Comstock Resources Posts Q2 2025 Earnings with Strong Growth in Gas and Oil Sales

Comstock Resources reported Q2 2025 earnings with $344 million in natural gas and oil sales, $210 million in operating cash flow, and $260 million in adjusted EBITDAX. The company achieved an adjusted net income of $40 million and a per-share earning of $0.13. Comstock successfully drilled and completed several wells in its Western Haynesville area and announced a collaboration with NextEra Energy Resources to explore power generation assets.

Title: Comstock Resources Reports Mixed Q2 2025 Earnings Amid Production Declines and Strategic Moves

Comstock Resources (NYSE: CRK) released its Q2 2025 earnings, reporting $344 million in natural gas and oil sales, $210 million in operating cash flow, and $260 million in adjusted EBITDAX. The company achieved an adjusted net income of $40 million and a per-share earning of $0.13. Despite the strong financial results, Comstock's production guidance for 2025 was revised downwards by approximately 6%, and the company expects a significant cash burn of around $150 million for the year [1].

The company's Q2 2025 production averaged 1,233 MMCFE per day, which was towards the low-end of its guidance for 1,225 to 1,325 MMCFE per day. The weaker realized prices during the quarter, along with slightly higher capex, contributed to a $79 million free cash deficit from operations. This was around zero for Q1 2025 [1].

Comstock's capex budget for 2025 remained unchanged at $1 billion, but the company added $10 million to its acreage budget. Despite the increased spending, the company expects a 12% year-over-year decline in production [1]. The company continues to de-risk its Western Haynesville acreage and has added back a legacy Haynesville rig to reverse some of the production declines. However, midstream issues in the Western Haynesville infrastructure may slightly delay some wells being turned online [1].

Comstock is exploring the sale of some of its legacy Haynesville Shale leasehold in the Angelina River Trend to reduce debt and accelerate its de-leveraging goals. The company's long-term debt is $3 billion, and its market cap during the call was $5.4 billion. The operator is getting more than 80% of its production from its legacy Haynesville leasehold in East Texas and northwestern Louisiana [2].

The company's collaboration with NextEra Energy Resources to explore power generation assets in the Western Haynesville is a strategic move to diversify its revenue streams. The wildcats in the Western Haynesville have produced more than 20 wells with lateral lengths averaging more than 10,000 ft and a 3 Bcf per 1,000 lateral feet flow rate [2].

In conclusion, Comstock Resources reported mixed Q2 2025 earnings with strong financial results but significant production declines and cash burn. The company's strategic moves, including the sale of legacy Haynesville acres and collaboration with NextEra, aim to reduce debt and diversify its operations.

References
[1] https://seekingalpha.com/article/4808082-comstock-resources-production-declines-despite-1-billion-in-capex
[2] https://www.hartenergy.com/exclusives/comstock-may-sell-east-texas-haynesvilles-angelina-river-trend-213692