Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 83

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 83
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, without limitation, cloud-based infrastructure, encryption and authentication technology and other similar functions. Our ability to monitor these third parties' information security practices is limited, and these third parties may not have adequate information security measures in place, or they may suffer unexpected power losses or computer system or data network failures that negatively impact the systems or solutions on which we rely. If our third-party service providers experience a security incident or other type of interruption or if an unexpected flaw or failed software update related to third-party software used in our information systems occurs, even if inadvertent, our information systems may become disabled or inaccessible and access to our data and other business information may be limited, which could materially disrupt our operations. If any of these events were to materialize, either to the Company or a third party upon which we rely, they could lead to, without limitation, any of the following:

•Loss of or damage to our data, intellectual property, or other proprietary or confidential information;

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COMSTOCK RESOURCES, INC.

•Interruption or degradation of our operations, services, or systems availability;

•Compromise or corruption of our data or systems integrity;

•Reputational harm or loss of customer trust or confidence;

•Legal liability, regulatory fines, penalties, or sanctions;

•Remediation or mitigation costs, such as increased security expenditures, investigation expenses, or litigation fees;

•Increased insurance premiums or difficulty in obtaining adequate insurance coverage; or

•Other negative consequences.

Any of the foregoing could have a material adverse effect on our reputation, financial position, results of operations, or cash flows.

We are subject to extensive governmental laws and regulations that may adversely affect the cost, manner or feasibility of doing business.

Our operations and facilities are subject to extensive federal, state and local laws and regulations relating to the exploration for, and the development, production and transportation of, natural gas and oil, as well as the safe operations thereof. Future laws or regulations, adverse changes in the interpretation of existing laws and regulations or our failure to comply with existing legal requirements may harm our business, results of operations and financial condition. We may be required to make large and unanticipated capital expenditures to comply with present and future governmental laws and regulations, such as:

•lease permit restrictions;

•drilling bonds and other financial responsibility requirements, such as plug and abandonment bonds;

•spacing of wells;

•unitization and pooling of properties;

•safety precautions;

•regulatory requirements; and

•taxation.

Under these laws and regulations, we could