What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2025-07-31 compared with 2025-05-01 · 130 added, 88 removed, 365 unchanged (37% of the section changed)

15 unchanged sentences

Net property and equipment

Derivative financial instruments

Operating lease right-of-use assets

14 unchanged sentences

Common stock—$ 0.50 par, 400,000,000 shares authorized, 293,069,102

and 292,260,645 shares issued and outstanding at March 31, 2025

and 292,260,645 shares issued and outstanding at June 30, 2025

and December 31, 2024, respectively

8 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands, except per share amounts)

13 unchanged sentences

Interest expense

Total other expenses

Loss before income taxes

Benefit from income taxes

Total other income (expenses)

Income (loss) before income taxes

(Provision for) benefit from income taxes

Net income (loss)

Net income attributable to noncontrolling interest

Net loss available to the Company

Net loss per share:

Net income (loss) available to the Company

Net income (loss) per share:

Weighted average shares outstanding:

10 unchanged sentences

Balance at March 31, 2024

Stock-based compensation

Stock issuance costs

Net income (loss)

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at June 30, 2024

Balance at January 1, 2025

4 unchanged sentences

Balance at March 31, 2025

Stock-based compensation

Stock issuance costs

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at June 30, 2025

The accompanying notes are an integral part of these statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(In thousands)

CASH FLOWS FROM OPERATING ACTIVITIES:

Adjustments to reconcile net loss to net cash provided by operating activities:

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Deferred income taxes

4 unchanged sentences

Stock-based compensation

(Increase) decrease in accounts receivable

Decrease in accounts receivable

Decrease in other current assets

Decrease in accounts payable and accrued expenses

Increase (decrease) in accounts payable and accrued expenses

Net cash provided by operating activities

6 unchanged sentences

Repayments of bank credit facility

Issuance of Senior Notes

Issuance of common stock

Debt and stock issuance costs

Income tax withholdings on equity awards

2 unchanged sentences

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents, beginning of period

3 unchanged sentences

NOTES TO CONSOLIDA TED FINANCIAL STATEMENTS

March 31, 2025

June 30, 2025

(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2 unchanged sentences

and its wholly-owned subsidiaries (collectively, "Comstock" or the "Company").

In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of March 31, 2025, and the related results of operations and cash flows for the periods being presented.

In management's opinion, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position of Comstock as of June 30, 2025, and the related results of operations and cash flows for the periods being presented.

Net income (loss) and comprehensive income (loss) are the same in all periods presented.

3 unchanged sentences

These unaudited consolidated financial statements should be read in conjunction with the financial statements and notes thereto included in Comstock's Annual Report on Form 10-K for the year ended December 31, 2024.

The results of operations for the period through March 31, 2025 are not necessarily an indication of the results expected for the full year.

The results of operations for the period through June 30, 2025 are not necessarily an indication of the results expected for the full year.

Pinnacle Gas Services ("PGS") is a joint venture entity formed by the Company and an affiliate of Quantum Capital Solutions.

2 unchanged sentences

Accordingly, Comstock is considered the primary beneficiary and consolidates the assets, liabilities and results of operations of PGS in the accompanying consolidated financial statements.

PGS assets that cannot be used by Comstock for general corporate purposes include $ 188.9 million and $ 140.3 million of other property and equipment as of March 31, 2025 and December 31, 2024 , respectively.

PGS assets that cannot be used by Comstock for general corporate purposes include $ 243.2 million and $ 140.3 million of other property and equipment as of June 30, 2025 and December 31, 2024 , respectively.

Other PGS assets that cannot be used by Comstock and PGS liabilities for which creditors do not have recourse to Comstock's assets are not material to the Company's consolidated financial statements.

1 unchanged sentence

Other Current Assets

Other current assets at March 31, 2025 and December 31, 2024 consisted of the following:

Other current assets at June 30, 2025 and December 31, 2024 consisted of the following:

(In thousands)

Prepaid drilling costs

Income tax receivable

Other receivables

Production tax refunds receivable

Other receivables

Prepaid expenses

Income tax receivable

Property and Equipment

5 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

3 unchanged sentences

Ending capitalized exploratory well costs

As of March 31, 2025 and December 31, 2024, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

As of June 30, 2025 and December 31, 2024, the Company had no exploratory wells for which costs have been capitalized for a period greater than one year.

The Company periodically assesses the need for an impairment of the capitalized costs for its proved natural gas and oil properties.

10 unchanged sentences

As a result of these changes, there may be future impairments in the carrying values of these or other properties.

The Company had goodwill of $ 335.9 million as of March 31, 2025 that was recorded in 2018.

The Company had goodwill of $ 335.9 million as of June 30, 2025 that was recorded in 2018.

The Company is not required to amortize goodwill as a charge to earnings;

16 unchanged sentences

The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for natural gas and oil, and the overall operating and economic environment.

Accordingly, Comstock manages the terms of its contracts for drilling rigs and completion equipment so as to allow for maximum flexibility in

COMSTOCK RESOURCES, INC.

responding to these changing conditions.

Comstock manages the terms of its contracts for drilling rigs and completion equipment so as to allow for maximum flexibility in responding to these changing conditions.

The Company's hydraulic fracturing fleet contracts are on terms of less than one year and include rights of substitution.

2 unchanged sentences

The Company has elected not to recognize right-of-use lease assets for contracts with terms of one year or less.

The costs associated with drilling and completion operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of our proved natural gas and oil properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense.

Lease costs recognized during the three months ended March 31, 2025 and 2024 were as follows:

Three Months Ended March 31,

The costs associated with drilling and completion operations are accounted for under the successful efforts method, which generally require that these costs be capitalized as part of the Company's proved natural gas and oil properties on its balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense.

Lease costs recognized during the three months and six months ended June 30, 2025 and 2024 were as follows:

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands)

4 unchanged sentences

Short-term lease cost (drilling rig costs included in natural gas and oil properties)

Cash payments for operating leases associated with right-of-use lease assets included in net cash provided by operating activities were $ 0.9 million for both the three months ended March 31, 2025 and 2024, respectively.

Cash payments for operating leases associated with right-of-use lease assets included in net cash used for investing activities were $ 18.4 million and $ 20.9 million for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025 and December 31, 2024, the operating leases had a weighted-average term of 2.1 years and 2.0 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 7.2 % and 7.3 % , respectively.

As of March 31, 2025, the Company also had expected future payments for short term leased drilling services of $ 15.3 million .

As of March 31, 2025, expected future payments related to contracts that contain operating leases were as follows:

Cash payments for operating leases associated with right-of-use lease assets included in net cash provided by operating activities were $ 1.0 million for each of the three months ended June 30, 2025 and 2024 and $ 1.9 million for each of the six months ended June 30, 2025 and 2024.

Cash payments for operating leases associated with right-of-use lease assets included in net cash used for investing activities were $ 22.5 million and $ 14.3 million for the three months ended June 30, 2025 and 2024, respectively, and $ 40.9 million and $ 35.2 million for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025 and December 31, 2024, the operating leases had a weighted-average term of 1.9 years and 2.0 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 7.2 % and 7.3 % , respectively.

As of June 30, 2025, the Company also had expected future payments for short term leased drilling services of $ 13.3 million .

As of June 30, 2025, expected future payments related to contracts that contain operating leases were as follows:

(In thousands)

April 1 to December 31, 2025

July 1 to December 31, 2025

Total lease payments

3 unchanged sentences

Accrued Costs

Accrued costs at March 31, 2025 and December 31, 2024 consisted of the following:

Accrued costs at June 30, 2025 and December 31, 2024 consisted of the following:

(In thousands)

Accrued interest payable

Accrued drilling costs

Accrued transportation costs

Accrued interest payable

Accrued income and other taxes

Accrued lease operating expenses

Accrued employee compensation

Accrued lease operating expenses

Reserve for Future Abandonment Costs

1 unchanged sentence

The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:

Three Months Ended

Six Months Ended

(In thousands)

13 unchanged sentences

COMSTOCK RESOURCES, INC.

The Company had the following natural gas price derivative financial instruments at March 31, 2025:

The Company had the following natural gas price derivative financial instruments at June 30, 2025:

Future Production Period

Nine Months Ending

Six Months Ending

December 31, 2025

14 unchanged sentences

Derivative Financial Instruments – current

Natural gas price derivatives

Derivative Financial Instruments – long-term

Liability Derivative Financial Instruments:

6 unchanged sentences

Three Months Ended

Six Months Ended

Gain (loss) on Derivatives Recognized in Earnings

4 unchanged sentences

Compensation cost is measured at the grant date based on the fair value of the award and is recognized over the award vesting period and included in general and administrative expenses for awards of restricted stock and performance stock units ("PSUs") to the Company's employees and directors.

The Company recognized $ 4.4 million and $ 3.4 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended March 31, 2025 and 2024, respectively.

In February 2025, the Company granted an aggregate of 787,595 shares of restricted stock to its directors and employees, which were valued at $ 17.80 per share.

As of March 31, 2025, Comstock had 2,455,831 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 9.25 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 23.7 million as of March 31, 2025 is expected to be recognized over a period of 2.3 years.

As of March 31, 2025, Comstock had 1,290,755 PSUs outstanding with a weighted average grant date fair value of $ 13.21 per unit.

The number of shares of common stock to be issued related to the PSUs is based on the Company's stock price performance as

The Company recognized $ 5.5 million and $ 4.1 million of stock-based compensation expense within general and administrative expenses related to awards of restricted stock and PSUs to its employees and directors during the three months ended June 30, 2025 and 2024, respectively, and $ 10.0 million and $ 7.5 million for the six months ended June 30, 2025 and 2024, respectively.

In February 2025, the Company granted 787,595 shares of restricted stock to its directors and employees, which were valued at $ 17.80 per share.

In June 2025, the Company granted an additional 53,188 shares of restricted stock to its directors and employees, which were valued at $ 23.82 per share.

As of June 30, 2025, Comstock had 1,979,667 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 12.43 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 21.3 million as of June 30, 2025 is expected to be recognized over a period of 2.3 years.

COMSTOCK RESOURCES, INC.

compared to its peers which could result in the issuance of anywhere from zero to 2,581,510 shares of common stock.

Total unrecognized compensation cost related to these grants of $ 7.0 million as of March 31, 2025 is expected to be recognized over a period of 1.8 years.

In June 2025, the Company granted 529,670 PSUs to its executive officers, which were valued at $ 36.77 per unit.

As of June 30, 2025, Comstock had 1,603,916 PSUs outstanding with a weighted average grant date fair value of $ 19.46 per unit.

The number of shares of common stock to be issued related to the PSUs is based on the Company's stock price performance as compared to its peers which could result in the issuance of anywhere from zero to 3,207,832 shares of common stock.

Total unrecognized compensation cost related to these grants of $ 24.6 million as of June 30, 2025 is expected to be recognized over a period of 2.4 years.

Segment Reporting

22 unchanged sentences

The amount of natural gas or oil sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties.

The Company did not have any significant imbalance positions at March 31, 2025 or December 31, 2024.

The Company recognized accounts receivable of $ 175.0 million and $ 145.4 million as of March 31, 2025 and December 31, 2024 , respectively, from purchasers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

The Company did not have any significant imbalance positions at June 30, 2025 or December 31, 2024.

The Company recognized accounts receivable of $ 140.5 million and $ 145.4 million as of June 30, 2025 and December 31, 2024 , respectively, from purchasers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

COMSTOCK RESOURCES, INC.

Credit Losses

4 unchanged sentences

The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible.

Accordingly, no allowance for doubtful accounts has been recorded for the three months ended March 31, 2025 and 2024 .

COMSTOCK RESOURCES, INC.

Accordingly, no allowance for doubtful accounts has been recorded for the six months ended June 30, 2025 and 2024 .

Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates.

5 unchanged sentences

The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods.

The following is an analysis of the consolidated income tax benefit:

The following is an analysis of the consolidated income tax provision (benefit):

Three Months Ended

Six Months Ended

(In thousands)

Current - Federal

Current - State

Deferred - Federal

2 unchanged sentences

Three Months Ended

Six Months Ended

Tax at statutory rate

Tax effect of:

Valuation allowance on deferred tax assets

State income taxes, net of federal benefit

Nondeductible stock-based compensation

Noncontrolling interest

Research and development and other income tax credits

Nondeductible stock-based compensation

Valuation allowance on deferred tax assets

Effective tax rate

For the three months ended March 31, 2025, the effective tax rates for state income taxes, net of federal benefit, and other income taxes increased due to an increase in tax benefits within state jurisdictions with higher statutory tax rates .

The significant variance in the effective tax rate from the statutory tax rate for both the three and six months ended June 30, 2025 was primarily due to the impact of mark-to-market changes in the Company's derivative financial instruments.

The Company's federal income tax returns for the years subsequent to December 31, 2020 remain subject to examination, with the Company's 2022 and 2023 federal income tax returns currently under examination with the United States Internal Revenue Service.

1 unchanged sentence

The Company is also currently under examination with the state of Louisiana.

In both the federal and state examinations, the Company believes that its filing positions and deductions will be sustained under audit or the final resolution will not have a material effect on the consolidated financial statements.

In both the federal and state examinations, the Company believes that its filing positions and deductions will be sustained under audit or the final resolution will not

COMSTOCK RESOURCES, INC.

have a material effect on the consolidated financial statements.

Therefore, the Company has not established any significant reserves for uncertain tax positions.

In July 2025, the One Big Beautiful Bill Act ("OBBBA") was signed into United States federal law.

The Company expects to benefit from certain provisions contained in the OBBBA, including increased interest expense deductions and bonus depreciation, but the Company is still evaluating the impact of this law on its income tax disclosures and consolidated financial statements.

Fair Value Measurements

4 unchanged sentences

Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date.

COMSTOCK RESOURCES, INC.

Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active.

3 unchanged sentences

Fair Values – Reported

The following presents the carrying amounts and the fair values of the Company's financial instruments as of March 31, 2025 and December 31, 2024:

March 31, 2025

The following presents the carrying amounts and the fair values of the Company's financial instruments as of June 30, 2025 and December 31, 2024:

June 30, 2025

December 31, 2024

8 unchanged sentences

(1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using third party pricing services and other active markets or broker quotes that are readily available in the public markets.

(2) The carrying value of our floating rate debt outstanding approximates fair value.

(3) The fair value of the Company's fixed rate debt was based on quoted prices as of March 31, 2025 and December 31, 2024 , respectively, a Level 1 measurement.

(2) The carrying value of the floating rate debt on the Company's outstanding approximates fair value.

(3) The fair value of the Company's fixed rate debt was based on quoted prices as of June 30, 2025 and December 31, 2024 , respectively, a Level 1 measurement.

Earnings Per Share

Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method.

At March 31, 2025 and December 31, 2024, 2,455,831 and 2,091,087 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

At June 30, 2025 and December 31, 2024, 1,979,667 and 2,091,087 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's stockholders.

COMSTOCK RESOURCES, INC.

Weighted average shares of unvested restricted stock outstanding were as follows:

Three Months Ended

Six Months Ended

(In thousands)

3 unchanged sentences

The treasury stock method is used to measure the dilutive effect of PSUs.

COMSTOCK RESOURCES, INC.

Weighted average unearned PSUs outstanding were as follows:

Three Months Ended

Six Months Ended

(In thousands, except per unit amounts)

1 unchanged sentence

Weighted average grant date fair value per unit

Basic and diluted loss per share for the three months ended March 31, 2025 and 2024 were determined as follows:

Three Months Ended March 31,

Basic and diluted loss per share for the three months and six months ended June 30, 2025 and 2024 were determined as follows:

Three Months Ended June 30,

(In thousands, except per share amounts)

Net loss attributable to common stock

Basic loss attributable to common stock

Diluted loss attributable to common stock

Net income (loss) attributable to common stock

Income allocable to unvested restricted stock

Basic income (loss) attributable to common stock

Effect of Dilutive Securities:

Restricted stock

Performance stock units

Diluted income (loss) attributable to common stock

Six Months Ended June 30,

(In thousands, except per share amounts)

Net income (loss) attributable to common stock

Income allocable to unvested restricted shares

Basic income (loss) attributable to common stock

Effect of Dilutive Securities:

Restricted stock

Performance stock units

Diluted income (loss) attributable to common stock

None of the Company's participating securities participate in losses and as such are excluded from the computation of basic earnings per share during periods of net losses.

COMSTOCK RESOURCES, INC.

Supplementary Information with Respect to the Consolidated Statements of Cash Flows

Cash payments made for interest and income taxes and other non-cash investing activities for the three months ended March 31, 2025 and 2024, respectively, were as follows:

Three Months Ended

Cash payments made for interest and income taxes and other non-cash investing activities for the six months ended June 30, 2025 and 2024, respectively, were as follows:

Six Months Ended

(In thousands)

1 unchanged sentence

Interest payments

Income tax payments

Income tax payments (refunds)

Non-cash investing activities include:

Increase (decrease) in accrued capital expenditures

Decrease in accrued capital expenditures

Liabilities assumed in exchange for right-of-use lease assets

2 unchanged sentences

ASU 2023-09 requires additional disclosures around effective tax rates and cash income taxes paid and is effective for public entities for annual periods beginning after December 15, 2024.

ASU 2023-07 will not have an impact on the Company's reported results of operations, financial position or liquidity.

The Company does not expect this standard to have a material impact on its financial statement disclosures.

ASU 2023-07 will not have an impact on the Company's reported results of operations, financial position or liquidity and the Company does not expect this standard to have a material impact on its financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03 "Disaggregation of Income Statement Expenses".

2 unchanged sentences

The Company is still evaluating the impact of this standard on its financial statement disclosures.

COMSTOCK RESOURCES, INC.

(2) LONG-TERM DEBT

At March 31, 2025, long-term debt was comprised of the following:

At June 30, 2025, long-term debt was comprised of the following:

(In thousands)

4 unchanged sentences

Debt issuance costs, net of amortization

As of March 31, 2025, the Company had $ 510.0 million outstanding under a bank credit facility.

As of June 30, 2025, the Company had $ 475.0 million outstanding under a bank credit facility.

Aggregate commitments under the bank credit facility are $ 1.5 billion, which matures on November 15, 2027.

Borrowings under the bank credit facility are subject to a borrowing base, which is currently set at $ 2.0 billion.

Borrowings under the bank credit facility are subject to a borrowing base, which was redetermined on April 29, 2025 and is currently set at $ 2.0 billion.

The borrowing base is re-determined on a semi-annual basis and upon the occurrence of certain other events.

2 unchanged sentences

The bank credit facility places certain restrictions upon the Company's and its subsidiaries' ability to, among other things, incur additional indebtedness, pay cash dividends, repurchase common stock, make certain loans, investments and divestitures and redeem the senior notes.

The only financial covenants are the maintenance of a leverage ratio of less than 4.0 to 1.0, which reduces to 3.75 to 1.0 on June 30, 2025 and to 3.5 to 1.0 on September 30, 2025, and an adjusted current ratio of at least 1.0 to 1.0.

The Company was in compliance with the covenants as of March 31, 2025.

In April 2024, the Company issued $ 400.0 million principal amount of 6.75 % senior notes due 2029 (the "New 2029 Notes") in a private placement and received net proceeds after offering costs and deducting the initial purchasers' discounts of $ 365.2 million , which were used to pay down the outstanding borrowings on the Company's bank credit facility.

The only financial covenants are the maintenance of a leverage ratio of less than 3.75 to 1.0, which reduces to 3.5 to 1.0 on September 30, 2025, and an adjusted current ratio of at least 1.0 to 1.0.

The Company was in compliance with the covenants as of June 30, 2025.

COMSTOCK RESOURCES, INC.

which were used to pay down the outstanding borrowings on the Company's bank credit facility.

The New 2029 Notes have substantially identical terms as the Company's $ 1,223.9 million aggregate principal amount of 6.75 % senior notes due 2029, which mature on March 1, 2029 and accrue interest at a rate of 6.75 % per annum, payable semi-annually on March 1 and September 1 of each year.

(3) COMMON STOCK

In March 2024, the Company issued 12,500,000 shares of common stock in a private placement to two entities controlled by Comstock's majority stockholder, receiving proceeds of $ 100.5 million.

Following the issuance, Comstock's majority stockholder's beneficial ownership in the Company increased to 67 %.

As a result of open market purchases made by the Company's majority stockholder during the third quarter of 2024, beneficial ownership increased to 71 %.

(3) COMMITMENTS AND CONTINGENCIES

In August 2024, the Company entered into two agreements for two new drilling rigs, one with a three-year term and one with a one-year term, with an annual commitment of $ 12.8 million per drilling rig.

In August 2024, the Company entered into two agreements for two new drilling rigs, one with a three-year term and one with a one-year term.

Comstock took delivery of the rigs in January 2025 and April 2025, respectively.

The drilling rig with a three-year term is capitalized as a right-of-use lease asset on the Company's consolidated balance sheet and the drilling rig with a one-year term has a remaining commitment of $ 9.6 million .

From time to time, the Company is involved in certain litigation that arises in the normal course of its operations.

The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated.

The Company does not believe the resolution of these matters will have a material effect on the Company's financial position, results of operations or cash flows and no material amounts are accrued relative to these matters at March 31, 2025 or 2024 .

COMSTOCK RESOURCES, INC.

(4) RELATED PARTY TRANSACTIONS

2 unchanged sentences

Comstock also provides natural gas marketing services to the partnerships, including evaluating potential markets and providing hedging services, in return for a fee equal to $ 0.02 per Mcf for natural gas marketed.

The Company received $ 339 thousand and $ 279 thousand for the three months ended March 31, 2025 and 2024, respectively, for drilling, operating and marketing services provided to the partnerships.

The Company received $ 260 thousand and $ 269 thousand for the three months ended June 30, 2025 and 2024, respectively, and $ 599 thousand and $ 548 thousand for the six months ended June 30, 2025 and 2024 for drilling, operating and marketing services provided to the partnerships.

The fees received for the services are reflected as a reduction of general and administrative expenses in the accompanying consolidated statements of operations.

In connection with the operation of the wells, the Company had a $ 10.9 million and $ 5.5 million receivable from the partnerships at March 31, 2025 and December 31, 2024 , respectively.

In connection with the operation of the wells, the Company had a $ 3.3 million and $ 5.5 million receivable from the partnerships at June 30, 2025 and December 31, 2024 , respectively.

COMSTOCK RESOURCES, INC.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements