Comstock Resources, Inc. Q4 FY2025 earnings call

• Added three operated rigs to the operated program with an additional rig coming in early 2026 to drive production growth. - Drilled 52 net successful operated Haynesville/Bossier wells in 2025, replacing 229% of 2025 production with 1 Tcfe of proved reserve additions, with a finding cost of $1.02 per Mcfe. - Partnered with NextEra on a data center project in the Western Haynesville with initial capacity of 2 gigawatts and potential expansion to 8 gigawatts. - Completed $445,000,000 of divestitures in the third and fourth quarters of 2025, recognizing a pretax gain of $292,000,000. - Ended the fourth quarter with $260,000,000 of borrowings outstanding under the credit facility, $1,300,000,000 of liquidity, and proved reserves at year-end 2025 of 7.2 Tcfe, growing 8% excluding asset sales.

In the fourth quarter of 2025, Comstock Resources' oil and gas sales grew to $364,000,000. EBITDAX for the quarter was $277,000,000, and cash flow generated was $222,000,000. The company reported a profit of $281,000,000 for the quarter or $0.97 per share. For the full year 2025, oil and gas sales increased 15% to $1,400,000,000 compared to 2024. EBITDAX totaled $1,100,000,000, and cash flow generated was $861,000,000. Production in 2025 averaged 1.2 Bcfe per day, which was 14% lower than production in 2024.

• In 2026, plan to have 4 operated rigs drilling in the Western Haynesville to drill 19 wells and turn 24 wells to sales, and 5 operated rigs drilling in the legacy Haynesville to drill 47 wells and turn 48 wells to sales. - Expect to commercialize the NextEra data center project in 2026 and recapitalize the Western Haynesville midstream Pinnacle Gas Services. - Aim to drive down drilling and completion costs and maintain strong financial liquidity of $1,300,000,000.

• Volatility in natural gas prices which can impact financial performance. - Weather conditions affecting gas supply and demand dynamics. - Potential delays or issues in drilling and completion activities due to geological or operational factors. - Dependence on the successful execution of midstream partnerships and data center projects.

Q: Is it fair to say that the budget was put together in a more constructive gas environment?

A: Gas prices have been volatile since Thanksgiving, but the company has equipment and rigs in place that can be flexed based on gas prices. If gas prices disappoint, the drilling budget can be adjusted by taking rigs or frac crews out of action.

Q: What is the average EUR per thousand foot assumed for the Western Haynesville?

A: The Western Haynesville's overall average reserve EURs range from 3 Bcf per thousand foot of lateral to 4 Bcf per thousand foot of lateral, with an average around 3.5 Bcf per thousand foot.