Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 44

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1
Chunk 44
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 by extending the lateral lengths. In 2024, we successfully drilled our first "horseshoe" well, which allowed us to convert two 4,500-foot lateral locations to one 9,382 horizontal well. Our drilling inventory now includes 113 horseshoe locations with superior economics compared to the 226 short lateral locations they replaced. The average lateral length of our drilling location inventory is 9,603 feet. 

•Grow reserve base through active exploration program. We are investing a substantial portion of our annual capital budget to expand our acreage holdings and delineate our emerging Western Haynesville and Bossier shale plays in East Texas. Our first seven exploratory wells turned to sales in 2022 and 2023 have been successful. In 2024, we turned an additional eleven Haynesville and Bossier shale wells in this play to sales. In 2025, we currently intend to drill an additional 20 Haynesville and Bossier shale wells in this play.

•Evaluate and pursue strategic acquisition opportunities and conduct an active leasing program to grow our reserves, production, and drilling location inventory. We intend to leverage our management and operating team's significant technical expertise and experience in the Haynesville and Bossier shale plays to continue to pursue acquisition opportunities in that region and to successfully execute and integrate acreage acquisitions that will add to our drilling inventory. We also plan to continue to acquire prospective acreage with an active leasing program.

•Maintain disciplined financial strategy. Given the current natural gas price outlook, we intend to maintain a conservative operating plan in 2025 with the primary goal of protecting our balance sheet. Our current plan is to fund our exploration and development activity with operating cash flow that we generate. We believe our low operating cost structure combined with maximizing the capital efficiency of our drilling program and maintaining financial discipline will allow us to achieve this goal.

•Focus on environmental stewardship. We achieved independent, third-party audited certification of our natural gas operations under the MiQ standard for methane emissions. We became one of the first operators to certify all operated natural gas production. The certification allows us to document to both domestic and international customers that we provide responsibly sourced ‎natural gas. We utilize cleaner burning natural gas rather than diesel fuel when possible to 

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COMSTOCK RESOURCES, INC.

reduce emissions in our drilling and completion operations and design our wells to drill longer laterals and utilize multi-well pad locations to minimize our above-ground footprint.

•Manage commodity price exposure. We maintain an active natural