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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2022
Accounting Policies [Abstract]  
Capitalized Exploratory Well Costs The changes in capitalized exploratory well costs are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
20222022
(In thousands)
Beginning capitalized exploratory project costs$18,523 $6,966 
Additions to exploratory project costs pending the determination of proved reserves18,840 30,397 
Determined to have found proved reserves(27,592)(27,592)
Ending capitalized exploratory project costs$9,771 $9,771 
Summary of Lease Cost Recognized
Lease costs recognized during the three months and six months ended June 30, 2022 and 2021 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
(In thousands)
Operating lease cost included in general and administrative expense$436 $435 $871 $864 
Operating lease cost included in lease operating expense329 190 599 422 
Operating lease cost included in proved oil and gas properties6,300 — 6,300 — 
Variable lease cost (completion costs included in proved oil and gas properties)11,127 — 11,127 — 
Short-term operating lease cost (drilling rig costs included in proved oil and gas properties)17,105 7,659 28,140 19,243 
$35,297 $8,284 $47,037 $20,529 
Summary of Liabilities Under Contracts That Contain Operating Leases
As of June 30, 2022, expected future payments related to contracts that contain operating leases were as follows:
(In thousands)
July 1 to December 31, 2022$20,391 
202340,574 
202440,208 
202512,727 
202653 
Thereafter17 
Total lease payments
113,970 
Imputed interest(5,612)
Total lease liability$108,358 
Summary of Accrued Costs
Accrued costs at June 30, 2022 and December 31, 2021 consisted of the following:
As of
June 30,
2022		December 31, 2021
(In thousands)
Accrued interest payable$54,377 $60,305 
Accrued drilling costs33,808 19,995 
Accrued income and other taxes28,431 15,655 
Accrued transportation costs24,542 22,859 
Accrued employee compensation7,573 12,320 
Accrued lease operating expenses1,811 2,036 
Other3,221 1,856 
$153,763 $135,026 
Summary of Changes in Total Estimated Asset Retirement Obligation Liability The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:
Six Months Ended
June 30,
20222021
(In thousands)
Reserve for future abandonment costs at beginning of period$25,673 $19,290 
New wells placed on production
844 862 
Acquisition of natural gas treating plant1,211 — 
Liabilities settled and assets disposed of
(29)(6)
Accretion expense
734 602 
Reserve for future abandonment costs at end of period$28,433 $20,748 
Schedule of Oil and Natural Gas Price Derivative
The Company had the following oil and natural gas price derivative financial instruments at June 30, 2022:
Future Production Period
Six Months Ending December 31, 2022Year Ending December 31, 2023Total
Natural Gas Swap Contracts:
Volume (MMBtu)58,880,000 — 58,880,000 
Average Price per MMBtu$2.68 $2.68 
Natural Gas Collar Contracts:
Volume (MMBtu)67,160,000 128,925,000 196,085,000 
Average Price per MMBtu:
Average Ceiling$3.91 $9.85 $7.81 
Average Floor$2.62 $2.98 $2.86 
Natural Gas Basis Swap Contracts:
Volume (MMBtu)5,520,000 (1)— 5,520,000 (1)
Average Price per MMBtu($0.16)($0.16)
_____________________________
(1)Contracts fix the differentials between NYMEX Henry Hub and the Columbia Gulf Mainline indices.
Schedule of Derivative Instruments The aggregate fair value of the Company's derivative instruments are presented on a gross basis in the accompanying consolidated balance sheets.
The classification of derivative financial instruments between assets and liabilities, consists of the following:
As of
TypeConsolidated Balance Sheet LocationJune 30,
2022		December 31, 2021
(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$2,086 $4,528 
Oil price derivativesDerivative Financial Instruments  – current— 730 
$2,086 $5,258 
Liability Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$318,585 $181,215 
Oil price derivativesDerivative Financial Instruments  – current— 730 
$318,585 $181,945 
Natural gas price derivativesDerivative Financial Instruments  – long-term$— $4,042 
Schedule of Gains and Losses from Derivative Contracts Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:
Loss on Derivatives
Recognized in Earnings		Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands)
Natural gas price derivatives$(72,826)$(219,845)$(510,319)$(238,722)
Oil price derivatives— (3,989)— (7,533)
Interest rate derivatives— (124)— 548 
$(72,826)$(223,958)$(510,319)$(245,707)
Consolidated Income Tax Benefit (Provision)
The following is an analysis of the consolidated income tax provision (benefit):
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands)
Current - Federal$5,360 $— $1,399 $— 
Current - State7,969 3,001 5,509 3,137 
Deferred - Federal71,292 (58,044)57,868 (92,963)
Deferred - State23,801 (13,134)12,024 (8,318)
$108,422 $(68,177)$76,800 $(98,144)
Difference Between Federal Statutory Rate and Effective Tax Rate The difference between the federal statutory rate of 21% and the effective tax rate is due to the following:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Tax at statutory rate21.0 %21.0 %21.0 %21.0 %
Tax effect of:
Valuation allowance on deferred tax assets(3.8)10.9 (4.0)(7.6)
State income taxes, net of federal benefit
5.0 4.1 5.3 1.3 
Nondeductible stock-based compensation
0.1 0.3 0.1 0.1 
Change in Louisiana tax law— (8.8)— 9.0 
Effective tax rate22.3 %27.5 %22.4 %23.8 %
Reconciliation of Beginning and Ending Balances for Derivative Instruments The following is a reconciliation of the beginning and ending balances for derivative instruments using Level 3 measurements in the fair value hierarchy:
Six Months Ended
June 30, 2021
(In thousands)
Balance at beginning of year$(22,588)
Total loss included in earnings(30,262)
Settlements, net5,402 
Transfers out of Level 3(6,418)
Balance at end of period$(53,866)
Summary of Carrying Amounts and Fair Values of Financial Instruments
The following presents the carrying amounts and the fair values of the Company's financial instruments as of June 30, 2022 and December 31, 2021:
As of
June 30, 2022December 31, 2021
Carrying ValueFair ValueCarrying ValueFair Value
Assets:(In thousands)
Commodity-based derivatives (1)
$2,086 $2,086 $5,258 $5,258 
Liabilities:
Commodity-based derivatives (1)
$318,585 $318,585 $185,987 $185,987 
Bank credit facility (2)
$350,000 $350,000 $235,000 $235,000 
7.5% senior notes due 2025 (3)
$— $— $196,998 $248,066 
6.75% senior notes due 2029 (3)
$1,230,235 $1,089,253 $1,256,874 $1,337,500 
5.875% senior notes due 2030 (3)
$965,000 $834,725 $965,000 $989,125 
_____________________________
(1)The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using third party pricing services and other active markets or broker quotes that are readily available in the public markets.
(2)The carrying value of our floating rate debt outstanding approximates fair value.
(3)The fair value of the Company's fixed rate debt was based on quoted prices as of June 30, 2022 and December 31, 2021, respectively, a Level 1 measurement.
Weighted Average Shares of Unvested Restricted Stock
Weighted average shares of unvested restricted stock outstanding were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands)
Unvested restricted stock905 1,091 926 1,063 
Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding The treasury stock method is used to measure the dilutive effect of PSUs.
Weighted average unearned PSUs outstanding were as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
(In thousands, except per unit amounts)
Weighted average PSUs1,080 1,192 1,065 1,165 
Weighted average grant date fair value per unit$10.41 $9.21 $10.41 $9.21 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Basic and diluted income (loss) per share for the three months and six months ended June 30, 2022 and 2021 were determined as follows:
Three Months Ended June 30,
20222021
IncomeSharesPer ShareLossSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$372,528 $(184,058)
Income allocable to unvested restricted shares(1,447)— 
Basic income (loss) attributable to common stock371,081 232,045 $1.60 (184,058)231,428 $(0.80)
Effect of Dilutive Securities:
Restricted stock1,447 680 — — 
Performance stock units— 1,139 — — 
Convertible preferred stock4,363 43,750 — — 
Diluted income (loss) attributable to common stock$376,891 277,614 $1.36 $(184,058)231,428 $(0.80)
Six Months Ended June 30,
20222021
IncomeSharesPer ShareLossSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$256,789 $(322,498)
Income allocable to unvested restricted shares(1,021)— 
Basic income (loss) attributable to common stock255,768 232,011 $1.10 (322,498)231,403 $(1.39)
Effect of Dilutive Securities:
Restricted stock1,021 640 — — 
Performance stock units— 1,084 — — 
Convertible preferred Stock8,678 43,750 — — 
Diluted income (loss) attributable to common stock$265,467 277,485 $0.96 $(322,498)231,403 $(1.39)
Cash Payments Made for Interest and Income Taxes
Cash payments made for interest and income taxes and other non-cash investing activities for the six months ended June 30, 2022 and 2021, respectively, were as follows:
Six Months Ended
June 30,
20222021
(In thousands)
Cash payments for:
Interest payments$89,641 $143,831 
Income tax payments$169 $— 
Non-cash investing activities include:
Increase in accrued capital expenditures$13,813 $785 
Liabilities assumed in exchange for right-of-use lease assets$108,881 $4,998