Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 43

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 43
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 in other regions. We are also able to realize higher margins due to our ability to access an extensive midstream infrastructure with lower cost, flexible gas marketing arrangements.

•Company-owned Midstream. In 2023, we formed Pinnacle Gas Services LLC to provide gathering and treating services for our emerging Western Haynesville. At December 31, 2024, the Pinnacle system included a gas treating plant in Bethel, Texas and 246 miles of high-pressure pipelines.

•Organic Drilling Inventory Growth. We focus on growing our inventory of drilling locations organically by acquiring undeveloped leasehold through direct leasing or acquisitions of undeveloped acreage in contrast to many of our peers who have focused on mergers or acquisitions of producing properties to replenish drilling inventory. Over the last five years we have acquired a total of approximately 517,624 net undeveloped acres prospective for the Haynesville and Bossier shales.

•Successful Drilling Program. We spent $902.1 million on exploration and development activities in 2024, almost exclusively in the Haynesville and Bossier shale. We spent $858.1 million on drilling and completion activities and an additional $44.0 million on other development costs. We drilled 50 (42.9 net) wells in 2024, which had an average lateral length of approximately 10,759 feet. Our drilling program in 2024 replaced 101% of our 2024 production based on proved reserves added in our SEC price case and 170% based on proved reserves added in our alternative price case. 

•Efficient Operator. We operated 98% of our proved reserve base as of December 31, 2024. As the operator, we are better able to control operating costs, the timing and plans for future development, the level of drilling and lifting costs, and the marketing of production. As an operator, we receive reimbursements for overhead from other working interest owners, which reduces our general and administrative expenses.

Business Strategy

Our strategy consists of the following principal elements:

•Prudently grow cash flow, production and reserves through development of our high-quality inventory of drilling locations. We have an extensive inventory of de-risked, high-return drilling locations prospective for the Haynesville and Bossier shales. As of December 31, 2024, we have identified 2,658 drilling locations (1,350 net to us) which gives us decades of drilling activity. We have optimized the economics of our drilling location inventory