Comstock Resources: Decent 2Q26 Operational Execution But Increasing 2026 Capex Guidance

Research evidence excerpt

Comstock Resources: Decent 2Q26 Operational Execution But Increasing 2026 Capex Guidance

Tarek Hamid AC North America Credit Research

(1-212) 834-5468 29 July 2026 J P M O R G A N

tarek.x.hamid@jpmorgan.com

of ~1.35Bcfe/d and $412.5 million were relatively inline with the consensus estimates of

1.36Bcfe/d and $392 million, respectively. However, the company increased its 2026

capex guidance by $50 million to $1.50 billion at the midpoint while leaving its

production guidance unchanged at ~1.33Bcfe/d. The company plans to drill/TIL 1 more

well in the Western Haynesville than previously expected, but drill two fewer legacy

Haynesville wells than previously expected during the year. Separately, the company

modestly reduced its production & other tax guidance, but increased its expectations for

cash G&A and cash interest.

• Continued cash burn. Comstock burned $220 million of cash during the quarter. We

largely expect meaningful cash burns in the foreseeable future given the company’s

sizeable activity plan and growing capex expectations, as well as softer US natural gas

pricing.

OUR TAKE:

• Solid overall 2Q26 performance but higher capex guidance. Comstock performed

well from an operational standpoint during the quarter, delivering slightly better-than-

expected production and lower-than-expected operating costs. The company’s well

results were more consistent during the quarter, particularly in the Western Haynesville.

CRK’s 2Q26 EBITDAX modestly beat consensus expectations, but the company still

burned over $200 million in cash during the quarter. More notably, Comstock increased

its 2026 capex guidance despite keeping production guidance unchanged. We look for

further commentary on the call regarding the capex increase as the company is slightly