Q2 2026 Comstock Resources Inc Earnings Call Transcript
Key Points
- Production increased 16% over the first quarter of 2026, driven by strong drilling results in both legacy and Western Haynesville.
- The sale of a 27% stake in Pinnacle Gas Services for $600 million to Sixth Street strengthened the balance sheet and implied a $2.2 billion enterprise value for the midstream subsidiary.
- Drilling efficiencies in the legacy Haynesville improved, with average drilling speed increasing 10% versus the first quarter of 2026.
- The company has a large, low-cost drilling inventory with 926 gross operated locations in the legacy area and 3,277 in the Western Haynesville.
- Strong financial liquidity of nearly $1.2 billion provides flexibility for future development and growth.
- Lower natural gas prices drove weaker financial results in the quarter, with realized gas prices averaging $2.54 per Mcf.
- Drilling and completion costs in the Western Haynesville increased, with drilling costs up 13% and completion costs up 5% compared to the first quarter.
- Drilling efficiency in the Western Haynesville declined 2% due to deeper depths and higher temperatures encountered in the second quarter.
- The company remains cautious about 2027 activity levels due to disappointing natural gas prices and the need for stronger prices to support hedging.
- The Western Haynesville drilling program is constrained by the need to hold acreage by production, limiting the ability to optimize well placement and pad development.
Thank you. Good day, and thank you for standing by. Welcome to the second-quarter 2026 Comstock Resources earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Jay Allison, Chairman and Chief Executive Officer. Please go ahead.
Thank you for the introduction. I want to welcome everyone to the Comstock Resources second-quarter 2026 financial and operating results conference call. You can view a slide presentation during or after this call by going to our website at www.comstockresources.com, and downloading the quarterly results presentation. There you'll find a presentation entitled Second Quarter 2026 Results.
I am Jay Allison, Chief Executive Officer of Comstock. With me is Roland Burns; our President and Chief Financial Officer; Dan Harrison, our Chief
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