What changed in this filing

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Item 1. Financial Statements

2026-07-30 compared with 2026-05-06 · 132 added, 87 removed, 382 unchanged (36% of the section changed)

31 unchanged sentences

Common stock—$ 0.50 par, 400,000,000 shares authorized, 293,620,548

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

and 293,054,806 shares issued and outstanding at June 30, 2026

and December 31, 2025, respectively

8 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands, except per share amounts)

14 unchanged sentences

Interest expense

Total other expenses

Income (loss) before income taxes

Total other income (expenses)

Income before income taxes

(Provision for) benefit from income taxes

Net income (loss)

Net income attributable to noncontrolling interest

Net income (loss) available to the Company

Net income (loss) per share:

Net income available to the Company

Net income per share:

Weighted average shares outstanding:

10 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

Balance at January 1, 2026

2 unchanged sentences

Balance at March 31, 2026

Stock-based compensation

Redemption of noncontrolling interest

Contributions from noncontrolling interest, net of transaction costs

Deferred tax effect of ownership change in noncontrolling interest

Distributions to noncontrolling interest

Balance at June 30, 2026

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:

Net income (loss)

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

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

Deferred income taxes

5 unchanged sentences

Stock-based compensation

(Increase) decrease in accounts receivable

Decrease in other current assets

Decrease in accounts payable and accrued expenses

Decrease in accounts receivable

(Increase) decrease in other current assets

Increase in accounts payable and accrued expenses

Net cash provided by operating activities

7 unchanged sentences

Repayments of bank credit facilities

Debt and stock issuance costs

Debt issuance costs

Income tax withholdings on equity awards

Redemption of noncontrolling interest

Contributions from noncontrolling interest

Distributions to noncontrolling interest

Noncontrolling interest transaction costs

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, 2026

June 30, 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 March 31, 2026, 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, 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.

All adjustments are of a normal recurring nature unless otherwise disclosed.

Certain amounts in prior periods have been reclassified to conform to current period presentation.

The accompanying unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission.

1 unchanged sentence

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 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.

Comstock directs the activities that most significantly impact the performance of PGS and has the obligation to absorb losses or right to receive benefits that could potentially be significant to PGS.

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 $ 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.

The results of operations for the period through June 30, 2026 are not necessarily an indication of the results expected for the full year.

Pinnacle Gas Services ("PGS") is a joint venture entity that provides gathering and treating services for natural gas production in the Company's Western Haynesville area.

PGS was formed by the Company and an affiliate of Quantum Capital Solutions, Cactus Midstream (II), LLC ("Cactus") in October 2023.

On June 15, 2026, PGS redeemed Cactus' interest in PGS for $ 445 million.

The redemption was funded by the issuance of 600,000 Class A-2 Units representing a 27 % ownership interest in PGS for $ 600 million to Starville Evergreen Holdings, LLC ("Starville"), a fund managed by Sixth Street Partners.

After certain return hurdles are achieved, Starville's ownership and share of distributable cash reduces to 19.5 %.

Starville's share of distributable cash is subject to a minimum annualized return and the Class A-2 Units are also entitled to certain exit provisions.

Comstock operates and manages PGS pursuant to a management services agreement and retains the authority to appoint a majority of the directors on the board of directors of PGS.

Accordingly, PGS continues to qualify as a variable interest entity to Comstock.

Since the Company continues to direct the activities that most significantly impact the performance of PGS and has the obligation to absorb losses or right to receive benefits that could potentially be significant to PGS, Comstock is still considered the primary beneficiary and consolidates the assets, liabilities and results of operations of PGS in the accompanying consolidated financial statements.

Because the Company retained its controlling interest in PGS before and after the redemption of Cactus' interest and issuance of Class A-2 Units, no gain or loss was recognized in the consolidated statements of operations.

The carrying amount of the noncontrolling interest attributable to Cactus was retired with the redemption and the difference in the cash consideration paid to Cactus and the carrying value of the redeemed noncontrolling interest was recorded as an adjustment to additional paid-in capital attributable to Comstock.

The related change in deferred income taxes to the change in Comstock's ownership of PGS's assets was also recorded to additional paid-in capital.

Starville's ownership interest was recognized as noncontrolling interest in the consolidated balance sheet and transaction costs of $ 18.5 million directly attributable to the issuance of Class A-2 Units were recorded as an adjustment to noncontrolling interest.

PGS assets that cannot be used by Comstock for general corporate purposes include $ 31.7 million and $ 8.4 million of cash and $ 446.8 million and $ 358.9 million of net other property and equipment as of June 30, 2026 and December 31, 2025 , 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.

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.

COMSTOCK RESOURCES, INC.

Other Current Assets

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

Other current assets at June 30, 2026 and December 31, 2025 consisted of the following:

(In thousands)

1 unchanged sentence

Prepaid expenses

Production tax refunds receivable

Other receivables

Income tax receivable

COMSTOCK RESOURCES, INC.

Production tax refunds receivable

Property and Equipment

4 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands)

3 unchanged sentences

Ending capitalized exploratory well costs

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.

As of June 30, 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.

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:

The following table presents the balance of other property and equipment and accumulated depreciation as of June 30, 2026 and December 31, 2025:

(in thousands)

8 unchanged sentences

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 had goodwill of $ 335.9 million as of June 30, 2026 that was recorded in 2018.

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

20 unchanged sentences

The terms on the Company's other drilling rig contracts are presently either for periods of one year or less, or they are on terms that provide for cancellation with 30 or 45 days advance notice without a specified expiration date.

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.

The costs associated with drilling and completion operations are

COMSTOCK RESOURCES, INC.

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

Three Months Ended March 31,

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, 2026 and 2025 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 $ 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:

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 both the three months ended June 30, 2026 and 2025, respectively, and $ 2.0 million and $ 1.9 million for the six months ended June 30, 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 $ 28.7 million and $ 22.5 million for the three months ended June 30, 2026 and 2025, respectively, and $ 65.3 million and $ 40.9 million for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026 and December 31, 2025, the operating leases had a weighted-average term of 2.1 years and 2.4 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 6.7 % and 6.8 % , respectively.

As of June 30, 2026, the Company also had expected future payments for short term leased drilling services of $ 15.9 million .

As of June 30, 2026, expected future payments related to contracts that contain operating leases were as follows:

(In thousands)

April 1 to December 31, 2026

July 1 to December 31, 2026

Total lease payments

2 unchanged sentences

Accrued Costs

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

Accrued costs at June 30, 2026 and December 31, 2025 consisted of the following:

(In thousands)

Accrued interest payable

Accrued drilling costs

Accrued transportation costs

Accrued interest payable

Accrued ad valorem and other taxes

Accrued lease operating expenses

Accrued employee compensation

Accrued lease operating expenses

COMSTOCK RESOURCES, INC.

2 unchanged sentences

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)

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.

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

The Company had the following natural gas price derivative financial instruments at June 30, 2026:

Future Production Period

Nine Months Ending

Six Months Ending

December 31, 2026

23 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 $ 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.

The Company recognized $ 8.4 million and $ 5.5 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, 2026 and 2025, respectively, and $ 15.8 million and $ 10.0 million during the six months ended June 30, 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 June 2026, the Company granted an additional 44,610 shares of restricted stock to its directors, which were valued at $ 13.45 per share.

As of June 30, 2026, Comstock had 1,848,388 shares of unvested restricted stock outstanding at a weighted average grant date fair value of $ 17.71 per share.

Total unrecognized compensation cost related to unvested restricted stock grants of $ 27.1 million as of June 30, 2026 is expected to be recognized over a period of 2.1 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.

As of June 30, 2026, Comstock had 1,831,896 PSUs outstanding with a weighted average grant date fair value of $ 23.43 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 3,663,792 shares of common stock.

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.

Total unrecognized compensation cost related to these grants of $ 28.0 million as of June 30, 2026 is expected to be recognized over a period of 2.1 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.

These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties.

Prices for sales of natural gas and oil are generally based upon terms that are common in the oil and gas industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions.

COMSTOCK RESOURCES, INC.

supply and demand conditions.

As a result, prices for natural gas and oil routinely fluctuate based on changes in these factors.

7 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, 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.

The Company did not have any significant imbalance positions at June 30, 2026 or December 31, 2025.

The Company recognized accounts receivable of $ 133.2 million and $ 203.5 million as of June 30, 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 three months ended March 31, 2026 and 2025 .

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

Six Months Ended

(In thousands)

Current - Federal

Current - State

Deferred - Federal

3 unchanged sentences

Three Months Ended

Six Months Ended

Tax at statutory rate

6 unchanged sentences

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.

For the three and six months ended June 30, 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.

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 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 significant 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.

11 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, 2026 and December 31, 2025:

March 31, 2026

The following presents the carrying amounts and the fair values of the Company's financial instruments as of June 30, 2026 and December 31, 2025:

June 30, 2026

December 31, 2025

9 unchanged sentences

(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.

(3) The fair value of the Company's fixed rate debt was based on quoted prices as of June 30, 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 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.

At June 30, 2026 and December 31, 2025, 1,848,388 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

Six Months Ended

(In thousands)

5 unchanged sentences

Three Months Ended

Six Months Ended

(In thousands, except per unit amounts)

1 unchanged sentence

Weighted average grant date fair value per unit

For the three and six months ended June 30, 2026, the weighted average shares of unvested restricted stock and PSUs were excluded from the computation of earnings per share because to include them would have been antidilutive to the calculation.

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,

Basic and diluted income per share for the three months and six months ended June 30, 2026 and 2025 were determined as follows:

Three Months Ended June 30,

(In thousands, except per share amounts)

Net income (loss) attributable to common stock

Net income available to the Company

Income allocable to unvested restricted stock

Basic income (loss) attributable to common stock

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.

Basic income available to the Company

Effect of Dilutive Securities:

Restricted stock

Performance stock units

Diluted income available to the Company

Six Months Ended June 30,

(In thousands, except per share amounts)

Net income available to the Company

Income allocable to unvested restricted stock

Basic income available to the Company

Effect of Dilutive Securities:

Restricted stock

Performance stock units

Diluted income available to the Company

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, 2026 and 2025, 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, 2026 and 2025, respectively, were as follows:

Six Months Ended

(In thousands)

1 unchanged sentence

Interest payments

Income tax payments (refunds)

Non-cash investing activities include:

Increase in accrued capital expenditures

Increase (decrease) in accrued capital expenditures

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

4 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, 2026, long-term debt was comprised of the following:

At June 30, 2026, long-term debt was comprised of the following:

(In thousands)

6 unchanged sentences

Debt issuance costs, net of amortization

COMSTOCK RESOURCES, INC.

Comstock Bank Credit Facility

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

As of June 30, 2026, Comstock had $ 545.0 million outstanding under its 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, 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.

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 Secured Overnight Financing Rate ("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 bank credit facility places certain restrictions upon the Company's and its restricted 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 March 31, 2026.

The Company was in compliance with the covenants as of June 30, 2026.

PGS Bank Credit Facility

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

As of June 30, 2026 , PGS had no borrowings outstanding under its 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.

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

This bank credit facility contains financial covenants for PGS 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.

PGS was in compliance with the covenants as of June 30, 2026 .

(3) COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

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.

Remaining commitments for drilling rigs on pad to pad agreements total $ 15.9 million as of June 30, 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 March 31, 2026 or 2025 .

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 $ 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 Company received $ 236 thousand and $ 260 thousand for the three months ended June 30, 2026 and 2025, respectively, and $ 475 thousand and $ 599 thousand for the six months ended June 30, 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 $ 2.3 million and $ 3.6 million receivable from the partnerships at March 31, 2026 and December 31, 2025 , respectively.

In connection with the operation of the wells, the Company had a $ 3.2 million and $ 3.6 million receivable from the partnerships at June 30, 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