Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 36

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 16
Chunk 36
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.1
        )

        Effective tax rate

        40.5
        %

        14.2
        %

        18.6
        %

F-21

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

At December 31, 2024, Comstock had the following carryforwards available to reduce future income taxes:

        Types of Carryforward
         
        Years ofExpirationCarryforward
         
        Amount

        (In thousands)

        Net operating loss – U.S. federal
         
        2025-2037
         
        $
        740,631

        Net operating loss – U.S. federal
         
        Unlimited
         
        $
        2,408

        Net operating loss – state taxes
         
        Unlimited
         
        $
        1,805,167

        Interest expense – U.S. federal
         
        Unlimited
         
        $
        822,544

        Interest expense – state taxes
         
        Unlimited
         
        $
        789,849

      The Company's ability to use net operating losses ("NOLs") generated before its ownership change in 2018 to reduce taxable income is limited under IRC Section 382. NOLs that exceed the Section 382 limitation in any year continue to be allowed as carry forwards until they expire and can be used to offset taxable income for years within the carryover period subject to the limitation in each year. U.S. federal NOLs incurred prior to 2018 generally have a 20-year life until they expire. NOLs generated in 2018 and after would be carried forward indefinitely. NOLs arising after the date of an ownership change are not affected by the 382 limitation. If the Company does not generate a sufficient level of taxable income prior to the expiration of the pre-2018 NOL carry-forward periods, then it will lose the ability to apply those NOLs as offsets to future taxable income. The Company estimates that all of the U.S. federal NOL carryforwards expiring in 2037 and $1.2 billion of the estimated state NOL carryforwards will expire unused. The Company's federal income tax returns for the years subsequent to December 31, 2020 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination