Company: CRK
Filing Date: 2025-11-04
Form Type: 10-Q
Source: 0001193125-25-264450
Chunk: 9

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-11-04
Form: 10-Q
Item: Part I, Item 3
Chunk 9
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Natural Gas and Oil Prices

Our financial condition, results of operations and capital resources are highly dependent upon the prevailing market prices of natural gas and oil. These commodity prices are subject to wide fluctuations and market uncertainties due to a variety of factors, some of which are beyond our control. Factors influencing natural gas and oil prices include the level of global demand for oil, the foreign supply of natural gas and oil, the effect of the war in Ukraine and the geopolitical response to Russia's invasion, the establishment of and compliance with production quotas by oil exporting countries, weather conditions that determine the demand for natural gas, the price and availability of alternative fuels and overall economic conditions. It is impossible to predict future natural gas and oil prices with any degree of certainty. Sustained weakness in natural gas and oil prices may adversely affect our financial condition and results of operations and may also reduce the amount of natural gas and oil reserves that we can produce economically. Any reduction in our natural gas and oil reserves, including reductions due to price fluctuations, can have an adverse effect on our ability to obtain capital for our exploration and development activities. Similarly, any improvements in natural gas and oil prices can have a favorable impact on our financial condition, results of operations and capital resources. 

As of September 30, 2025, we had natural gas price swaps to hedge approximately 50.1 Bcf of our 2025 natural gas production at an average price of $3.48 per MMBtu and approximately 116.8 Bcf of our 2026 production at an average price of $3.51 per MMBtu. We also had natural gas collars to hedge approximately 13.8 Bcf of our 2025 natural gas production at an average ceiling price of $3.80 and an average floor price of $3.50 and 167.9 Bcf of our 2026 production at an average ceiling price of $4.35 and an average floor price of $3.50. None of our derivative contracts have margin requirements or collateral provisions that could require funding prior to the scheduled cash settlement date. 

An increase of 10% in the market price of natural gas on September 30, 2025 would decrease the fair value of our natural gas price swaps and collars by approximately $91.7 million. A decrease of 10% in the market price of natural gas on September 30, 2025 would increase the fair value of our natural gas price swaps and collars by approximately $91.5 million.