Comstock Resources Q2 Profitability Surges, but Analyst Downgrades to Sell Recommendation

Comstock Resources (CRK) reported a Q2 attributable net income of $125 million, a significant improvement from a $126 million net loss in the same period last year. Total revenues surged 90% to $270 million. However, UBS downgraded CRK to "sell" with a price target of $18, citing potential downside risks from lower natural gas prices and oversupply.

Comstock Resources, Inc. (CRK) reported its second-quarter 2025 financial results, highlighting a significant improvement in net income compared to the same period last year. The company reported an attributable net income of $125 million, a substantial turnaround from the $126 million net loss recorded in Q2 2024. Total revenues surged by 90% to $270 million, driven primarily by higher natural gas prices and increased sales.

Key financial highlights for the quarter ended June 30, 2025, include:
- Natural gas and oil sales, including realized hedging gains, totaled $344 million.
- Operating cash flow was $210 million or $0.71 per diluted share.
- Adjusted EBITDAX for the quarter was $260 million.
- Adjusted net income was $40.0 million or $0.13 per diluted share.

The company also turned five Western Haynesville wells to sales in the second quarter, with an average lateral length of 10,897 feet and an average initial production rate of 36 MMcf per day. The drilling of twelve new wells and the completion of thirteen wells to sales in the second quarter reflect Comstock's ongoing development efforts in the Haynesville shale region.

However, UBS downgraded CRK to "sell" with a price target of $18, citing potential downside risks from lower natural gas prices and oversupply. The analyst's report suggests that market conditions and future price volatility could impact the company's financial performance.

Comstock Resources has planned a conference call for July 31, 2025, at 10:00 a.m. Central Time to discuss the second-quarter 2025 operational and financial results. Investors can access the live webcast at www.comstockresources.com or register for the telephonic call at https://register-conf.media-server.com/register/BI4a6aefc65c284c6190c230cdebdf9088.

References:
[1] https://investors.comstockresources.com/news-releases/news-release-details/comstock-resources-inc-reports-second-quarter-2025-financial-and