Comstock Resources, Inc.

Second-quarter production averaged 1.2 Bcfe/d, up 16% from Q1 2026 and slightly higher than Q2 2025. Natural gas and oil sales, including realized hedging gains, were $332 million; operating cash flow excluding working capital changes was $189 million, or $0.65 per share; adjusted EBITDAX was $245 million; and reported net income was $9 million, or $0.03 per share. Adjusted net income was $8 million, or $0.03 per share. For the first half, production averaged about 1.2 Bcfe/d, sales were $670 million, EBITDAX was $496 million, operating cash flow was $380 million, reported profit was $116 million, and adjusted net income was $48 million, or $0.16 per share. Looking ahead, Comstock expects to drill 22 Western Haynesville wells and turn 21 to sales in 2026, and to drill 48 legacy Haynesville wells and turn 48 to sales in 2026. The company ended Q2 with $545 million of upstream borrowings, no midstream borrowings, and almost $1.2 billion of liquidity.

Jay Allison framed the quarter as evidence that Comstock is building a major natural gas field, pointing to production growth, strong well results, and the strategic importance of Western Haynesville. He emphasized that the company is focused on long-term gas demand from LNG and data centers, and said the Pinnacle transaction validated the acreage and improved the balance sheet. His tone was upbeat and promotional, but he repeatedly tied the optimism to technology, execution, and the company’s acreage position rather than near-term commodity prices.

Roland Burns focused on the quarter’s financials and balance sheet. He cited $332 million of oil and gas sales, $245 million of EBITDAX, $189 million of cash flow, and $0.77 per Mcfe operating cost, which was down $0.16 from Q1 and lifted EBITDAX margin to 74%. He noted $545 million of upstream debt, no midstream debt after the Pinnacle deal, and almost $1.2 billion of liquidity; he also highlighted the $600 million Pinnacle investment, the implied $2.2 billion enterprise value, and the $40 million annual savings from removing fixed charges. On guidance, he said Comstock remains disappointed with gas prices and will assess 2027 activity later in the year, likely needing stronger prices to support more activity.

Analysts pressed on Western Haynesville cost trends, and management said drilling costs should fall with big-hole laterals and higher-spec rigs, while completion costs may rise with bigger fracs, leaving total D&C cost roughly similar or slightly lower. They also asked about productivity from the new design; management said the bigger-hole wells should be cheaper, more predictable, and likely support higher EURs, but the results still need time to prove out. Other questions covered production cadence, where management said Q4 should get back to the first half of 2024 levels and third and fourth quarter growth should be similar sequentially, and 2027 capital plans, where management said it is too early and stronger gas prices would help support activity.