Why did Comstock Energy's revenue drop sharply in Q2 2024?

Comstock Energy's revenue dropped sharply in Q2 2024 due to a combination of factors:

1. Challenges in Natural Gas Prices: The company's revenue is significantly impacted by natural gas prices. In Q2 2024, weak natural gas prices continued to challenge the sector, leading to a decrease in revenue. This is evident from the reported revenue of $336 million in Q1 2024, which fell short of the estimated $351.26 million.
2. Declining Sales: The company experienced a decrease of 29.8% year-over-year in net sales for Q1 2024, reaching $1.168 billion compared to $1.664 billion in Q1 2023. This decline in sales likely contributed to the revenue drop in Q2 2024.
3. Production Costs: Comstock's production cost averaged $0.76 per Mcfe, with an unhedged operating margin of 63% and 68% after hedging. These costs, along with the challenges in natural gas prices, likely affected the company's profitability and revenue.

In summary, the drop in Comstock Energy's revenue in Q2 2024 can be attributed to the challenges in natural gas prices, declining sales, and production costs.