Shares of Comstock Resources (NYSE: CRK) plummeted 5.05% in after-hours trading on October 30, 2024, following the company's disappointing third-quarter financial results. The natural gas producer reported a wider-than-expected adjusted net loss and missed revenue estimates, primarily due to weak natural gas prices that weighed heavily on its performance.
For the three months ended September 30, 2024, Comstock Resources reported total natural gas and oil sales of $304.47 million, falling short of the analyst consensus estimate of $321.54 million by 5.31%. The company's adjusted net loss for the quarter stood at $48.5 million, or $0.17 per share, missing the estimated loss of $0.16 per share by 6.25%.
Despite a 2% increase in production compared to the same period last year, Comstock Resources' realized natural gas price averaged only $1.90 per Mcf before hedging and $2.28 per Mcf after hedging. The company cited the continued weakness in natural gas prices as the primary factor behind the disappointing financial performance.
In the earnings release, Comstock Resources highlighted its ongoing efforts to progress its Western Haynesville exploratory play, with the acreage position expanding to 453,881 net acres and well costs decreasing to an estimated $2,814 per completed lateral foot. However, the company did not provide specific guidance or commentary on its outlook for the remainder of the year.
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