Company: CRK
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000950170-25-024783
Chunk: 93

Company: COMSTOCK RESOURCES INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1B
Chunk 93
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fe in 2023. The increase in DD&A rate was primarily due to lower estimated proved undeveloped reserves used in determining the DD&A rate, which resulted from the low natural gas price used in the estimation of proved reserves at December 31, 2024.

General and administrative expenses.  General and administrative expenses, which are reported net of overhead reimbursements, increased to $39.4 million in 2024 from $38.0 million in 2023 due primarily to higher stock-based compensation. Stock-based compensation included in general and administrative expenses was $15.3 million and $9.9 million in 2024 and 2023, respectively.

Derivative financial instruments.  We use derivative financial instruments as part of our price risk management program to protect the cash flow we generate from our operating activities. We had net gains on derivative financial instruments of $10.2 million for 2024 as compared to net gains on derivative financial instruments of $187.6 million for 2023. Realized net gains from our natural gas price risk management program were $207.8 million in 2024 as compared to $80.3 million of realized net gains in 2023. We recognized unrealized losses on derivative financial instruments of $197.6 million and unrealized gains of $107.3 million in 2024 and 2023, respectively.

Interest expense.  Interest expense was $210.6 million for 2024 as compared to $169.0 million for 2023. Included in interest expense was amortization of the premiums or discounts on our senior notes and the debt issuance cost amortization associated with our outstanding debt. The non-cash interest expense for 2024 totaled $11.5 million compared with $8.0 million for 2023. The increase in interest expense in 2024 was due primarily to the issuance of our 6.75% senior notes in 2024.

Income taxes.  Our income tax benefit was $149.1 million in 2024 as compared to a provision of $35.1 million in 2023. Our effective tax rate of 41% in 2024 differed from the federal income tax rate of 21% due primarily to research and development and other tax credits claimed in 2024, changes in our valuation allowance on our federal and state net operating loss carryforwards and state income taxes, including a reduction in the Louisiana state corporate tax rates. Our effective tax rate of 14% in 2023