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Comstock Resources (NYSE:CRK) reports Q4 and full year 2025 earnings.
The company nearly doubles its proved reserves during the period.
Comstock completes a major asset sale, recording a sizeable gain and reducing balance sheet pressure.
The company announces a new data center project in partnership with NextEra, signaling a shift in its project mix.
Comstock Resources, a natural gas focused producer, operates in a sector where capital discipline, balance sheet strength, and asset quality have become key themes for investors. In that context, sizable reserve additions and a large asset divestiture in the same period draw attention to how management is reshaping the portfolio while remaining active in capital recycling.
The newly announced data center partnership with NextEra adds another factor for you to consider, as it connects Comstock’s upstream position with power and computing demand. Together, these developments present several elements to track in terms of asset base, cash generation, and how the company positions itself for future projects.
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For you as an investor, this update touches several parts of Comstock Resources’ business model at once. The Q4 swing from a net loss of US$58.13 million a year ago to net income of US$280.92 million, with EPS at US$0.97 to US$0.98, shows how sensitive the business is to natural-gas pricing and volumes. Adjusted Q4 EPS of US$0.16, supported by operating cash flow of US$222 million, points to cash generation from the core Haynesville-focused operations, while the US$292 million gain on the Shelby Trough sale highlights the role of asset recycling in reported earnings. Nearly doubling proved reserves to 7.0 trillion cubic feet equivalent and lifting the 2026 capital budget to as much as US$1.65 billion signal a plan to lean into that resource base, in a basin that also features peers like Chesapeake Energy and Southwestern Energy. The NextEra data center tie-up introduces a demand-adjacent project that could, if executed well, link Comstock’s gas to power and computing loads. The flip side is execution risk, higher planned capex and fresh impairments of US$29.07 million, which all keep the focus on how effectively management allocates capital through the cycle.
The reserve growth, higher revenue and increased drilling plans align with the narrative’s view that Western Haynesville acreage and improved drilling techniques can support larger resource potential and greater sales volumes over time.
The need for US$1.4 billion to US$1.65 billion in 2026 development and exploration spending, plus fresh impairments, feeds into the narrative’s concern that heavy, ongoing capital requirements and Haynesville concentration can strain free cash flow and raise execution risk.
The Western Hainesville Data Center project with NextEra, and the gain-driven uplift from divestitures, add a power-and-data driven revenue angle that the narrative only touches on briefly and may not yet fully incorporate into longer term cash flow expectations.
⚠️ Heavy reliance on the Haynesville shale means Comstock is highly exposed to regional gas oversupply, price swings and local regulatory changes, which have already been reflected in recent share price pressure when gas prices softened.
⚠️ Analysts have highlighted that interest payments are not well covered by earnings, so a higher capex program and potential future debt needs could weigh on financial flexibility if operating conditions weaken.
🎁 The company reported full year revenue of US$2.22b versus US$1.25b a year earlier, moved from a net loss of US$229.65 million to net income of US$395.61 million, and has been flagged as trading at good value compared with peers and industry.
🎁 Nearly doubling proved reserves to 7.0 trillion cubic feet equivalent, plus plans to commercialize the Western Hainesville Data Center project with NextEra, provide multiple ways for Comstock to monetize its gas position, from traditional sales to potential long term data center related demand.
From here, you may want to track how much of Comstock’s earnings and cash flow comes from ongoing operations versus one off gains on asset sales, and whether the larger 2026 capex plan translates into sustainable production and cash generation. The terms, timing and capital structure of the Western Hainesville Data Center project with NextEra will be important, especially relative to gas price trends and what competitors like EQT or Range Resources are doing with similar gas-adjacent opportunities. Given that analysts currently carry a Hold stance and have flagged both rewards and at least one key risk, it is worth watching future quarters for evidence of disciplined spending, interest coverage improving and progress on turning the enlarged reserve base into durable cash flows.
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