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Comstock Q3 Earnings Beat Estimates on Higher Price Realizations

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Key Takeaways

  • Comstock posted Q3 adjusted EPS of $0.09, up from a $0.17 loss in 2024 and above the $0.04 estimate.
  • Revenue rose to $450M from $304.5M, driven by higher natural gas price realizations.
  • Average gas price rose to $2.75 per Mcf, offsetting lower production volumes in the quarter.

Comstock Resources, Inc. (CRK - Free Report) reported third-quarter 2025 adjusted earnings of 9 cents per share, which beat the Zacks Consensus Estimate of 4 cents. The bottom line also improved from the prior year’s adjusted loss of 17 cents. 

Total quarterly revenues of $450 million beat the Zacks Consensus Estimate of $401 million. The top line also increased from the prior-year figure of $304.5 million.

The strong quarterly results can be attributed to higher average natural gas price realizations.

Comstock Resources, Inc. Price, Consensus and EPS Surprise

Comstock Resources, Inc. Price, Consensus and EPS Surprise

Comstock Resources, Inc. price-consensus-eps-surprise-chart | Comstock Resources, Inc. Quote

Operational Performance

Total production averaged 111,837 million cubic feet equivalent (MMcfe), lower than the year-ago quarter’s level of 133,198 MMcfe. Natural gas production declined to 111,770 million cubic feet (MMcf) from 133,116 MMcf a year ago.

Average natural gas price realization (before hedging) came in at $2.75 per thousand cubic feet (Mcf), up from $1.90 per Mcf in the prior-year quarter. Total price realization (before hedging) averaged $2.76 per thousand cubic feet equivalent (Mcfe) compared with $1.90 Mcfe in the third quarter of 2024.

Costs & Expenses

Total production costs amounted to $0.77 per Mcfe, flat year over year. Lease operating expenses increased to 26 cents per Mcfe from 22 cents in the year-ago period. Gathering and transportation expenses declined to 36 cents from 41 cents per Mcfe in the corresponding period of 2024.

Total operating expenses in the quarter totaled $399.6 million, higher than $365.8 million reported a year ago. Gas services expenses rose to $141.7 million from $52.6 million in the third quarter of 2024.

Balance Sheet

As of Sept. 30, 2025, Comstock Resources reported a long-term debt of $3.13 billion. The company had cash and cash equivalents of $19.2 million as of the same date.

Financials

Total exploration and development capital expenditures in the third quarter amounted to $267.1 million. Operating cash flow came in at $190.3 million for the third quarter.

Outlook

Comstock Resources expects total production in the fourth quarter to be in the range of 1,200-1,300 million cubic feet equivalent per day (MMcfe/d). Lease operating expenses are expected to be between $0.25 and $0.29 per Mcfe, and gathering and transportation expenses are expected to lie in the range of $0.34-$0.40 per Mcfe for the fourth quarter.

CRK's Zacks Rank and Key Picks

CRK currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International (OII - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) . While Oceaneering and Canadian Natural Resources currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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