Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 85

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 85
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 liquidity. As a result of these factors, our derivative activities may not be as effective as we intend in reducing the volatility of our cash flows, and in certain circumstances may actually increase the volatility of our cash flows.

In addition, our hedging transactions are subject to the following risks:

•we may be limited in receiving the full benefit of increases in natural gas prices as a result of these transactions;

•a counterparty may not perform its obligation under the applicable derivative financial instrument or may seek bankruptcy protection;

•there may be a change in the expected differential between the underlying commodity price in the derivative instrument and the actual price received; and

•the steps we take to monitor our derivative financial instruments may not detect and prevent violations of our risk management policies and procedures, particularly if deception or other intentional misconduct is involved.