Comstock Resources' Q2 2025: Unraveling Contradictions in Drilling Strategies and Asset Management

Western Haynesville drilling strategy and infrastructure, commercialization of noncore assets and tax impact, Western Haynesville development strategy, noncore asset sales strategy, capital allocation and rig count strategy are the key contradictions discussed in Comstock Resources' latest 2025Q2 earnings call.



Financial Performance and Cash Flow:
- Comstock Resources reported operating cash flow of $210 million in Q2 2025, up from $130 million in Q2 2024.
- The increase in operating cash flow was driven by improved natural gas prices.

Production and Acquisitions in Western Haynesville:
- The company has grown its Western Haynesville footprint to nearly 525,000 net acres, with 29 wells drilled and 24 currently producing.
- This expansion is part of the company's strategic focus on the Western Haynesville to capitalize on its resource potential.

Cost Efficiency and Operational Efficiencies:
- The drilling costs for wells drilled in the second quarter averaged $2,647 per completed lateral foot, a significant decrease from previous years.
- This reduction is attributed to improved drilling and completion designs.

Non-Core Asset Sales Plan:
- Comstock Resources plans to divest certain noncore properties during 2025 to accelerate balance sheet deleveraging.
- This strategy aligns with the demand for drilling inventory in the Haynesville area and supports the company's focus on its core Western Haynesville assets.