Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 144

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 144
---
        Average Floor
         
        $
        3.50
         
        $
        3.50
         
        $
        3.50

      Since December 31, 2024, Comstock has entered into natural gas collar contracts to hedge an additional 47.5 Bcf of 2026 natural gas production at an average ceiling price of $5.05 per MMBtu and an average floor price of $3.50 per MMBtu.The aggregate fair value of the Company's derivative financial instruments is presented on a gross basis in the accompanying consolidated balance sheets. The classification of derivative financial instruments between assets and liabilities consists of the following:

        As of December 31,

        Type
         
        Consolidated Balance Sheet Location
         
        2024

        2023

        (in thousands)

        Asset Derivative Financial Instruments:

        Natural gas price derivatives
         
        Derivative Financial Instruments  – current
         
        $
        4,865

        $
        126,775

        Liability Derivative Financial Instruments:

        Natural gas price derivatives
         
        Derivative Financial Instruments  – current
         
        $
        8,940

        $
        —

        Natural gas price derivatives
         
        Derivative Financial Instruments  – long-term
         
        $
        66,757

        $
        —

      The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:

        Year Ended December 31,

        Gain/(Loss) Recognized in Earnings on Derivatives
         
        2024

        2023

        2022

        (In thousands)

        Natural gas price derivatives
         
        $
        10,196

        $
        187,639

        $
        (662,522
        )

(11)Related Party TransactionsThe Company operates natural gas and oil properties held by partnerships owned by its majority stockholder. Comstock charges the partnership for the costs incurred to drill, complete and produce the wells, as well as drilling and operating overhead fees. Comstock also provides natural gas marketing services to the partnerships in return for a fee equal to $0.02 per Mcf for natural gas marketed. The Company received $1.1 million,