, a premier natural gas basin with superior economics due to the geographic proximity to Gulf Coast natural gas markets. We own interests in 1,724 producing natural gas and oil wells (959.7 net to us) and we operate 1,074 of these wells.
The following table presents our natural gas prices before and after the effect of cash settlements of our derivative financial instruments: Year Ended December 31, 2024 2023 Average Realized Natural Gas Price: Natural gas, per Mcf $ 1.98 $ 2.40 Cash settlements on derivative financial instruments, per Mcf 0.39 0.15 Price per Mcf, including cash settlements on derivative financial instruments $ 2.37 $ 2.55 Gas services revenues.
The following table presents our natural gas prices before and after the effect of cash settlements of our derivative financial instruments: Year Ended December 31, 2025 2024 Average Realized Natural Gas Price: Natural gas, per Mcf $ 3.17 $ 1.98 Cash settlements on derivative financial instruments, per Mcf 0.04 0.39 Price per Mcf, including cash settlements on derivative financial instruments $ 3.21 $ 2.37 Gas services revenues.
Realized net gains from our natural gas price risk management program were $207.8 million in 2024 as compared to $80.3 million of realized net gains in 2023. We recognized unrealized losses on derivative financial instruments of $197.6 million and unrealized gains of $107.3 million in 2024 and 2023, respectively. Interest expense.
Realized net gains from our natural gas price risk management program were $20.1 million in 2025 as compared to $207.8 million in 2024. We recognized unrealized gains on derivative financial instruments of $62.4 million and unrealized losses of $197.6 million in 2025 and 2024, respectively. Interest expense.
We are required to select among alternative acceptable accounting policies. There are two generally acceptable methods for accounting for natural gas and oil producing activities. The full cost method allows the capitalization of all costs associated with finding natural gas and oil reserves.
There are two generally acceptable methods for accounting for natural gas and oil producing activities. The full cost method allows the capitalization of all costs associated with finding natural gas and oil reserves.
The only financial covenants are the maintenance of a leverage ratio of less than 4.0 to 1.0, which reduces to 3.75 to 1.0 on June 30, 2025 and to 3.5 to 1.0 on September 30, 2025 and an adjusted current ratio of at least 1.0 to 1.0. We were in compliance with the covenants as of December 31, 2024.
The only financial covenants are the maintenance of a leverage ratio of less than 3.5 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0. We were in compliance with the covenants as of December 31, 2025.
Our 2024 natural gas production increased 1% to 527.5 Bcf (1.4 Bcf per day), which was sold at an average price of $1.98 per Mcf as compared to 524.5 Bcf (1.4 Bcf per day) sold at an average price of $2.40 in 2023.
Our 2025 natural gas production decreased 15% to 450.2 Bcf (1.2 Bcf per day), which was sold at an average price of $3.17 per Mcf as compared to 527.5 Bcf (1.4 Bcf per day) sold at an average price of $1.98 in 2024.
Interest payments under our senior notes and bank credit facility are $196.6 million for 2025 and 2026, $192.8 million for 2027, $166.3 million for 2028, $75.0 million for 2029 and $2.4 million for all periods thereafter.
Interest payments under our senior notes and bank credit facility are $182.6 million for 2026, $180.6 million for 2027, $166.3 million for 2028, $75.0 million for 2029 and $2.4 million for 2030.
Therefore, we have not established any significant reserves for uncertain tax positions. Critical Accounting Policies and Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and use assumptions that can affect the reported amounts of assets, liabilities, revenues or expenses. Successful efforts accounting.
Critical Accounting Policies and Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and use assumptions that can affect the reported amounts of assets, liabilities, revenues or expenses. Successful efforts accounting. We are required to select among alternative acceptable accounting policies.
Unproved properties are evaluated for impairment based upon the results of drilling, planned future drilling and the terms of our natural gas and oil leases. It is reasonably possible that our estimates of undiscounted future net cash flows attributable to our natural gas and oil properties may change in the future.
It is reasonably possible that our estimates of undiscounted future net cash flows attributable to our natural gas and oil properties may change in the future.
Our lease operating expense of $130.5 million ($0.25 per Mcfe) in 2024 was $1.7 million, or 1% lower than lease operating expenses in 2023 of $132.2 million ($0.25 per Mcfe). The decrease in lease operating expense was due to lower water disposal costs and other production costs as compared to 2023. Gas services expenses.
Lease operating expenses. Our lease operating expense of $122.7 million ($0.27 per Mcfe) in 2025 was $7.8 million, or 6% lower than lease operating expenses in 2024 of $130.5 million ($0.25 per Mcfe). The decrease in lease operating expense was due to lower production volumes as compared to 2024. Gas services expenses.
Natural gas and oil sales of $1.0 billion in 2024 decreased by $0.2 billion, or 17%, as compared to $1.3 billion in 2023. The decrease was primarily due to lower prices received for our natural gas production.
Natural gas and oil sales of $1.4 billion in 2025 increased by $0.4 billion, or 36%, as compared to $1.0 billion in 2024. The increase was primarily due to higher prices received for our natural gas production.
Gas services revenues of $206.1 million in 2024 decreased $94.4 million (31%) from $300.5 million in 2023. Gas services activities include sales of natural gas purchased from unaffiliated third parties for resale and fees received from unaffiliated third parties for natural gas gathering and treating services.
Gas services revenues of $500.2 million in 2025 increased $294.1 million (143%) from $206.1 million in 2024. Gas services activities include sales of natural gas purchased from unaffiliated third parties for resale and fees received from unaffiliated third parties for natural gas gathering and treating services.
Gas services expenses of $205.4 million in 2024 were $76.6 million (27%) lower than gas services expenses in 2023 of $282.1 million. The decrease was due primarily to lower natural gas prices for purchases of third-party natural gas for resale. Depreciation, depletion and amortization expense ("DD&A").
Gas services expenses of $516.2 million in 2025 were $310.8 million (151%) higher than gas services expenses in 2024 of $205.4 million. The increase was due primarily to higher natural gas prices for purchases of third-party natural gas for resale. Depreciation, depletion and amortization expense ("DD&A").
Results of Operations Year Ended December 31, 2024 Compared to Year Ended December 31, 2023 Our operating data for the year ended December 31, 2024 and 2023 are summarized below: Year Ended December 31, 2024 2023 (In thousands except per unit amounts) Net Production Data: Natural gas (MMcf) 527,548 524,467 Oil (MBbls) 50 70 Natural gas equivalent (MMcfe) 527,847 524,890 Revenues: Natural gas sales $ 1,043,886 $ 1,259,450 Oil sales 3,597 5,161 Total natural gas and oil sales $ 1,047,483 $ 1,264,611 Expenses: Production and ad valorem taxes $ 57,437 $ 91,803 Gathering and transportation $ 194,890 $ 184,906 Lease operating $ 130,504 $ 132,203 Exploration $ — $ 1,775 Average Sales Price: Natural gas (per Mcf) $ 1.98 $ 2.40 Oil (per Bbl) $ 71.94 $ 73.73 Average equivalent (Mcfe) $ 1.98 $ 2.41 Expenses ($ per Mcfe): Production and ad valorem taxes $ 0.11 $ 0.18 Gathering and transportation $ 0.37 $ 0.35 Lease operating $ 0.25 $ 0.25 Gas Services: Gas services revenue $ 206,097 $ 300,498 Gas services expense $ 205,407 $ 282,050 Natural gas and oil sales.
Results of Operations Year Ended December 31, 2025 Compared to Year Ended December 31, 2024 Our operating data for the year ended December 31, 2025 and 2024 are summarized below: Year Ended December 31, 2025 2024 (In thousands except per unit amounts) Net Production Data: Natural gas (MMcf) 450,202 527,548 Oil (MBbls) 37 50 Natural gas equivalent (MMcfe) 450,423 527,847 Revenues: Natural gas sales $ 1,425,857 $ 1,043,886 Oil sales 2,292 3,597 Total natural gas and oil sales $ 1,428,149 $ 1,047,483 Expenses: Production and ad valorem taxes $ 40,453 $ 57,437 Gathering and transportation $ 166,108 $ 194,890 Lease operating $ 122,662 $ 130,504 Exploration $ 10,071 $ — Average Sales Price: Natural gas (per Mcf) $ 3.17 $ 1.98 Oil (per Bbl) $ 61.95 $ 71.94 Average equivalent (Mcfe) $ 3.17 $ 1.98 Expenses ($ per Mcfe): Production and ad valorem taxes $ 0.09 $ 0.11 Gathering and transportation $ 0.37 $ 0.37 Lease operating $ 0.27 $ 0.25 Gas Services: Gas services revenue $ 500,202 $ 206,097 Gas services expense $ 516,224 $ 205,407 Natural gas and oil sales.
Our capital expenditures are summarized in the following table: Year Ended December 31, 2024 2023 (in thousands) Acquisitions: Unproved property $ 106,386 $ 98,553 Exploration and development: Developmental leasehold costs 13,461 27,905 Exploratory drilling and completion costs 354,557 244,129 Development drilling and completion costs 503,550 974,664 Other development costs 30,500 25,130 Asset retirement obligations 1,594 (19 ) Total exploration and development 1,010,048 1,370,362 Midstream 85,377 35,694 Other property 2,264 491 Total capital expenditures $ 1,097,689 $ 1,406,547 Change in accrued capital expenditures and other 1,383 18,562 Prepaid drilling costs (11,988 ) 34,010 Asset retirement obligations (1,594 ) (23 ) Total cash capital expenditures $ 1,085,490 $ 1,459,096 We currently expect to spend approximately $1.0 billion to $1.1 billion in 2025 on our development and exploration projects primarily focused on the continued development of our Haynesville/Bossier shale properties including the exploration and development of our Western Haynesville acreage.
Our capital expenditures are summarized in the following table: Year Ended December 31, 2025 2024 (in thousands) Acquisitions: Unproved property $ 54,670 $ 106,386 Exploration and development: Developmental leasehold costs 14,562 13,461 Exploratory drilling and completion costs 490,429 354,557 Development drilling and completion costs 517,375 503,550 Other development costs 32,493 30,500 Asset retirement obligations 444 1,594 Total exploration and development 1,109,973 1,010,048 Midstream 223,592 85,377 Other property 17,893 2,264 Total capital expenditures $ 1,351,458 $ 1,097,689 Change in accrued capital expenditures and other (1,656 ) 1,383 Prepaid drilling costs (5,002 ) (11,988 ) Asset retirement obligations (522 ) (1,594 ) Total cash capital expenditures $ 1,344,278 $ 1,085,490 We currently expect to spend approximately $1.4 billion to $1.5 billion in 2026 on our development and exploration projects primarily focused on the continued development of our Haynesville/Bossier shale properties including the exploration and development of our Western Haynesville acreage.
We also expect to spend $130 million to $150 million in our Western Haynesville midstream partnership. Under our 2025 operating plan, we currently expect to drill 46 operated horizontal wells (40.3 net) and to turn 46 operated wells (39.7 net) to sales in 2025. Common stock dividends.
We also expect to spend $100 million to $150 million in our Western Haynesville midstream partnership. Under our 2026 operating plan, we currently expect to drill 66 operated horizontal wells (59.7 net) and to turn 72 operated wells (63.1 net) to sales in 2026.
We reported a net loss available to common stockholders of $218.8 million or $(0.76) per diluted share in 2024 and net income available to common stockholders of $211.9 million or $0.76 per diluted share in 2023.
We reported net income of $420.2 million or $1.43 per diluted share in 2025 and a net loss of $218.8 million or $0.76 per diluted share in 2024.
General and administrative expenses, which are reported net of overhead reimbursements, increased to $39.4 million in 2024 from $38.0 million in 2023 due primarily to higher stock-based compensation. Stock-based compensation included in general and administrative expenses was $15.3 million and $9.9 million in 2024 and 2023, respectively. Derivative financial instruments.
General and administrative expenses, which are reported net of overhead reimbursements, increased to $48.7 million in 2025 from $39.4 million in 2024 due primarily to higher personnel costs including stock-based compensation. Stock-based compensation included in general and administrative expenses was $21.2 million and $15.3 million in 2025 and 2024, respectively. Impairment of oil and gas properties.
Our natural gas transportation and gathering contracts extend to 2031 and commitments under these contracts are $84.4 million for 2025, $91.6 million for 2026, $90.0 million for 2027, $82.9 million for 2028, $73.8 million for 2029 and $98.0 million for commitments thereafter.
Our natural gas transportation and gathering contracts extend to 2031 and commitments under these contracts are $85.4 million for 2026, $84.2 million for 2027, $79.3 million for 2028, $67.6 million for 2029, $27.7 million for 2030 and $58.9 million for commitments thereafter.
As a result of these changes, there may be impairments in the carrying values of our proved and unproved natural gas and oil properties in the future. Goodwill. We have goodwill of $335.9 million as of December 31, 2024 that was recorded in 2018.
As a result of these changes, there may be further impairments in the carrying values of our proved and unproved natural gas and oil properties in the future. Income Taxes.
The decrease in capital expenditures of $373.6 million is primarily due to lower drilling and completion activities in 2024. 35 COMSTOCK RESOURCES, INC.
The increase in capital expenditures of $258.8 million is primarily due to higher drilling and completion activities in 2025. 36 COMSTOCK RESOURCES, INC.
Federal and State Taxation On December 31, 2024, we had $743.0 million in U.S. federal net operating loss carryforwards and $1.8 billion in certain state net operating loss carryforwards. As a result of a change of control in August 2018, our ability to use U.S. federal net operating losses ("NOLs") to reduce taxable income is limited.
As a result of a change of control in August 2018, our ability to use U.S. federal net operating losses ("NOLs") to reduce taxable income is limited.
DD&A expense increased $187.5 million (31%) to $795.4 million in 2024 from $607.9 million in 2023 and our DD&A expense per equivalent Mcf produced was $1.51 per Mcfe in 2024 as compared to $1.16 per Mcfe in 2023.
DD&A expense decreased $154.2 million (19%) to $641.2 million in 2025 from $795.4 million in 2024. Our DD&A expense per equivalent Mcf produced was $1.42 per Mcfe in 2025 as compared to $1.51 per Mcfe in 2024.
Issuance of common stock and stock issuance costs. In 2024, we issued 12,500,000 shares of common stock to two entities controlled by our majority stockholder in a private placement, receiving total proceeds of $100.5 million. Contributions from noncontrolling interest. In 2023, we formed a midstream partnership to fund the future build-out of our Western Haynesville midstream system.
We incurred $6.8 million of debt issuance costs associated with the senior note issuance. Issuance of common stock and stock issuance costs. In 2024, we issued 12,500,000 shares of common stock to two entities controlled by our majority stockholder in a private placement, receiving total proceeds of $100.5 million. Capital expenditures.
Borrowings under the bank credit facility are subject to a borrowing base, which is currently set at $2.0 billion. The borrowing base is re-determined on a semi-annual basis and upon the occurrence of certain other events.
The borrowing base is re-determined on a semi-annual basis and upon the occurrence of certain other events.
We cannot provide any assurance that we will be able to obtain such capital, or if such capital is available, that we will be able to obtain it on acceptable terms. Our contractual obligations consist primarily of natural gas transportation and gathering contracts, principal and interest payments on our senior notes and bank credit facility and other operating lease obligations.
Our contractual obligations consist primarily of principal and interest payments on our senior notes and bank credit facility, natural gas transportation and gathering contracts and other operating lease obligations.
In 2023, we paid a quarterly cash dividend of 12.5¢ per share of common stock. We did not pay a dividend in 2024. Liquidity and Capital Resources As of December 31, 2024, we had $415.0 million outstanding under a bank credit facility. Aggregate commitments under the credit facility are $1.5 billion, which matures on November 15, 2027.
Liquidity and Capital Resources As of December 31, 2025, we had $260.0 million outstanding under a bank credit facility. Aggregate commitments under the credit facility are $1.5 billion, which matures on November 15, 2027. Borrowings under the bank credit facility are subject to a borrowing base, which is currently set at $2.0 billion.
Our effective tax rate of 41% in 2024 differed from the federal income tax rate of 21% due primarily to research and development and other tax credits claimed in 2024, changes in our valuation allowance on our federal and state net operating loss carryforwards and state income taxes, including a reduction in the Louisiana state corporate tax rates.
Our income tax provision was $88.5 million in 2025 as compared to a benefit of $149.1 million in 2024. Our effective tax rate of 17% in 2025 differed from the federal income tax rate of 21% due primarily to research and development and other tax credits claimed in 2025 and state income taxes.
The net loss in 2024 is primarily due to the impact of lower natural gas prices in 2024 and the unrealized loss on our derivative financial instruments of $197.6 million. Loss from operations in 2024 was $168.6 million as compared to income from operations of $226.6 million in 2023.
The net income in 2025 is primarily due to the impact of higher natural gas prices in 2025, gain on sale of assets of $291.9 million and the unrealized gain on our derivative financial instruments of $62.4 million.
Net cash provided by our operating activities decreased $396.5 million (39%) to $620.3 million in 2024 from $1.0 billion in 2023. The decrease was primarily due to the lower natural gas prices we realized in 2024. Issuance of 6.75% senior notes and debt issuance costs.
Net cash provided by our operating activities increased $279.3 million (45%) to $899.6 million in 2025 from $620.3 million in 2024. The increase was primarily due to the higher natural gas prices we realized in 2025. Proceeds from asset sales.
Production and ad valorem taxes. Our production and ad valorem taxes decreased $34.4 million (37%) to $57.4 million in 2024 from $91.8 million in 2023. This decrease was primarily related to a statutory decrease to the Louisiana production tax rate and lower Texas production taxes and ad valorem taxes related to lower natural gas prices in 2024. Gathering and transportation.
This decrease was primarily related to a decrease in Louisiana production tax and ad valorem tax rates and lower natural gas production volumes in 2025. Gathering and transportation. Gathering and transportation costs decreased $28.8 million (15%) to $166.1 million in 2025 as compared to $194.9 million in 2024. This decrease was due primarily to lower production volumes in 2025.
The increase in interest expense in 2024 was due primarily to the issuance of our 6.75% senior notes in 2024. Income taxes. Our income tax benefit was $149.1 million in 2024 as compared to a provision of $35.1 million in 2023.
The increase in interest expense in 2025 was due primarily to the issuance of our 6.75% senior notes in 2024 and increased borrowings on our bank credit facility in 2025. Exploration expense. Exploration expense was $10.1 million in 2025, which was related to the acquisition of seismic data for our Western Haynesville area. Income taxes.
These activities commenced in 2022 with the acquisition of a pipeline and natural gas treating plant and the opportunity to utilize our excess transport capacity in North Louisiana. Gas services revenues decreased in 2024 due primarily to lower natural gas prices on sales of natural gas purchased to utilize our excess transport capacity. 33 COMSTOCK RESOURCES, INC.
Gas services revenues increased in 2025 due primarily to higher natural gas prices on sales of natural gas purchased to utilize our excess transport capacity. Gain on sale of assets.
During 2024 and 2023, our noncontrolling partner contributed $60.5 million and $24.0 million, respectively, to the midstream partnership. Proceeds from asset sales. In 2024, we sold certain non-operated properties for net proceeds of $1.2 million. In 2023, we sold certain non-operated properties for net proceeds of $41.3 million. Capital expenditures.
In 2025, we sold our Shelby Trough properties in East Texas and our Cotton Valley properties in East Texas and North Louisiana and other assets. In 2024, we sold certain non-operated properties for net proceeds of $1.2 million. Contributions from and distributions to noncontrolling interest.
Removed
Gathering and transportation costs increased $10.0 million (5%) to $194.9 million in 2024 as compared to $184.9 million in 2023. This increase was due to production growth in areas with higher average gathering and transportation rates. Lease operating expenses.
Added
We recognized $29.1 million of impairments to our non-operated Eagle Ford shale unproved and proved properties in 2025 to adjust the carrying value of our Eagle Ford shale assets to their estimated fair value.
Removed
Goodwill represents the excess of purchase price over fair value of net tangible and identifiable intangible assets. We are not required to amortize goodwill as a charge to earnings; however, we are required to conduct an annual review of goodwill for impairment.
Added
We reported a gain on sale of assets of $291.9 million in 2025, which was primarily related to the divestiture of our Shelby Trough properties in East Texas for net proceeds of $417.2 million. We also sold our interest in 34 COMSTOCK RESOURCES, INC. our Cotton Valley properties in East Texas and North Louisiana for net proceeds of $15.2 million.
Removed
We determine the potential for impairment of our goodwill by initially preparing a qualitative fair value assessment of our business value.
Added
In 2024, we sold our interest in certain non-operated properties and realized a gain of $0.9 million. Production and ad valorem taxes. Our production and ad valorem taxes decreased $17.0 million (30%) to $40.5 million in 2025 from $57.4 million in 2024.
Removed
In performing this qualitative assessment, we examine relevant events and circumstances that could have a negative effect on our business, including macroeconomic conditions, industry and market conditions (including current commodity price), earnings and cash flows, overall financial performance and other relevant entity specific events.
Added
We recorded an impairment to our Eagle Ford shale proved and unproved natural gas and oil properties of $29.1 million in 2025. This charge primarily resulted from diminished activity on our leasehold acreage in the area by operators, low oil prices and our capital allocation strategy, which prioritizes higher-return projects in the Haynesville and Bossier shales. Derivative financial instruments.
Removed
If the qualitative assessment indicates that it is more likely than not that our business is impaired, a quantitative analysis would be performed to assess our fair value and to determine the amount of impairment, if any, that requires recognition.
Added
Income from operations in 2025 was $645.9 million as compared to loss from operations of $168.6 million in 2024. 35 COMSTOCK RESOURCES, INC.
Removed
When performing a quantitative impairment assessment of goodwill, fair value is determined based on a market approach or an income approach. If the carrying value of goodwill exceeds the fair value calculated using the quantitative approach, an impairment charge would be recorded for the difference between fair value and carrying value.
Added
In 2023, we formed a midstream partnership to fund the future build-out of our Western Haynesville midstream system. During 2025 and 2024, our noncontrolling partner contributed $215.5 million and $60.5 million, respectively, to the midstream partnership. Also during 2025 and 2024, we distributed preferred dividends of $16.5 million and $3.7 million, respectively, to our noncontrolling partner.
Removed
If oil or natural gas prices decrease, drilling efforts are unsuccessful or our market capitalization declines, it is reasonably possible that impairments would need to be recognized. We performed a quantitative assessment of goodwill as of October 1, 2024 and determined there was no goodwill impairment. Income Taxes.
Added
We cannot provide any assurance that we will be able to obtain such capital, or if such capital is available, that we will be able to obtain it on acceptable terms. 37 COMSTOCK RESOURCES, INC.
Added
Federal and State Taxation On December 31, 2025, we had $1.4 billion in U.S. federal net operating loss carryforwards, $1.8 billion in certain state net operating loss carryforwards, $17.7 million of U.S. federal research and development tax credits and $11.0 million of certain state research and development tax credits.
Added
Therefore, we have not established any significant reserves for uncertain tax positions. In July 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into United States federal law.
Added
We have benefited from certain provisions contained in the OBBBA, including increased interest expense deductions and bonus depreciation, which are included in our income tax provision for the year ending December 31, 2025.
Added
Unproved properties are evaluated for impairment based upon the results of drilling, planned future drilling and the terms of our natural gas and oil leases. During 2025, we recognized impairment charges of $29.1 million to reduce the capitalized costs of our proved and unproved natural gas and oil properties in the Eagle Ford shale to their fair value.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

8 edited+0 added−0 removed6 unchanged
Biggest changeSince December 31, 2024, we entered into natural gas collar contracts to hedge 47.5 Bcf of natural gas production during 2026 at an average ceiling price of $5.05 per MMBtu and an average floor price of $3.50 per MMBtu.
Biggest changeSince December 31, 2025, we entered into natural gas collar contracts to hedge an additional 58.4 Bcf of 2027 natural gas production at an average ceiling price of $4.37 per MMBtu and an average floor price of $3.50 per MMBtu.
At December 31, 2024, we had $415.0 million of outstanding borrowings under our bank credit facility, which is subject to variable rates of interest that are tied to adjusted SOFR or an alternate base rate, at our option. Any increase in these interest rates would have an adverse impact to our results of operations and cash flow.
At December 31, 2025, we had $260.0 million of outstanding borrowings under our bank credit facility, which is subject to variable rates of interest that are tied to adjusted SOFR or an alternate base rate, at our option. Any increase in these interest rates would have an adverse impact to our results of operations and cash flow.
We have also entered into natural gas collars to hedge approximately 175.2 Bcf of natural gas with an average floor price of $3.50 per MMBtu and an average ceiling price of $3.99 per MMBtu. None of our derivative contracts have margin requirements or collateral provisions that could require funding prior to the scheduled cash settlement date.
We have also entered into natural gas collars to hedge approximately 167.9 Bcf of natural gas with an average floor price of $3.50 per MMBtu and an average ceiling price of $4.35 per MMBtu. None of our derivative contracts have margin requirements or collateral provisions that could require funding prior to the scheduled cash settlement date.
Interest Rates At December 31, 2024, we had approximately $3.0 billion principal amount of long-term debt outstanding. $965.0 million of our long-term debt bear interest at a fixed rate of 5.875% and $1.6 billion of our long-term debt bear interest at a fixed rate of 6.75%.
Interest Rates At December 31, 2025, we had approximately $2.8 billion principal amount of long-term debt outstanding. $965.0 million of our long-term debt bear interest at a fixed rate of 5.875% and $1.6 billion of our long-term debt bear interest at a fixed rate of 6.75%.
An increase of 10% in the market price of natural gas on December 31, 2024 would decrease the fair value of our natural gas swaps and collars by approximately $131.9 million.
An increase of 10% in the market price of natural gas on December 31, 2025 would decrease the fair value of our natural gas swaps and collars by approximately $70.4 million.
A decrease of 10% in the market price of natural gas on December 31, 2024 would increase the fair value of our natural gas price swaps and collars by approximately $132.9 million.
A decrease of 10% in the market price of natural gas on December 31, 2025 would increase the fair value of our natural gas price swaps and collars by approximately $70.0 million.
The fair market value of the senior notes due 2030 and senior notes due 2029 as of December 31, 2024 were $899.9 million and $1.6 billion, respectively, based on the market price of approximately 93% and 97% of the face amount of such debt.
The fair market value of the senior notes due 2030 and senior notes due 2029 as of December 31, 2025 were $931.2 million and $1.6 billion, respectively, based on the market price of approximately 97% and 99% of the face amount of such debt.
As of December 31, 2024, we had natural gas price swap agreements to hedge approximately 315.7 Bcf of our 2025 and 2026 production at an average price of $3.49 per MMBtu.
As of December 31, 2025, we had natural gas price swap agreements to hedge approximately 116.8 Bcf of our 2026 production at an average price of $3.51 per MMBtu.

Other CRK 10-K year-over-year comparisons