What changed in this filing

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Item 1. Financial Statements

2026-05-06 compared with 2025-11-04 · 111 added, 177 removed, 358 unchanged (45% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

(In thousands)

21 unchanged sentences

Deferred income taxes

Derivative financial instruments

Long-term operating leases

4 unchanged sentences

Common stock—$ 0.50 par, 400,000,000 shares authorized, 293,695,832

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

and 293,054,806 shares issued and outstanding at March 31, 2026

and December 31, 2025, respectively

8 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands, except per share amounts)

1 unchanged sentence

Total natural gas and oil sales

Total revenues

Gain on sale of assets

Total revenues and other operating income

Operating expenses:

4 unchanged sentences

General and administrative

Loss (gain) on sale of assets

Total operating expenses

Operating income (loss)

Operating income

Other income (expenses):

Gain from derivative financial instruments

Gain (loss) from derivative financial instruments

Interest expense

Total other income (expenses)

Total other expenses

Income (loss) before income taxes

12 unchanged sentences

Stock-based compensation

Issuance of common stock

Net income (loss)

Contributions from noncontrolling interest

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

Stock-based compensation

Stock issuance costs

Net income (loss)

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at September 30, 2024

Balance at March 31, 2025

Balance at January 1, 2026

Stock-based compensation

Net income (loss)

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at March 31, 2026

Stock-based compensation

Stock issuance costs

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at June 30, 2025

Stock-based compensation

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Balance at September 30, 2025

The accompanying notes are an integral part of these statements.

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended

September 30,

Three Months Ended

(In thousands)

3 unchanged sentences

Deferred income taxes

Loss (gain) on sale of assets

Gain on sale of assets

Depreciation, depletion and amortization

Gain on derivative financial instruments

(Gain) loss on derivative financial instruments

Cash settlements of derivative financial instruments

1 unchanged sentence

Stock-based compensation

Decrease in accounts receivable

(Increase) decrease in other current assets

Increase (decrease) in accounts payable and accrued expenses

(Increase) decrease in accounts receivable

Decrease in other current assets

Decrease in accounts payable and accrued expenses

Net cash provided by operating activities

5 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Borrowings on bank credit facility

Repayments of bank credit facility

Issuance of Senior Notes

Issuance of common stock

Borrowings on bank credit facilities

Repayments of bank credit facilities

Debt and stock issuance costs

9 unchanged sentences

NOTES TO CONSOLIDA TED FINANCIAL STATEMENTS

September 30, 2025

March 31, 2026

(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 September 30, 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 March 31, 2026, 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, 2025.

The results of operations for the period through September 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.

The results of operations for the period through March 31, 2026 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, Cactus Midstream (II), LLC ("Cactus").

PGS provides gathering and treating services for natural gas production in the Company's Western Haynesville area.

1 unchanged sentence

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 $ 303.3 million and $ 140.3 million of other property and equipment as of September 30, 2025 and December 31, 2024 , respectively.

PGS assets that cannot be used by Comstock for general corporate purposes include $ 412.5 million and $ 358.9 million of net other property and equipment as of March 31, 2026 and December 31, 2025 , respectively.

Liabilities for which creditors do not have recourse to Comstock's assets include $ 47 million of borrowings under PGS's bank credit facility.

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.

The portions of PGS net income and stockholders' equity not attributable to Comstock's controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of operations and statements of stockholders' equity.

In January 2026, PGS entered into an agreement with Cactus under which PGS agreed to redeem all of the outstanding Class B Units of PGS in exchange for cash consideration of $ 440 million plus any accrued but unpaid distributions.

The redemption is expected to be completed during the second quarter of 2026.

Other Current Assets

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

September 30,

Other current assets at March 31, 2026 and December 31, 2025 consisted of the following:

(In thousands)

Prepaid drilling costs

Prepaid expenses

Production tax refunds receivable

Other receivables

Prepaid expenses

Income tax receivable

COMSTOCK RESOURCES, INC.

Property and Equipment

2 unchanged sentences

Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved natural gas and oil reserves.

COMSTOCK RESOURCES, INC.

The changes in capitalized exploratory well costs are as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands)

3 unchanged sentences

Ending capitalized exploratory well costs

As of September 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.

As of March 31, 2026 and December 31, 2025, 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 September 30, 2025 that was recorded in 2018.

Other property and equipment consists primarily of pipelines and natural gas treating plants ("midstream assets"), computer equipment, furniture and fixtures, office buildings and an airplane which are depreciated over estimated useful lives ranging from three to 50 years on a straight-line basis.

COMSTOCK RESOURCES, INC.

The following table presents the balance of other property and equipment and accumulated depreciation as of March 31, 2026 and December 31, 2025:

(in thousands)

Midstream assets

Accumulated depreciation

Net midstream assets

Other property and equipment

Accumulated depreciation

Net other property and equipment

The Company also assesses the need for an impairment of its midstream assets when events or changes in circumstances, such as a significant decline in natural gas volumes gathered and processed, indicate that the Company may not be able to recover its capitalized costs.

If impairment is indicated based on undiscounted expected future cash flows attributable to the pipelines and natural gas treating plants, then impairment is recognized to the extent the capitalized costs of the pipelines and natural gas treating plants exceed their estimated fair value.

Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for future natural gas gathering and processing volumes, operation costs and capital expenditures and the expected future net cash flows are discounted at an appropriate rate to determine fair value.

The Company had goodwill of $ 335.9 million as of March 31, 2026 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.

COMSTOCK RESOURCES, INC.

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.

Accordingly, 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 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 nine months ended September 30, 2025 and 2024 were as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

COMSTOCK RESOURCES, INC.

Lease costs recognized during the three months ended March 31, 2026 and 2025 were as follows:

Three Months Ended March 31,

(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 $ 1.1 million and $ 1.0 million for the three months ended September 30, 2025 and 2024 and $ 3.0 million and $ 2.9 million for the nine months ended September 30, 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 $ 24.3 million and $ 16.1 million for the three months ended September 30, 2025 and 2024, respectively, and $ 65.1 million and $ 51.2 million for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025 and December 31, 2024, the operating leases had a weighted-average term of 1.7 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 September 30, 2025, the Company also had expected future payments for short term leased drilling services of $ 10.1 million .

As of September 30, 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 and $ 0.9 million for the three months ended March 31, 2026 and 2025, respectively.

Cash payments for operating leases associated with right-of-use lease assets included in net cash used for investing activities were $ 36.6 million and $ 18.4 million for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026 and December 31, 2025, the operating leases had a weighted-average term of 2.2 years and 2.4 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 6.8 % and 6.8 % , respectively.

As of March 31, 2026, the Company also had expected future payments for short term leased drilling services of $ 6.1 million .

As of March 31, 2026, expected future payments related to contracts that contain operating leases were as follows:

(In thousands)

October 1 to December 31, 2025

April 1 to December 31, 2026

Total lease payments

1 unchanged sentence

Total lease liability

COMSTOCK RESOURCES, INC.

Accrued Costs

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

September 30,

Accrued costs at March 31, 2026 and December 31, 2025 consisted of the following:

(In thousands)

1 unchanged sentence

Accrued transportation costs

Accrued ad valorem and other taxes

Accrued interest payable

Accrued employee compensation

Accrued ad valorem and other taxes

Accrued lease operating expenses

Accrued employee compensation

COMSTOCK RESOURCES, INC.

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:

Nine Months Ended

September 30,

Three Months Ended

(In thousands)

1 unchanged sentence

New wells and facilities placed on production

Liabilities settled

Accretion expense

8 unchanged sentences

All of Comstock's outstanding natural gas derivative financial instruments are tied to the Henry Hub-NYMEX price index.

COMSTOCK RESOURCES, INC.

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

The Company had the following natural gas price derivative financial instruments at March 31, 2026:

Future Production Period

Three Months Ending

Nine Months Ending

December 31, 2026

10 unchanged sentences

Consolidated Balance Sheet Location

September 30,

(In thousands)

7 unchanged sentences

Derivative Financial Instruments – current

Natural gas price derivatives

Derivative Financial Instruments – long-term

The Company recognized cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses).

COMSTOCK RESOURCES, INC.

Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:

Three Months Ended

September 30,

Nine Months Ended

September 30,

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 $ 5.6 million and $ 3.9 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 September 30, 2025 and 2024, respectively, and $ 15.6 million and $ 11.4 million for the nine months ended September 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 September 30, 2025, Comstock had 1,957,381 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 12.44 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 18.3 million as of September 30, 2025 is expected to be recognized over a period of 1.9 years.

COMSTOCK RESOURCES, INC.

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

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

The Company recognized $ 7.4 million and $ 4.4 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, 2026 and 2025, respectively.

In January 2026, the Company granted 894,373 shares of restricted stock to its directors and employees, which were valued at $ 22.47 per share.

As of March 31, 2026, Comstock had 2,146,303 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 16.90 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 31.2 million as of March 31, 2026 is expected to be recognized over a period of 2.3 years.

In January 2026, the Company granted 596,623 PSUs to its executive officers, which were valued at $ 27.85 per unit.

As of March 31, 2026, Comstock had 2,200,539 PSUs outstanding with a weighted average grant date fair value of $ 21.74 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 4,401,078 shares of common stock.

Total unrecognized compensation cost related to these grants of $ 21.8 million as of September 30, 2025 is expected to be recognized over a period of 2.2 years.

Total unrecognized compensation cost related to these grants of $ 32.1 million as of March 31, 2026 is expected to be recognized over a period of 2.3 years.

Segment Reporting

10 unchanged sentences

Revenues and expenses associated with natural gas purchased for resale are presented on a gross basis in the Company's consolidated statements of operations as the Company acts as the principal in the transaction by assuming the risks and rewards from ownership of the natural gas volumes purchased and the responsibility to deliver the natural gas volumes to their sales point.

COMSTOCK RESOURCES, INC.

All natural gas and oil and gas services revenues are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties.

10 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 September 30, 2025 or December 31, 2024.

The Company recognized accounts receivable of $ 128.9 million and $ 145.4 million as of September 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.

The Company did not have any significant imbalance positions at March 31, 2026 or December 31, 2025.

The Company recognized accounts receivable of $ 126.4 million and $ 203.5 million as of March 31, 2026 and December 31, 2025 , respectively, from purchasers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists.

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 nine months ended September 30, 2025 and 2024 .

Accordingly, no allowance for doubtful accounts has been recorded for the three months ended March 31, 2026 and 2025 .

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.

7 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands)

Current - Federal

Current - State

Deferred - Federal

Deferred - State

COMSTOCK RESOURCES, INC.

The difference between the federal statutory rate of 21% and the effective tax rate is due to the following:

Three Months Ended

September 30,

Nine Months Ended

September 30,

Tax at statutory rate

Tax effect of:

Research and development and other income tax credits

State income taxes, net of federal benefit

Valuation allowance on deferred tax assets

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, 2026, the effective rate differed from the statutory rate due primarily to the impact of federal research and development credits, release of federal valuation allowance and state income taxes resulting from state tax credits.

For the three months ended March 31, 2025 , the effective tax rate differed from the statutory rate due to the impact of state income taxes and noncontrolling interest.

The Company's federal income tax returns for the years subsequent to December 31, 2021 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.

The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2022.

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.

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.

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

COMSTOCK RESOURCES, INC.

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 and has included these expected benefits in its income tax provision for the three and nine months ended September 30, 2025 .

Fair Value Measurements

8 unchanged sentences

These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions.

COMSTOCK RESOURCES, INC.

Fair Values – Reported

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

September 30, 2025

The following presents the carrying amounts and the fair values of the Company's financial instruments as of March 31, 2026 and December 31, 2025:

March 31, 2026

December 31, 2025

4 unchanged sentences

Commodity-based derivatives (1)

Bank credit facility (2)

Bank credit facilities (2)

6.75 % senior notes due 2029 (3)

1 unchanged sentence

(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 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 September 30, 2025 and December 31, 2024 , respectively, a Level 1 measurement.

(2) The carrying value of the Company's 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, 2026 and December 31, 2025 , 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 September 30, 2025 and December 31, 2024, 1,957,381 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.

At March 31, 2026 and December 31, 2025, 2,146,303 and 1,957,381 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.

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

Three Months Ended

September 30,

Nine Months Ended

September 30,

(In thousands)

5 unchanged sentences

Three Months Ended

September 30,

Nine Months Ended

September 30,

(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 and nine months ended September 30, 2025 and 2024 were determined as follows:

Three Months Ended September 30,

COMSTOCK RESOURCES, INC.

Basic and diluted loss per share for the three months ended March 31, 2026 and 2025 were determined as follows:

Three Months Ended March 31,

(In thousands, except per share amounts)

2 unchanged sentences

Basic income (loss) attributable to common stock

Effect of Dilutive Securities:

Restricted stock

Performance stock units

Diluted income (loss) attributable to common stock

Nine Months Ended September 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 nine months ended September 30, 2025 and 2024, respectively, were as follows:

Nine Months Ended

September 30,

Cash payments made for interest and income taxes and other non-cash investing activities for the three months ended March 31, 2026 and 2025, respectively, were as follows:

Three Months Ended

(In thousands)

1 unchanged sentence

Interest payments

Income tax payments (refunds)

Non-cash investing activities include:

Increase (decrease) in accrued capital expenditures

Increase in accrued capital expenditures

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

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures".

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 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.

(2) DIVESTITURE OF NATURAL GAS AND OIL PROPERTIES

On September 2, 2025, the Company sold its interest in natural gas properties in East Texas and North Louisiana for net proceeds of $ 15.2 million.

The properties sold included the Company's interest in 883 ( 770.9 net) producing wells and 46 ( 27.3 net) inactive wells.

The Company incurred a $ 2.5 million pre-tax loss on the divestiture.

The Company's reserve for future abandonment costs was reduced by $ 13.8 million as a result of the divestiture.

The properties produced approximately 7.9 MMcfe per day in August 2025.

(2) LONG-TERM DEBT

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

At March 31, 2026, long-term debt was comprised of the following:

(In thousands)

2 unchanged sentences

5.875 % Senior Notes due 2030:

Bank Credit Facility:

Bank Credit Facilities:

Comstock Principal

PGS Principal

Debt issuance costs, net of amortization

As of September 30, 2025, the Company had $ 580.0 million outstanding under a bank credit facility.

COMSTOCK RESOURCES, INC.

Comstock Bank Credit Facility

As of March 31, 2026, Comstock had $ 350.0 million outstanding under a bank credit facility.

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

1 unchanged sentence

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

Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its subsidiaries and bear interest at the Company's option, at either SOFR plus 2.25 % to 3.25 % or an alternate base rate plus 1.25 % to 2.25 %, in each case depending on the utilization of the borrowing base.

The Company also pays a commitment fee of

COMSTOCK RESOURCES, INC.

0.375 % to 0.5 %, which is dependent on the utilization of the borrowing base.

Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its subsidiaries, except for PGS, and bear interest at the Company's option, at either adjusted SOFR plus 2.25 % to 3.25 % or an alternate base rate plus 1.25 % to 2.25 %, in each case depending on the utilization of the borrowing base.

The Company also pays a commitment fee of 0.375 % to 0.5 %, which is dependent on the utilization of the borrowing base.

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 3.5 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0.

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

The Company was in compliance with the covenants as of March 31, 2026.

PGS Bank Credit Facility

As of March 31, 2026, PGS had $ 47.0 million outstanding under a bank credit facility.

Aggregate commitments under the bank credit facility are $ 150 million, which matures on March 26, 2030.

Borrowings under the bank credit facility bear interest at PGS's option, at either SOFR plus 2.5 % to 3.5 % or an alternate base rate plus 1.5 % to 2.5 %, in each case depending on a consolidated net leverage ratio.

PGS also pays a commitment fee of 0.375 % to 0.5 %, which is dependent on the consolidated net leverage ratio.

This bank credit facility contains financial covenants that require the maintenance of an interest coverage ratio of at least 2.5 to 1.0 and a consolidated net leverage ratio of less than 4.0 to 1.0.

(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.

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 $ 6.4 million .

In October 2025, the Company entered into an agreement for one new drilling rig, with a pad to pad contract term.

Comstock took delivery of this rig in January 2026.

Remaining commitments for drilling rigs on pad to pad agreements total $ 6.1 million as of March 31, 2026.

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 September 30, 2025 or 2024 .

(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 $ 0.2 million and $ 0.3 million for the three months ended September 30, 2025 and 2024, respectively, and $ 0.8 million for each of the nine months ended September 30, 2025 and 2024 for drilling, operating and marketing services provided to the partnerships.

The Company received $ 239 thousand and $ 339 thousand for the three months ended March 31, 2026 and 2025, respectively, 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 $ 2.0 million and $ 5.5 million receivable from the partnerships at September 30, 2025 and December 31, 2024 , respectively.

(6) SUBSEQUENT EVENTS

On October 10, 2025, the Company entered into an agreement with an unaffiliated third-party to sell interests in 155 ( 74.5 net) producing wells in Nacogdoches, San Augustine and Shelby counties Texas, including approximately 36,000 primarily undeveloped net acres, for $ 430 million in cash, subject to adjustment and customary closing conditions.

The properties produced approximately 9.3 MMcf per day of natural gas in September 2025.

The sale is expected to close in the fourth quarter of 2025 and has an effective date of October 1, 2025.

The Company expects to recognize a pre-tax gain from the sale of the unproved property and other property and equipment portion of the divestiture between $ 290 million and $ 310 million.

In connection with the operation of the wells, the Company had a $ 2.3 million and $ 3.6 million receivable from the partnerships at March 31, 2026 and December 31, 2025 , 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