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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Results of Operations for Properties

Results of operations for properties that were sold were as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(In thousands)
Total oil and gas sales		$	4,535			$	11,881			$	17,747			$	25,416
Total operating expenses(1)			(1,743	)			(12,293	)			(6,134	)			(26,598	)
Operating income (loss)		$	2,792			$	(412	)		$	11,613			$	(1,182	)

(1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense and excludes interest and general and administrative expense.  No depreciation, depletion and amortization expense has been provided for subsequent to the date the assets were designated as held for sale.

Summary of Accrued Expenses

Accrued expenses at June 30, 2018 and December 31, 2017 consist of the following:

		As of June 30, 2018				As of December 31, 2017
		(In thousands)
Accrued drilling costs		$	6,028			$	5,874
Accrued interest payable			20,937				21,277
Accrued transportation costs			2,882				3,269
Accrued employee compensation			2,561				6,449
Asset retirement obligation – assets held for sale			—				4,557
Accrued ad valorem taxes			1,200				—
Other			1,848				1,029
		$	35,456			$	42,455

Summary of Changes in Reserve for Future Abandonment Costs

The following table summarizes the changes in Comstock's total estimated liability for such obligations during the six months ended June 30, 2018 and 2017:

		Six Months Ended June 30,
		2018				2017
		(In thousands)
Future abandonment costs — beginning of period		$	10,407			$	15,804
Accretion expense			280				431
New wells placed on production			4				4
Liabilities settled and assets disposed of			(69	)			(36	)
Future abandonment costs — end of period		$	10,622			$	16,203

Schedule of Gas Derivative Contracts Volume and Prices

The Company had the following outstanding derivative financial instruments used for natural gas price risk management at June 30, 2018:

		Future Production Period
		Three Months Ending September 30, 2018						Three Months Ending December 31, 2018				Six Months Ending December 31, 2018					Year Ending December 31, 2019			Total
Swap contracts:
Volume (MMbtu)				5,400,000					5,400,000					10,800,000				4,200,000			15,000,000
Price per MMbtu		$		3.00				$	3.00			$		3.00			$	3.00		$	3.00
Collar contracts:
Volume (MMbtu)				2,700,000					2,700,000					5,400,000				5,400,000			10,800,000
Price per MMbtu
Ceiling		$		3.30				$	3.30			$		3.30			$	3.30		$	3.30
Floor		$		2.50				$	2.50			$		2.50			$	2.50		$	2.50
Volume (MMbtu)				2,700,000					2,700,000					5,400,000				5,400,000			10,800,000
Price per MMbtu
Ceiling		$		3.50				$	3.50			$		3.50			$	3.50		$	3.50
Floor		$		2.50				$	2.50			$		2.50			$	2.50		$	2.50

Schedule of Derivative Instruments

None of the Company's derivative contracts were designated as cash flow hedges. The aggregate fair value of the Company's derivative instruments reported in the accompanying consolidated balance sheets by type, including the classification between assets and liabilities, consists of the following:

Type		Consolidated Balance Sheet Location				Fair Value				Gross Amounts Offset in the Consolidated Balance Sheet				Net Fair Value Presented in the Consolidated Balance Sheet
										(in thousands)
Fair Value of Derivative Instruments as of June 30, 2018
Asset Derivatives:
Natural gas price derivatives		Derivative Financial Instruments  – current				$	79			$	(79	)		$	—
Liability Derivatives:
Natural gas price derivatives		Derivative Financial Instruments – current				$	309			$	(79	)		$	230
Fair Value of Derivative Instruments as of December 31, 2017
Asset Derivatives:
Natural gas price derivatives		Derivative Financial Instruments – current				$	1,318			$	—			$	1,318

Schedule of Gains and Losses from Derivative Financial Instruments

Gains and losses related to the change in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:

	Location of Gain/(Loss) Recognized in Earnings on Derivatives		Three Months Ended June 30,								Six Months Ended June 30,
			2018				2017				2018				2017
			(in thousands)
	Gain (loss) from derivative financial instruments		$	(1,638	)		$	5,295			$	964			$	13,155

Consolidated Income Tax Provision (Benefit)

The following is an analysis of consolidated income tax provision (benefit):

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(In thousands)
Current - State		$	24			$	21			$	34			$	97
- Federal			—				—				—				—
Deferred  - State			(597	)			496				(1,051	)			855
- Federal			451				—				1,477				—
		$	(122	)		$	517			$	460			$	952

Difference Between Federal Statutory Rate and Effective Tax Rate

The difference between the Company's effective tax rate and the 21% federal statutory rate in effect in 2018 and the 35% rate in effect in 2017 is caused by valuation allowances on deferred taxes and state taxes. The impact of these items varies based upon the Company's projected full year loss and the jurisdictions that are expected to generate the projected losses.

The difference between the federal statutory rate and the effective tax rate is due to the following:

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(In thousands)
Tax at statutory rate			21.0	%			35.0	%			21.0	%			35.0	%
Tax effect of:
Valuation allowance on deferred tax assets			(24.1	)			(42.1	)			(24.3	)			(40.1	)
State income taxes, net of federal benefit			3.9				5.0				3.5				4.3
Nondeductible stock-based compensation			(0.4	)			(0.4	)			(0.7	)			(1.4	)
Effective tax rate			0.4	%			(2.5	)%			(0.5	)%			(2.2	)%

Basic and Diluted Losses Per Share

Basic and diluted loss per share for the three months and six months ended June 30, 2018 and 2017 were determined as follows:

		Three Months Ended June 30,
		2018												2017
		Loss				Shares				Per Share				Loss				Shares				Per Share
		(In thousands, except per share amounts)
Basic and diluted net loss attributable to common stock		$	(34,003	)			15,340			$	(2.22	)		$	(21,442	)			14,749			$	(1.45	)

		Six Months Ended June 30,
		2018												2017
		Loss				Shares				Per Share				Loss				Shares				Per Share
		(In thousands, except per share amounts)
Basic and diluted net loss attributable to common stock		$	(75,889	)			15,212			$	(4.99	)		$	(44,373	)			14,488			$	(3.06	)

Weighted Average Shares of Unvested Restricted Stock

Weighted average shares of unvested restricted stock outstanding during the three months and six months ended June 30, 2018 and 2017 which were excluded from the computation of the loss per share were as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(In thousands)
Unvested restricted stock			857				659				846				582

Common Stock Stock Options and Convertible Stock Anti-Dilutive to Earnings Excluded from Weighted Average Shares Used in Computation of Earning Per Share

All stock options, unvested PSUs, warrants exercisable into common stock and contingently issuable shares related to the convertible debt that were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share due to the net loss in each period were as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2018				2017				2018				2017
		(In thousands except per share/unit data)
Weighted average warrants for common stock			116				433				167				511
Weighted average exercise price per share		$	0.01			$	0.01			$	0.01			$	0.01
Weighted average PSUs			514				313				466				273
Weighted average grant date fair value per unit		$	13.83			$	17.12			$	13.83			$	17.12
Weighted average contingently convertible shares			40,017				36,181				39,617				36,331
Weighted average conversion price per share		$	12.32			$	12.32			$	12.32			$	12.32

Cash Payments Made for Interest and Income Taxes

Cash payments made for interest and income taxes for the six months ended June 30, 2018 and 2017, respectively, were as follows:

		Six Months Ended June 30,
		2018				2017
		(In thousands)
Interest payments		$	36,122			$	37,846
Income tax payments		$	2			$	3

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