Comstock Resources, Inc. (NYSE:CRK) reported third-quarter 2026 adjusted earnings of $0.02 per share, below analysts’ expectations of $0.03, while revenue excluding hedging gains reached $319.88 million, compared with the consensus estimate of $425 million.
The natural gas producer’s shares declined 0.22% in premarket trading following Thursday’s announcement.
Revenue excluding hedging gains increased 4% from $308.59 million in the corresponding quarter last year, supported by higher natural gas production.
Natural Gas Production Increases 9%
Comstock reported third-quarter production of 122.4 billion cubic feet equivalent (Bcfe), representing a 9% increase year over year, driven by drilling activity in the Haynesville shale.
Including realised hedging gains of $39.5 million, total natural gas and oil sales reached $359.3 million.
The company realised an average price of $2.61 per thousand cubic feet equivalent (Mcfe) before hedging and $2.94 per Mcfe after hedging.
Net income available to the company totalled $22.3 million, or $0.08 per diluted share.
Adjusted net income was $5.9 million, equivalent to $0.02 per diluted share, excluding a $35.1 million pre-tax unrealised hedging gain and exploration expenses.
“Growth in production drove the third quarter 2026 financial results,” the company stated.
Haynesville Drilling Activity and Production Costs
Comstock brought 23 operated wells into production during the quarter.
These included 16 Legacy Haynesville wells with an average initial production rate of 25 million cubic feet per day and six Western Haynesville wells averaging 33 million cubic feet per day.
Production costs averaged $0.80 per Mcfe, comprising $0.41 for gathering and transportation, $0.23 for lease operating expenses, $0.09 for production taxes and $0.07 for cash general and administrative costs.
$1.65 Billion Asset Transaction Announced
Comstock announced an agreement to sell non-operated working interests in portions of its Haynesville assets to the State Oil Company of the Republic of Azerbaijan (SOCAR) for $1.65 billion.
The transaction is expected to close before the end of 2026.
The company also extended the maturity of its bank credit facility to November 15, 2028, with a further extension to November 15, 2031, conditional on completion of the SOCAR transaction.
The quarterly results reflected increased natural gas production and higher revenue compared with the previous year, although adjusted earnings and revenue remained below analysts’ estimates.