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Sep 30, 2023

Comstock Resources Q3 2023 Earnings Report

Comstock Resources' third quarter results were impacted by weak natural gas prices, but the company saw solid results from its Haynesville shale drilling program.

Key Takeaways

Comstock Resources reported natural gas and oil sales of $316 million, operating cash flow of $167 million, and adjusted net income of $11.7 million for the third quarter of 2023. The company continued to see solid results from its Haynesville shale drilling program.

Continued weak natural gas prices weighed heavily on the third quarter results.

Natural gas and oil sales, including realized hedging gains, were $316 million.

Operating cash flow was $167 million or $0.60 per diluted share.

Adjusted net income was $11.7 million for the quarter.

Total Revenue
$366M
Previous year: $1.19B
-69.2%
EPS
$0.04
Previous year: $1.18
-96.6%
Production Cost per Mcfe
$0.85
Previous year: $0.82
+3.7%
Unhedged Operating Margin
64%
Previous year: 89%
-28.1%
Hedged Operating Margin
65%
Previous year: 85%
-23.5%
Gross Profit
$56.9M
Previous year: $781M
-92.7%
Cash and Equivalents
$19.8M
Previous year: $38.6M
-48.7%
Free Cash Flow
-$274M
Total Assets
$6.03B
Previous year: $5.58B
+8.0%

Comstock Resources

Comstock Resources

Forward Guidance

Comstock is forming a midstream partnership for its Western Haynesville acreage with Quantum Capital Solutions (QCS).

Positive Outlook

  • The new partnership with QCS is expected to fund the needed expansion for our Western Haynesville midstream development program over the next five years.
  • Comstock will control and operate the midstream system.
  • QCS will provide a total capital commitment of $300 million to fund the future build-out of the Western Haynesville midstream system over the next several years.
  • Comstock will contribute its Pinnacle gathering and treating system to the partnership.
  • The Pinnacle gathering and treating system is comprised of 145-mile high pressure pipeline and the Bethel natural gas processing plant.