Why Is Comstock (CRK) Up 26.5% Since Last Earnings Report?

A month has gone by since the last earnings report for Comstock Resources (CRK). Shares have added about 26.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Comstock due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Comstock Resources, Inc. before we dive into how investors and analysts have reacted as of late.

Comstock Q3 Earnings Beat Estimates, Revenues Increase Y/Y

Comstock Resources reported third-quarter 2025 adjusted earnings of 9 cents per share, which beat the Zacks Consensus Estimate of 4 cents. The bottom line also improved from the prior year’s adjusted loss of 17 cents. 

Total quarterly revenues of $450 million beat the Zacks Consensus Estimate of $401 million. The top line also increased from the prior-year figure of $304.5 million.

The strong quarterly results can be attributed to higher average natural gas price realizations.

Operational Performance

Total production averaged 111,837 million cubic feet equivalent (MMcfe), lower than the year-ago quarter’s level of 133,198 MMcfe. Natural gas production declined to 111,770 million cubic feet (MMcf) from 133,116 MMcf a year ago.

Average natural gas price realization (before hedging) came in at $2.75 per thousand cubic feet (Mcf), up from $1.90 per Mcf in the prior-year quarter. Total price realization (before hedging) averaged $2.76 per thousand cubic feet equivalent (Mcfe) compared with $1.90 Mcfe in the third quarter of 2024.

Costs & Expenses

Total production costs amounted to $0.77 per Mcfe, flat year over year. Lease operating expenses increased to 26 cents per Mcfe from 22 cents in the year-ago period. Gathering and transportation expenses declined to 36 cents from 41 cents per Mcfe in the corresponding period of 2024.

Total operating expenses in the quarter totaled $399.6 million, higher than $365.8 million reported a year ago. Gas services expenses rose to $141.7 million from $52.6 million in the third quarter of 2024.

Balance Sheet

As of Sept. 30, 2025, Comstock Resources reported a long-term debt of $3.13 billion. The company had cash and cash equivalents of $19.2 million as of the same date.

Financials

Total exploration and development capital expenditures in the third quarter amounted to $267.1 million. Operating cash flow came in at $190.3 million for the third quarter.

Outlook

Comstock Resources expects total production in the fourth quarter to be in the range of 1,200-1,300 million cubic feet equivalent per day (MMcfe/d). Lease operating expenses are expected to be between $0.25 and $0.29 per Mcfe, and gathering and transportation expenses are expected to lie in the range of $0.34-$0.40 per Mcfe for the fourth quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -27.59% due to these changes.

VGM Scores

At this time, Comstock has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Comstock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Comstock belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, CNX Resources Corporation. (CNX), has gained 13.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

CNX Resources reported revenues of $423 million in the last reported quarter, representing a year-over-year change of +19.5%. EPS of $0.49 for the same period compares with $0.41 a year ago.

For the current quarter, CNX Resources is expected to post earnings of $0.33 per share, indicating a change of -42.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.4% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for CNX Resources. Also, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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