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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2023
Accounting Policies [Abstract]  
Schedule of Other Current Assets
Other current assets at June 30, 2023 and December 31, 2022 consisted of the following:
As of
June 30,
2023		December 31, 2022
(In thousands)
Pipe and well equipment inventory$44,738 $34,819 
Production tax refunds receivable13,852 11,156 
Prepaid expenses2,187 2,455 
Prepaid drilling costs— 4,265 
Accrued proceeds from sale of natural gas and oil properties— 3,118 
Other— 511 
$60,777 $56,324 
Capitalized Exploratory Well Costs The changes in capitalized exploratory well costs are as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
(In thousands)
Beginning capitalized exploratory well costs$30,557 $18,523 $867 $6,966 
Additions to exploratory well costs pending the determination of proved reserves74,622 18,840 104,312 30,397 
Determined to have found proved reserves(70,983)(27,592)(70,983)(27,592)
Ending capitalized exploratory well costs$34,196 $9,771 $34,196 $9,771 
Summary of Lease Cost Recognized
Lease costs recognized during the three months and six months months ended June 30, 2023 and 2022 were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands)
Operating lease cost included in general and administrative expense$444 $436 $889 $871 
Operating lease cost included in lease operating expense502 329 1,010 599 
Operating lease cost included in natural gas and oil properties13,230 6,300 22,680 6,300 
Variable lease cost (completion costs included in natural gas and oil properties)3,301 11,127 5,062 11,127 
Short-term lease cost (drilling rig costs included in natural gas and oil properties)24,496 17,105 53,888 28,140 
$41,973 $35,297 $83,529 $47,037 
Summary of Liabilities Under Contracts That Contain Operating Leases
As of June 30, 2023, expected future payments related to contracts that contain operating leases were as follows:
(In thousands)
July 1 to December 31, 2023$43,143 
202486,791 
202559,208 
202619,151 
202717 
Total lease payments
208,310 
Imputed interest(15,572)
Total lease liability$192,738 
Summary of Accrued Costs
Accrued costs at June 30, 2023 and December 31, 2022 consisted of the following:
As of
June 30,
2023		December 31, 2022
(In thousands)
Accrued interest payable$54,377 $54,867 
Accrued transportation costs29,449 28,357 
Accrued drilling costs25,392 54,438 
Accrued income and other taxes10,174 31,256 
Accrued employee compensation8,484 11,308 
Accrued lease operating expenses3,861 2,412 
Other320 473 
$132,057 $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:
Six Months Ended
June 30,
20232022
(In thousands)
Reserve for future abandonment costs at beginning of period$29,114 $25,673 
New wells placed on production
67 844 
Acquisitions— 1,211 
Liabilities settled and assets disposed of
(42)(29)
Accretion expense
825 734 
Reserve for future abandonment costs at end of period$29,964 $28,433 
Schedule of Natural Gas Price Derivative
The Company had the following natural gas price derivative financial instruments at June 30, 2023:
Future Production Period
Six Months Ending December 31, 2023Year Ending December 31, 2024Total
Natural Gas Price Swap Contracts:
Volume (MMBtu)— 47,580,000 47,580,000 
Average Price per MMBtu$3.50 $3.50 
Natural Gas Price Collar Contracts:
Volume (MMBtu)46,000,000 46,000,000 
Average Price per MMBtu:
Average Ceiling$10.28 $10.28 
Average Floor$3.00 $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 LocationJune 30,
2023		December 31, 2022
(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$17,553 $23,884 
$17,553 $23,884 
Liability Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$— $4,420 
$— $4,420 
Natural gas price derivativesDerivative Financial Instruments  – long-term$2,052 $— 
$2,052 $— 
Schedule of Gains and Losses from Derivative Contracts Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:
Gain (Loss) on Derivatives
Recognized in Earnings		Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
(In thousands)
Natural gas price derivatives$(4,495)$(72,826)$61,914 $(510,319)
$(4,495)$(72,826)$61,914 $(510,319)
Consolidated Income Tax Benefit (Provision)
The following is an analysis of the consolidated income tax provision (benefit):
Three Months Ended
June 30,		Six Months Ended
June 30,
2023202220232022
(In thousands)
Current - Federal$— $5,360 $— $1,399 
Current - State(536)7,969 — 5,509 
Deferred - Federal(12,414)71,292 24,351 57,868 
Deferred - State(1,496)23,801 919 12,024 
$(14,446)$108,422 $25,270 $76,800 
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,
2023202220232022
Tax at statutory rate21.0 %21.0 %21.0 %21.0 %
Tax effect of:
Valuation allowance on deferred tax assets(0.7)(3.8)1.1 (4.0)
State income taxes, net of federal benefit
3.8 5.0 (0.5)5.3 
Nondeductible stock-based compensation
(0.1)0.1 0.6 0.1 
Effective tax rate24.0 %22.3 %22.2 %22.4 %
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, 2023 and December 31, 2022:
As of
June 30, 2023December 31, 2022
Carrying ValueFair ValueCarrying ValueFair Value
Assets:(In thousands)
Commodity-based derivatives (1)
$17,553 $17,553 $23,884 $23,884 
Liabilities:
Commodity-based derivatives (1)
$2,052 $2,052 $4,420 $4,420 
Bank credit facility (2)
$20,000 $20,000 $— $— 
6.75% senior notes due 2029 (3)
$1,229,437 $1,122,910 $1,229,836 $1,129,029 
5.875% senior notes due 2030 (3)
$965,000 $832,313 $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 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, 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
June 30,		Six Months Ended
June 30,
2023202220232022
(In thousands)
Unvested restricted stock1,124 905 1,042 926 
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,
2023202220232022
(In thousands, except per unit amounts)
Weighted average PSUs597 1,080 586 1,065 
Weighted average grant date fair value per unit$15.92 $10.41 $15.92 $10.41 
Schedule of Basic and Diluted Income (Loss) Per Share
Basic and diluted income (loss) per share for the three months and six months months ended June 30, 2023 and 2022 were determined as follows:
Three Months Ended June 30,
20232022
IncomeSharesPer ShareLossSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$(45,706)$372,528 
Income allocable to unvested restricted shares— (1,447)
Basic income (loss) attributable to common stock(45,706)276,669 $(0.17)371,081 232,045 $1.60 
Effect of Dilutive Securities:
Restricted stock— — 1,447 680 
Performance stock units— — — 1,139 
Convertible preferred stock— — 4,363 43,750 
Diluted income (loss) attributable to common stock$(45,706)276,669 $(0.17)$376,891 277,614 $1.36 
Six Months Ended June 30,
20232022
IncomeSharesPer ShareLossSharesPer Share
(In thousands, except per share amounts)
Net income attributable to common stock$88,797 $256,789 
Income allocable to unvested restricted shares(73)(1,021)
Basic income attributable to common stock88,724 276,610 $0.32 255,768 232,011 $1.10 
Effect of Dilutive Securities:
Restricted stock— — 1,021 640 
Performance stock units— — — 1,084 
Convertible preferred stock— — 8,678 43,750 
Diluted income attributable to common stock$88,724 276,610 $0.32 $265,467 277,485 $0.96 
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, 2023 and 2022, respectively, were as follows:
Six Months Ended
June 30,
20232022
(In thousands)
Cash payments for:
Interest payments$73,957 $89,641 
Income tax payments$29,182 $169 
Non-cash investing activities include:
Increase (decrease) in accrued capital expenditures$(29,046)$13,813 
Liabilities assumed in exchange for right-of-use lease assets$124,383 $108,881