Comstock Resources, Inc. (CRK): Business Model Canvas [Dec-2025 Updated]

You're looking for the real mechanics behind Comstock Resources, Inc.'s success in the Haynesville Shale as we head into late 2025, and honestly, it's a story of focused execution. This isn't just about drilling; it's about dominating a specific, high-pressure resource base, evidenced by their 826,741 net acres and Western Haynesville wells hitting average initial production rates of 36 MMcf/d. We see a clear strategy balancing capital-intensive development-with D&C costs around $2,647 per lateral foot in Q2 2025-against strategic moves like the $430 million Shelby Trough divestiture to manage that $3.06 billion debt load. Dive into the full canvas below to see exactly how their key partnerships, cost structure, and customer segments line up to deliver that reliable supply to the US market.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Key Partnerships

Comstock Resources, Inc. relies on several key external relationships to execute its Haynesville development strategy and manage its financial structure.

NextEra Energy for gas-fired power generation projects

Comstock Resources, Inc. is collaborating with NextEra Energy Resources, LLC, a unit of NextEra Energy, Inc., to explore power generation assets near the Western Haynesville area. This joint project aims to integrate Comstock Resources' natural gas supply and midstream assets to support reliable energy solutions for potential data center customers. As of December 31, 2024, NextEra Energy had approximately 72 GW in operations across its FPL and NextEra Energy Resources portfolios.

Oilfield service companies for drilling and completion (D&C) operations

The execution of Comstock Resources, Inc.'s drilling program involves numerous oilfield service partners. The all-in cost for Western Haynesville wells drilled and completed in the second quarter of 2025 was $2,647 per completed lateral foot. For wells turned to sales in the third quarter of 2025, the initial production rates averaged 28 MMcf per day. The company's production cost per Mcfe for the nine months ended September 30, 2025, averaged $0.80 per Mcfe.

Here are some operational metrics related to the wells drilled with service partners:

• Wells turned to sales in Q3 2025: 12 (10.6 net) operated wells.
• Average lateral length for wells turned to sales since July 2025: 11,156 feet.
• Total wells turned to sales to date in 2025 in Legacy Haynesville: 28.

Midstream partners for gas gathering and processing infrastructure

Comstock Resources, Inc. has established a midstream partnership to fund the build-out of its Western Haynesville midstream system, receiving contributions from a noncontrolling partner. The company also has its own midstream entity, Pinnacle Gas Services LLC, which includes a gas treating plant and 246 miles of high-pressure pipelines. A new gas treating plant was put into operation, enhancing gas treating capacity by 400 million cubic feet per day. Comstock Resources expected to invest $130 million to $150 million in its Western Haynesville midstream partnership during 2025.

Cost components related to midstream services for the first nine months of 2025 were:

Financial institutions for the $1.5 billion credit facility capacity

Comstock Resources, Inc. maintains a senior secured revolving credit facility with an elected commitment capacity of $1.5 billion. The borrowing base under this facility was reaffirmed at $2.0 billion as of April 29, 2025. The maturity date for this facility extends to November 15, 2027. The facility was arranged by Wells Fargo Securities, LLC, with a syndicate of 17 participating banks.

The outstanding debt under this facility has fluctuated:

• Borrowings outstanding at end of Q3 2025: $580 million.
• Borrowings outstanding at end of Q2 2025: $475 million.
• Borrowings outstanding as of December 31, 2024: $415 million.

Landowners and mineral rights holders for lease agreements

Comstock Resources, Inc.'s operations are concentrated on its acreage position in the Haynesville and Bossier shales. The company has an expanded acreage footprint in the Western Haynesville totaling nearly 525,000 net acres. The company is actively managing its asset base through divestitures; for example, it agreed to sell Shelby Trough assets, which include 36,000 primarily undeveloped net acres, for $430 million.

Drilling inventory is substantial, supporting more than 30 years of drilling activity at current production rates.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Key Activities

You're looking at the core actions Comstock Resources, Inc. (CRK) takes to run its business as of late 2025. It's all about getting gas out of the ground efficiently and managing the resulting financial exposure. Here's the breakdown of what they are actively doing.

Horizontal drilling and hydraulic fracturing in the Haynesville Shale

Comstock Resources, Inc. focuses its primary extraction activity on the Haynesville Shale in North Louisiana and East Texas. They are running a dual-basin development strategy, though the Legacy Haynesville area is seeing a pull-back in drilling to protect the balance sheet while prioritizing the Western acreage.

For the first nine months of 2025, Comstock Resources, Inc. turned $\text{28}$ wells to sales in its Legacy Haynesville area. These wells had an average lateral length of $\text{11,919}$ feet and an average per well initial production rate of $\text{25 MMcf per day}$. In the third quarter alone, they drilled $\text{17}$ operated horizontal Haynesville/Bossier shale wells with an average lateral length of $\text{11,692}$ feet.

The operational cost structure is a key focus area. Here's how their costs looked for the nine months ended September 30, 2025:

The unhedged operating margin for the first nine months of 2025 was $\text{74\%}$, improving slightly to $\text{75\%}$ after hedging.

Delineating and developing the high-potential Western Haynesville acreage

The strategic pivot is toward the Western Haynesville, which management views as having an unprecedented future due to LNG exports and AI/data center demand. Comstock Resources, Inc. has been aggressively proving out this acreage, which totaled $\text{518,000}$ net acres in the Haynesville play as of early 2025.

In the third quarter of 2025, Comstock Resources, Inc. brought $\text{3}$ new Western Haynesville wells online, bringing the total turned to sales in that area to $\text{8}$ for 2025. These Q3 wells showed strong initial performance:

• Average lateral length: 8,566 feet
• Average per well initial production rate: 32 MMcf per day

The plan for the full year 2025 included dedicating $\text{4}$ operating rigs to the Western Haynesville, with a goal to drill $\text{19}$ wells and turn $\text{13}$ to sales in this area.

Optimizing drilling efficiency, like using 'horseshoe' well designs

Comstock Resources, Inc. is actively incorporating innovative designs to drive down costs and increase well productivity. They completed their second 'horseshoe' well during the third quarter.

Details on that specific well, the Roberts $\text{26-23 \#1}$, show the efficiency gains they are targeting:

• Lateral Length: 11,453 feet
• Drilling and Completion Cost: $1,329 per lateral foot
• Initial Production Rate: 26 MMcf per day

The company planned to drill $\text{8}$ horseshoe wells in 2025 and $\text{10}$ in 2026, with $\text{118}$ future horseshoe locations identified within its Legacy Haynesville inventory. In the Legacy area during Q1 2025, drilling time to total depth (TD) averaged $\text{26}$ days, with footage drilled per day improving to $\text{1,027}$ feet.

Managing natural gas price risk through hedging and marketing activities

Managing the volatility of natural gas prices is a critical activity, achieved through a comprehensive hedging program for 2025 and 2026. This activity directly impacts their realized sales price.

Here are the realized price metrics for the nine months ended September 30, 2025:

The unhedged realized gas price in Q3 2025 was $\text{\$2.75}$ per Mcf.

Strategic divestiture of non-core assets for debt reduction

Comstock Resources, Inc. is actively streamlining its portfolio by selling non-core assets, with the explicit goal of reducing long-term debt. This is a clear action to improve the balance sheet, especially given the company's leverage profile.

The major actions taken or agreed upon as of late 2025 include:

• Agreement to divest Shelby Trough assets in East Texas for $430 million in cash. Expected closing is December 2025.
• Completed divestiture of non-strategic Cotton Valley wells in East Texas and North Louisiana for net proceeds of $15.2 million.

The Shelby Trough properties being sold included interests in $\text{155}$ (or $\text{74.5}$ net) producing wells and approximately $\text{36,000}$ net primarily undeveloped acres. Production net to Comstock Resources, Inc.'s interest from these properties was $\text{9.3 MMcf}$ of natural gas per day in September 2025. The total proceeds from these divestitures are expected to boost liquidity to over $\text{\$900}$ million following the Shelby Trough sale closure.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Key Resources

You're looking at the core assets that power Comstock Resources, Inc.'s business right now. These aren't abstract concepts; they are tangible reserves, acreage, and specialized know-how that drive the company's financial performance in the Haynesville Shale.

The foundation of Comstock Resources, Inc.'s operations is its significant land position in the Haynesville and Bossier plays. While the exact total net acreage figure you mentioned isn't confirmed in the latest filings, we see a clear focus on the Western Haynesville. As of December 31, 2024, Comstock Resources, Inc. had built its position in the Western Haynesville to 518,000 net acres. This focus is being refined through strategic divestitures; for instance, in the third quarter of 2025, Comstock Resources, Inc. divested approximately 36,000 primarily undeveloped net acres.

The company's technical capability in High-Pressure, High-Temperature (HPHT) drilling is a key differentiator, evidenced by their drilling efficiency metrics. Here's a look at some recent operational benchmarks:

• Industry-leading cost of $1,229 per lateral foot in legacy Haynesville drilling as of Q3 2025.
• Western Haynesville wells turned to sales in Q2 2025 had an average per well initial production rate of 36 MMcf per day.
• Western Haynesville wells turned to sales in Q3 2025 had an average lateral length of 11,156 feet.
• Western Haynesville wells drilled in Q2 2025 showed an average lateral length of 10,897 feet.

Comstock Resources, Inc.'s proved natural gas reserves in the core Haynesville/Bossier plays remain a critical asset. As of December 31, 2024, the company estimated its proved oil and natural gas reserves at 3.8 trillion cubic feet equivalent (Tcfe). These reserves were substantially all natural gas, with 73% developed and 98% operated by Comstock Resources, Inc..

The financial strength supporting the development of these resources is significant. As of June 30, 2025, Comstock Resources, Inc. reported available liquidity of $1,051 million. This liquidity position is supported by a $1.5 billion secured revolving credit facility with a $2 billion borrowing base.

Regarding midstream assets, Comstock Resources, Inc. is actively integrating these assets, including through a partnership with NextEra Energy Resources to create an energy corridor for data centers. While the specific capacity of a new gas treating plant is not detailed in the latest reports, the company's operational focus includes leveraging its midstream infrastructure to capture value from its Haynesville production.

The financial health underpinning these key resources can be summarized:

Finance: draft 13-week cash view by Friday.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Comstock Resources, Inc. (CRK) right now, based on their late 2025 operational metrics. It's all about high-quality rock and strategic location.

Large-scale, reliable supply of natural gas to the US market

Comstock Resources, Inc. is an independent natural gas producer focused on the Haynesville Shale in North Louisiana and East Texas, a region noted for superior economics due to its proximity to Gulf Coast natural gas markets. The company's production for the third quarter of 2025 totaled 112 Bcf of natural gas. For the fourth quarter of 2025, Comstock Resources, Inc. provided guidance for production between 1,200 and 1,300 MMcfe per day. In the second quarter of 2025, production averaged 1,233 MMcfe per day.

Here is a snapshot of recent operational output and pricing that underpins this value proposition:

High initial production (IP) rates, averaging 36 MMcf/d in Western Haynesville wells

The Western Haynesville acreage is a key focus area for Comstock Resources, Inc., delivering top-tier well performance. In the second quarter of 2025, five wells turned to sales in this region. These wells achieved an average per well initial production rate of 36 MMcf per day. For comparison, 28 wells turned to sales in the Legacy Haynesville area year-to-date 2025 averaged an initial production rate of 25 MMcf per day.

• Western Haynesville wells: Average IP rate of 36 MMcf per day.
• Legacy Haynesville wells (YTD 2025): Average IP rate of 25 MMcf per day.
• Western Haynesville wells lateral length (Q2 2025): Average of 10,897 feet.

Cost-efficient development with D&C costs at $2,647 per completed lateral foot in Q2 2025

Comstock Resources, Inc. has demonstrated success in managing its capital expenditure intensity, particularly in the technically challenging Western Haynesville. The five Western Haynesville wells brought online in the second quarter of 2025 were drilled and completed at an average cost of $2,647 per completed lateral foot. This cost structure is critical for the company's strategy to build out its asset base organically. The company plans to maintain four operated rigs drilling in the Western Haynesville to delineate the play for the remainder of 2025.

Strategic positioning near potential high-demand data center customers

The location of Comstock Resources, Inc.'s assets is increasingly valuable due to structural demand shifts in the US energy market. The company's performance reflects its strategic positioning in the Haynesville shale play amid growing natural gas demand from LNG exports and AI data centers. CEO Jay Allison noted strong confidence in the Western Haynesville, emphasizing an initiative to provide energy solutions to potential data center customers. The Western Haynesville's location offers excellent access to export facilities, including LNG projects and shipping pipelines.

The realized natural gas price in Q2 2025 was $3.02 per Mcf before hedging, a significant increase from $1.65 per Mcf in Q2 2024.

Finance: review Q4 2025 capital plan against projected data center load growth by end of month.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Customer Relationships

You're looking at how Comstock Resources, Inc. (CRK) manages its relationships with the entities buying its commodity-natural gas. For a company focused on capital-intensive development in the Haynesville Shale, these relationships are about locking in value and securing future demand.

Transactional relationships for commodity sales via long-term contracts.

The core relationship is transactional, moving commodity from the wellhead to the market. While the market is volatile, Comstock Resources uses contracts to smooth out revenue. For instance, in the second quarter of 2025, Comstock Resources sold 32% of its gas into the spot market, meaning the remaining 68% was likely under some form of contract or fixed-price arrangement to manage risk. This balancing act is key when your realized price after hedging was $3.06 per Mcf in Q2 2025, even though the average Henry Hub spot price was slightly higher at $3.16. The company generated $344 million in natural gas and oil sales during that quarter.

The structure of these sales relationships can be summarized by the realized price environment:

Dedicated sales and marketing teams for large-volume purchasers.

Managing relationships for large, consistent offtake volumes is becoming more critical, especially with the focus on the Western Haynesville. This isn't just about selling molecules; it's about securing long-term demand anchors. The company's strategy clearly points toward cultivating relationships with entities requiring massive, reliable power supply, like the data center sector.

• The Western Haynesville acreage, an extension of 517,000 net acres, is positioned to feed these high-demand customers.
• Drilling in the Western Haynesville is a focus to delineate this new play, which is expected to yield high resource volumes.
• The company is building out its Western Haynesville midstream assets, including a new gas treating plant that more than doubled capacity, which supports high-volume delivery commitments.

Strategic collaboration with partners like NextEra on new energy projects.

This is where Comstock Resources moves beyond pure commodity sales into strategic partnership management. The collaboration with NextEra Energy Resources, LLC is a prime example of building a dedicated, integrated relationship for future growth. This joint project aims to explore developing gas-fired power generation assets right near Comstock's Western Haynesville supply. The goal is to integrate Comstock's gas supply and midstream assets to support reliable energy solutions specifically for potential data center customers in Texas. This partnership helps Comstock capture value from the energy transition and positions its gas to power the growing data center infrastructure in the region.

Investor relations focused on transparency of capital-intensive development.

Because developing the Haynesville is capital-intensive, investor relations must focus on justifying the spending and demonstrating financial discipline. Management has been clear about this priority, with the CEO stating, 'We want to protect the balance sheet. That's number one, number one, number one'. The capital needs are significant; full-year 2025 guidance for drilling and completion costs was set between $1.0-1.1 billion. To manage this, the company reported negative free cash flow of $88.9 million for Q2 2025 and announced $445 million in divestitures to boost liquidity. Transparency is shown by reporting debt levels, which stood at $3.06 billion against common equity of $2.44 billion as of June 30, 2025.

Investor communications highlight the trade-off between immediate results and long-term asset building:

• The path chosen is aimed at creating long-term value versus immediate short-term results.
• The company is focusing on building its Western Haynesville asset for longer-term growth in natural gas demand.
• The Q3 2025 production of 1,216 MMCFE per day was below the guidance midpoint, which is a key metric investors watch regarding capital deployment efficiency.

Finance: draft 13-week cash view by Friday.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Channels

You're looking at how Comstock Resources, Inc. gets its product-natural gas and oil-from the wellhead to the buyer, which is a critical part of their operations in the Haynesville Shale.

Direct sales of natural gas and oil to major pipelines and marketers

Comstock Resources, Inc. moves its production through a mix of direct sales and third-party marketing arrangements. The realized price you get depends heavily on the prevailing natural gas market and the effectiveness of their hedging program. For instance, in the third quarter of 2025, Comstock Resources, Inc. reported natural gas and oil sales, including realized hedging gains, totaling $335 million for the quarter.

Looking at the first nine months of 2025, total natural gas and oil sales reached $1.08 billion, which included realized hedging losses of $22.7 million. The realized price after hedging for the nine months ended September 30, 2025, was $3.19 per Mcf based on production of 339 Bcf.

Here's a snapshot of the sales performance for the first three quarters of 2025:

The second quarter of 2025 saw a realized price of $3.10 after accounting for a $4.4 million profit from third-party marketing activity.

Interstate and intrastate pipeline systems for transportation

Transportation is a key component of the cost structure, directly impacting the realized selling price. Comstock Resources, Inc.'s gathering and transportation costs are relatively consistent across recent periods, showing efficiency in moving product to market.

• Gathering and transportation costs averaged $0.37 per Mcfe for the nine months ended September 30, 2025.
• For the second quarter of 2025, gathering and transportation costs were also $0.37 per Mcfe.
• This cost component was $0.37 per Mcfe for the first six months of 2025.

These costs are part of the overall production cost per Mcfe, which averaged $0.80 per Mcfe for the first nine months of 2025.

Gas processing and treating facilities (midstream assets)

Comstock Resources, Inc. is actively developing midstream infrastructure, particularly in its core Western Haynesville area, to support future production growth and improve price realizations. This is a channel they are building out themselves, rather than just using third-party capacity.

• Comstock Resources, Inc. is proactively developing Western Haynesville-specific midstream infrastructure.
• This includes plans for a major new gas treating plant.
• Management indicated plans to continue building out Western Haynesville midstream assets to keep pace with growing production from that area.

This investment in midstream is intended to allow for higher production levels and increased ability to capitalize on expanding U.S. LNG export capacity.

Commodity exchanges and over-the-counter (OTC) markets for hedging

The company uses hedging instruments to manage price risk, which shows up directly in their realized sales figures. As of early 2025 projections, Comstock Resources, Inc. had a significant portion of its expected natural gas production covered.

• For the second quarter of 2025, the company was 56% hedged.
• In Q2 2025, hedging improved the realized price to $3.06 per Mcf from the unhedged price of $3.02 per Mcf.
• Projections made in February 2025 indicated that over 50% of projected 2025 natural gas production was hedged at an average ceiling/swap price of $3.55.
• These 2025 hedges carried a projected negative value of $203 million at that time.

The realized hedging gains in Q3 2025 were $26.4 million, which significantly boosted that quarter's sales figure of $335.0 million. Finance: draft 13-week cash view by Friday.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Customer Segments

Comstock Resources, Inc. serves a customer base centered around the delivery of its substantial natural gas production, primarily from the Haynesville Shale in North Louisiana and East Texas, which offers proximity to the Gulf Coast natural gas markets.

The scale of the gas being delivered to these segments is reflected in the operational figures from mid-2025:

The customer segments are defined by the type of entity purchasing the gas or the end-use application it supports.

• Large natural gas utilities and local distribution companies (LDCs).
• Industrial and commercial end-users requiring stable energy supply.
• Natural gas marketers and commodity traders.
• Potential power generation and data center customers in the region.

The focus on future demand drivers is clear through strategic partnerships targeting high-volume users.

• Comstock Resources, Inc. is working with NextEra Energy, Inc. (NEE) to explore the development of gas-fired power generation assets near the Western Haynesville area.
• This initiative is explicitly aimed at supporting potential data center customers, leveraging Comstock Resources, Inc.'s location, which is noted as being 100 miles from the Dallas Metroplex.

The company's asset base, which supports these sales, spans approximately 1.1 million gross acres across the Haynesville Shale footprint. Recent strategic moves, such as the agreement to divest Shelby Trough assets for $430 million in cash and the closing of Cotton Valley sales for net proceeds of $15.2 million, refine the focus toward core Haynesville production that serves these segments.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Cost Structure

Comstock Resources, Inc.'s cost structure is heavily influenced by its capital-intensive development program in the Haynesville Shale. Full-year 2025 guidance for drilling and completion (D&C) expenditures was set in the range of $1.0-$1.1 billion.

Debt service represents a significant fixed cost. As of June 30, 2025, Comstock Resources, Inc. reported total debt of $3.06 billion. The company also reported a free cash deficit from operations of $88.9 million for Q2 2025, highlighting the ongoing capital demands.

Operational costs are managed to maintain a competitive position. Production costs, which include Lease Operating Expenses (LOE) and Gathering & Transportation (G&T) costs, averaged $0.80 per Mcfe for the first nine months of 2025. This average cost is detailed below:

Exploration and development costs are variable based on drilling activity and acreage delineation success. For example, five Western Haynesville wells drilled in the second quarter of 2025 had an average drilling cost of $2,647 per completed lateral foot. The company maintained four operating rigs on its Legacy Haynesville acreage and four in the Western Haynesville during the second half of 2025 to support development plans.

The structure includes other fixed and variable expenses related to operations:

• Interest expense for the third quarter of 2025 was $56.7 million.
• The company reported a cash general and administrative expense component of $0.06 per Mcfe for the first nine months of 2025.

Comstock Resources, Inc. (CRK) - Canvas Business Model: Revenue Streams

Comstock Resources, Inc.'s revenue streams are heavily concentrated in commodity sales, supplemented by strategic asset monetization. The core business is driven by the sale of its produced natural gas and oil.

Primary revenue from natural gas and oil sales totaled $1.08 billion for the first nine months of 2025. This top-line figure for the nine-month period actually included realized hedging losses of $22.7 million, meaning the underlying commodity sales were even stronger. To give you a clearer picture of the components, here's a look at the key revenue drivers and divestiture proceeds as of late 2025.

The company actively manages its revenue stability through hedging, though the nine-month result showed a net loss on realized hedges. You see, Comstock Resources, Inc. also generates significant, albeit less frequent, cash flow from asset sales, which management uses for balance sheet strengthening. They entered an agreement to sell their Shelby Trough properties for $430 million in cash. Also, Comstock Resources, Inc. completed the sale of its legacy Cotton Valley wells in East Texas and North Louisiana for net proceeds of $15.2 million. These two transactions alone account for a combined $445.2 million in capital returned to the company from non-core assets. The strategy is clear: monetize less strategic acreage to fund core development and reduce debt.

• Realized gains from natural gas price hedging contracts are factored into the reported sales figures.
• The Shelby Trough divestiture proceeds of $430 million are earmarked for long-term debt reduction.
• The sale of non-core assets like the Cotton Valley wells yielded $15.2 million net.