Comstock Resources, Inc. Q1 FY2026 earnings call

• Miles Jay Allison started the call, mentioned viewing slide presentation on website. Highlighted lower production in first quarter due to winter weather, but strong drilling results will drive production up. Six new Western Haynesville wells online with average initial production rate 29 million cubic feet per day. Ten legacy Haynesville wells turned to sales with average lateral length 12,312 feet and initial production rate 31 million cubic feet per day. • Roland O. Burns discussed first quarter financial results: sales after hedging $339 million, EBITDAX $251 million, cash flow $192 million. Reported profit $107 million or $0.38 per share, but excluded mark to market gain, exploration expense and nonrecurring items to report adjusted net income $44 million or $0.15 per diluted share. • Daniel S. Harrison discussed acreage footprint in Haynesville and Bossier shales. Legacy Haynesville operated inventory has 955 gross locations, 740 net locations. Western Haynesville inventory has 3,331 gross locations, 2,546 net locations. Drilling inventory split into lateral length buckets. Highlighted horseshoe development program with 114 horseshoe locations in legacy Haynesville, 16 planned in 2026. Average lateral lengths drilled in legacy Haynesville and Western Haynesville. Drilling progress and costs in both areas. • Miles Jay Allison discussed company goals: enhance legacy Haynesville drilling program, strive to be low-cost operator, protect balance sheet, support midstream company Pinnacle Gas Services, optimize drilling and completion in Western Haynesville

In the first quarter, natural gas and oil sales were $339 million. Operating cash flow was $192 million or $0.66 per share. Adjusted EBITDAX was $251 million. Adjusted net income was $44 million or $0.15 per share. Production averaged 1.1 Bcfe per day. Oil and gas sales after hedging were $339 million, EBITDAX $251 million, cash flow $192 million. Quarterly weighted average NYMEX settlement price averaged $4.96, weighted average Henry Hub spot price was $4.90. 26% of gas was sold in spot market. Realized gas price averaged $4.27. Operating cost per Mcfe averaged $0.93, up $0.16 from fourth quarter. EBITDAX margin was 73%. Spent $343 million on drilling program, drilled 17 wells, turned 13 wells to sales with average per well IP rate of 31 million cubic feet per day. Ended quarter with $350 million borrowings under upstream credit facility, upstream borrowing base $2 billion, elected commitment $1.5 billion. Midstream credit facility for Pinnacle Gas Services had $47 million outstanding. Last twelve months leverage ratio 2.9 times. Liquidity almost $1.3 billion. Western Haynesville has 540,000 net acres, legacy Haynesville has 266,570 net acres. Legacy Haynesville operated inventory has 955 gross locations, 740 net locations. Western Haynesville inventory has 3,331 gross locations, 2,546 net locations. Drilled 11, 9.3 net horizontal Haynesville wells and 6, 6 net Bossier wells in quarter. Turned 13 wells to sales, 11.7 net wells. Average lateral length in legacy Haynesville wells drilled in first quarter 10,872 feet, in Western Haynesville 10,356 feet. Record lateral length in Western Haynesville 14,800 feet

• Production should be up 13%, 14%, 15% for the second quarter. • Expect strong growth in the rest of 2026, particularly in the third and fourth quarter. • Guidance is based on best guess of drilling and completion timeframe, with Western Haynesville expected to make guiding volumes more predictable looking forward than backward

• Lower production in first quarter due to winter weather impact. • Significant disconnect between regional hub prices and NYMEX during quarter driving higher differentials and having to purchase higher priced gas for shut-in production. • Variability in drilling performance in Western Haynesville due to vertical depth, temperatures, and lateral lengths across acreage footprint. • Uncertainty in guiding volumes in Western Haynesville initially due to variability in well performance. • Cash burn and slow pace of resource delineation could tax investor patience

Q: Carlos Escalante from Wolfe Research asked about how patient investors might be given production miss and higher CapEx, and follow-up on Hutter Rodell IP underperformance.

A: Miles Jay Allison said they did not do M&A, so production increase has time lapse, but production should be up in second quarter. Daniel S. Harrison said Hutter Rodell underperformed because it made a lot of water during flowback.

Q: Charles Meade from Johnson Rice asked about Texas power generation hub role and Western Haynesville wells further up dip.

A: Miles Jay Allison said Comstock provides gas, obligations to build not theirs. Daniel S. Harrison said wells further up dip have less pressure, cheaper to D&C, all four wells in that area look good.

Q: Derrick Whitfield from Texas Capital asked about rotary steerable drilling systems, big-hole design, restricted flowback testing, and guidance.

A: Daniel S. Harrison talked about rotary steerable systems, big-hole design benefits, and that Western Haynesville volumes will be more predictable.

Q: Leo Mariani from ROTH asked about Pinnacle credit facility recourse and additional financing at Pinnacle level.

A: Roland O. Burns mentioned running a process regarding Pinnacle credit facility and additional financing