COMSTOCK RESOURCES INC (CRK): Results of Operations and Financial Condition
COMSTOCK RESOURCES INC (CRK) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 5300 Town and Country Blvd., Suite 500 Frisco, Texas 75034 Telephone: (972) 668-8834 Contact: Ron Mills VP of Finance and Investor Relations Web Site: www.comstockresources.com NEWS RELEASE For Immediate Release COMSTOCK RESOURCES, INC. REPORTS SECOND QUARTER 2026 FI
How this was made
The 30-second read
Why it matters
Traders can reassess near-term leverage and liquidity expectations from the $600M Pinnacle stake sale and the associated redemption and debt retirement, while also tracking production growth and cash flow generation reported for Q2.
Market read
Primary disclosure of Q2 financials, production metrics, and a specific $600M monetization event that changes capital structure, with an earnings call scheduled for the following morning.
What to watch
No full-year guidance, no detail on remaining Pinnacle economics after the 27% sale, and no discussion of commodity price sensitivity beyond realized/unrealized hedging effects.
Comstock Resources, Inc. reports second quarter 2026 financial and operating results, with production up 16% from the first quarter and net income available to the Company of $8.8 million.
Second-quarter production increased 16% from the first quarter and total production was 1% above the same period in 2025, but GAAP total revenues and operating income were below prior-year levels and six-month production was down 7% year over year.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Natural gas salesGAAP | $ 287,745 | – | – |
| Oil salesGAAP | 476 | – | – |
| Total natural gas and oil salesGAAP | 288,221 | – | – |
| Gas services revenueGAAP | 63,481 | – | – |
| Gain on sale of assetsGAAP | 1,580 | – | – |
| Total revenues and other operating incomeGAAP | 353,282 | – | – |
| Production and ad valorem taxesGAAP | 7,196 | – | – |
| Gathering and transportationGAAP | 43,331 | – | – |
| Lease operatingGAAP | 28,150 | – | – |
| ExplorationGAAP | 4,427 | – | – |
| Depreciation, depletion and amortizationGAAP | 167,432 | – | – |
| Gas services expensesGAAP | 63,014 | – | – |
| General and administrativeGAAP | 17,151 | – | – |
| Total operating expensesGAAP | 330,701 | – | – |
| Operating incomeGAAP | 22,581 | – | – |
| Gain (loss) from derivative financial instrumentsGAAP | 44,365 | – | – |
| Other incomeGAAP | 259 | – | – |
| Interest expenseGAAP | (55,042) | – | – |
| Total other income (expenses)GAAP | (10,418) | – | – |
| Income before income taxesGAAP | 12,163 | – | – |
| (Provision for) benefit from income taxesGAAP | 2,837 | – | – |
| Net incomeGAAP | 15,000 | – | – |
| Net income attributable to noncontrolling interestGAAP | (6,234) | – | – |
| Net income available to the CompanyGAAP | $ 8,766 | – | – |
| Net income per share, basicGAAP | $ 0.03 | – | – |
| Net income per share, dilutedGAAP | $ 0.03 | – | – |
| Weighted average shares outstanding, basicGAAP | 291,612 | – | – |
| Weighted average shares outstanding, dilutedGAAP | 291,612 | – | – |
| Adjusted net income available to the Companynon-GAAP | $8.3 million | – | – |
| Adjusted net income per diluted sharenon-GAAP | $0.03 per diluted share | – | – |
| Adjusted EBITDAXnon-GAAP | $245 million | – | – |
| Natural gas productionother | 113,069 MMcf | increased 16% from the first quarter of this year | increased 1% from the same period in 2025 |
| Oil productionother | 5 Mbbls | – | – |
| Total productionother | 113,102 MMcfe | increased 16% from the first quarter of this year | increased 1% from the same period in 2025 |
| Natural gas hedging settlementsother | 43,333 | – | – |
| Total natural gas and oil sales including hedgingother | $ 331,554 | – | – |
| Average natural gas priceother | $ 2.54 per Mcf | – | – |
| Average natural gas price including hedgingother | $ 2.93 per Mcf | – | – |
| Average oil priceother | $ 95.20 per barrel | – | – |
| Average priceother | $ 2.55 per Mcfe | – | – |
| Average price including hedgingother | $ 2.93 per Mcfe | – | – |
| Total production costsother | $ 87,469 | – | – |
| Total production costsother | $ 0.77 per Mcfe | – | – |
| Unhedged operating marginother | 70 % | – | – |
| Hedged operating marginother | 74 % | – | – |
| Gas services marginother | $ 467 | – | – |
| Unproved property acquisitionsother | $ 20,409 | – | – |
| Total natural gas and oil properties acquisitionsother | $ 20,409 | – | – |
| Development leaseholdother | $ 4,006 | – | – |
| Exploratory drilling and completionother | 174,359 | – | – |
| Natural gas and oil sales, six months ended June 30, 2026GAAP | 707,254 | – | – |
| Total revenues and other operating income, six months ended June 30, 2026GAAP | 940,636 | – | – |
| Total operating expenses, six months ended June 30, 2026GAAP | 743,164 | – | – |
| Operating income, six months ended June 30, 2026GAAP | 197,472 | – | – |
| Net income, six months ended June 30, 2026GAAP | 127,499 | – | – |
| Net income available to the Company, six months ended June 30, 2026GAAP | $ 116,216 | – | – |
| Net income per diluted share, six months ended June 30, 2026GAAP | $ 0.40 | – | – |
| Adjusted net income available to the Company, six months ended June 30, 2026non-GAAP | $47.7 million | – | – |
| Adjusted net income per diluted share, six months ended June 30, 2026non-GAAP | $0.16 per diluted share | – | – |
| Total production, six months ended June 30, 2026other | 211,021 MMcfe | – | down 7% to 1,166 MMcfe per day compared to the same period in 2025 |
| Average price including hedging, six months ended June 30, 2026other | $ 3.18 per Mcfe | – | – |
| Total production costs, six months ended June 30, 2026other | $ 0.85 per Mcfe | – | – |
| Unhedged operating margin, six months ended June 30, 2026other | 75 % | – | – |
| Hedged operating margin, six months ended June 30, 2026other | 73 % | – | – |
| Cash flows from operating activitiesGAAP | $170.2 million | – | – |
| Operating cash flow before changes in working capitalnon-GAAP | $188.5 million | – | – |
| Operating cash flow before changes in working capital per sharenon-GAAP | $0.65 per share | – | – |
| Cash flows from operating activities, six months ended June 30, 2026GAAP | $442.2 million | – | – |
| Operating cash flow before changes in working capital, six months ended June 30, 2026non-GAAP | $380.4 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Gas servicesNo revenue driver was stated. | $ 63,481 | – | – |
What drove it
- Production increased 16% from the first quarter of this year and increased 1% from the same period in 2025.
- Comstock turned five Western Haynesville wells to sales in the second quarter with an average lateral length of 9,679 feet and an average per well initial production rate of 33 MMcf per day.
- Comstock turned twelve Legacy Haynesville wells to sales during the second quarter with an average lateral length of 11,835 feet and an average per well initial production rate of 31 MMcf per day.
- Realized hedging gains were $43.3 million in the second quarter.
- Production cost per Mcfe averaged $0.77 per Mcfe in the second quarter.
Concerns
- Total revenues and other operating income were 353,282 for the three months ended June 30, 2026, compared with 470,262 for the three months ended June 30, 2025.
- Operating income was 22,581 for the three months ended June 30, 2026, compared with 89,446 for the three months ended June 30, 2025.
- Net income available to the Company was $ 8,766 for the three months ended June 30, 2026, compared with $ 124,842 for the three months ended June 30, 2025.
- Average price including hedging was $ 2.93 per Mcfe, compared with $ 3.07 per Mcfe in the prior-year quarter.
- Production for the six months ended June 30, 2026 was down 7% to 1,166 MMcfe per day compared to the same period in 2025.
- General and administrative expense was 17,151, compared with 12,300 in the prior-year quarter.
What to watch
- Production growth following the 16 (12.7 net) operated wells turned to sales in the second quarter of 2026.
- Performance of the five additional Western Haynesville wells turned to sales since the May 2026 operational update, which had initial production rates that averaged 31 MMcf per day.
- Realized natural gas prices and hedging settlements after second-quarter realized hedging gains of $43.3 million.
- The effect of the completed Pinnacle equity transaction and retirement of Pinnacle preferred equity securities and outstanding indebtedness.
Balance sheet and cash flow
- Sold a 27% noncontrolling common equity interest in Pinnacle Gas Services LLC for $600 million.
- Used the proceeds to redeem and retire all of Pinnacle's preferred equity securities and its outstanding indebtedness.
- Cash flows from operating activities was $170.2 million.
- Operating cash flow before changes in working capital was $188.5 million.
- Cash flows from operating activities for the first six months of 2026 was $442.2 million.
- Operating cash flow before changes in working capital for the first six months of 2026 was $380.4 million.
Analysis
Comstock reported a return to quarterly production growth. Total production was 113,102 MMcfe, up 16% from the first quarter of this year and up 1% from the same period in 2025. The operating program included 17 (15.6 net) operated horizontal Haynesville/Bossier shale wells drilled and 16 (12.7 net) operated wells turned to sales. Western Haynesville activity supplied five wells turned to sales during the quarter with an average per-well initial production rate of 33 MMcf per day.
The financial comparison with the prior-year quarter was weaker. GAAP total revenues and other operating income were 353,282, compared with 470,262, while operating income was 22,581, compared with 89,446. GAAP net income available to the Company was $ 8,766, or $ 0.03 per diluted share, compared with $ 124,842, or $ 0.44 per diluted share. The prior-year period included gain from derivative financial instruments of 235,847, compared with 44,365 in the current quarter.
Natural gas and oil sales including hedging were $ 331,554, including natural gas hedging settlements of 43,333. Average price including hedging was $ 2.93 per Mcfe, compared with $ 3.07 per Mcfe in the prior-year quarter. The reported production-cost profile was $ 0.77 per Mcfe, compared with $ 0.80 per Mcfe, and hedged operating margin was 74 %, the same as the prior-year quarter. Gas services revenue was $ 63,481 and gas services margin was $ 467.
Cash flows from operating activities were $170.2 million, while operating cash flow before changes in working capital was $188.5 million, or $0.65 per share. Separately, the Company sold a 27% noncontrolling common equity interest in Pinnacle Gas Services LLC for $600 million and used the proceeds to redeem and retire all of Pinnacle's preferred equity securities and its outstanding indebtedness. No dividends or share repurchases were reported in the provided text.
For the six months ended June 30, 2026, production was down 7% to 1,166 MMcfe per day compared to the same period in 2025. Six-month GAAP net income available to the Company was $ 116,216, or $ 0.40 per diluted share, and included a pre-tax $83.8 million unrealized gain on hedging contracts. The filing provided no forward financial or operating guidance, so the next reported production trend, commodity-price realization, hedge settlements, and Western Haynesville well results are the disclosed items to monitor.
Not in the filing
stated, not guessed- Forward guidance for revenue, gross margin, operating expenses, tax rate, production, capital expenditures, pricing, or other metrics was not provided.
- Previous-release outlook was not provided.
- Free cash flow was not provided.
- Cash balance was not provided.
- Consolidated debt balance was not provided.
- Dividend and share-repurchase amounts were not provided.
- GAAP gross margin was not provided.
- A non-GAAP reconciliation for adjusted net income, adjusted EBITDAX, or operating cash flow before changes in working capital was not included in the provided text.
- The natural gas and oil capital-expenditures table was truncated after the 'Development drilling and' line, so remaining capital-expenditure line items were not available.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This SEC 8-K includes Comstock’s Q2 2026 operating and financial results for the quarter ended June 30, 2026, plus a planned earnings call the next day.
Ticker impact
Comstock reported Q2 2026 results and disclosed it sold a 27% noncontrolling interest in Pinnacle for $600M, using proceeds to redeem preferred equity and retire Pinnacle debt.
Likely supportive near term, as the $600M monetization and debt retirement can reduce leverage risk while Q2 production and cash flow were reported.
This is a primary 8-K with quantified financial/operating results and a specific capital-structure action (sale plus redemption/retirement). However, the article does not provide guidance or valuation multiples to gauge magnitude of earnings power changes.
Market effects
Adds another data point on Haynesville/Bossier well performance and capital recycling in US natural gas E&P.
Could marginally influence sentiment for Texas/Louisiana gas producers tied to Haynesville activity.
Limited direct global impact; primarily affects US natural gas producer risk perception.
Counterpoint
The article highlights adjusted metrics but also includes large unrealized hedging gains in the six-month period, which may not translate into sustainable cash earnings.
Key entities
- companyComstock Resources, Inc.
NYSE-listed E&P company reporting Q2 2026 results and a Pinnacle stake sale used for preferred equity redemption and debt retirement.
- subsidiary/assetPinnacle Gas Services LLC
Entity in which Comstock sold a 27% noncontrolling common equity interest for $600M, then redeemed preferred equity and retired outstanding indebtedness using proceeds.
