Investing.com -- Comstock Resources, Inc. (NYSE:CRK) reported first-quarter 2025 earnings that surpassed analyst expectations, driving its stock up 3.5% in response to the news.
The oil and gas exploration company posted adjusted earnings per share of $0.18, beating the analyst consensus of $0.14 by $0.04. Revenue for the quarter came in at $512.8 million, significantly above the $417.96 million estimate and up from $405 million in the same quarter last year.
Comstock’s natural gas production reached 115 Bcf in the quarter, with an average realized price of $3.52 per Mcf after hedging. The company’s unhedged operating margin was 77% in the first quarter, reflecting improved natural gas prices.
"Higher natural gas prices in the first quarter drove improved financial results," said M. Jay Allison, CEO of Comstock Resources. "Our successful drilling program, particularly in the Western Haynesville, has positioned us well for continued growth."
The company reported operating cash flow of $239 million, or $0.81 per diluted share, and adjusted EBITDAX of $293 million for the quarter. Comstock’s production cost per Mcfe averaged $0.83, with gathering and transportation costs accounting for the largest portion at $0.37.
Comstock highlighted its drilling success, turning fourteen operated wells to sales since its last update, with an average initial production rate of 25 MMcf per day. The company also noted the success of its step-out Western Haynesville well in Freestone County, Texas, which had an initial production rate of 41 MMcf per day.
The positive earnings report and operational updates have been well-received by investors, as reflected in the 3.5% stock price increase following the announcement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.