Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 155

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 7
Chunk 155
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4 Bcf per day) sold at an average price of $2.40 in 2023. 

We utilize natural gas derivative financial instruments to manage our exposure to changes in prices of natural gas to protect returns on investment from our drilling activities. The following table presents our natural gas prices before and after the effect of cash settlements of our derivative financial instruments:

    Year Ended December 31,

    2024

    2023

    Average Realized Natural Gas Price:

    Natural gas, per Mcf
     
    $
    1.98

    $
    2.40

    Cash settlements on derivative financial instruments, per Mcf

    0.39

    0.15

    Price per Mcf, including cash settlements on derivative   financial instruments
     
    $
    2.37

    $
    2.55

Gas services revenues. Gas services revenues of $206.1 million in 2024 decreased $94.4 million (31%) from $300.5 million in 2023. Gas services activities include sales of natural gas purchased from unaffiliated third parties for resale and fees received from unaffiliated third parties for natural gas gathering and treating services. These activities commenced in 2022 with the acquisition of a pipeline and natural gas treating plant and the opportunity to utilize our excess transport capacity in North Louisiana. Gas services revenues decreased in 2024 due primarily to lower natural gas prices on sales of natural gas purchased to utilize our excess transport capacity.

33

COMSTOCK RESOURCES, INC.

Production and ad valorem taxes.  Our production and ad valorem taxes decreased $34.4 million (37%) to $57.4 million in 2024 from $91.8 million in 2023. This decrease was primarily related to a statutory decrease to the Louisiana production tax rate and lower Texas production taxes and ad valorem taxes related to lower natural gas prices in 2024.

Gathering and transportation.  Gathering and transportation costs increased $10.0 million (5%) to $194.9 million in 2024 as compared to $184.9 million in 2023. This increase was due to production growth in areas with higher average gathering and transportation rates.

Lease operating expenses.  Our lease operating expense of $130.5 million ($0.25 per Mcfe) in 2024 was $1.7 million, or 1% lower than lease operating expenses in 2023 of $132