Comstock Resources (CRK) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were impacted by lower production due to significant winter weather, resulting in reduced sales and earnings compared to Q1 2025.

• Natural gas and oil sales totaled $339 million, with operating cash flow of $192 million and adjusted EBITDAX of $251 million.

• Net income for Q1 2026 was $112.5 million, reversing a prior-year loss, aided by an $82.8 million unrealized hedging gain.

• Strong late-quarter drilling results in both Western and Legacy Haynesville are expected to drive production growth for the remainder of 2026.

• Western Haynesville was selected for a 5.2 GW natural gas-fired power generation hub, with up to 1 Bcf/d of gas to be supplied by 2031.

Financial highlights

• Q1 2026 production averaged 1,088 MMcfe/d, down from 1,279 MMcfe/d in Q1 2025.

• Total revenues and other operating income were $587.4 million, up from $512.9 million year-over-year.

• Operating cash flow was $192 million, down from $239 million in Q1 2025.

• Realized gas price averaged $4.27/Mcf, with hedging reducing realized price to $3.45/Mcf.

• Operating cost per Mcfe was $0.93, up $0.16 sequentially due to lower production and fixed costs.

Outlook and guidance

• Production is expected to rebound in Q2 and beyond, with anticipated 13–15% sequential growth.

• 2026 production guidance is 1,250–1,400 MMcfe/d, with total capex of $1.4–$1.5 billion.

• Plans to drill 71 wells and turn 68 wells to sales in 2026, focusing on operational efficiency and cost reductions.

• Strong financial liquidity of $1.3 billion supports ongoing operations and growth.