CRKNYSECrude Petroleum & Natural GasUS GAAP · USD

Comstock Resources, Inc

Comstock Resources is an independent U.S. energy company focused on acquiring, developing, and producing natural gas and oil, with its asset base concentrated in the Haynesville and Bossier shales of North Louisiana and East Texas. The company’s business is built around natural gas production tied to Gulf Coast demand centers, where proximity to LNG export facilities, Mexico exports, and petrochemical demand supports realized pricing. It also operates a growing midstream platform through Pinnacle Gas Services, which provides gathering and treating for its Western Haynesville development. Comstock markets most of its gas under index-based or spot-linked contracts and relies on third-party and company-owned transportation infrastructure to move volumes to market.

Revenue2,220m USD
+77.0 %y/y
Operating profit (EBIT)646m USD
+483.0 %y/y
EBIT margin29.1%
+42.5 ppy/y
Net income396m USD
+272.3 %y/y
Free cash flow-450m USD
+5.8 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-1,00001,0002,0003,0004,000m USD2020: 858 m USD2020: EBIT 163 m USD20202021: 1,851 m USD2021: EBIT 901 m USD20212022: 3,628 m USD2022: EBIT 2,281 m USD20222023: 1,565 m USD2023: EBIT 227 m USD20232024: 1,254 m USD2024: EBIT -169 m USD20242025: 2,220 m USD2025: EBIT 646 m USD20252,220646
RevenueOperating profit (EBIT)

Business

Share of revenue
Upstream natural gas production82 %

Exploration, drilling, completion, and sale of natural gas from Haynesville and Bossier shale acreage.

Oil production1 %

Smaller-scale crude oil production from operated and non-operated U.S. properties.

Midstream services17 %

Gathering, treating, and related gas services provided through Pinnacle Gas Services.

Products

Reported · share of revenue
64.2%22.5%13.1%FY2025100 %
  • Natural Gas Production64.2 %
  • Gas Services22.5 %
  • Gain On Sale of Assets13.1 %
  • Oil and Condensate0.1 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Comstock sells primarily into the U.S. natural gas market rather than to a narrow set of end-users, so its customer base consists of marketers, midstream counterparties, LNG-linked buyers, and industrial gas purchasers. In 2025, Enterprise Products Operating, Venture Global LNG, and Shell Energy North America together represented a meaningful share of total sales, showing that large infrastructure and energy trading counterparties are important buyers. The company also serves the broader Gulf Coast demand complex, including LNG export channels, Mexico export flows, petrochemical facilities, and electric generation demand. Because natural gas is fungible and sold into an available market, customer concentration is moderated by the existence of multiple alternative purchasers, but pricing and transport access remain critical to monetization.

LNG and Gulf Coast gas buyers

Buy large volumes of index-linked natural gas for LNG export and Gulf Coast demand, benefiting from Comstock's proximity to premium markets.

Midstream and pipeline counterparties

Purchase or transport gas through gathering, treating, and long-haul arrangements that enable delivery to market.

Energy marketers and trading firms

Buy gas under spot or first-of-month index pricing to manage supply portfolios and market exposure.

Industrial and power customers

Use natural gas as feedstock or fuel, especially in Gulf Coast industrial and electric generation markets.

Strategy

Comstock’s strategy centers on expanding its drilling inventory organically in the Haynesville and Bossier shales rather than relying primarily on large-scale acquisitions of producing assets. The company emphasizes access to premium Gulf Coast markets, where LNG export growth and industrial demand can support stronger netbacks than many inland basins. It is also building out company-owned midstream capacity through Pinnacle Gas Services to reduce bottlenecks, secure takeaway, and improve control over transportation economics. In parallel, Comstock uses hedging and transportation contracts to stabilize cash flows and support development activity across its acreage position.

Organic acreage and drilling inventory growthMedium term

The company wants to sustain long-term drilling activity without depending on large acquisitions of producing assets.

Midstream build-out in Western HaynesvilleShort term

Company-owned gathering and treating reduces third-party bottlenecks and supports volume growth.

Premium market access and transportation controlShort term

Access to Gulf Coast demand and firm takeaway capacity improves realized pricing and operational flexibility.

Commodity risk managementShort term

Hedging helps protect cash flow and capital spending capacity in a volatile gas price environment.

Geography

Comstock’s operations are concentrated in the United States, with its core acreage in North Louisiana and East Texas. The company specifically highlights the Haynesville and Bossier shales as its main operating areas, which are advantaged by access to Gulf Coast natural gas markets. Its midstream footprint includes gas treating plants in Bethel and Marquez, Texas and a network of high-pressure pipelines supporting the Western Haynesville. Geography is strategically important because proximity to LNG export demand and pipeline infrastructure supports higher net realized prices and lower transportation friction.

Risks

Comstock is highly exposed to natural gas price volatility, and a prolonged downturn would pressure revenue, cash flow, liquidity, and the ability to fund drilling and transportation commitments. Its business also depends on adequate pipeline, gathering, and processing capacity; if takeaway is constrained or market demand weakens, wells may need to be shut in and production deferred. Because the company operates in shale basins with lease-based acreage, failure to drill or maintain leases on time can result in loss of undeveloped land and future inventory. Broader industry risks include regulatory changes, environmental and ESG scrutiny, and shifts in LNG, export, and industrial demand that can alter Gulf Coast pricing dynamics.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Extended period of depressed natural gas prices1Transportation and takeaway constraints2Lease expiration and acreage retention4Environmental, social and governance scrutiny5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Extended period of depressed natural gas pricesImpact: HighLikelihood: High

    Revenue and operating cash flow are directly tied to realized gas prices, which are volatile and outside management control.

    Exposure: Natural gas sales and capital program funding

  2. Transportation and takeaway constraintsImpact: HighLikelihood: Medium

    The company depends on gathering systems, pipelines, and processing facilities to access markets; shortages can delay sales or shut in wells.

    Exposure: North Louisiana and East Texas production

  3. Asset impairment riskImpact: High

    Lower commodity prices can reduce expected future cash flows and trigger write-downs of oil and gas properties.

    Exposure: Proved and unproved properties

  4. Lease expiration and acreage retentionImpact: MediumLikelihood: Medium

    Undeveloped leasehold can be lost if production or drilling activity does not satisfy lease terms.

    Exposure: Haynesville and Bossier undeveloped acreage

  5. Environmental, social and governance scrutinyImpact: MediumLikelihood: Medium

    Stakeholder pressure may increase compliance costs, reputational risk, and capital market constraints for fossil fuel producers.

    Exposure: Investor relations and cost of capital

Accounting

Judgemental items
Successful efforts method

Exploration costs are capitalized only when successful, so dry holes and unsuccessful acreage work hit earnings immediately.

Impact: Can create earnings volatility around drilling campaigns

Oil and gas property impairments

Lower commodity prices or weaker reserve economics can trigger non-cash write-downs of proved and unproved assets.

Impact: Can materially reduce reported earnings in weak price environments

Derivative hedge accounting

Natural gas swaps and collars are used to manage price risk, and their fair value changes affect reported results.

Impact: Can cause differences between cash flow and GAAP earnings

Revenue timing and pricing mix

Sales are priced on first-of-month index, daily spot, or fixed-price terms, which affects realized prices by period.

Impact: Quarterly revenue can vary with contract mix and market pricing

Net operating loss carryforwards

Large federal and state NOLs and tax credits affect future tax expense, but utilization is limited by ownership-change rules and expiration.

Impact: Important for long-term tax planning and effective tax rate analysis

Publicly listed companies with a comparable business focus.

Last updated: 24/09/2026