Comstock Restores Sequential Production Growth

The Tip Desk · July 30, 2026 · 3 min read

Second-quarter output was 113.1 Bcfe, up 16% from the first quarter, as the Haynesville producer booked a $600 million Pinnacle stake sale.

Comstock Resources (CRK) produced 113.1 Bcfe in the quarter ended June 30, 2026, a 16% increase from the first quarter that reversed the prior sequential decline and left output 1% above the year-earlier period.

The independent natural gas producer’s return to growth coincided with a heavier Legacy Haynesville turn-in. It converted five Western Haynesville wells to sales with an average lateral of 9,679 feet and a 33 MMcf/day average initial rate, and twelve Legacy Haynesville wells with an 11,835-foot average lateral and a 31 MMcf/day average initial rate; five of the Legacy completions were horseshoe wells. In the first quarter it had turned six Western and ten Legacy wells to sales.

Drilling continued at a similar pace. Comstock drilled 17 (15.6 net) operated horizontal Haynesville/Bossier wells in the second quarter, with an average lateral of 11,104 feet, versus 17 (15.3 net) wells and a 10,714-foot average lateral in the first quarter. It turned 16 (12.7 net) operated wells to sales in the quarter. Since its May operational update it has turned 17 (13.6 net) operated wells to sales, with initial rates averaging 31 MMcf/day and completed laterals averaging 11,201 feet.

Natural gas and oil sales including realized hedging were $331.6 million, down from $338.6 million in the first quarter as realized hedging flipped to a $43.3 million gain from $80.4 million of losses. The company realized $2.55 per Mcfe before hedging and $2.93 per Mcfe after hedging. Total revenues and other operating income were $353.3 million, including gas services revenue of $63.5 million.

Net income available to the company was $8.8 million, or $0.03 a share. Adjusted net income available to the company was $8.3 million, or $0.03 a share. The first quarter had included an $82.8 million pre-tax unrealized hedging gain; the second quarter included a $1.0 million unrealized gain. Adjusted EBITDAX was $244.8 million. Cash flows from operating activities were $170.2 million. Operating cash flow before changes in working capital was $188.5 million, or $0.65 a share.

Production cost per Mcfe returned to normal levels at $0.77, down from $0.93 in the first quarter, and comprised $0.38 for gathering and transportation, $0.25 for lease operating, $0.06 for production and other taxes, and $0.08 for cash general and administrative expenses. The unhedged operating margin compressed to 70% from 78%; the hedged operating margin was 74%.

Comstock sold a 27% noncontrolling common equity interest in Pinnacle Gas Services LLC for $600 million and used the proceeds to redeem and retire all of Pinnacle’s preferred equity securities and outstanding indebtedness. Cash and cash equivalents were $45.0 million at June 30, 2026. Long-term debt was $3.10 billion.

For the six months ended June 30, 2026, production was down 7% to 1,166 MMcfe per day versus the same period in 2025. The company realized $3.35 per Mcfe before hedging and $3.18 per Mcfe after hedging on 211.0 Bcfe. Natural gas and oil sales for the six months totaled $670.2 million, including $37.1 million of realized hedging losses. Cash flows from operating activities were $442.2 million. Operating cash flow before working capital was $380.4 million. Net income available to the company was $116.2 million, or $0.40 a share, and included a pre-tax $83.8 million unrealized hedging gain.

Production cost for the six months averaged $0.85 per Mcfe. The unhedged operating margin was 75% and the hedged margin was 73%. Exploration and development capital expenditures were $390.4 million in the second quarter. Unproved property acquisitions were $20.4 million.