Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 45

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 45
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 gas price hedging program designed to mitigate volatility in natural gas prices and to protect a portion of our expected future cash flows to insure that we have adequate cash flow to meet our financial obligations. Beginning in 2025, we also have access to gas storage in Western Haynesville that will allow us greater operational flexibility and take advantage of seasonal natural gas pricing.

Property Acquisitions

In 2024, we added 265,290 net acres to our Western Haynesville area through acquisitions and an active leasing program at a cost of $106.4 million. In 2023, we added 79,741 net Haynesville and Bossier shale acres in Western Haynesville for $98.6 million. In 2022, we added 104,314 net Haynesville and Bossier shale acres in Western Haynesville for $54.4 million. 

Western Haynesville Midstream Venture

To support the continued development of the Western Haynesville and Bossier shale, we entered into a partnership with Quantum Capital Solutions ("Quantum") in 2023 to finance the buildout of natural gas gathering and treating facilities required to handle the expected growth in our natural gas production from wells we plan to drill in this area. Pinnacle Gas Services LLC ("Pinnacle") was formed by the contribution of a high pressure pipeline and natural gas treating plant which we acquired in 2022. We invested $30.0 million in these midstream assets including the initial acquisition costs. Quantum agreed to fund up to $300 million for the future build out of the gathering and gas treating system. We manage the operations of Pinnacle under a management contract and appoint the majority of Pinnacle's board of directors. Quantum is entitled to a 12% dividend on its invested capital and 80% of any distributions from Pinnacle until certain return hurdles are met. After the return hurdles are met, Quantum's ownership reduces to 30%. In 2024 and 2023, Quantum contributed $60.5 million and $24.0 million, respectively, to fund Pinnacle's capital expansion.

Property Dispositions

In 2024, 2023 and 2022 we sold our working interest in certain non-strategic, non-operated properties for $1.2 million, $41.3 million and $4.1 million, respectively. 

Natural Gas and Oil Reserves

The following table sets forth our estimated proved natural gas and oil reserves as of December 31, 2024:

    Oil(MB