Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 143

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 143
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 For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap.All of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts are designated as fair value or cash flow hedges. The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses) in the consolidated statements of operations and as separate components within cash flows from operating activities in the consolidated statements of cash flows. All of Comstock's natural gas derivative financial instruments are tied to the Henry Hub-NYMEX price index.

F-22

COMSTOCK RESOURCES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

The Company had the following outstanding natural gas price derivative financial instruments at December 31, 2024:

        FutureProductionPeriod Ending December 31, 2025
         
        FutureProductionPeriod Ending December 31, 2026
         
        Total

        Natural Gas Price Swap Contracts:

        Volume (MMBtu)

        198,925,000

        116,800,000

        315,725,000

        Average Price per MMBtu
         
        $
        3.48
         
        $
        3.51
         
        $
        3.49

        Natural Gas Price Collar Contracts:

        Volume (MMBtu)

        54,750,000

        120,450,000

        175,200,000

        Price per MMBtu:

        Average Ceiling
         
        $
        3.80
         
        $
        4.08
         
        $
        3.99