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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2024

Accounting Policies [Abstract]

Schedule of Other Current Assets

Other current assets at June 30, 2024 and December 31, 2023 consisted of the following:

		As of
		June 30, 2024				December 31, 2023
		(In thousands)
Prepaid drilling costs		$	57,640			$	70,124
Income tax receivable			4,625				8,312
Production tax refunds receivable			4,915				5,745
Prepaid expenses			2,109				2,438
		$	69,289			$	86,619

Capitalized Exploratory Well Costs

The changes in capitalized exploratory well costs are as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
		(In thousands)
Beginning capitalized exploratory well costs		$	58,034			$	30,557			$	96,233			$	867
Additions to exploratory well costs pending the determination of proved reserves			52,392				74,622				158,848				104,312
Determined to have found proved reserves			(40,626	)			(70,983	)			(185,281	)			(70,983	)
Ending capitalized exploratory well costs		$	69,800			$	34,196			$	69,800			$	34,196

Summary of Lease Cost Recognized

Lease costs recognized during the three months and six months ended June 30, 2024 and 2023 were as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
		(In thousands)
Operating lease cost included in general and administrative expense		$	421			$	444			$	840			$	889
Operating lease cost included in lease operating expense			566				502				1,088				1,010
Operating lease cost included in natural gas and oil properties			9,171				13,230				16,303				22,680
Variable lease cost (drilling rig and completion costs included in natural gas and oil properties)			848				3,301				3,365				5,062
Short-term lease cost (drilling rig costs included in natural gas and oil properties)			4,241				24,496				15,513				53,888
		$	15,247			$	41,973			$	37,109			$	83,529

Summary of Liabilities Under Contracts That Contain Operating Leases

As of June 30, 2024, expected future payments related to contracts that contain operating leases were as follows:

		(In thousands)
July 1 to December 31, 2024		$	20,313
2025			40,016
2026			33,950
2027			3,775
2028			1,560
Total lease payments			99,614
Imputed interest			(9,041	)
Total lease liability		$	90,573

Summary of Accrued Costs

Accrued costs at June 30, 2024 and December 31, 2023 consisted of the following:

		As of
		June 30, 2024				December 31, 2023
		(In thousands)
Accrued interest payable		$	60,669			$	54,912
Accrued transportation costs			31,153				32,294
Accrued drilling costs			21,508				35,876
Accrued income and other taxes			15,789				1,894
Accrued employee compensation			4,665				6,700
Accrued lease operating expenses			3,890				2,299
Other			1,740				491
		$	139,414			$	134,466

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,
		2024				2023
		(In thousands)
Reserve for future abandonment costs at beginning of period		$	30,773			$	29,114
New wells placed on production			87				67
Liabilities settled			(31	)			(42	)
Accretion expense			880				825
Reserve for future abandonment costs at end of period		$	31,709			$	29,964

Schedule of Natural Gas Price Derivative

The Company had the following natural gas price derivative financial instruments at June 30, 2024:

		Future Production Period
		Six Months Ending December 31, 2024		Year Ending December 31, 2025		Year Ending December 31, 2026		Total
Natural Gas Price Swap Contracts:
Volume (MMBtu)		101,200,000		136,875,000		109,500,000		347,575,000
Average Price per MMBtu		$3.54		$3.51		$3.51		$3.52
Natural Gas Price Collar Contracts:
Volume (MMBtu)				54,750,000		91,250,000		146,000,000
Average Price per MMBtu:
Average Ceiling				$3.80		$3.98		$3.92
Average Floor				$3.50		$3.50		$3.50

Schedule of Derivative Instruments

The classification of derivative financial instruments of assets or liabilities, consists of the following:

				As of
Type		Consolidated Balance Sheet Location		June 30, 2024				December 31, 2023
				(In thousands)
Asset Derivative Financial Instruments:
Natural gas price derivatives		Derivative Financial Instruments – current		$	79,649			$	126,775
Liability Derivative Financial Instruments:
Natural gas price derivatives		Derivative Financial Instruments – long-term		$	47,366			$	—

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:

		Three Months Ended June 30,								Six Months Ended June 30,
Gain (loss) on Derivatives Recognized in Earnings		2024				2023				2024				2023
		(In thousands)
Natural gas price derivatives		$	(25,252	)		$	(4,495	)		$	14,055			$	61,914
		$	(25,252	)		$	(4,495	)		$	14,055			$	61,914

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,
		2024				2023				2024				2023
		(In thousands)
Current - State		$	37			$	(536	)		$	37			$	—
Deferred - Federal			(36,585	)			(12,414	)			(41,580	)			24,351
Deferred - State			(9,558	)			(1,496	)			(12,855	)			919
		$	(46,106	)		$	(14,446	)		$	(54,398	)		$	25,270

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,
		2024				2023				2024				2023
Tax at statutory rate			21.0	%			21.0	%			21.0	%			21.0	%
Tax effect of:
Valuation allowance on deferred tax assets			(0.4	)			(0.7	)			(0.3	)			1.1
State income taxes, net of federal benefit			6.4				3.8				7.4				(0.5	)
Nondeductible stock-based compensation			(0.9	)			(0.1	)			(1.0	)			0.6
Other			1.1				—				1.2				—
Effective tax rate			27.2	%			24.0	%			28.3	%			22.2	%

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, 2024 and December 31, 2023:

		As of
		June 30, 2024								December 31, 2023
		Carrying Value				Fair Value				Carrying Value				Fair Value
		(In thousands)
Assets:
Commodity-based derivatives (1)		$	79,649			$	79,649			$	126,775			$	126,775
Liabilities:
Commodity-based derivatives (1)		$	47,366			$	47,366			$	—			$	—
Bank credit facility (2)		$	325,000			$	325,000			$	480,000			$	480,000
6.75% senior notes due 2029 (3)		$	1,601,667			$	1,567,104			$	1,229,018			$	1,138,208
5.875% senior notes due 2030 (3)		$	965,000			$	897,450			$	965,000			$	849,200

(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, 2024 and December 31, 2023, 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,
		2024				2023				2024				2023
		(In thousands)
Unvested restricted stock			2,550				1,124				2,283				1,042

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,
		2024		2023		2024		2023
		(In thousands, except per unit amounts)
Weighted average PSUs		1,420		597		1,253		586
Weighted average grant date fair value per unit		$13.21		$15.92		$13.21		$15.92

Schedule of Basic and Diluted Income (Loss) Per Share

Basic and diluted income (loss) per share for the three months and six months ended June 30, 2024 and 2023 were determined as follows:

		Three Months Ended June 30,
		2024												2023
		Loss				Shares				Per Share				Loss				Shares				Per Share
		(In thousands, except per share amounts)
Net loss attributable to common stock		$	(123,249	)										$	(45,706	)
Income allocable to unvested restricted shares			—												—
Basic loss attributable to common stock			(123,249	)			289,670			$	(0.43	)			(45,706	)			276,669			$	(0.17	)
Diluted loss attributable to common stock		$	(123,249	)			289,670			$	(0.43	)		$	(45,706	)			276,669			$	(0.17	)

		Six Months Ended June 30,
		2024												2023
		Loss				Shares				Per Share				Income				Shares				Per Share
		(In thousands, except per share amounts)
Net income (loss) attributable to common stock		$	(137,723	)										$	88,797
Income allocable to unvested restricted shares			—												(73	)
Basic income (loss) attributable to common stock			(137,723	)			283,816			$	(0.49	)			88,724				276,610			$	0.32
Diluted income (loss) attributable to common stock		$	(137,723	)			283,816			$	(0.49	)		$	88,724				276,610			$	0.32

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, 2024 and 2023, respectively, were as follows:

		Six Months Ended June 30,
		2024				2023
		(In thousands)
Cash payments for:
Interest payments		$	90,349			$	73,957
Income tax payments		$	37			$	29,182
Non-cash investing activities include:
Decrease in accrued capital expenditures		$	(14,368	)		$	(29,046	)
Liabilities assumed in exchange for right-of-use lease assets		$	34,196			$	124,383

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