Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 130

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 130
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 depreciation, depletion and amortization in the accompanying consolidated statements of operations.The following table summarizes the changes in the Company's total estimated liability:

          Year Ended December 31,

          2024

          2023

          (In thousands)

          Reserve for future abandonment costs at beginning of the year
           
          $
          30,773

          $
          29,114

          New wells placed on production

          136

          146

          Changes in estimates and timing

          1,497

          (122
          )

          Liabilities settled

          (40
          )

          (41
          )

          Divestitures

          (157
          )

          (1
          )

          Accretion expense

          1,787

          1,677

          Reserve for future abandonment costs at end of the year
           
          $
          33,996

          $
          30,773

        Stock-based CompensationThe Company has stock-based employee compensation plans under which stock awards, comprised primarily of restricted stock and performance share units ("PSUs"), are issued to employees and non-employee directors. The Company follows the fair value-based method in accounting for equity-based compensation. Under the fair value based method, compensation cost is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the award vesting period. Forfeitures are recognized as they occur.Segment ReportingThe Company presently operates in one business segment, the exploration and production of North American natural gas and oil, primarily in the Haynesville and Bossier shale. This is consistent with the internal reporting provided to the Company's Chief Executive Officer, who is the chief operating decision maker ("CODM"). The CODM evaluates the performance of the Company and allocates resources based on consolidated financial information.The measure of segment profit or loss used by the CODM is consolidated net income, which is provided in the accompanying consolidated statements of operations. The significant segment expenses regularly provided to the CODM are operating expenses and certain significant non-operating items, such as gains or losses from derivative financial instruments, interest expense and income tax expense. These items are also detailed in the accompanying consolidated statements of operations.Derivative Financial Instruments and Hedging ActivitiesThe Company accounts for derivative financial instruments (including derivative instruments embedded in other contracts) as either an asset or liability measured at its fair value. Changes in the fair value of derivatives are recognized currently in earnings and in net cash flows from operating activities.