Thu, May 1, 5:35 PM (16 days ago)
**Comstock Resources, Inc. (CRK) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $512.9 million, up 52.7% YoY, driven by higher natural gas prices. - **Net Loss:** $115.4 million, compared to $14.5 million in Q1 2024, due to losses from derivative financial instruments. - **Operating Income:** $126.2 million, a significant improvement from a loss of $12.8 million in Q1 2024. - **Cash Flow from Operations:** $174.7 million, slightly up from $171.5 million in Q1 2024. **Profit Margins:** - **Operating Margin:** 24.6%, improved from -3.8% in Q1 2024. - **Net Margin:** -22.5%, compared to -4.3% in Q1 2024. **Earnings Changes:** - **EPS:** -$0.40, down from -$0.05 in Q1 2024. - **Operating EPS:** $0.43, improved from -$0.05 in Q1 2024. **Trends & Uncertainties:** - **Production:** Natural gas production decreased by 18% YoY, while oil production remained relatively flat. - **Prices:** Average realized natural gas price increased by 74% YoY to $3.58 per Mcf. - **Hedging:** Significant losses from derivative financial instruments due to increased future NYMEX natural gas prices. - **Capital Expenditures:** $298.3 million in Q1 2025, with plans to spend $780 million to $880 million in the remaining nine months of 2025. **Future Operations Impact:** - **Liquidity:** $1.0 billion in liquidity as of March 31, 2025, with $990 million of unused borrowing capacity under the bank credit facility. - **Debt:** $3.1 billion in long-term debt, with compliance with financial covenants. - **Taxes:** Significant NOL carryforwards, with limitations on usage due to change of control in 2018. **Market Risks:** - **Commodity Prices:** High dependence on natural gas and oil prices, subject to market fluctuations. - **Interest Rates:** Variable interest rates on bank credit facility, with potential adverse impact on results of operations and cash flow. **Controls & Procedures:** - Effective disclosure controls and procedures as of March 31, 2025, with no changes in internal controls over financial reporting that materially affected or are likely to materially affect the company's internal controls. **Legal & Risk Factors:** - No material legal proceedings or changes in risk factors disclosed. - Compliance with SEC regulations and no material changes in internal controls over financial reporting.