COMSTOCK RESOURCES, INC. REPORTS FOURTH QUARTER 2024 FINANCIAL AND OPERATING RESULTS

FRISCO, TX, Feb. 18, 2025 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE: CRK) today reported financial and operating results for the quarter and year ended December 31, 2024. Highlights of 2024's Fourth Quarter Natural gas and oil sales, including realized hedging gains, were $336 million.Operating cash flow was $223 million or $0.76 per share.Adjusted EBITDAX for the quarter was $252 million.Adjusted net income was $46.3 million or $0.16 per share for the quarter.Six successful wells were turned to sales in the Western Haynesville with an average daily initial production rate of 40 MMcf per well.Added over 64,000 net acres in the Western Haynesville, increasing total acreage in the play to 518,000 net acres. Financial Results for the Three Months Ended December 31, 2024 Comstock produced 124.2 Bcfe in the fourth quarter as compared to 140.6 Bcfe in the fourth quarter of 2023. The lower production in the quarter was related to the decision to drop two operated rigs in early 2024 and to defer completion activity in the third quarter of 2024. Comstock's realized natural gas price for the fourth quarter of 2024 averaged $2.32 per Mcf before hedging and $2.70 per Mcf after hedging. Natural gas and oil sales in the fourth quarter of 2024 totaled $336.1 million (including realized hedging gains of $47.8 million). Operating cash flow (excluding changes in working capital) generated in the fourth quarter of 2024 was $222.8 million, and the net loss for the fourth quarter was $55.3 million or $0.19 per share. Net loss in the quarter included a pre-tax $126.9 million unrealized loss on hedging contracts held for natural gas price risk management. Excluding this item, adjusted net income for the fourth quarter of 2024 was $46.3 million, or $0.16 per share. Comstock's production cost per Mcfe in the fourth quarter averaged $0.72 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.25 for lease operating costs, $0.06 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 69% in the fourth quarter of 2024 and 73% after hedging. Financial Results for the Year Ended December 31, 2024 Production in 2024 was 527.8 Bcfe as compared to 524.9 Bcfe in 2023. Natural gas and oil sales for the year ended December 31, 2024 totaled $1.3 billion (including realized hedging gains of $207.8 million). Operating cash flow (excluding changes in working capital) generated during the year was $675.2 million, and the net loss was $218.8 million or $0.76 per share. The adjusted net loss excluding a pre-tax $197.6 million unrealized loss on hedging contracts for the year ended December 31, 2024 was $69.0 million or $0.24 per share. Comstock's production cost per Mcfe during the year ended December 31, 2024 averaged $0.78 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.25 for lease operating costs, $0.11 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 61% during 2024 and 68% after hedging. 2024 Drilling Results Comstock drilled 50 (42.9 net) operated horizontal Haynesville/Bossier shale wells in 2024, which had an average lateral length of 10,759 feet. Comstock also turned 48 (42.9 net) operated wells to sales in 2024, which had an average initial production rate of 26 MMcf per day. Since its last operational update in October, Comstock turned an additional six (6.0 net) operated Western Haynesville/Bossier shale wells to sales as follows: Well Vertical Depth (feet) Completed Lateral (feet) Initial Production Rate (MMcf per day) Hodges #1 16,705 11,405 39Powell #1 18,081 9,758 42Hogue #1 18,872 12,055 44Deornellas A #1 18,975 10,884 42Deornellas B #2 17,552 9,473 40Miles #1 15,921 10,584 34 These wells had average initial daily production rates of 40 MMcf per day and average completed lateral lengths of 10,693 feet. 2024 Proved Oil and Gas Reserves Comstock also announced that proved natural gas and oil reserves as of December 31, 2024 were estimated at 3.8 trillion cubic feet equivalent ("Tcfe") as compared to 4.9 Tcfe as of December 31, 2023. The reserve estimates were determined under SEC guidelines and were audited by the Company's independent reserve engineering firm. The 3.8 Tcfe of proved reserves at December 31, 2024 were substantially all natural gas, 73% developed and 98% operated by Comstock. The present value, using a 10% discount rate, of the future net cash flows before income taxes of the proved reserves (the "PV-10 Value"), was approximately $1.6 billion using the Company's average first of month 2024 prices of $1.84 per Mcf of natural gas and $71.07 per barrel of oil. The natural gas and oil prices used in determining the December 31, 2024 proved reserve estimates were 23% lower for natural gas and 2% lower for oil as compared to prices used at December 31, 2023. The very low natural gas prices used to determine proved reserves resulted in many of the Company's proved undeveloped locations being excluded from the year-end proved reserve estimates as they did not generate an adequate return at that natural gas price. Using NYMEX future market prices as of December 31, 2024 of $3.26 per Mcf for natural gas and $59.10 per barrel of oil, as adjusted for the Company's basis differentials, proved reserves would have been 7.0 Tcfe with a PV-10 value of $5.7 billion. The following table reflects the changes in the SEC and NYMEX proved reserve estimates since the end of 2023: SEC NYMEX (Bcfe) Proved Reserves: Proved Reserves at December 31, 2023 4,943.5 6,654.4 Production (527.8) (528.0)Extensions and discoveries 531.3 899.4 Divestitures (2.4) (3.0)Revisions (1,180.5) (0.3)Proved Reserves at December 31, 2024 3,764.1 7,022.5 Comstock replaced 101% of its 2024 production excluding revisions under SEC pricing and replaced 170% of its 2024 production under NYMEX pricing. 2025 Budget In response to improved natural gas prices, the Company plans to increase the number of operating drilling rigs it is running from five to seven during 2025. Four of the rigs will be devoted to the Western Haynesville to continue to delineate the new play. As a result, Comstock plans to spend approximately $1.0 billion to $1.1 billion in 2025 on its development and exploration projects to drill 46 (40.3 net) operated horizontal wells and to turn 46 (39.7 net) operated wells to sales in 2025. Comstock expects to spend $130 million to $150 million on its Western Haynesville midstream system, which will be funded by its midstream partnership. Earnings Call Information Comstock has planned a conference call for 10:00 a.m. Central Time on February 19, 2025, to discuss the fourth quarter 2024 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:https://register.vevent.com/register/BI6e0b4d6ba76e49049b0b8093ff4a87a6 Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/siuhk9j5. If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on February 19, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/siuhk9j5. This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov. Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK. COMSTOCK RESOURCES, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Revenues: Natural gas sales $287,626 $348,385 $1,043,886 $1,259,450 Oil sales 672 1,050 3,597 5,161 Total natural gas and oil sales 288,298 349,435 1,047,483 1,264,611 Gas services 78,208 61,148 206,097 300,498 Total revenues 366,506 410,583 1,253,580 1,565,109 Operating expenses: Production and ad valorem taxes 7,707 31,912 57,437 91,803 Gathering and transportation 44,434 46,925 194,890 184,906 Lease operating 31,379 31,678 130,504 132,203 Exploration — — — 1,775 Depreciation, depletion and amortization 202,116 185,558 795,397 607,908 Gas services 72,611 57,733 205,407 282,050 General and administrative 10,164 6,000 39,435 37,992 Loss (gain) on sale of assets 35 — (875) (125)Total operating expenses 368,446 359,806 1,422,195 1,338,512 Operating income (loss) (1,940) 50,777 (168,615) 226,597 Other income (expenses): Gain (loss) from derivative financial instruments (79,022) 111,449 10,196 187,639 Other income 284 304 1,211 1,771 Interest expense (54,616) (47,936) (210,621) (169,018)Total other income (expenses) (133,354) 63,817 (199,214) 20,392 Income (loss) before income taxes (135,294) 114,594 (367,829) 246,989 (Provision for) benefit from income taxes 79,981 (6,217) 149,075 (35,095)Net income (loss) (55,313) 108,377 (218,754) 211,894 Net income attributable to noncontrolling interest (2,816) (777) (10,897) (777)Net income (loss) attributable to Comstock $(58,129) $107,600 $(229,651) $211,117 Net income (loss) per share: Basic $(0.19) $0.39 $(0.76) $0.76 Diluted $(0.19) $0.39 $(0.76) $0.76 Weighted average shares outstanding: Basic 290,170 276,999 287,010 276,806 Diluted 290,170 276,999 287,010 276,806 Dividends per share $— $0.125 $— $0.500 COMSTOCK RESOURCES, INC.OPERATING RESULTS(In thousands, except per unit amounts) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 Natural gas production (MMcf) 124,128 140,565 527,548 524,467 Oil production (Mbbls) 10 13 50 70 Total production (MMcfe) 124,185 140,649 527,847 524,890 Natural gas sales $287,626 $348,385 $1,043,886 $1,259,450 Natural gas hedging settlements (1) 47,847 4,107 207,803 80,328 Total natural gas including hedging 335,473 352,492 1,251,689 1,339,778 Oil sales 672 1,050 3,597 5,161 Total natural gas and oil sales including hedging $336,145 $353,542 $1,255,286 $1,344,939 Average natural gas price (per Mcf) $2.32 $2.48 $1.98 $2.40 Average natural gas price including hedging (per Mcf) $2.70 $2.51 $2.37 $2.55 Average oil price (per barrel) $67.20 $80.77 $71.94 $73.73 Average price (per Mcfe) $2.32 $2.48 $1.98 $2.41 Average price including hedging (per Mcfe) $2.71 $2.51 $2.38 $2.56 Production and ad valorem taxes $7,707 $31,912 $57,437 $91,803 Gathering and transportation 44,434 46,925 194,890 184,906 Lease operating 31,379 31,678 130,504 132,203 Cash general and administrative (2) 6,282 3,141 24,174 28,125 Total production costs $89,802 $113,656 $407,005 $437,037 Production and ad valorem taxes (per Mcfe) $0.06 $0.23 $0.11 $0.18 Gathering and transportation (per Mcfe) 0.36 0.33 0.37 0.35 Lease operating (per Mcfe) 0.25 0.23 0.25 0.25 Cash general and administrative (per Mcfe) 0.05 0.02 0.05 0.05 Total production costs (per Mcfe) $0.72 $0.81 $0.78 $0.83 Unhedged operating margin 69% 67% 61% 65%Hedged operating margin 73% 68% 68% 68% Gas services revenues $78,208 $61,148 $206,097 $300,498 Gas services expenses 72,611 57,733 205,407 282,050 Gas services margin $5,597 $3,415 $690 $18,448 Natural Gas and Oil Capital Expenditures: Unproved property acquisitions $18,448 $21,907 $106,386 $98,553 Total natural gas and oil properties acquisitions $18,448 $21,907 $106,386 $98,553 Exploration and Development: Development leasehold $1,308 $8,818 $13,461 $27,905 Exploratory drilling and completion 134,779 65,079 354,557 244,129 Development drilling and completion 96,021 233,856 503,550 974,664 Other development costs 8,325 6,262 30,500 25,130 Total exploration and development capital expenditures $240,433 $314,015 $902,068 $1,271,828 (1) Included in gain (loss) from derivative financial instruments in operating results. (2) Excludes stock-based compensation. COMSTOCK RESOURCES, INC.NON-GAAP FINANCIAL MEASURES(In thousands, except per share amounts) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 ADJUSTED NET INCOME (LOSS): Net income (loss) $(55,313) $108,377 $(218,754) $211,894 Unrealized loss (gain) from derivative financial instruments 126,869 (107,342) 197,607 (107,311)Exploration expense — — — 1,775 Loss (gain) on sale of assets 35 — (875) (125)Adjustment to income taxes (25,333) 26,868 (46,981) 26,450 Adjusted net income (loss) (1) $46,258 $27,903 $(69,003) $132,683 Adjusted net income (loss) per share (2) $0.16 $0.10 $(0.24) $0.47 Diluted shares outstanding 292,983 276,999 287,010 276,806 ADJUSTED EBITDAX: Net income (loss) $(55,313) $108,377 $(218,754) $211,894 Interest expense 54,616 47,936 210,621 169,018 Income taxes (79,981) 6,217 (149,075) 35,095 Depreciation, depletion, and amortization 202,116 185,558 795,397 607,908 Exploration — — — 1,775 Unrealized loss (gain) from derivative financial instruments 126,869 (107,342) 197,607 (107,311)Stock-based compensation 3,881 2,861 15,261 9,867 Loss (gain) on sale of assets 35 — (875) (125)Total Adjusted EBITDAX (3) $252,223 $243,607 $850,182 $928,121 (1) Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company's profitability excluding, non-cash unrealized gains and losses on derivative financial instruments, gains and losses on sales of assets and other unusual items. (2) Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units and preferred stock pursuant to the treasury stock method. (3) Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock's results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized (gain) loss from derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts. COMSTOCK RESOURCES, INC.NON-GAAP FINANCIAL MEASURES(In thousands) Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 OPERATING CASH FLOW (1): Net income (loss) $(55,313) $108,377 $(218,754) $211,894 Reconciling items: Unrealized loss (gain) from derivative financial instruments 126,869 (107,342) 197,607 (107,311)Deferred income taxes (57,754) 15,423 (124,919) 44,301 Depreciation, depletion and amortization 202,116 185,558 795,397 607,908 Amortization of debt discount and issuance costs 2,957 1,984 11,476 7,964 Stock-based compensation 3,881 2,861 15,261 9,867 Loss (gain) on sale of assets 35 — (875) (125)Operating cash flow $222,791 $206,861 $675,193 $774,498 (Increase) decrease in accounts receivable (18,989) (16,626) 56,584 278,697 (Increase) decrease in other current assets (22,144) 1,369 (22,893) 745 Increase (decrease) in accounts payable and other accrued expenses 85,395 36,603 (88,547) (37,094)Net cash provided by operating activities $267,053 $228,207 $620,337 $1,016,846 Three Months EndedDecember 31, Year EndedDecember 31, 2024 2023 2024 2023 FREE CASH FLOW (2): Operating cash flow $222,791 $206,861 $675,193 $774,498 Less: Exploration and development capital expenditures (240,433) (314,015) (902,068) (1,271,828)Midstream capital expenditures (38,638) (14,098) (85,377) (35,694)Other capital expenditures (558) (11) (2,264) (491)Contributions from midstream partnership 24,500 24,000 60,500 24,000 Free cash deficit from operations $(32,338) $(97,263) $(254,016) $(509,515)Acquisitions (18,448) (21,907) (106,386) (98,553)Proceeds from divestitures — — 1,214 41,295 Free cash deficit after acquisition and divestiture activity $(50,786) $(119,170) $(359,188) $(566,773) (1) Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts. (2) Free cash flow from operations and free cash flow after acquisition and divestiture activity are presented in the earnings release because management believes them to be useful indicators of the Company's ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, proved and unproved property acquisitions, and proceeds from divestitures of natural gas and oil properties. COMSTOCK RESOURCES, INC.CONSOLIDATED BALANCE SHEETS(In thousands) December 31,2024 December 31,2023 ASSETS Cash and cash equivalents $6,799 $16,669 Accounts receivable 174,846 231,430 Derivative financial instruments 4,865 126,775 Other current assets 97,524 86,619 Total current assets 284,034 461,493 Property and equipment, net 5,688,389 5,384,771 Goodwill 335,897 335,897 Operating lease right-of-use assets 73,777 71,462 $6,382,097 $6,253,623 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $421,814 $523,260 Accrued costs 146,173 134,466 Operating leases 35,927 23,765 Derivative financial instruments 8,940 — Total current liabilities 612,854 681,491 Long-term debt 2,952,090 2,640,391 Deferred income taxes 345,116 470,035 Derivative financial instruments 66,757 — Long-term operating leases 37,740 47,742 Asset retirement obligation 33,996 30,773 Total liabilities 4,048,553 3,870,432 Stockholders' Equity: Common stock 146,130 139,214 Additional paid-in capital 1,366,274 1,260,930 Accumulated earnings 728,619 958,270 Total stockholders' equity attributable to Comstock 2,241,023 2,358,414 Noncontrolling interest 92,521 24,777 Total stockholders' equity 2,333,544 2,383,191 $6,382,097 $6,253,623

COMSTOCK RESOURCES, INC. REPORTS FOURTH QUARTER 2024 FINANCIAL AND OPERATING RESULTS

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