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- **Western Haynesville Dominance**: 530,000 net acres with 2,559 locations, 32 MMcf/d wells, and $1.3Bcf/d midstream capacity by 2026.
- **Liquidity Boost**: $430M Shelby Trough sale reduces debt, liquidity >$900M post-close.
- **Cost Leadership**: $1,229/foot legacy D&C, 35% savings from horseshoe wells, 24% Q3 Western Haynesville D&C decline.
- **Demand Growth**: AI/data center power needs +18% LNG exports drive 1.22 Bcfe/d production, 18% YoY growth.

**【CEO Summary Section】**
- **Western Haynesville Expansion**: Announced 530,000 net acres in the Western Haynesville, with 2,559 net drilling locations, positioning for long-term natural gas demand growth from AI, data centers, and LNG exports.
- **Legacy Asset Divestiture**: Sold Shelby Trough assets for $430 million, reducing debt and improving liquidity, while focusing on high-margin Western Haynesville development.
- **Drilling Efficiency**: Achieved $1,229/foot D&C costs in legacy Haynesville, industry-leading for the basin, with 35% savings using horseshoe well design.
- **Production Growth**: 1.22 Bcfe/d Q3 production, up 18% year-over-year, driven by higher gas prices and operational efficiency.

**【CFO Financial Commentary】**
- **Revenue & Cash Flow**: Q3 revenue $335M, up 10% YoY; EBITDAX $249M, cash flow $190M. Year-to-date EBITDAX $802M, net income $122M.
- **Hedging & Pricing**: 57% gas hedged in Q3, realized price $2.99/Mcf vs. $2.75 spot. Improved margins from cost control and higher gas prices.
- **Balance Sheet**: $580M borrowings, $239M liquidity. Shelby Trough sale expected to close in December, reducing leverage to ~2.5x.

**【COO Drilling Update】**
- **Western Haynesville Wells**: 8 wells turned to sales with 32 MMcf/d IP, 8,566-foot laterals. Drilled 6 wells to TD in Q3 with 10,158-foot avg lateral, down from 7,933Q2.
- **Cost Savings**: Legacy Haynesville D&C costs $558/foot (down 15% QoQ), completion costs $671/foot (down 7%). Western Haynesville drilling $1,385/foot (down 24% QoQ).
- **Midstream Expansion**: New Marquez gas plant added 900 MMcf/d capacity, total 1.3Bcf/d by Q3 2026.

**【Q&A Highlights】**
- **2026 Capital Efficiency**: 4 rigs in Western Haynesville, 4 in legacy. Expect continued D&C cost declines with longer laterals and unitization.
- **Gas Marketing**: Direct sales to end-users (AI, LNG) via owned midstream, bypassing third-party pipelines. Shelby Trough sale tax-free gain.
- **Inventory Growth**: 1,039 legacy Haynesville locations (80% >8,500ft), 3,332 Western Haynesville locations (60% >8,500ft). Testing Bossier in northern step-outs.
- **LNG Demand**: Record 18.7 Bcf/day exports, 30% of gas sold at premium to Henry Hub via direct contracts.

Comstock Resources, Inc. (CRK) Q3 2025 Earnings Call Transcript

- **Western Haynesville Growth**: 29 wells drilled (24 producing) with 10,000+ foot laterals, D&C costs down 36% YoY.
- **Financial Strength**: $210M Q2 cash flow, 74% EBITDAX margin, $1.1B liquidity.
- **Strategic Initiatives**: New gas plant, NextEra data center partnership, 40% Legacy Haynesville inventory for potential sale.
- **Cost Efficiency**: Legacy completion costs down 15% QoQ, Western completion costs stable at $1,305/foot.
- **Long-Term Vision**: 525,000 net acres with 149 horseshoe wells planned, targeting 2026 production growth.

**【CEO Summary Section】**
- Expanded Western Haynesville acreage to 525,000 net acres, with 29 wells drilled (24 producing) and initial production rates of 25-37 MMcf/d.
- Launched new gas treating plant with 400 MMcf/d capacity and partnered with NextEra Energy to explore data center development near Western Haynesville.
- Drilled 5 new Western Haynesville wells in Q2 at $2,647/foot, 36% lower than prior-year costs, with 10,000+ foot laterals.
- Maintained 4 rigs in Legacy Haynesville to stabilize production, turning 21 wells to sales with 11,803-foot average lateral length.

**【CFO Financial Commentary】**
- Q2 2025 revenue $344M (+24% YoY), operating cash flow $210M, adjusted net income $40M ($0.13/share).
- EBITDAX margin 74%, with $4.4M profit from third-party marketing offsetting $0.42 basis differential.
- Reduced debt by $35M to $475M, maintaining $1.1B liquidity and 3x LTM leverage ratio.
- 32% of gas sold at spot prices ($3.16/Henry Hub), with 56% hedged at $3.06/realized price.

**【Q&A Highlights】**
- **Western Haynesville Efficiency**: Drilled 4 wells in Q2 at 58 days average (vs. 59 days in 2024), targeting longer laterals to reduce costs.
- **D&C Cost Reduction**: Legacy Haynesville completion costs down 15% QoQ to $724/foot; Western Haynesville completion costs stable at $1,305/foot.
- **Non-Core Asset Sales**: Planning to divest certain Legacy Haynesville locations to accelerate deleveraging, with potential proceeds to be disclosed in Q3.
- **Choke Management Testing**: Experimenting with restricted drawdowns to optimize EURs, with results expected to inform 2026 drilling strategy.
- **NextEra Collaboration**: Exploring gas-fired power generation and data center opportunities near Western Haynesville, leveraging NextEra's expertise in natural gas infrastructure.

Comstock Resources, Inc. (CRK) Q2 2025 Earnings Call Transcript

- **Western Haynesville Breakthrough**: Olajuwon well success validates 520,000-acre play, with 2025 plans to drill 20 wells and turn 15 to sales.
- **Cost Efficiency**: 21% QoQ D&C cost decline in Legacy Haynesville, 34% reduction in Western Haynesville since 2022.
- **Liquidity & Growth**: $1B liquidity supports $130-150M midstream investments, enabling 30+ year drilling inventory.
- **Carbon Neutrality**: BKV partnership targets zero-emission LNG exports, aligning with global decarbonization trends.
- **2025 Outlook**: Sequential production growth from Q3 onward, with H2 2025 volumes up 30%+ YoY.


**【CEO Opening Remarks】**
- Comstock achieved significant progress in delineating the Western Haynesville play with the successful Olajuwon well, which turned to sales at 41 MMcf/d after drilling 24.4 miles from the nearest producing well.
- The company emphasized the importance of drilling inventory as the 'holy grail' for long-term value creation, with over 1,500 net operated locations identified across both Western and Legacy Haynesville areas.
- 2025 capital allocation prioritizes Western Haynesville development, with plans to drill 20 wells and turn 15 to sales, while midstream investments of $130-150M will support production growth.

**【CFO Financial Highlights】**
- Q1 2025 revenue reached $405M, up 21% YoY, driven by higher natural gas prices ($3.58 realized price vs. $2.73 in Q1 2024).
- Adjusted EBITDAX of $293M and operating cash flow of $239M ($0.81/diluted share) reflected strong margin improvement (76% EBITDAX margin vs. 73% in Q4 2024).
- The company maintained $1B liquidity and reaffirmed a $2B borrowing base, supporting its aggressive drilling program.

**【COO Operational Updates】**
- Drilling efficiency improved across both plays: Legacy Haynesville wells averaged 1,027 ft/day (12% YoY improvement), while Western Haynesville wells achieved 524 ft/day, down from 281 ft/day in 2022.
- D&C costs declined 21% QoQ in Legacy Haynesville to $523/ft, while Western Haynesville costs stabilized at $1,374/ft after a 34% reduction since 2022.
- Midstream investments and natural gas-powered frack fleets reduced diesel consumption by 1M gallons, offsetting 2,000 metric tonnes of CO2.

**【Q&A Key Takeaways】**
- **Western Haynesville Expansion**: Plans to drill 8 wells in Freestone County (northeast of Olajuwon) in 2026, with midstream infrastructure expansion supporting 2025-2026 ramp-up.
- **Cost Management**: Expect D&C cost flattening in H2 2025, with potential for further reductions in 2026 if oil prices remain depressed and service costs decline.
- **Carbon Capture Partnership**: BKV Corporation's proven carbon capture model in Barnett Shale could enable zero-emission LNG exports, enhancing competitiveness in global markets.
- **Production Outlook**: Sequential production growth expected in Q3 and Q4 2025, driven by 12-14 wells turned to sales in H2, with Western Haynesville contributing ~60% of new volumes.


Comstock Resources (CRK)-1 May 25-2025 Q1 Earnings call transcript

- **Western Haynesville Breakthrough**: 18 wells producing with D&C costs down 33% and 28%, positioning Comstock for superior returns in a high-demand LNG corridor.
- **Financial Resilience**: 2024 EBITDAX of $850M and 6% reserve growth despite low gas prices, supported by $1.1B liquidity and disciplined capital allocation.
- **2025 Growth Plan**: 40% of $1.3-1.5B capex allocated to Western Haynesville, targeting 20 wells and midstream expansion to support 2026 leverage reduction to 1.5x.
- **Cost Leadership**: Legacy Haynesville wells drilled in 26 days (down 10% YoY), with Western Haynesville drilling times halved since 2022, driving industry-leading efficiency.

**【CEO Summary Section】**
- Comstock Resources achieved significant success in the Western Haynesville play, holding 518,000 net acres with 18 producing wells as of Q4 2024. Drilling and completion costs have decreased by 33% and 28%, respectively, compared to 2022 levels.
- Despite challenging natural gas prices in 2024, the company maintained financial discipline, reducing capital spending and suspending the dividend to conserve cash flow. EBITDAX for the year was $850 million, and proved reserves grew by 6% to 7 Tcfe.
- The company plans to focus on organic growth in 2025, drilling 20 wells in the Western Haynesville and 26-29 in the legacy Haynesville, with a goal of improving leverage and delevering the balance sheet.

**【CFO Financial Commentary】**
- Q4 2024 EBITDAX was $252 million, with full-year EBITDAX of $850 million. Adjusted net loss for the year was $69 million, reflecting the impact of low natural gas prices and higher DD&A expenses.
- The company successfully raised $500 million through equity and debt issuances, enhancing liquidity to $1.1 billion. The 2025 capital budget is set at $1.3-1.5 billion, with 40% allocated to the Western Haynesville.
- Hedge positions for 2025 and 2026 provide downside protection with 50% of production hedged at $3.48/Mcf and $3.50/Mcf, respectively.

**【COO Operational Update】**
- Drilling efficiency improved significantly in both legacy and Western Haynesville areas. In the Western Haynesville, average lateral length increased to 10,032 feet, with drilling costs reduced to $1,396/foot and completion costs to $1,315/foot in Q4 2024.
- The company achieved 78% average working interest across its drilling inventory, with a focus on 2-well pads to reduce costs and optimize acreage utilization.
- Midstream expansion with Quantum Capital Solutions is progressing, with a new 400 MMcf/d treating plant under construction to support growing production in the Western Haynesville.

**【Q&A Highlights】**
- **Western Haynesville Development**: Plans to drill 20 wells in 2025, with D&C costs expected to continue declining. The play's proximity to Gulf Coast LNG facilities positions Comstock to benefit from long-term demand growth.
- **Cost Compression**: Drilling and completion cost reductions reflect operational improvements and economies of scale. The legacy Haynesville remains a low-cost production hub with 895 net wells.
- **Leverage Reduction**: Targeting 1.5x leverage by 2026 through cash flow generation and debt repayment. The midstream JV with Quantum is expected to become self-funding by 2026.
- **Market Outlook**: Positive on natural gas demand driven by LNG exports and industrial growth. The company is exploring direct contracts with industrial users to stabilize pricing and reduce market volatility.

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