Core Insights - Comstock Resources (CRK) reported quarterly earnings of $0.18 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and showing a significant improvement from a loss of $0.03 per share a year ago [1] - The company achieved revenues of $512.85 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 18.98% and increasing from $335.77 million year-over-year [2] - Comstock shares have increased approximately 3.8% since the beginning of the year, contrasting with a -5.5% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.13 on revenues of $402.66 million, while for the current fiscal year, the estimate is $0.73 on revenues of $1.75 billion [7] - The estimate revisions trend for Comstock is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Oil and Gas - Exploration and Production - United States industry is currently ranked in the bottom 25% of over 250 Zacks industries, suggesting potential challenges for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Comstock reported natural gas and oil sales of $405.0 million in Q1 2025, a significant increase from $335.9 million in Q1 2024[5] - Adjusted net income for Q1 2025 was $53.8 million, or $0.18 per diluted share, compared to a loss of $8.5 million in Q1 2024[25] - The net loss for Q1 2025 was $115.4 million, or $0.40 per share, primarily due to a pre-tax unrealized loss on hedging contracts of $322.4 million[5] - The net loss for Q1 2025 was $115,393, significantly higher than the net loss of $14,474 in Q1 2024[28] - Operating cash flow for the quarter was $239.0 million, or $0.81 per diluted share[7] - Operating cash flow for Q1 2025 was $238,988, compared to $182,015 in Q1 2024, representing a 31.2% increase[28] Production and Operations - Comstock's production cost per Mcfe averaged $0.83, an increase from $0.76 in Q1 2024[22] - The company turned fourteen (11.3 net) operated wells to sales in Q1 2025, with an average initial production rate of 25 MMcf per day[7] - Comstock drilled seven (6.9 net) operated horizontal Haynesville/Bossier shale wells in Q1 2025[9] - Comstock's unhedged operating margin was 77% in Q1 2025, compared to 63% in Q1 2024[22] Assets and Liabilities - Total current assets increased to $338,976 in Q1 2025 from $284,034 in Q1 2024, marking a 19.3% growth[31] - Cash and cash equivalents rose to $32,875 in Q1 2025, up from $6,799 in Q1 2024, indicating a substantial increase in liquidity[31] - Long-term debt increased to $3,050,034 in Q1 2025 from $2,952,090 in Q1 2024, reflecting a 3.3% rise[31] - Total liabilities grew to $4,324,363 in Q1 2025, compared to $4,048,553 in Q1 2024, representing a 6.8% increase[31] - Stockholders' equity attributable to Comstock decreased to $2,121,497 in Q1 2025 from $2,241,023 in Q1 2024, a decline of 5.4%[31] Partnerships and Contributions - Contributions from midstream partner increased to $59,500 in Q1 2025 from $6,000 in Q1 2024, showing a significant rise in partnership support[28] - The company reported a decrease in accounts payable and accrued expenses by $31,141 in Q1 2025, compared to a decrease of $115,470 in Q1 2024[28] Borrowing and Credit - The bank group reaffirmed a $2.0 billion borrowing base under its $1.5 billion revolving credit facility[12]

Financial Performance - Comstock Resources reported natural gas prices of $3.58 per Mcf before hedging and $3.52 per Mcf after hedging for its production of 115 Bcf in Q1 2025, leading to total natural gas and oil sales of $405.0 million [4] - The operating cash flow for the quarter was $239.0 million, resulting in a net loss of $115.4 million or $0.40 per share, which included a pre-tax unrealized loss of $322.4 million on hedging contracts [4][25] - Adjusted net income for Q1 2025 was $53.8 million or $0.18 per diluted share, excluding the unrealized loss and exploration expenses [4][25] Production and Costs - The average production cost per Mcfe was $0.83, with components including $0.37 for gathering and transportation, $0.30 for lease operating costs, $0.10 for production taxes, and $0.06 for cash general and administrative expenses [5][22] - Comstock's unhedged operating margin was 77% and 76% after hedging in Q1 2025 [5][22] Drilling and Operational Updates - In Q1 2025, Comstock drilled seven operated horizontal Haynesville/Bossier shale wells, with an average lateral length of 11,660 feet, and turned eleven operated wells to sales [7][8] - The company has turned fourteen operated Haynesville/Bossier shale wells to sales since the last update, with initial production rates averaging 25 MMcf per day [8] Capital Expenditures and Financial Position - Comstock's bank group reaffirmed a $2.0 billion borrowing base under its $1.5 billion revolving credit facility [10] - Total revenues for Q1 2025 were $512.9 million, compared to $335.8 million in Q1 2024, indicating significant growth [19]

Core Viewpoint - BKV Corporation and Comstock Resources have entered into an exclusive, non-binding agreement to develop carbon capture, utilization, and sequestration (CCUS) projects at Comstock's natural gas processing facilities in Texas, aiming to enhance sustainability in natural gas production [1][2][3]. Group 1: Agreement Details - The agreement involves the development of CCUS injection wells to permanently sequester carbon dioxide waste from Comstock's Bethel and Marquez facilities in Texas [2]. - The terms of the projects will be subject to further negotiations and the execution of definitive agreements [2]. Group 2: Company Profiles - BKV Corporation is a growth-driven energy company focused on natural gas production and has a strong presence in the Barnett Shale, being one of the top 20 gas-weighted natural gas producers in the U.S. [5]. - Comstock Resources is a leading independent natural gas producer, primarily operating in the Haynesville shale region of North Louisiana and East Texas [6]. Group 3: Leadership Statements - BKV's CEO emphasized the importance of carbon capture for the future of responsible energy and the collaboration with Comstock as a significant opportunity for innovation and sustainability [4]. - Comstock's CEO highlighted the demand for scalable, low-carbon energy solutions and expressed excitement about the partnership with BKV to enhance their infrastructure [4].

Core Viewpoint - Comstock Resources (CRK) is anticipated to report a significant year-over-year increase in earnings and revenues for the quarter ended March 2025, with the consensus outlook suggesting a positive impact on its stock price depending on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on April 30, 2025, with a projected earnings per share (EPS) of $0.16, reflecting a year-over-year increase of +633.3% [3]. - Revenues are forecasted to reach $419.42 million, which is a 24.9% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised upward by 71.11% over the last 30 days, indicating a positive reassessment by analysts [4]. - The Most Accurate Estimate for Comstock is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +12%, suggesting a strong likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Comstock currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a high probability of exceeding EPS estimates [11]. Historical Performance - In the last reported quarter, Comstock had an expected EPS of $0.02 but delivered $0.16, resulting in a surprise of +700% [12]. - Over the past four quarters, Comstock has surpassed consensus EPS estimates two times [13]. Industry Context - In the broader industry context, Northern Oil and Gas (NOG) is expected to report earnings of $1.12 per share for the same quarter, indicating a year-over-year decline of -12.5%, with revenues projected at $558.35 million, up 5% from the previous year [17]. - Northern Oil and Gas has seen a 10.9% downward revision in its consensus EPS estimate over the last 30 days but has an Earnings ESP of 1.96%, suggesting a likelihood of beating the consensus EPS estimate [18].

Group 1 - Comstock Resources (CRK) is outperforming the Oils-Energy sector, with a year-to-date return of approximately 6.3%, while the sector has returned an average of -10.1% [4] - The Zacks Consensus Estimate for CRK's full-year earnings has increased by 72.9% over the past three months, indicating improved analyst sentiment [4] - Comstock Resources holds a Zacks Rank of 2 (Buy), suggesting a positive outlook for the stock [3] Group 2 - Comstock Resources is part of the Oil and Gas - Exploration and Production - United States industry, which has seen a year-to-date loss of about 30.6%, highlighting CRK's relative strength within this group [6] - Another stock in the Oils-Energy sector, Ecopetrol (EC), has also outperformed the sector with a year-to-date increase of 11.1% [5] - Ecopetrol belongs to the Oil and Gas - Integrated - International industry, which is ranked 148 and has moved -7.6% so far this year [7]

Core Insights - Comstock Resources (CRK) has shown solid improvement in earnings estimates, indicating potential investment opportunities [1][2] - The rising trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively impact its stock price [2][3] Earnings Estimate Revisions - Current-quarter earnings estimate is $0.14 per share, representing a significant increase of +566.67% from the previous year [6] - Over the last 30 days, the Zacks Consensus Estimate for Comstock has increased by 53.33%, with one estimate moving higher and one moving lower [6] - For the full year, the earnings estimate is $0.71 per share, reflecting a change of +395.83% from the year-ago figure [7] - In the past month, three estimates have been revised upward with no negative revisions, indicating a positive trend [7] Zacks Rank and Performance - Comstock has achieved a Zacks Rank 2 (Buy), indicating favorable estimate revisions and strong potential for outperformance [8] - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8] Market Performance - Comstock's stock has increased by 5.7% over the past four weeks due to strong estimate revisions, suggesting further upside potential [9]

Core Viewpoint - Comstock Resources (CRK) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - Comstock is expected to earn $0.63 per share for the fiscal year ending December 2025, reflecting a 362.5% increase from the previous year's reported number [9]. - Over the past three months, the Zacks Consensus Estimate for Comstock has increased by 83.9% [9]. Impact of Institutional Investors - Changes in earnings estimates are strongly correlated with stock price movements, with institutional investors using these estimates to determine the fair value of shares [5]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which subsequently affects stock prices [5]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks generating an average annual return of +25% since 1988 [8]. - The upgrade of Comstock to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].

Group 1 - Comstock Resources, Inc. plans to release its first quarter 2025 results on April 30, 2025, after market close [1] - The quarterly conference call to discuss the results will take place on May 1, 2025, at 10:00 a.m. CT [1] - Interested parties must register to participate in the conference call and will receive a dial-in number and personal PIN upon registration [2] Group 2 - The conference call will be available in listen-only mode via a specific website URL [3] - A replay of the conference call will be accessible for twelve months starting at 1:00 p.m. CT on May 1, 2025 [3] - Comstock Resources is a leading independent natural gas producer focused on the Haynesville Shale development in North Louisiana and East Texas [4]

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