Comstock Resources Q3 profit hits $22.3 million

Comstock Resources (NYSE:CRK) reported third-quarter 2026 net income of $22.3 million, or $0.08 per diluted share, compared with $111.1 million, or $0.40 per share, a year earlier, as it also finalized a $1.65 billion asset sale agreement with SOCAR.

Natural gas and oil production reached 122.4 billion cubic feet equivalent, up 9% year over year and 8% sequentially, while sales including realized hedging gains increased to $359.3 million.

The company generated $180.2 million in operating cash flow, compared with $153.1 million a year earlier, while adjusted net income declined to $5.9 million, or $0.02 per diluted share, from $20.9 million, or $0.07 per share.

Comstock signed the definitive SOCAR agreement on November 4, covering 20% of its interest in Legacy Haynesville upstream assets, 15% in Western Haynesville assets and 15% of its interest in Pinnacle Gas Services, with the $1.65 billion cash transaction effective July 1, 2026.

The transaction is expected to close by year-end, subject to required approvals, and Comstock said the proceeds will fund debt repayment, potentially reducing pro forma net debt to approximately $1.7 billion from $3.4 billion at September 30.

Comstock operates natural gas production and gathering businesses across the Haynesville and Bossier shale formations in East Texas and North Louisiana, with approximately 809,883 net acres across its operating footprint.

The company also entered a $450 million drilling venture with Jerry Jones, comprising $300 million in expected 2026 funding and $150 million in 2027, and expects the arrangement to generate free cash flow in the fourth quarter while supporting further development of its gas assets.