Key Takeaways

CRK heads into 2026 looking like a cleaner, tighter company than it was a year ago. Fewer assets, less balance-sheet noise, and a clearer split between the Western Haynesville and what’s left of the legacy footprint. From an oilfield services and distribution standpoint, the signal is pretty straightforward: ~$1.6B in total Capex means more rigs, longer laterals, and a steady completion cadence.

4Q25 Operational and Financial Results

Comstock Resources (CRK) turned in a solid fourth quarter, helped by better natural gas pricing and a capital program that didn’t try to do too much. 4Q25 production averaged 1.21 Bcfepd. That’s down slightly versus last year, but the decline is mostly mechanical, tied to asset sales completed during 2025. On a per-well basis, performance held up well. Both the Legacy and Western Haynesville continued to deliver competitive initial rates, and lateral execution remained consistent.

Capital spending for the quarter came in at $270MM, with most of it going straight into Haynesville drilling and completions. For FY2025, CRK spent ~$1.05B on D&C activity.

On the portfolio side, CRK completed the sale of its Legacy Cotton Valley and Shelby Trough assets in the back half of 2025. Those transactions brought in $445MM of gross proceeds and included the sale of 1,084 wells producing about 17.2 MMcfpd net. The company booked a $292MM pre-tax gain and used the cash to pay down debt and improve leverage.

Financial results benefited from higher realized gas prices. Natural gas and oil sales, including hedge settlements, totaled $364MM for the quarter. Operating cash flow came in at $222MM, adjusted EBITDAX reached $277MM, and adjusted net income was $46MM.

Operationally, execution stayed tight. Four Western Haynesville wells were turned to sales during the quarter, averaging 8,400-foot laterals and initial production of roughly 29 MMcfpd. That’s a strong early datapoint for what’s still a developing position.

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2026 Capital Guidance and D&C Activity

Total D&C spend is guided to $1.4–$1.5B, plus $100–$150MM earmarked for Pinnacle Gas Services and related midstream and infrastructure projects. The bulk of the budget remains upstream, with drilling and completions still doing most of the work.

The company plans to run nine operated rigs (net ~6 rigs) in 2026. Five will stay in the Legacy Haynesville, supporting near-term production and inventory progression. The other four rigs are allocated to the Western Haynesville, where the focus remains on delineation and appraisal rather than full-scale development.

Across the portfolio, CRK expects to drill 66 wells (61 net) and turn 72 (61 net) wells to sales during the year. In the Legacy Haynesville, that breaks down to 47 wells drilled and 48 turned in line. The Western Haynesville plan includes 19 wells drilled and 24 wells brought online.

Average lateral lengths are still hovering around ~10,000 feet, which suggests management isn’t backing off its push for capital efficiency. Drilling performance continues to improve with D&C cost per lateral foot improving from $2,017/lateral foot in 2025 to an estimated $1,993/lateral foot for 2026.

2026 Production and Operating Guidance

For FY26, CRK is guiding to production of 1.25–1.40 Bcfepd. First-quarter volumes are expected to be lighter, averaging 1.08–1.15 Bcfepd, with growth skewed toward the back half of the year.

That back-half weighting isn’t accidental. Completion activity ramps in 2H26, which should drive accelerating production as the year progresses. Management was clear that the rig additions made during 2025, combined with the ongoing Western Haynesville ramp, set up growth not just in 2026 but into 2027 as well.

Recent well results help explain the confidence. In 2025, Legacy Haynesville wells averaged 25 MMcfpd IPs on roughly 11,700-foot laterals. Western Haynesville wells came in even stronger, averaging 33 MMcfpd on ~9,500-foot laterals.

2026 Hedging Program

The company has built a meaningful hedge book for 2026, which adds a layer of cash-flow visibility in what’s still a volatile gas price environment.

CRK has hedged approximately 780 MMcfpd in each quarter of 2026, or about 60% of expected full-year production. The portfolio is a mix of fixed-price swaps and collars, with a weighted average hedge price of roughly $3.51 per MMBtu.

Capital Allocation Strategy

Capital allocation remains conservative and balance-sheet focused. Proceeds from last year’s asset sales were used primarily to reduce debt and improve leverage.

At year-end 2025, net debt stood at about 2.6x LTM EBITDAX. Secured debt made up a relatively small portion of total capitalization, and liquidity totaled roughly $1.3B. That liquidity is supported by a reaffirmed $2.0B borrowing base under the revolver. Debt maturities are pushed out, with nothing pressing in the near term, which gives management room to execute.

Looking ahead, CRK plans to recapitalize Pinnacle Gas Services in 2026. That could involve a new bank facility, redemption of preferred units, and potentially the sale of an equity stake. Details are still evolving.

Valuation

CRK’s valuation framework blends multiple approaches, using a roughly 50/50 mix of EV/EBITDAX, free cash flow yield, and debt-adjusted cash flow (DACF).

Based on the series of valuation methods, CRK’s projected 2027 price target is estimated at $17 per share.

 Companies Mentioned

Comstock Resources, Inc. (CRK)

_{Disclaimer: All information contained in this publication has been researched and compiled from sources believed to be accurate and reliable at the time of publishing. However, in view of the natural scope for human and/or mechanical error, either at source or during production, Patrick Enwright accepts no liability whatsoever for any loss or damage resulting from errors, inaccuracies or omissions affecting any part of the publication. All information is provided without warranty, and Patrick Enwright makes no representation of warranty of any kind as to the accuracy or completeness of any information hereto contained.}