Slide 1: 3rd Quarter 2023 Results
NYSE:CRK 3rd Quarter 2023 Results OCTOBER 30, 2023
Slide 2: Disclaimer
Disclaimer This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. These statements include
Slide 3: 3rd Quarter 2023 Highlights
3rd Quarter 2023 Highlights • Weak natural gas prices weighed heavily on the third quarter results. • Natural gas and oil sales for the quarter were $316 million (1) • Cash flow from operations was $167 million or 60¢ per diluted share (2) • Adjusted EBITDAX was $209 million • Adjusted net income wa
Slide 4: Western Haynesville Midstream Partnership
Western Haynesville Midstream Partnership • Comstock is partnering with Quantum Capital Solutions to fund the expansion of its existing Western Haynesville midstream assets • Comstock will contribute the Pinnacle gathering and treating system to the partnership • Quantum will contribute 100% of the
Slide 5: Q3 2023 Financial Results
Q3 2023 Financial Results $ in millions 5 5
Slide 6: Nine Months 2023 Financial Results
Nine Months 2023 Financial Results $ in millions 6 6
Slide 7: Natural Gas Price Realizations
Natural Gas Price Realizations Per Mcf 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 NYMEX Settlement Month Average $ 8.20 $ 6.26 $ 3.42 $ 2.10 $ 2.55 NYMEX Differential (0.48) (0.69) (0.44) (0.29) (0.22) Realized Prices $ 7.72 $ 5.57 $ 2.98 $ 1.81 $ 2.33 $7.72 $5.57 $2.98 $2.33 $1.81 NYMEX Contract Settl
Slide 8: Low Operating Costs / High Margins
Low Operating Costs / High Margins Operating Costs Per Mcfe / EBITDAX Margin 8 8
Slide 9: 2023 Drilling Program
2023 Drilling Program ($ in millions) Nine Months 2023 Haynesville Drilling Program Haynesville Bossier Total Gross Net Gross Net Gross Net Third Quarter Nine Months Operated - ` 2023 2023 Drilled 43 32.6 9 8.7 52 41.3 Turned to Sales 50 36.1 7 6.9 57 43.0 ($ in millions) Haynesville Drilling Progra
Slide 10: Balance Sheet
Balance Sheet Capitalization New Bank Credit Facility ($ in millions) 9/30/2023 Cash and Cash Equivalents $20 $1.5 Billion Senior Secured Revolving Credit Facility: Revolving Credit Facility $345 • $2 billion borrowing base (reaffirmed in October 2023) Secured Debt $345 • Maturity date November 15,
Slide 11: Drilling Inventory
Drilling Inventory • Average lateral length of location inventory is 8,949 feet • Over 25 years of drilling based on 2023 activity As of September 30, 2023 Haynesville Operated Non-Operated Total Lateral Length Gross Net Gross Net Gross Net WI Net Mft Avg Net ft Up to 5,000 ft 147 117 359 53 506 169
Slide 12: Drilling Statistics
Drilling Statistics Average Lateral Length (feet) 12
Slide 13: 3rd Quarter Drilling Results
3rd Quarter Drilling Results Completed 21 operated wells (average lateral length of 10,460 ft.) Bossier with average IP rate of 29 Mmcf/d LL Turned To IP Well Name (feet) Sales (Mmcf/d) Caddo 1 Peters 26-35 #1 9,842 07/10/2023 18 2 Peters 26-35 #2 9,661 07/10/2023 18 3 Nation 26-35 #1 9,832 07/12/20
Slide 14: D&C Costs
D&C Costs (Laterals > 8,500 ft.) ($ per Lateral Foot) $1,595 $1,561 $1,506 $1,541 $1,446 $1,329 $1,215 $1,026 $1,040 $932 $888 $842 $941 $1,021 $806 $764 $569 $643 $664 $653 $719 $565 $523 $425 $451 $457 $397 2017 2018 2019 2020 2021 2022 2023 Q1 2023 Q2 2023 Q3 Completion Drilling 14
Slide 15: 2023 Outlook
2023 Outlook • Focused on proving up our Western Haynesville play and continuing to add to our extensive acreage position • Building a great asset in the Western Haynesville that will be well positioned to benefit from the growth in natural gas demand starting in the second half of 2024 • Western Ha
Slide 16: Guidance
Guidance Guidance 4Q 2023 Production (Mmcfe/d) 1,450 - 1,550 D&C Costs ($ in Millions) $240 - $280 Infrastructure/Other ($ in Millions) $15 - $25 2 Acreage ($ in Millions) $30 - $40 Expenses ($/Mcfe) - Lease Operating ($/Mcfe) $0.24 - $0.28 Gathering & Transportation ($/Mcfe) $0.32 - $0.36 Productio
Slide 17: Hedging Program
Hedging Program Building 2024 Hedge Program (Mmcf/d) 2023 Total Swaps Q4 250 Collars 250 $3.00 x $10.28 2024 Total Swaps 350 $3.55 Q1 350 Collars 2024 Total Swaps 350 $3.55 Q2 350 Collars 2024 Total Swaps 350 $3.55 Q3 350 Collars 2024 Total Swaps 350 $3.55 Q4 350 Collars 17
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Income Quarter Ended September 30, Nine Months Ended September 30, $ in thousands except per share amounts 2023 2022 2023 2022 Net income (loss) $ 14,720 $ 351,185 $ 103,517 $ 607,974 Unrealized (gain) loss on hedging contracts (3,932) (33,154) 31 102,616 Los
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Operating Cash Flow Quarter Ended September 30, Nine Months Ended September 30, $ in thousands 2023 2022 2023 2022 Net income (loss) $ 14,720 $ 355,596 $ 103,517 $ 621,063 Reconciling items: Deferred income taxes (benefit) 3,608 78,060 28,878 148,389 Depreciation, depleti