Comstock Resources, Inc. reported significant financial changes for the three months and nine months ended September 30, 2024, compared to the same periods in 2023. Total revenues for Q3 2024 were $304.5 million, a decrease of 19% from $376.7 million in Q3 2023. This decline was primarily attributed to lower natural gas prices, with natural gas sales dropping to $252.7 million from $304.1 million year-over-year. The average realized natural gas price fell 18% to $1.90 per Mcf from $2.33 per Mcf in the prior year.
Operating expenses increased to $365.8 million in Q3 2024, up from $329.5 million in Q3 2023, leading to an operating loss of $61.3 million, a stark contrast to the operating income of $47.3 million reported in the same quarter of the previous year. The net loss for Q3 2024 was $25.7 million, or $(0.09) per share, compared to a net income of $14.7 million, or $0.05 per share, in Q3 2023. For the nine months ended September 30, 2024, the net loss totaled $163.4 million, a significant decline from the net income of $103.5 million reported for the same period in 2023.
The company’s financial position showed a decrease in total current assets, which fell to $299.7 million from $461.5 million at the end of 2023. Cash and cash equivalents also decreased to $13.8 million from $16.7 million. Long-term debt increased to $2.95 billion from $2.64 billion, reflecting the issuance of $400 million in senior notes in April 2024, which were used to pay down bank credit facility borrowings.
Strategically, Comstock made a notable acquisition in March 2024, purchasing approximately 189,000 net undeveloped acres in the Western Haynesville area for $50 million. The company also entered into agreements for two new drilling rigs, committing $12.8 million annually per rig, scheduled for delivery in late 2024 and early 2025.
Despite the challenges, Comstock reported gains on natural gas price derivatives of $75.2 million for Q3 2024, up from $14.3 million in Q3 2023, indicating effective risk management strategies in a volatile market. The company continues to hedge its natural gas production, securing prices for future production to mitigate the impact of fluctuating market conditions.
About COMSTOCK RESOURCES INC
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