Comstock Resources, Inc. reported fourth‑quarter 2025 results that surpassed analyst expectations, with adjusted earnings per share of $0.16 versus the consensus estimate of $0.11—a beat of $0.05 or 48%. Total revenue reached $789.81 million, outpacing the $467.93 million estimate by $321.88 million, a 68% surprise. The headline net income of $286.8 million includes a $292.3 million pre‑tax gain from the sale of Shelby Trough assets; the adjusted net income, which excludes that one‑time item, was $46.1 million.
The company’s gas and oil sales totaled $364.0 million, driven by a realized price of $3.27 per million cubic foot after hedging and a production volume of 111 Bcf. Production cost per million cubic foot of equivalent (Mcfe) fell to $0.77, reflecting continued efficiency gains in the Western Haynesville and Legacy operations. Hedged operating margin for the quarter was 75%, and unhedged margin was 77%, indicating strong pricing power and cost discipline.
Comstock’s proved reserves grew to 7.0 trillion‑cubic‑feet‑equivalent (Tcfe), up from 3.8 Tcfe at the end of 2024. In the Western Haynesville, four wells were turned to sales in Q4 2025 with an average initial production rate of 29 MMcf/day; for the full year 12 wells were turned to sales with an average rate of 33 MMcf/day. In the Legacy area, 35 wells were turned to sales in 2025 with an average lateral length of 11,738 feet and an initial production rate of 25 MMcf/day.
Management highlighted that higher natural gas prices in the fourth quarter drove improved financial results and noted the sale of Shelby Trough assets, which generated net proceeds of $417 million after selling expenses. The company reiterated its 2026 capital plan, targeting $1.4‑$1.5 billion in development and $100‑$150 million for midstream projects, while maintaining a debt‑to‑equity ratio near 1.3x. Investors reacted with caution, as the high 2026 capital expenditure and sensitivity to gas price volatility raise concerns about future cash burn.
The muted market reaction reflects investor focus on the company’s substantial 2026 capex and the potential for cash outspend if natural gas prices decline. Despite the earnings beat, the reliance on a one‑time asset sale for the headline net income and the aggressive capital plan suggest that management’s confidence is tempered by the need to sustain high commodity prices to support the growth strategy.
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