Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 124

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 124
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          $
          126,775

          $
          126,775

          Liabilities:

          Commodity-based derivatives (1)

          75,697

          75,697

          —

          —

          Bank credit facility (2)

          415,000

          415,000

          480,000

          480,000

          6.75% senior notes due 2029 (3)

          1,603,679

          1,581,283

          1,229,018

          1,138,208

          5.875% senior notes due 2030 (3)

          965,000

          899,863

          965,000

          849,200

         (1)The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using a market approach using third party pricing services and other active markets or broker quotes that are readily available in the public markets. (2)The carrying value of our floating rate debt outstanding approximates fair value.(3)The fair value of the Company's fixed rate debt was based on quoted prices as of December 31, 2024 and 2023, respectively, a Level 1 measurement.

F-8

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

Property and EquipmentThe Company follows the successful efforts method of accounting for its natural gas and oil properties. Costs incurred to acquire natural gas and oil leasehold are capitalized. Acquisition costs for proved natural gas and oil properties, costs of drilling and equipping productive wells, and costs of unsuccessful development wells are capitalized and amortized on an equivalent unit-of-production basis over the life of the remaining related natural gas and oil reserves. Equivalent units are determined by converting oil to natural gas at the ratio of one barrel of oil for six thousand cubic feet of natural gas. This conversion ratio is not based on the price of oil or natural gas, and there may be a significant difference in price between an equivalent volume of oil versus natural gas. Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved natural gas and oil reserves. The changes in capitalized exploratory well costs are as follows: 

          Year Ended December 31,

          2024

          2023