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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 2023
Accounting Policies [Abstract]  
Schedule of Other Current Assets
Other current assets at March 31, 2023 and December 31, 2022 consisted of the following:
As of
March 31,
2023		December 31, 2022
(In thousands)
Pipe and well equipment inventory$40,170 $34,819 
Production tax refunds receivable15,236 11,156 
Prepaid expenses2,543 2,455 
Prepaid drilling costs598 4,265 
Accrued proceeds from sale of oil and gas properties975 3,118 
Other— 511 
$59,522 $56,324 
Capitalized Exploratory Well Costs The changes in capitalized exploratory well costs are as follows:
Three Months Ended
March 31,		Three Months Ended
March 31,
20232022
(In thousands)
Beginning capitalized exploratory well costs$867 $6,966 
Additions to exploratory well costs pending the determination of proved reserves29,690 11,557 
Ending capitalized exploratory well costs$30,557 $18,523 
Summary of Lease Cost Recognized
Lease costs recognized during the three months ended March 31, 2023 and 2022 were as follows:
Three Months Ended March 31,
20232022
(In thousands)
Operating lease cost included in general and administrative expense$445 $435 
Operating lease cost included in lease operating expense508 270 
Operating lease cost included in oil and natural gas properties9,450 — 
Variable lease cost (completion costs included in oil and natural gas properties)1,761 — 
Short-term lease cost (drilling rig costs included in oil and natural gas properties)29,392 11,035 
$41,556 $11,740 
Summary of Liabilities Under Contracts That Contain Operating Leases
As of March 31, 2023, expected future payments related to contracts that contain operating leases were as follows:
(In thousands)
April 1 to December 31, 2023$30,753 
202441,238 
202513,650 
2026158 
202717 
Total lease payments
85,816 
Imputed interest(3,281)
Total lease liability$82,535 
Summary of Accrued Costs
Accrued costs at March 31, 2023 and December 31, 2022 consisted of the following:
As of
March 31,
2023		December 31, 2022
(In thousands)
Accrued drilling costs$53,429 $54,438 
Accrued income and other taxes36,776 31,256 
Accrued transportation costs28,135 28,357 
Accrued interest payable19,697 54,867 
Accrued employee compensation5,023 11,308 
Accrued lease operating expenses2,324 2,412 
Other395 473 
$145,779 $183,111 
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:
Three Months Ended
March 31,
20232022
(In thousands)
Reserve for future abandonment costs at beginning of period$29,114 $25,673 
New wells placed on production
30 381 
Accretion expense
409 362 
Reserve for future abandonment costs at end of period$29,553 $26,416 
Schedule of Oil and Natural Gas Price Derivative
The Company had the following oil and natural gas price derivative financial instruments at March 31, 2023:
Future Production Period
Nine Months Ending December 31, 2023
Natural Gas Collar Contracts:
Volume (MMBtu)107,425,000 
Average Price per MMBtu:
Average Ceiling$10.22 
Average Floor$3.00 
Schedule of Derivative Instruments
The classification of derivative financial instruments of assets or liabilities, consists of the following:
As of
TypeConsolidated Balance Sheet LocationMarch 31,
2023		December 31, 2022
(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$75,490 $23,884 
$75,490 $23,884 
Liability Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$— $4,420 
$— $4,420 
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:
Gain (Loss) on Derivatives
Recognized in Earnings		Three Months Ended
March 31,
20232022
(In thousands)
Natural gas price derivatives$66,409 $(437,493)
$66,409 $(437,493)
Consolidated Income Tax Benefit (Provision)
The following is an analysis of the consolidated income tax provision (benefit):
Three Months Ended
March 31,
20232022
(In thousands)
Current - Federal$— $(3,961)
Current - State536 (2,460)
Deferred - Federal36,765 (13,424)
Deferred - State2,415 (11,777)
$39,716 $(31,622)
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
March 31,
20232022
Tax at statutory rate21.0 %21.0 %
Tax effect of:
Valuation allowance on deferred tax assets0.5 (3.6)
State income taxes, net of federal benefit
1.0 4.6 
Nondeductible stock-based compensation
0.4 0.1 
Effective tax rate22.9 %22.1 %
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 March 31, 2023 and December 31, 2022:
As of
March 31, 2023December 31, 2022
Carrying ValueFair ValueCarrying ValueFair Value
Assets:(In thousands)
Commodity-based derivatives (1)
$75,490 $75,490 $23,884 $23,884 
Liabilities:
Commodity-based derivatives (1)
$— $— $4,420 $4,420 
6.75% senior notes due 2029 (2)
$1,229,639 $1,101,492 $1,229,836 $1,129,029 
5.875% senior notes due 2030 (2)
$965,000 $822,663 $965,000 $846,788 
_____________________________
(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 fair value of the Company's fixed rate debt was based on quoted prices as of March 31, 2023 and December 31, 2022, 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
March 31,
20232022
(In thousands)
Unvested restricted stock960 947 
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
March 31,
20232022
(In thousands, except per unit amounts)
Weighted average PSUs548 1,050 
Weighted average grant date fair value per unit$14.76 $8.11 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
Basic and diluted income (loss) per share for the three months ended March 31, 2023 and 2022 were determined as follows:
Three Months Ended March 31,
20232022
IncomeSharesPer ShareLossSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$134,503 $(115,739)
Income allocable to unvested restricted shares(345)— 
Basic income (loss) attributable to common stock134,158 276,551 $0.49 (115,739)231,976 $(0.50)
Diluted income (loss) attributable to common stock$134,158 276,551 $0.49 $(115,739)231,976 $(0.50)
Cash Payments Made for Interest and Income Taxes
Cash payments made for interest and income taxes and other non-cash investing activities for the three months ended March 31, 2023 and 2022, respectively, were as follows:
Three Months Ended
March 31,
20232022
(In thousands)
Cash payments for:
Interest payments$71,443 $75,928 
Income tax payments$184 $— 
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures$(1,009)$14,499 
Liabilities assumed in exchange for right-of-use lease assets$1,417 $1,089