Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 77

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 77
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 our business. ‎Energy needs vary with weather ‎conditions. To the extent weather conditions may be affected ‎by climate change, energy use could increase or decrease depending on ‎the duration and ‎magnitude of any changes. Increased energy use due to weather changes may require us to ‎invest in more infrastructure to serve increased demand. A decrease in energy use due to ‎weather changes may affect our financial ‎condition through decreased revenues. Extreme ‎weather conditions in general require more equipment redundancy, adding to costs, and can ‎‎contribute to increased risk of delivery disruptions. ‎

Additionally, many climate models indicate that global warming is likely to result in rising sea ‎levels and increased frequency ‎and severity of weather events, which may lead to higher ‎insurance costs, or a decrease in available coverage, for our assets in areas ‎subject to severe ‎weather. These climate-related changes could damage our physical assets, especially operations ‎located in low-lying ‎areas near coasts and riverbanks, and facilities situated in hurricane-prone ‎and rain-susceptible regions. To the extent the frequency of extreme weather events increases, ‎this could increase our cost of ‎producing products. We may not be able to pass on the higher ‎costs to our customers or recover all costs related to mitigating these ‎physical risks.‎

Regulations relating to climate change and/or greenhouse gases could also reduce demand for our products or increase our operating and drilling costs. Our business could also be affected by the potential for lawsuits against companies that emit greenhouse gases, based on links drawn between greenhouse gas emissions and climate change. To the extent financial markets view climate change and GHG emissions as a financial risk, this ‎could ‎negatively impact our cost of and access to capital.

Increasing scrutiny and changing expectations from stakeholders with respect to our ‎environmental, social and governance ‎practices may impose additional costs on us or expose ‎us to new or additional risks.‎

Companies across all industries are facing increasing scrutiny from stakeholders related to their ‎environmental, social and ‎governance ("ESG") practices. Investor advocacy groups, certain ‎institutional investors, investment funds and other influential ‎investors are also increasingly ‎focused on ESG practices and in recent years have placed increasing importance on the ‎implications ‎and social cost of their investments. Regardless of the industry, investors' increased ‎focus and activism related to ESG and similar ‎matters may hinder access to capital, as investors ‎may decide to reallocate capital or to not commit capital as