FRISCO, TX, July 30, 2024 (GLOBE NEWSWIRE) -- Comstock Resources, Inc. ("Comstock" or the "Company") (NYSE:CRK) today reported financial and operating results for the quarter ended June 30, 2024. Highlights of 2024's Second Quarter Very weak natural gas prices weighed heavily on the second quarter financial results. Natural gas and oil sales, including realized hedging gains, were $278 million. Operating cash flow was $118 million or $0.41 per diluted share. Adjusted EBITDAX for the quarter was $167 million. Adjusted net loss was $58.2 million or $0.20 per share for the quarter. Enhanced liquidity with $400 million, 6.75% senior notes issuance. Steady results from the Haynesville shale drilling program with 15 (14.4 net) operated wells turned to sales since the Company's last update with an average initial production of 21 MMcf per day. Financial Results for the Three Months Ended June 30, 2024 Comstock's realized gas price for the second quarter of 2024 averaged $1.65 per Mcf without hedging and $2.12 per Mcf after hedging. As a result, Comstock's natural gas and oil sales in the second quarter of 2024 decreased to $278.2 million (including realized hedging gains of $60.6 million) despite a 4% increase in production as compared to the second quarter of 2023. Operating cash flow (excluding changes in working capital) generated in the second quarter of 2024 was $118.1 million, and net loss for the second quarter was $123.2 million or $0.43 per share. Net loss in the quarter included a pre-tax $85.8 million unrealized loss on hedging contracts held for risk management. Excluding this item, adjusted net loss for the second quarter of 2024 was $58.2 million, or $0.20 per share. Comstock's production cost per Mcfe in the second quarter averaged $0.84 per Mcfe, which was comprised of $0.38 for gathering and transportation costs, $0.27 for lease operating costs, $0.14 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock's unhedged operating margin was 50% in the second quarter of 2024 and 61% after hedging. Financial Results for the Six Months Ended June 30, 2024 Natural gas and oil sales for the six months ended June 30, 2024 totaled $614.1 million (including realized hedging gains of $108.5 million). Operating cash flow (excluding changes in working capital) generated during the first six months of 2024 was $300.1 million, and net loss was $137.7 million or $0.49 per share. Net loss during the first six months of 2024 included a pre-tax $94.5 million unrealized loss on hedging contracts held for risk management. Excluding this item, adjusted net loss for the six months ended June 30, 2024 was $66.8 million or $0.24 per share. Comstock's production cost per Mcfe during the six months ended June 30, 2024 averaged $0.79 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.26 for lease operating costs, $0.13 for production and other taxes and $0.04 for cash general and administrative expenses. Comstock's unhedged operating margin was 57% during the first six months of 2024 and 65% after hedging. Drilling Results Comstock drilled 11 (9.2 net) operated horizontal Haynesville/Bossier shale wells in the second quarter of 2024 which had an average lateral length of 11,346 feet. Comstock turned 12 (11.7 net) operated wells to sales in the second quarter of 2024. Since its last operational update in May, Comstock has turned 15 (14.4 net) operated Haynesville/Bossier shale wells to sales. These wells had initial daily production rates that averaged 21 MMcf per day. The completed lateral length of these wells averaged 9,802 feet. Earnings Call Information Comstock has planned a conference call for 10:00 a.m. Central Time on July 31, 2024, to discuss the second quarter 2024 operational and financial results. Investors wishing to listen should visit the Company's website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at https://register.vevent.com/register/BI3dd152694a074bc28172df7314b38 fa6. Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/w3stws2d. If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on July 31, 2024. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/w3stws2d. This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company's filings with the Securities and Exchange Commission ("SEC") available on the Company's website or the SEC's website at sec.gov. Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company's stock is traded on the New York Stock Exchange under the symbol CRK. COMSTOCK RESOURCES, INC.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share amounts)     Three Months EndedJune 30,     Six Months EndedJune 30,       2024     2023     2024     2023   Revenues:                         Natural gas sales   $ 216,527     $ 228,892     $ 503,610     $ 606,924   Oil sales     1,074       860       1,950       2,802   Total natural gas and oil sales     217,601       229,752       505,560       609,726   Gas services     29,229       58,459       77,042       168,063   Total revenues     246,830       288,211       582,602       777,789   Operating expenses:                         Production and ad valorem taxes     19,244       19,599       37,152       34,505   Gathering and transportation     49,361       45,395       96,460       90,969   Lease operating     34,805       34,031       69,877       68,861   Exploration     —       —       —       1,775   Depreciation, depletion and amortization     194,242       140,177       384,931       274,160   Gas services     31,494       55,390       80,174       156,685   General and administrative     10,177       10,038       19,348       22,406   (Gain) loss on sale of assets     —       648       —       (125 ) Total operating expenses     339,323       305,278       687,942       649,236   Operating income (loss)     (92,493 )     (17,067 )     (105,340 )     128,553   Other income (expenses):                         Gain (loss) from derivative financial instruments     (25,252 )     (4,495 )     14,055       61,914   Other income     322       598       653       1,058   Interest expense     (51,932 )     (39,188 )     (101,489 )     (77,458 ) Total other expenses     (76,862 )     (43,085 )     (86,781 )     (14,486 ) Income (loss) before income taxes     (169,355 )     (60,152 )     (192,121 )     114,067   (Provision for) benefit from income taxes     46,106       14,446       54,398       (25,270 ) Net income (loss)     (123,249 )     (45,706 )     (137,723 )     88,797   Net income attributable to noncontrolling interest     (3,061 )     —       (4,908 )     —   Net income (loss) available to Comstock   $ (126,310 )   $ (45,706 )   $ (142,631 )   $ 88,797                             Net income (loss) per share                         Basic   $ (0.43 )   $ (0.17 )   $ (0.49 )   $ 0.32   Diluted   $ (0.43 )   $ (0.17 )   $ (0.49 )   $ 0.32   Weighted average shares outstanding:                         Basic     289,670       276,669       283,816       276,610   Diluted     289,670       276,669       283,816       276,610   Dividends per share   $ —     $ 0.125     $ —     $ 0.250   COMSTOCK RESOURCES, INC.OPERATING RESULTS(In thousands, except per unit amounts)     Three Months Ended June 30,     Six Months Ended June 30,       2024     2023     2024     2023   Natural gas production (MMcf)