Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-03262 | ||
Entity Registrant Name | COMSTOCK RESOURCES, INC. | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 94-1667468 | ||
Entity Address, Address Line One | 5300 Town and Country Blvd. | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Frisco | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75034 | ||
City Area Code | 972 | ||
Local Phone Number | 668-8800 | ||
Title of 12(b) Security | Common Stock, par value $0.50 (per share) | ||
Trading Symbol | CRK | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1.1 | ||
Entity Common Stock, Shares Outstanding | 278,429,463 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission not later than 120 days after December 31, 2023 are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000023194 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor firm ID | 42 |
Auditor name | ERNST & YOUNG LLP |
Auditor location | Dallas, Texas |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 16,669 | $ 54,652 |
Accounts receivable: | ||
Natural gas and oil sales and gas services | 166,639 | 415,079 |
Joint interest operations | 48,704 | 76,521 |
From affiliates | 16,087 | 18,527 |
Derivative financial instruments | 126,775 | 23,884 |
Other current assets | 86,619 | 56,324 |
Total current assets | 461,493 | 644,987 |
Natural gas and oil properties, successful efforts method: | ||
Proved | 7,126,519 | 5,843,409 |
Unproved | 343,419 | 298,230 |
Other | 62,382 | 26,475 |
Accumulated depreciation, depletion and amortization | (2,147,549) | (1,545,459) |
Net property and equipment | 5,384,771 | 4,622,655 |
Goodwill | 335,897 | 335,897 |
Operating lease right-of-use assets | 71,462 | 90,716 |
Total assets | 6,253,623 | 5,694,255 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable | 523,260 | 530,195 |
Accrued expenses | 134,466 | 183,111 |
Operating leases | 23,765 | 38,411 |
Derivative financial instruments | 0 | 4,420 |
Total current liabilities | 681,491 | 756,137 |
Long-term debt | 2,640,391 | 2,152,571 |
Deferred income taxes | 470,035 | 425,734 |
Long-term operating leases | 47,742 | 52,385 |
Reserve for future abandonment costs | 30,773 | 29,114 |
Total liabilities | 3,870,432 | 3,415,941 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock - $0.50 par, 400,000,000 shares authorized, 278,429,463 and 277,517,087 shares issued and outstanding at December 31, 2023 and 2022, respectively | 139,214 | 138,759 |
Additional paid-in capital | 1,260,930 | 1,253,417 |
Accumulated earnings | 958,270 | 886,138 |
Total stockholders' equity attributable to Comstock | 2,358,414 | 2,278,314 |
Noncontrolling interest | 24,777 | 0 |
Total stockholders' equity | 2,383,191 | 2,278,314 |
Total liabilities and stockholders' equity | $ 6,253,623 | $ 5,694,255 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other | $ 62,382 | $ 26,475 |
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 278,429,463 | 277,517,087 |
Common stock, shares outstanding (in shares) | 278,429,463 | 277,517,087 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues: | |||
Total revenues | $ 1,565,109 | $ 3,628,057 | $ 1,850,730 |
Operating expenses: | |||
Production and ad valorem taxes | 91,803 | 77,917 | 49,141 |
Gathering and transportation | 184,906 | 155,679 | 130,940 |
Lease operating | 132,203 | 111,134 | 103,467 |
Depreciation, depletion and amortization | 607,908 | 489,450 | 469,388 |
Gas services | 282,050 | 465,044 | 0 |
General and administrative, net | 37,992 | 39,405 | 34,943 |
Exploration | 1,775 | 8,287 | 0 |
(Gain) loss on sale of assets | (125) | (340) | 162,077 |
Total operating expenses | 1,338,512 | 1,346,576 | 949,956 |
Operating income | 226,597 | 2,281,481 | 900,774 |
Other income (expenses): | |||
Gain (loss) from derivative financial instruments | 187,639 | (662,522) | (560,648) |
Other income | 1,771 | 916 | 636 |
Interest expense | (169,018) | (171,092) | (218,485) |
Loss on early extinguishment of debt | 0 | (46,840) | (352,599) |
Total other income (expenses) | 20,392 | (879,538) | (1,131,096) |
Income (loss) before income taxes | 246,989 | 1,401,943 | (230,322) |
Provision for income taxes | (35,095) | (261,061) | (11,403) |
Net income (loss) | 211,894 | 1,140,882 | (241,725) |
Preferred stock dividends and accretion | 0 | (16,014) | (17,500) |
Net income (loss) available to common stockholders | 211,894 | 1,124,868 | (259,225) |
Net income attributable to noncontrolling interest | (777) | 0 | 0 |
Net income (loss) | $ 211,117 | $ 1,124,868 | $ (259,225) |
Net income per share: | |||
Basic (in dollars per share) | $ 0.76 | $ 4.75 | $ (1.12) |
Diluted (in dollars per share) | $ 0.76 | $ 4.11 | $ (1.12) |
Weighted average shares outstanding: | |||
Basic (in shares) | 276,806 | 236,045 | 231,633 |
Diluted (in shares) | 276,806 | 277,465 | 231,633 |
Dividends per share | $ 0.50 | $ 0.125 | $ 0 |
Total natural gas and oil sales | |||
Revenues: | |||
Total revenues | $ 1,264,611 | $ 3,124,691 | $ 1,850,730 |
Natural gas sales | |||
Revenues: | |||
Total revenues | 1,259,450 | 3,117,094 | 1,775,768 |
Oil sales | |||
Revenues: | |||
Total revenues | 5,161 | 7,597 | 74,962 |
Gas services | |||
Revenues: | |||
Total revenues | $ 300,498 | $ 503,366 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2020 | 232,415 | ||||
Beginning balance at Dec. 31, 2020 | $ 1,266,773 | $ 116,206 | $ 1,095,384 | $ 55,183 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 766 | ||||
Stock-based compensation | 6,799 | $ 384 | 6,415 | ||
Income tax withholdings on equity awards (in shares) | (256) | ||||
Income tax withholdings on equity awards | (1,412) | $ (128) | (1,284) | ||
Stock issuance costs | (156) | (156) | |||
Net income (loss) | (241,725) | ||||
Profit loss parent net income (loss) | (241,725) | ||||
Payment of preferred dividends | (17,500) | (17,500) | |||
Ending balance (in shares) at Dec. 31, 2021 | 232,925 | ||||
Ending balance at Dec. 31, 2021 | 1,012,779 | $ 116,462 | 1,100,359 | (204,042) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 1,159 | ||||
Stock-based compensation | 6,610 | $ 580 | 6,030 | ||
Income tax withholdings on equity awards (in shares) | (317) | ||||
Income tax withholdings on equity awards | (6,255) | $ (158) | (6,097) | ||
Issuance of common stock (in shares) | 43,750 | ||||
Issuance of common stock | 175,000 | $ 21,875 | 153,125 | ||
Net income (loss) | 1,140,882 | ||||
Profit loss parent net income (loss) | 1,140,882 | ||||
Payment of preferred dividends | 16,014 | (16,014) | |||
Payment of common stock dividends | (34,688) | 34,688 | |||
Ending balance (in shares) at Dec. 31, 2022 | 277,517 | ||||
Ending balance at Dec. 31, 2022 | 2,278,314 | $ 138,759 | 1,253,417 | 886,138 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation (in shares) | 1,103 | ||||
Stock-based compensation | 9,867 | $ 550 | 9,317 | ||
Income tax withholdings on equity awards (in shares) | (190) | ||||
Income tax withholdings on equity awards | (1,899) | $ (95) | (1,804) | ||
Net income (loss) | 211,894 | $ 777 | |||
Profit loss parent net income (loss) | 211,117 | ||||
Payment of common stock dividends | (138,985) | (138,985) | |||
Contributions from noncontrolling interest | 24,000 | 24,000 | |||
Ending balance (in shares) at Dec. 31, 2023 | 278,430 | ||||
Ending balance at Dec. 31, 2023 | $ 2,383,191 | $ 139,214 | $ 1,260,930 | $ 958,270 | $ 24,777 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income (loss) | $ 211,894 | $ 1,140,882 | $ (241,725) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred and non-current income taxes | 44,301 | 228,317 | (3,565) |
(Gain) loss on sale of assets | (125) | (340) | 162,077 |
Depreciation, depletion and amortization | 607,908 | 489,450 | 469,388 |
(Gain) loss on derivative financial instruments | (187,639) | 662,522 | 560,648 |
Cash settlements of derivative financial instruments | 80,328 | (862,715) | (419,714) |
Amortization of debt discount, premium and issuance costs | 7,964 | 10,255 | 21,703 |
Stock-based compensation | 9,867 | 6,610 | 6,799 |
Loss on early extinguishment of debt | 0 | 46,840 | 352,599 |
(Increase) decrease in accounts receivable | 278,697 | (242,389) | (121,952) |
(Increase) decrease in other current assets | 745 | (10,296) | (98) |
Increase (decrease) in accounts payable and accrued expenses | (37,094) | 229,252 | 74,780 |
Net cash provided by operating activities | 1,016,846 | 1,698,388 | 860,940 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | (1,425,086) | (1,067,800) | (691,005) |
Prepaid drilling costs | (34,010) | (34,069) | (140) |
Proceeds from sales of assets | 41,295 | 4,186 | 138,394 |
Net cash used for investing activities | (1,417,801) | (1,097,683) | (552,751) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings on bank credit facility | 820,000 | 755,000 | 555,000 |
Repayments on bank credit facility | (340,000) | (990,000) | (820,000) |
Issuance of Senior Notes | 0 | 0 | 2,222,500 |
Retirement of Senior Notes | 0 | (273,920) | (2,210,626) |
Debt and stock issuance costs | (144) | (10,839) | (35,760) |
Income tax withholdings on equity awards | (1,899) | (6,255) | (1,412) |
Preferred stock dividends paid | 0 | (16,014) | (17,500) |
Common stock dividends paid | (138,985) | (34,688) | 0 |
Contributions from noncontrolling interest | 24,000 | 0 | 0 |
Net cash used for financing activities | 362,972 | (576,716) | (307,798) |
Net increase (decrease) in cash and cash equivalents | (37,983) | 23,989 | 391 |
Cash and cash equivalents, beginning of the year | 54,652 | 30,663 | 30,272 |
Cash and cash equivalents, end of the year | $ 16,669 | $ 54,652 | $ 30,663 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Accounting policies used by Comstock Resources, Inc. and subsidiaries reflect natural gas and oil industry practices and conform to accounting principles generally accepted in the United States of America. Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Comstock Resources, Inc., its wholly owned or controlled subsidiaries and a variable interest entity for which Comstock is the primary beneficiary (collectively, "Comstock" or the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its undivided interest in natural gas and oil properties using the proportionate consolidation method, whereby its share of assets, liabilities, revenues and expenses are included in its financial statements. Net income (loss) and comprehensive income (loss) are the same in all periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. Comstock entered into an agreement with an affiliate of Quantum Capital Solutions ("Quantum"), in the fourth quarter of 2023 to form Pinnacle Gas Services, LLC ("PGS"), a midstream company in Comstock's Western Haynesville area. As part of the transaction, Comstock contributed a 145-mile high-pressure pipeline and a natural gas treating plant. Quantum committed to contribute up to $ 300 million to fund future expansion costs. Quantum is entitled to a 12 % dividend on its invested capital and 80 % of any distributions from Pinnacle until certain return hurdles are met. After the return hurdles are met, Quantum's ownership reduces to 30 %. Comstock operates and manages PGS pursuant to a management services agreement. The Board of PGS is comprised of five members: three selected by Comstock and two selected by Quantum. PGS is considered a variable interest entity to Comstock. Comstock has the power to direct the activities that most significantly impact the performance of PGS and has the obligation to absorb losses or right to receive benefits that could potentially be significant to PGS. Accordingly, Comstock is considered the primary beneficiary and consolidates the assets, liabilities and results of operations of PGS in the accompanying consolidated financial statements. PGS assets that cannot be used by Comstock include $ 54.9 million of other property and equipment as of December 31, 2023 . Other PGS assets that cannot be used by Comstock and PGS liabilities for which creditors do not have recourse to Comstock's assets are not material to the Company's consolidated financial statements. The portion of PGS net income and stockholders' equity not attributable to Comstock's controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of operations and statements of stockholders' equity. Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Changes in the future estimated natural gas and oil reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analyses could have a significant impact on the future results of operations. Concentration of Credit Risk, Accounts Receivable and Credit Losses Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative financial instruments. The Company places its cash with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. Substantially all of the Company's accounts receivable are due from either purchasers of natural gas and oil or participants in natural gas and oil wells for which the Company serves as the operator. Generally, operators of natural gas and oil wells have the right to offset future revenues against unpaid charges related to operated wells. Natural gas and oil sales are generally unsecured. The Company's policy is to assess the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been recorded for the years ended December 31, 2023, 2022 and 2021 , respectively. Other Current Assets Other current assets at December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 (In thousands) Prepaid drilling costs $ 70,124 $ 39,084 Income tax receivable 8,312 — Production tax refunds receivable 5,745 11,156 Prepaid expenses 2,438 2,455 Accrued proceeds from sale of natural gas and oil properties — 3,118 Other — 511 $ 86,619 $ 56,324 Fair Value Measurements The Company holds or has held certain financial assets and liabilities that are required to be measured at fair value in the financial statements. These include cash and cash equivalents held in bank accounts and derivative financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 — Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. The following presents the carrying amounts and the fair values of the Company's financial instruments as of December 31, 2023 and 2022: As of December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Assets: (In thousands) Commodity-based derivatives (1) $ 126,775 $ 126,775 $ 23,884 $ 23,884 Liabilities: Commodity-based derivatives (1) — — 4,420 4,420 Bank credit facility (2) 480,000 480,000 — — 6.75 % senior notes due 2029 (3) 1,229,018 1,138,208 1,229,836 1,129,029 5.875 % senior notes due 2030 (3) 965,000 849,200 965,000 846,788 (1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using a market approach 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 December 31, 2023 and 2022 , respectively, a Level 1 measurement. Property and Equipment The Company follows the successful efforts method of accounting for its natural gas and oil properties. Costs incurred to acquire natural gas and oil leasehold are capitalized. Acquisition costs for proved natural gas and oil properties, costs of drilling and equipping productive wells, and costs of unsuccessful development wells are capitalized and amortized on an equivalent unit-of-production basis over the life of the remaining related natural gas and oil reserves. Equivalent units are determined by converting oil to natural gas at the ratio of one barrel of oil for six thousand cubic feet of natural gas. This conversion ratio is not based on the price of oil or natural gas, and there may be a significant difference in price between an equivalent volume of oil versus natural gas. Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved natural gas and oil reserves. The changes in capitalized exploratory well costs are as follows: Year Ended December 31, 2023 2022 (in thousands) Beginning capitalized exploratory project costs $ 867 $ 6,966 Additions to exploratory well costs pending the determination of proved reserves 244,129 63,520 Determined to have found proved reserves ( 148,763 ) ( 69,619 ) Ending capitalized exploratory well costs $ 96,233 $ 867 As of December 31, 2023 and 2022, the Company had no exploratory wells for which costs have been capitalized greater than one year. The estimated future costs of dismantlement, restoration, plugging and abandonment of natural gas and oil properties and related facilities disposal are capitalized when asset retirement obligations are incurred and amortized as part of depreciation, depletion and amortization expense. Exploration expense includes geological and geophysical expenses and delay rentals related to exploratory natural gas and oil properties, costs of unsuccessful exploratory drilling and impairments of unproved properties. As of December 31, 2023 and 2022, the unproved properties primarily relate to future drilling locations that were not included in proved undeveloped reserves. Most of these future drilling locations are located on acreage where the reservoir is known to be productive but have been excluded from proved reserves due to uncertainty on whether the wells would be drilled within the next five years as required by SEC rules in order to be included in proved reserves. The costs of unproved properties are transferred to proved natural gas and oil properties when they are either drilled or they are reflected in proved undeveloped reserves and amortized on an equivalent unit-of-production basis. Costs associated with unevaluated exploratory acreage are periodically assessed for impairment on a property by property basis, and any impairment in value is included in exploration expense. Exploratory drilling costs are initially capitalized as proved property but charged to expense if and when the well is determined not to have found commercial proved natural gas and oil reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company assesses the need for an impairment of the costs capitalized for its proved natural gas and oil properties when events or changes in circumstances, such as a significant drop in commodity prices, indicate that the Company may not be able to recover its capitalized costs. If impairment is indicated based on undiscounted expected future cash flows attributable to the property, then a provision for impairment is recognized to the extent that net capitalized costs exceed the estimated fair value of the property. The Company determines the fair values of its natural gas and oil properties using a discounted cash flow model and proved and risk-adjusted probable reserves. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for natural gas and oil prices, future natural gas and oil production, production costs, capital expenditures, and the total proved and risk-adjusted probable natural gas and oil reserves expected to be recovered. Management's natural gas and oil price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. The natural gas and oil prices used for determining asset impairments will generally differ from those used in the standardized measure of discounted future net cash flows because the standardized measure requires the use of an average price based on the first day of each month of the preceding year. Unproved properties are evaluated for impairment based upon the results of drilling, planned future drilling and the terms of the natural gas and oil leases. The Company's estimates of undiscounted future net cash flows attributable to its natural gas and oil properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable natural gas and oil reserves, results of future drilling activities, future prices for natural gas and oil, and increases or decreases in production and capital costs. As a result of these changes, there may be future impairments in the carrying values of our natural gas and oil properties. Other property and equipment consists primarily of pipelines, natural gas treating plants, computer equipment, furniture and fixtures and an airplane which are depreciated over estimated useful lives ranging from three to 50 years on a straight-line basis. Goodwill The Company had goodwill of $ 335.9 million as of December 31, 2023 and 2022. Goodwill represents the excess of purchase price over fair value of net tangible and identifiable intangible assets in a business combination. The Company is required to conduct an annual review of goodwill for impairment and performs the assessment of goodwill on October 1st of each year. If the carrying value of goodwill exceeds the fair value, an impairment charge would be recorded for the difference between fair value and carrying value. The Company performed its quantitative assessment of goodwill as of October 1, 2023 and determined there was no indication of impairment. Leases The Company had right-of-use lease assets of $ 71.5 million and $ 90.7 million as of December 31, 2023 and 2022, respectively, related to its corporate office lease, certain office equipment, vehicles and drilling rigs with corresponding short-term and long-term liabilities. The value of the lease assets and liabilities are determined based upon discounted future minimum cash flows contained within each of the respective contracts, including the effects of early termination provisions. The Company determines if contracts contain a lease at inception of the contract. Since most of the Company's lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate at the commencement date of the lease. To the extent that contract terms representing a lease are identified, leases are identified as being either an operating lease or a finance-type lease. Comstock currently has no finance-type leases. Right-of-use lease assets representing the Company's right to use an underlying asset for the lease term and the related lease liabilities represent its obligation to make lease payments under the terms of the contracts. Short-term leases that have an initial term of one year or less are not capitalized; however, amounts paid for those leases are included as part of its lease cost disclosures. Short-term lease costs exclude expenses related to leases with a lease term of one month or less. Comstock contracts for a variety of equipment used in its natural gas and oil exploration and development operations. Contract terms for this equipment vary broadly, including the contract duration, pricing, scope of services included along with the equipment, cancellation terms, and rights of substitution, among others. The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for natural gas and oil, and the overall operating and economic environment. Accordingly, Comstock manages the terms of its contracts for drilling rigs and completion equipment so as to allow for maximum flexibility in responding to these changing conditions. The Company has two drilling rig lease contracts with a three year term with options to extend the term by mutual agreement at mutually acceptable terms or terminate the contract at any time without default by the lessor. The Company's other drilling rig contracts are presently either for periods of less than one year, or they are on terms that provide for cancellation with 30 or 45 days advance notice without a specified expiration date. The Company had two hydraulic fracturing fleet completion contracts with three year terms but both contracts were terminated during 2023. The Company has elected not to recognize right-of-use lease assets for contracts less than one year. The costs associated with drilling and completion operations are accounted for under the successful efforts method, which require that these costs be capitalized as part of our proved natural gas and oil properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense. For drilling rig leases, the Company has elected the practical expedient to not separate lease components from nonlease components in the determination of their lease asset and liability values. Lease costs recognized during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost included in general and administrative expense $ 1,768 $ 1,749 $ 1,732 Operating lease cost included in lease operating expense 2,060 1,383 879 Operating lease cost included in proved natural gas and oil properties 56,755 25,200 — Variable lease cost (drilling and completion costs included in proved natural gas and oil properties) 28,406 25,095 — Short-term lease cost (drilling rig costs included in proved natural gas and oil properties) 89,163 62,077 32,735 $ 178,152 $ 115,504 $ 35,346 Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $ 3.8 million , $ 3.1 million and $ 2.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Cash payments for operating leases associated with right-of-use assets included in cash used for investing activities were $ 174.3 million , $ 112.4 million and $ 32.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the operating leases had a weighted average remaining term of 2.9 years and 2.2 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 7.2 % and 3.5 % , respectively. As of December 31, 2023, expected future payments related to contracts that contain operating leases were as follows: (In thousands) 2024 $ 28,173 2025 27,251 2026 21,181 2027 1,545 2028 1,560 Total lease payments 79,710 Imputed interest ( 8,203 ) Total lease liability $ 71,507 Accrued Expenses Accrued expenses at December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 (In thousands) Accrued interest payable $ 54,912 $ 54,867 Accrued drilling costs 35,876 54,438 Accrued transportation costs 32,294 28,357 Accrued employee compensation 6,700 11,308 Accrued lease operating expenses 2,299 2,412 Accrued income and other taxes 1,894 31,256 Other 491 473 $ 134,466 $ 183,111 Reserve for Future Abandonment Costs The Company's asset retirement obligations relate to future plugging and abandonment costs of its natural gas and oil properties and related facilities disposal. The Company records a liability in the period in which an asset retirement obligation is incurred, in an amount equal to the estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final retirement cost. Accretion of the discount is included as part of depreciation, depletion and amortization in the accompanying consolidated statements of operations. The following table summarizes the changes in the Company's total estimated liability: Year Ended December 31, 2023 2022 (In thousands) Reserve for future abandonment costs at beginning of the year $ 29,114 $ 25,673 New wells placed on production 146 1,537 Acquisitions — 1,211 Changes in estimates and timing ( 122 ) 182 Liabilities settled ( 41 ) ( 80 ) Divestitures ( 1 ) ( 944 ) Accretion expense 1,677 1,535 Reserve for future abandonment costs at end of the year $ 30,773 $ 29,114 Stock-based Compensation The Company has stock-based employee compensation plans under which stock awards, comprised primarily of restricted stock and performance share units ("PSUs"), are issued to employees and non-employee directors. The Company follows the fair value-based method in accounting for equity-based compensation. Under the fair value based method, compensation cost is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the award vesting period. Forfeitures are recognized as they occur. Segment Reporting The Company presently operates in one business segment, the exploration and production of North American natural gas and oil. Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments (including derivative instruments embedded in other contracts) as either an asset or liability measured at its fair value. Changes in the fair value of derivatives are recognized currently in earnings and in net cash flows from operating activities. The fair value of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. Major Purchasers In 2023, the Company had three major purchasers of its natural gas production that accounted for 20 % , 17 % , and 10 % of its total natural gas and oil sales. In 2022 , the Company had three major purchasers of its natural gas production that accounted for 27 % , 21 % , and 12 % of its total natural gas and oil sales. In 2021 , the Company had three major purchasers of its natural gas production that accounted for 22 % , 21 % and 13 % of its total natural gas and oil sales. The loss of any of these purchasers would not have a material adverse effect on the Company as there is an available market for its natural gas and oil production from other purchasers. Revenue Recognition and Gas Balancing Comstock produces natural gas and oil and reports revenues separately for each of these two primary products in its statements of operations. Revenues are recognized upon the transfer of produced volumes to the Company's customers, who take control of the volumes and receive all the benefits of ownership upon delivery at designated sales points. Costs incurred to gather or transport each product prior to the transfer of control are recognized as operating expenses. Gas services revenues represent sales of natural gas purchased for resale from unaffiliated third parties and fees received for gathering and treating services for certain natural gas wells not operated by the Company. Revenues are recognized upon completion of the gathering and treating of contracted natural gas volumes and delivery of purchased natural gas volumes to the Company's customers. Profits and losses earned in the gathering and treating of natural gas produced by the Company's natural gas wells are eliminated in consolidation. Revenues and expenses associated with natural gas purchased for resale are presented on a gross basis in the Company's consolidated statements of operations as the Company acts as the principal in the transaction by assuming the risks and rewards from ownership of the natural gas volumes purchased and the responsibility to deliver the natural gas volumes to their sales point. All natural gas and oil and gas services revenues are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties. These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties. Prices for sales of natural gas and oil are generally based upon terms that are common in the natural gas and oil industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions. As a result, prices for natural gas and oil routinely fluctuate based on changes in these factors. Prices for gathering and treating services are generally fixed in nature but can vary due to the quality of the gas being treated. Each unit of production (thousand cubic feet of natural gas and barrel of crude oil ) represents a separate performance obligation under the Company's contracts since each unit has economic benefit on its own and each is priced separately according to the terms of the contracts. Comstock has elected to exclude all taxes from the measurement of transaction prices, and its natural gas and oil revenues are reported net of royalties and exclude revenue interests owned by others because the Company acts as an agent when selling natural gas and oil, on behalf of royalty owners and working interest owners. Natural gas and oil revenue is recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. Gas services revenue is recorded in the month the services are performed or purchased gas is sold based on an estimate of natural gas volumes and contract prices. The Company recognizes any differences between estimates and actual amounts received in the month when payment is received. Historically, differences between estimated revenues and actual revenue received have not been significant. The amount of natural gas or oil sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at December 31, 2023 or 2022. The Company has recognized accounts receivable of $ 166.6 million and $ 415.1 million as of December 31, 2023 and 2022 , respectively, from customers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists. General and Administrative Expenses General and administrative expenses are reported net of reimbursements of overhead costs that are received from working interest owners of the natural gas and oil properties operated by the Company of $ 29.7 million , $ 27.5 million and $ 25.3 million for the years ended December 31, 2023, 2022 and 2021 , respectively. Income Taxes The Company accounts for income taxes using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis, as well as the tax consequences attributable to the future utilization of existing net operating loss and other carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the change in rate is enacted. Earnings Per Share Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At December 31, 2023 and 2022, 1,429,084 and 966,058 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's shareholders. Weighted average shares of unvested restricted stock outstanding were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Unvested restricted stock 1,248 926 1,057 PSUs represent the right to receive a number of shares of the Company's common stock that may range from zero to up to two times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, which would be issuable at the end of the respective period, assuming that date was the end of the performance period. The treasury stock method is used to measure the dilutive effect of PSUs. Year Ended December 31, 2023 2022 2021 (In thousands, except per unit amounts) Weighted average PSUs 662 925 1,146 Weighted average grant date fair value per unit $ 15.92 $ 15.11 $ 8.11 The Series B Convertible Preferred Stock was convertible into 43,750,000 shares of common stock. On November 30, 2022, all outstanding shares of the Series B Convertible preferred stock were converted into 43,750,000 shares of common stock. The dilutive effect of preferred stock is computed using the if-converted method as if conversion of the preferred shares had occurred at the earlier of the date of issuance or the beginning of the period. Weighted average shares of convertible preferred stock outstanding were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Weighted average convertible preferred stock — 40,034 43,750 None of the Company's participating securities participate in losses and as such are excluded from the computation of basic earnings per share during periods of net losses. For the year ended December 31, 2023, the weighted average shares of unvested restricted stock and PSUs were excluded from the computation of earnings per share because to include them would have been antidilutive to the calculation. Basic and diluted income (loss) per share were determined as follows: Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Net income (loss) available to common stockholders $ 211,894 $ 1,124,868 $ ( 259,225 ) Income allocable to unvested restricted stock ( 327 ) ( 4,278 ) — Basic net income (loss) available to common stockholders $ 211,567 $ 1,120,590 $ ( 259,225 ) Income allocable to convertible preferred stock — 16,014 — Income allocable to unvested restricted stock — 4,278 — Diluted net income (loss) available to common stockholders $ 211,567 $ 1,140,882 $ ( 259,225 ) Basic weighted average shares outstanding 276,806 236,045 231,633 Effect of dilutive securities: PSUs — 911 — Restricted stock — 475 — Convertible preferred stock — 40,034 — Diluted weighted average shares outstanding 276,806 277,465 231,633 Basic income (loss) per share $ 0.76 $ 4.75 $ ( 1.12 ) Diluted income (loss) per share $ 0.76 $ 4.11 $ ( 1.12 ) Supplementary Information With Respect to the Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash payments made for interest and income taxes and other non-cash investing and financing activities were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Cash payments for: Interest $ 161,009 $ 166,275 $ 203,742 Income tax payments $ 29,783 $ 16,524 $ 149 Non-cash investing activities include: I |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Natural Gas and Oil Properties | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions of Natural Gas and Oil Properties | (2) Acquisitions and Dispositions of Natural Gas and Oil Properties Acquisitions During 2023, 2022 and 2021, the Company spent $ 98.6 million , $ 54.4 million and $ 22.9 million on its leasing program to acquire 79,741 , 104,314 and 32,556 net acres, respectively, in the Western Haynesville area. In 2022, the Company acquired a 145 -mile pipeline and natural gas treating plant from an unaffiliated third party and the undeveloped deep rights on approximately 68,000 net undeveloped acres in East Texas for $ 35.6 million including transaction costs. The purchase price was allocated as follows: $ 18.8 million was allocated to unproved natural gas and oil properties and $ 16.8 million to other property and equipment. In 2021, the Company acquired approximately 17,500 net acres of predominantly undeveloped Haynesville shale acreage in East Texas from an unaffiliated third party, which also included interests in 37 producing wells for $ 34.7 million. Dispositions The Company sold its interest in certain natural gas and oil non-operated properties for $ 41.3 million and $ 4.1 million in 2023 and 2022, respectively. In November 2021, the Company sold its non-operated properties in the Bakken shale for $ 138.1 million after selling expenses and incurred a $ 162.2 million pre-tax loss on the divestiture. |
Natural Gas and Oil Producing A
Natural Gas and Oil Producing Activities | 12 Months Ended |
Dec. 31, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Natural Gas and Oil Producing Activities | (3) Natural Gas and Oil Producing Activities Set forth below is certain information regarding the aggregate capitalized costs of natural gas and oil properties and costs incurred by the Company for its natural gas and oil property acquisition, development and exploration activities: Capitalized Costs As of December 31, 2023 2022 (In thousands) Proved properties: Leasehold costs $ 3,198,028 $ 3,117,028 Wells and related equipment and facilities 3,928,491 2,726,381 Accumulated depreciation depletion and amortization ( 2,144,084 ) ( 1,543,003 ) 4,982,435 4,300,406 Unproved properties 343,419 298,230 $ 5,325,854 $ 4,598,636 Costs Incurred Year Ended December 31, 2023 2022 2021 (In thousands) Property acquisitions: Proved property $ — $ 500 $ 21,781 Unproved property 98,553 54,120 35,871 Exploration and development: Developmental leasehold costs 27,905 13,727 12,953 Exploratory drilling and completion costs 244,129 63,520 6,966 Development drilling and completion costs 974,664 901,026 569,141 Other development costs 25,130 53,693 39,168 Asset retirement obligations ( 19 ) 686 5,608 Total capital expenditures $ 1,370,362 $ 1,087,272 $ 691,488 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | (4) Long-term Debt Long-term debt is comprised of the following: As of December 31, 2023 2022 (In thousands) Bank Credit Facility: Principal $ 480,000 $ — 6.75 % Senior Notes due 2029: Principal 1,223,880 1,223,880 Premium, net of amortization 5,138 5,956 5.875 % Senior Notes due 2030: Principal 965,000 965,000 Debt issuance costs, net of amortization ( 33,627 ) ( 42,265 ) $ 2,640,391 $ 2,152,571 The premium on the 6.75 % senior notes due 2029 is being amortized over its life using the effective interest rate method. Debt issuance costs are amortized over the lives of the bank credit facility and senior notes on a straight-line basis which approximates the amortization that would be calculated using an effective interest rate method. The following table summarizes Comstock's principal amount of debt as of December 31, 2023 by year of maturity: 2024 2025 2026 2027 2028 Thereafter Total (In thousands) Bank Credit Facility $ — $ — $ — $ 480,000 $ — $ — $ 480,000 6.75 % Senior Notes due 2029 — — — — — 1,223,880 1,223,880 5.875 % Senior Notes due 2030 — — — — — 965,000 965,000 $ — $ — $ — $ 480,000 $ — $ 2,188,880 $ 2,668,880 As of December 31, 2023, the Company had $ 480.0 million outstanding under a bank credit facility. Aggregate commitments under the bank credit facility are $ 1.5 billion , which matures on November 15, 2027. Borrowings under the bank credit facility are subject to a borrowing base of $ 2.0 billion , which is re-determined on a semi-annual basis and upon the occurrence of certain other events. Borrowings under the bank credit facility are secured by substantially all of the assets of the Company and its restricted subsidiaries and bear interest at the Company's option, at either adjusted SOFR plus 1.75 % to 2.75 % or an alternative base rate plus 0.75 % to 1.75 % , in each case depending on the utilization of the borrowing base. The Company pays a commitment fee of 0.375 % to 0.5 % , which is dependent on the utilization of the borrowing base. The weighted average interest rate on borrowings under the bank credit facility were 7.33 % and 3.61 % during the years ended December 31, 2023 and 2022, respectively. The bank credit facility places certain restrictions upon the Company's and its restricted subsidiaries' ability to, among other things, incur additional indebtedness, pay cash dividends, repurchase common stock, make certain loans, investments and divestitures and redeem the senior notes. The only financial covenants are the maintenance of a leverage ratio of less than 3.5 to 1.0 and an adjusted current ratio of at least 1.0 to 1.0. The Company was in compliance with the covenants as of December 31, 2023. In May 2022, the Company completed the early redemption of all of its outstanding 7.5 % senior notes due in 2025 for an aggregate amount of $ 258.1 million , which included principal of $ 244.4 million , premiums paid over face value of $ 4.5 million and accrued interest of $ 9.2 million . As a result of the redemption, the Company recognized a loss of $ 47.8 million on early retirement of debt including the write-off of $ 43.3 million of unamortized discount resulting from adjusting the senior notes to fair value on the date that they were assumed by the Company. In June 2022, the Company repurchased $ 26.1 million principal amount of its 6.75 % senior notes due in 2029 for $ 24.9 million . The Company recognized a gain of $ 1.0 million on early retirement of debt relating to the repurchase. In 2021, the Company refinanced $ 375.0 million principal amount of its 7.5 % senior notes due in 2025 and $ 1,650.0 million principal amount of its 9.75 % senior notes due 2026 with proceeds from the issuance of $ 1,250.0 million principal amount of its 6.75 % senior notes due in 2029 and $ 965.0 million principal amount of its 5.875 % senior notes due in 2030. The Company recognized a loss of $ 352.6 million on early retirement of debt for the year ended December 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (5) Commitments and Contingencies The Company has drilling rig contracts with terms ranging from less than one year to three years . The service contracts with terms less than one year are generally for terms ranging from 45 days to six months . In December 2022, the Company entered into agreements for three new drilling rigs with a three year term and a minimum annual commitment of $ 12.2 million per drilling rig. The Company began utilizing two of these rigs in the second half of 2023 and will begin utilizing the third rig in early 2024. The two rigs being utilized qualify as operating leases and their corresponding lease obligation is reflected on the Company's balance sheet as of December 31, 2023. The Company has natural gas transportation and gathering contracts which extend to 2031. Commitments under these contracts are $ 97.8 million for 2024, $ 89.6 million for 2025, $ 63.9 million for 2026, $ 62.7 million for 2027, $ 56.3 million for 2028 and $ 96.4 million for 2029 through 2031. During the years ended December 31, 2023, 2022 and 2021, expenditures under these contracts totaled $ 96.5 million , $ 50.1 million and $ 24.4 million , respectively. From time to time, the Company is involved in certain litigation that arise in the normal course of its operations. The Company records a loss contingency for these matters when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company does not believe the resolution of these matters will have a material adverse effect on the Company's financial position, results of operations or cash flows and no material amounts are accrued relative to these matters at December 31, 2023 or 2022 . |
Convertible Preferred Stock
Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2023 | |
Temporary Equity Disclosure [Abstract] | |
Convertible Preferred Stock | (6) Convertible Preferred Stock On November 30, 2022, all of the outstanding shares of the Series B Redeemable Convertible Preferred Stock were converted into 43,750,000 shares of common stock. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | (7) Stockholders' Equity The authorized capital of the Company is 405,000,000 shares, of which 400,000,000 shares are common stock, $ 0.50 par value per share, and 5,000,000 are preferred stock, $ 10.00 par value per share. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based Compensation | (8) Stock-based Compensation The Company grants restricted shares of common stock and PSUs to key employees and directors as part of their compensation. Grants are made pursuant to the Company's 2019 Long-term Incentive Plan (the "2019 Plan"), which was approved by the Company's shareholders on May 31, 2019. Future authorized equity awards available under the 2019 Plan as of December 31, 2023 were 3,262,987 shares of common stock. Stock-based compensation expense is included in general and administrative expenses. During the years ended December 31, 2023, 2022 and 2021 the Company had $ 9.9 million , $ 6.6 million and $ 6.8 million , respectively, in stock-based compensation expense. Restricted Stock The fair value of restricted stock grants is amortized over the vesting period, generally one year to three years , using the straight-line method. The fair value of each restricted share on the date of grant is equal to the market price of a share of the Company's stock. A summary of restricted stock activity is presented below: Number of Weighted Outstanding at January 1, 2023 966,058 $ 13.34 Granted 954,031 $ 9.80 Vested ( 419,964 ) $ 11.69 Forfeitures ( 71,041 ) $ 10.15 Outstanding at December 31, 2023 1,429,084 $ 11.62 Year Ended December 31, 2023 2022 2021 (In thousands, except per share data) Fair value of vested restricted stock $ 4,241 $ 11,080 $ 3,070 Grant date weighted average fair value $ 9.80 $ 17.70 $ 6.05 Compensation expense recognized for restricted stock grants $ 6,519 $ 4,171 $ 3,406 Unrecognized compensation expense related to unvested shares $ 12,411 Expected recognition period 2.0 years Performance Share Units The Company issues PSUs as part of its long-term equity incentive compensation. PSU awards can result in the issuance of common stock to the holder if certain performance criteria are met during a performance period. The performance periods consist of three years . The performance criteria for the PSUs are based on the Company's annualized total stockholder return ("TSR") for the performance period as compared with the TSR of certain peer companies for the performance period. The costs associated with PSUs are recognized as general and administrative expense over the performance periods of the awards. The fair value of PSUs was measured at the grant date using the Geometric Brownian Motion Model ("GBM Model"). Significant assumptions used in this simulation include the Company's expected volatility and a risk-free interest rate based on U.S. Treasury yield curve rates with maturities consistent with the vesting periods, as well as the volatilities for each of the Company's peers. Assumptions regarding volatility included the historical volatility of each company's stock and the implied volatilities of publicly traded stock options. Significant assumptions used to value PSUs included: Year Ended December 31, 2023 2022 2021 Risk free interest rate 4.2 % 3.6 % 0.3 % Range of implied volatility: Minimum 38 % 50 % 37 % Maximum 68 % 83 % 83 % A summary of PSU activity is presented below: Number of Weighted Outstanding at January 1, 2023 552,554 $ 15.11 Granted 391,281 $ 13.64 Earned ( 175,957 ) $ 8.11 Forfeitures ( 6,977 ) $ 28.24 Outstanding at December 31, 2023 760,901 $ 15.92 Year Ended December 31, 2023 2022 2021 (In thousands, except per unit data) Number of PSUs granted 391 237 221 Grant date fair value $ 4,906 $ 6,023 $ 1,891 Grant date fair value per unit $ 13.64 $ 25.92 $ 8.56 Compensation expense recognized for PSUs $ 3,348 $ 2,439 $ 3,392 Unrecognized compensation expense related to unvested shares $ 6,882 Expected recognition period 2.0 years The fair value of PSUs is amortized over the vesting period of three years , using the straight-line method. The final number of shares of common stock issued may vary depending upon the performance multiplier, and can result in the issuance of zero to 1,521,802 shares of common stock based on the achieved performance ranges from zero to two hundred percent. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Retirement Plan | (9) Retirement Plan The Company has a 401(k) profit sharing plan which covers all of its employees. At its discretion, Comstock may match the employees' contributions to the plan. Matching contributions to the plan were approximately $ 1.9 million , $ 1.5 million and $ 1.3 million for the years ended December 31, 2023, 2022 and 2021 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (10) Income Taxes Deferred income taxes are provided to reflect the future tax consequences or benefits of differences between the tax basis of assets and liabilities and their reported amounts in the financial statements using enacted tax rates. The following is an analysis of the consolidated income tax provision (benefit): Year Ended December 31, 2023 2022 2021 (In thousands) Current - Federal $ ( 4,570 ) $ 40,445 $ — Current - State ( 4,636 ) ( 7,701 ) 14,968 Deferred - Federal 52,520 209,705 ( 16,721 ) Deferred - State ( 8,219 ) 18,612 13,156 $ 35,095 $ 261,061 $ 11,403 In recording deferred income tax assets, the Company considers whether it is more likely than not that its deferred income tax assets will be realized in the future. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which those deferred income tax assets would be deductible. The Company believes that after considering all the available objective evidence, historical and prospective, with greater weight given to historical evidence, management is not able to determine that it is more likely than not that all of its deferred tax assets will be realized. As a result, the Company established valuation allowances for its deferred tax assets and U.S. federal and state net operating loss carryforwards that are not expected to be utilized due to the uncertainty of generating taxable income prior to the expiration of the carryforward periods. The Company will continue to assess the valuation allowances against deferred tax assets considering all available information obtained in future periods. The tax effects of significant temporary differences representing the net deferred tax liabilities were as follows: As of December 31, 2023 2022 (In thousands) Deferred tax assets: Interest expense limitation $ 168,604 $ 101,104 Net operating loss carryforwards 37,946 49,740 Unrealized hedging losses — — Asset retirement obligation 6,610 5,714 Other 3,784 4,932 216,944 161,490 Valuation allowance on deferred tax assets ( 1,169 ) ( 2,145 ) Deferred tax assets 215,775 159,345 Deferred tax liabilities: Property and equipment ( 653,369 ) ( 570,833 ) Unrealized hedging gains ( 26,623 ) ( 4,087 ) Amortization of debt issuance costs and bond discount — — Other ( 5,818 ) ( 10,162 ) Deferred tax liabilities ( 685,810 ) ( 585,082 ) Net deferred tax liability $ ( 470,035 ) $ ( 425,737 ) The difference between the customary rate of 21.0% and the effective tax rate on income (losses) is due to the following: Year Ended December 31, 2023 2022 2021 (In thousands) Tax at statutory rate $ 51,868 $ 294,408 $ ( 48,368 ) Tax effect of: Valuation allowance on deferred tax assets ( 2,307 ) ( 47,077 ) 30,504 State income taxes, net of federal benefit ( 10,542 ) 14,680 28,117 Other ( 3,924 ) ( 950 ) 1,150 Total $ 35,095 $ 261,061 $ 11,403 Year Ended December 31, 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Tax effect of: Valuation allowance on deferred tax assets ( 0.9 ) ( 3.4 ) ( 13.3 ) State income taxes, net of federal benefit ( 4.3 ) 1.1 ( 12.2 ) Other ( 1.6 ) ( 0.1 ) ( 0.5 ) Effective tax rate 14.2 % 18.6 % ( 5.0 )% At December 31, 2023, Comstock had the following carryforwards available to reduce future income taxes: Types of Carryforward Years of Amount (In thousands) Net operating loss – U.S. federal 2024-2037 $ 740,631 Net operating loss – U.S. federal Unlimited $ 13,467 Net operating loss – state taxes Unlimited $ 1,745,991 Interest expense – U.S. federal Unlimited $ 629,212 Interest expense – state taxes Unlimited $ 615,527 The Company's ability to use net operating losses ("NOLs") generated before its ownership change in 2018 to reduce taxable income is limited under IRC Section 382. NOLs that exceed the Section 382 limitation in any year continue to be allowed as carry forwards until they expire and can be used to offset taxable income for years within the carryover period subject to the limitation in each year. NOLs incurred prior to 2018 generally have a 20-year life until they expire. NOLs generated in 2018 and after would be carried forward indefinitely. NOLs arising after the date of an ownership change are not affected by the 382 limitation. If the Company does not generate a sufficient level of taxable income prior to the expiration of the pre-2018 NOL carry-forward periods, then it will lose the ability to apply those NOLs as offsets to future taxable income. The Company estimates that $ 740.6 million of the U.S. federal NOL carryforwards and $ 1.2 billion of the estimated state NOL carryforwards will expire unused. The Company's federal income tax returns for the years subsequent to December 31, 2019 remain subject to examination. The Company's income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2020. The Company is currently under examination with the state of Louisiana and believe that its significant filing positions are highly certain and that all of its other significant income tax filing positions and deductions would be sustained upon audit or the final resolution would not have a material effect on the consolidated financial statements. Therefore, the Company has not established any significant reserves for uncertain tax positions. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | (11) Derivative Financial Instruments and Hedging Activities Comstock generally uses commodity price swaps, basis swaps and collars to hedge natural gas and oil prices to manage price risk. Swaps are settled monthly based on differences between the prices specified in the instruments and the settlement prices of futures contracts. Generally, when the applicable settlement price is less than the price specified in the contract, Comstock receives a settlement from the counterparty based on the difference multiplied by the volume or amounts hedged. Similarly, when the applicable settlement price exceeds the price specified in the contract, Comstock pays the counterparty based on the difference. Comstock generally receives a settlement from the counterparty for floors when the applicable settlement price is less than the price specified in the contract, which is based on the difference multiplied by the volumes hedged. For collars, generally Comstock receives a settlement from the counterparty when the settlement price is below the floor and pays a settlement to the counterparty when the settlement price exceeds the cap. No settlement occurs when the settlement price falls between the floor and cap. All of the Company's derivative financial instruments are used for risk management purposes and, by policy, none are held for trading or speculative purposes. Comstock minimizes credit risk to counterparties of its derivative financial instruments through formal credit policies, monitoring procedures, and diversification. The Company is not required to provide any credit support to its counterparties other than cross collateralization with the assets securing its bank credit facility. None of the Company's derivative financial instruments involve payment or receipt of premiums. The Company classifies the fair value amounts of derivative financial instruments as net current or noncurrent assets or liabilities, whichever the case may be, by commodity contract. None of the Company's derivative contracts are designated as fair value or cash flow hedges. The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses) in the consolidated statements of operations and as separate components within cash flows from operating activities in the consolidated statements of cash flows. All of Comstock's natural gas derivative financial instruments are tied to the Henry Hub-NYMEX price index. The Company had the following outstanding natural gas price derivative financial instruments at December 31, 2023: Future Natural Gas Swap Contracts: Volume (MMBtu) 146,400,000 Average Price per MMBtu $ 3.55 The aggregate fair value of the Company's derivative financial 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 December 31, Type Consolidated Balance Sheet Location 2023 2022 (in thousands) Asset Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 126,775 $ 23,884 Liability Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ — $ 4,420 The Company recognizes cash settlements and changes in the fair value of its derivative financial instruments as a single component of other income (expenses). 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: Year Ended December 31, Gain/(Loss) Recognized in Earnings on Derivatives 2023 2022 2021 (In thousands) Natural gas price derivatives $ 187,639 $ ( 662,522 ) $ ( 555,636 ) Oil price derivatives — — ( 7,247 ) Interest rate derivatives — — 2,235 $ 187,639 $ ( 662,522 ) $ ( 560,648 ) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (12) Related Party Transactions The Company operates natural gas and oil properties held by a partnerships owned by its majority stockholder. Comstock charges the partnership for the costs incurred to drill, complete and produce the wells, as well as drilling and operating overhead fees. Comstock also provides natural gas marketing services to the partnerships in return for a fee equal to $ 0.02 per Mcf for natural gas marketed. The Company received $ 1.3 million , $ 0.9 million and $ 1.4 million in 2023, 2022 and 2021, respectively, for operating and marketing services provided to the partnership. The fees received for the services are reflected as a reduction of general and administrative expenses in the accompanying consolidated statements of operations. In connection with the operation of the wells, the Company had a $ 16.1 million and $ 18.5 million receivable from the partnerships at December 31, 2023 and 2022 , respectively. |
Natural Gas and Oil Reserves In
Natural Gas and Oil Reserves Information (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
Natural Gas and Oil Reserves Information (Unaudited) | (13) Natural Gas and Oil Reserves Information (Unaudited) Set forth below is a summary of the Company's proved natural gas and oil reserves: Year Ended December 31, 2023 2022 2021 Oil Natural Oil Natural Oil Natural Proved Reserves: Beginning of period 549 6,697,570 627 6,118,083 11,000 5,562,876 Revisions of previous estimates ( 47 ) ( 1,803,628 ) ( 61 ) ( 6,870 ) 145 88,546 Extensions and discoveries 116 570,751 137 1,090,420 — 797,198 Acquisitions of minerals in place — — 6 260 — 202,588 Sales of minerals in place — — ( 78 ) ( 3,707 ) ( 9,308 ) ( 43,851 ) Production ( 70 ) ( 524,467 ) ( 82 ) ( 500,616 ) ( 1,210 ) ( 489,274 ) End of period 548 4,940,226 549 6,697,570 627 6,118,083 Proved Developed Reserves: Beginning of period 480 2,531,462 627 2,245,660 11,000 1,967,288 End of period 548 2,734,175 480 2,531,462 627 2,245,660 Proved Undeveloped Reserves: Beginning of period 69 4,166,108 — 3,872,423 — 3,595,588 End of period — 2,206,051 69 4,166,108 — 3,872,423 Revisions of previous estimates. Revisions of previous estimates in 2023 were primarily attributable to significantly lower natural gas and oil prices that were used to determine proved reserves at the end of the year. Revisions of previous estimates in 2022 were insignificant. Revisions of previous natural gas estimates in 2021 were primarily attributable to higher production performance from the Company's wells as compared to expected performance from proved undeveloped locations included in proved reserves in the previous year. Extensions and discoveries. Extensions and discoveries for 2023, 2022 and 2021 were primarily comprised of proved reserve additions attributable to the wells drilled in the current year that were not classified as proved undeveloped in prior years and additional proved undeveloped locations that are planned to be drilled in the Company's current development plan. The following table sets forth the standardized measure of discounted future net cash flows relating to proved reserves: As of December 31, 2023 2022 2021 (In thousands) Cash Flows Relating to Proved Reserves: Future Cash Flows $ 11,829,623 $ 40,405,829 $ 20,396,381 Future Costs: Production ( 4,019,901 ) ( 5,473,650 ) ( 3,954,726 ) Development and Abandonment ( 2,285,853 ) ( 4,175,721 ) ( 2,752,603 ) Future Income Taxes ( 341,677 ) ( 5,741,914 ) ( 2,065,316 ) Future Net Cash Flows 5,182,192 25,014,544 11,623,736 10% Discount Factor ( 2,807,562 ) ( 12,404,908 ) ( 5,848,131 ) Standardized Measure of Discounted Future Net Cash Flows $ 2,374,630 $ 12,609,636 $ 5,775,605 The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to proved reserves: Year Ended December 31, 2023 2022 2021 (In thousands) Standardized Measure, Beginning of Year $ 12,609,636 $ 5,775,605 $ 1,935,725 Net change in sales price, net of production costs ( 14,069,134 ) 8,600,315 5,012,696 Development costs incurred during the year which were previously estimated 1,004,650 788,450 502,674 Revisions of quantity estimates ( 1,583,876 ) ( 42,423 ) 119,200 Accretion of discount 1,551,704 680,010 199,124 Changes in future development and abandonment costs 1,095,844 ( 869,115 ) 1,505 Changes in timing and other ( 374,087 ) ( 113,744 ) ( 224,617 ) Extensions and discoveries 215,249 2,456,124 679,418 Acquisitions of minerals in place — 604 150,065 Sales of minerals in place — ( 3,313 ) ( 64,032 ) Sales, net of production costs ( 855,699 ) ( 2,779,960 ) ( 1,567,182 ) Net changes in income taxes 2,780,343 ( 1,882,917 ) ( 968,971 ) Standardized Measure, End of Year $ 2,374,630 $ 12,609,636 $ 5,775,605 The standardized measure of discounted future net cash flows was determined based on the simple average of the first of month market prices for natural gas and oil for each year. Prices used in determining quantities of natural gas and oil reserves and future cash inflows from natural gas and oil reserves represent prices received at the Company's sales point. These prices have been adjusted from posted or index prices for both location and quality differences. Prices used in determining natural gas and oil reserves quantities and cash flows are as follows: Year Ended December 31, 2023 2022 2021 Crude Oil: $/barrel $ 72.63 $ 91.21 $ 62.38 Natural Gas: $/Mcf $ 2.39 $ 6.03 $ 3.33 Proved reserve information utilized in the preparation of the financial statements were based on estimates prepared by the Company's petroleum engineering staff in accordance with guidelines established by the Securities and Exchange Commission and the Financial Accounting Standards Board, which require that reserve reports be prepared under existing economic and operating conditions with no provision for price and cost escalation except by contractual agreement. All of the Company's reserves are located onshore in the continental United States of America. The Company retained an independent petroleum consultant to conduct an audit of the Company's 2023 reserve estimates. The purpose of this audit was to provide additional assurance on the reasonableness of internally prepared reserve estimates. The engineering firm was selected for their geographic expertise and their historical experience. Future development and production costs are computed by estimating the expenditures to be incurred in developing and producing proved natural gas and oil reserves at the end of the year, based on year end costs and assuming continuation of existing economic conditions. Future income tax expenses are computed by applying the appropriate statutory tax rates to the future pre-tax net cash flows relating to proved reserves, net of the tax basis of the properties involved. The future income tax expenses give effect to permanent differences and tax credits, but do not reflect the impact of future operations. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements include the accounts of Comstock Resources, Inc., its wholly owned or controlled subsidiaries and a variable interest entity for which Comstock is the primary beneficiary (collectively, "Comstock" or the "Company"). All significant intercompany accounts and transactions have been eliminated in consolidation. The Company accounts for its undivided interest in natural gas and oil properties using the proportionate consolidation method, whereby its share of assets, liabilities, revenues and expenses are included in its financial statements. Net income (loss) and comprehensive income (loss) are the same in all periods presented. All adjustments are of a normal recurring nature unless otherwise disclosed. Comstock entered into an agreement with an affiliate of Quantum Capital Solutions ("Quantum"), in the fourth quarter of 2023 to form Pinnacle Gas Services, LLC ("PGS"), a midstream company in Comstock's Western Haynesville area. As part of the transaction, Comstock contributed a 145-mile high-pressure pipeline and a natural gas treating plant. Quantum committed to contribute up to $ 300 million to fund future expansion costs. Quantum is entitled to a 12 % dividend on its invested capital and 80 % of any distributions from Pinnacle until certain return hurdles are met. After the return hurdles are met, Quantum's ownership reduces to 30 %. Comstock operates and manages PGS pursuant to a management services agreement. The Board of PGS is comprised of five members: three selected by Comstock and two selected by Quantum. PGS is considered a variable interest entity to Comstock. Comstock has the power to direct the activities that most significantly impact the performance of PGS and has the obligation to absorb losses or right to receive benefits that could potentially be significant to PGS. Accordingly, Comstock is considered the primary beneficiary and consolidates the assets, liabilities and results of operations of PGS in the accompanying consolidated financial statements. PGS assets that cannot be used by Comstock include $ 54.9 million of other property and equipment as of December 31, 2023 . Other PGS assets that cannot be used by Comstock and PGS liabilities for which creditors do not have recourse to Comstock's assets are not material to the Company's consolidated financial statements. The portion of PGS net income and stockholders' equity not attributable to Comstock's controlling interest are shown separately as noncontrolling interests in the accompanying consolidated statements of operations and statements of stockholders' equity. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from those estimates. Changes in the future estimated natural gas and oil reserves or the estimated future cash flows attributable to the reserves that are utilized for impairment analyses could have a significant impact on the future results of operations. |
Concentration of Credit Risk, Accounts Receivable and Credit Losses | Concentration of Credit Risk, Accounts Receivable and Credit Losses Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents, accounts receivable and derivative financial instruments. The Company places its cash with high credit quality financial institutions and its derivative financial instruments with financial institutions and other firms that management believes have high credit ratings. Substantially all of the Company's accounts receivable are due from either purchasers of natural gas and oil or participants in natural gas and oil wells for which the Company serves as the operator. Generally, operators of natural gas and oil wells have the right to offset future revenues against unpaid charges related to operated wells. Natural gas and oil sales are generally unsecured. The Company's policy is to assess the collectability of its receivables based upon their age, the credit quality of the purchaser or participant and the potential for revenue offset. The Company has not had any significant credit losses in the past and believes its accounts receivable are fully collectible. Accordingly, no allowance for doubtful accounts has been recorded for the years ended December 31, 2023, 2022 and 2021 , respectively. |
Fair Value Measurements | Fair Value Measurements The Company holds or has held certain financial assets and liabilities that are required to be measured at fair value in the financial statements. These include cash and cash equivalents held in bank accounts and derivative financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 — Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 — Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 — Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management's estimates of market participant assumptions. The following presents the carrying amounts and the fair values of the Company's financial instruments as of December 31, 2023 and 2022: As of December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Assets: (In thousands) Commodity-based derivatives (1) $ 126,775 $ 126,775 $ 23,884 $ 23,884 Liabilities: Commodity-based derivatives (1) — — 4,420 4,420 Bank credit facility (2) 480,000 480,000 — — 6.75 % senior notes due 2029 (3) 1,229,018 1,138,208 1,229,836 1,129,029 5.875 % senior notes due 2030 (3) 965,000 849,200 965,000 846,788 (1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using a market approach 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 December 31, 2023 and 2022 , respectively, a Level 1 measurement. |
Property and Equipment | Property and Equipment The Company follows the successful efforts method of accounting for its natural gas and oil properties. Costs incurred to acquire natural gas and oil leasehold are capitalized. Acquisition costs for proved natural gas and oil properties, costs of drilling and equipping productive wells, and costs of unsuccessful development wells are capitalized and amortized on an equivalent unit-of-production basis over the life of the remaining related natural gas and oil reserves. Equivalent units are determined by converting oil to natural gas at the ratio of one barrel of oil for six thousand cubic feet of natural gas. This conversion ratio is not based on the price of oil or natural gas, and there may be a significant difference in price between an equivalent volume of oil versus natural gas. Exploratory well costs are initially capitalized as proved property in the consolidated balance sheets but charged to exploration expense if and when the well is determined not to have found commercial proved natural gas and oil reserves. The changes in capitalized exploratory well costs are as follows: Year Ended December 31, 2023 2022 (in thousands) Beginning capitalized exploratory project costs $ 867 $ 6,966 Additions to exploratory well costs pending the determination of proved reserves 244,129 63,520 Determined to have found proved reserves ( 148,763 ) ( 69,619 ) Ending capitalized exploratory well costs $ 96,233 $ 867 As of December 31, 2023 and 2022, the Company had no exploratory wells for which costs have been capitalized greater than one year. The estimated future costs of dismantlement, restoration, plugging and abandonment of natural gas and oil properties and related facilities disposal are capitalized when asset retirement obligations are incurred and amortized as part of depreciation, depletion and amortization expense. Exploration expense includes geological and geophysical expenses and delay rentals related to exploratory natural gas and oil properties, costs of unsuccessful exploratory drilling and impairments of unproved properties. As of December 31, 2023 and 2022, the unproved properties primarily relate to future drilling locations that were not included in proved undeveloped reserves. Most of these future drilling locations are located on acreage where the reservoir is known to be productive but have been excluded from proved reserves due to uncertainty on whether the wells would be drilled within the next five years as required by SEC rules in order to be included in proved reserves. The costs of unproved properties are transferred to proved natural gas and oil properties when they are either drilled or they are reflected in proved undeveloped reserves and amortized on an equivalent unit-of-production basis. Costs associated with unevaluated exploratory acreage are periodically assessed for impairment on a property by property basis, and any impairment in value is included in exploration expense. Exploratory drilling costs are initially capitalized as proved property but charged to expense if and when the well is determined not to have found commercial proved natural gas and oil reserves. Exploratory drilling costs are evaluated within a one-year period after the completion of drilling. The Company assesses the need for an impairment of the costs capitalized for its proved natural gas and oil properties when events or changes in circumstances, such as a significant drop in commodity prices, indicate that the Company may not be able to recover its capitalized costs. If impairment is indicated based on undiscounted expected future cash flows attributable to the property, then a provision for impairment is recognized to the extent that net capitalized costs exceed the estimated fair value of the property. The Company determines the fair values of its natural gas and oil properties using a discounted cash flow model and proved and risk-adjusted probable reserves. Significant Level 3 assumptions associated with the calculation of discounted future cash flows included in the cash flow model include management's outlook for natural gas and oil prices, future natural gas and oil production, production costs, capital expenditures, and the total proved and risk-adjusted probable natural gas and oil reserves expected to be recovered. Management's natural gas and oil price outlook is developed based on third-party longer-term price forecasts as of each measurement date. The expected future net cash flows are discounted using an appropriate discount rate in determining a property's fair value. The natural gas and oil prices used for determining asset impairments will generally differ from those used in the standardized measure of discounted future net cash flows because the standardized measure requires the use of an average price based on the first day of each month of the preceding year. Unproved properties are evaluated for impairment based upon the results of drilling, planned future drilling and the terms of the natural gas and oil leases. The Company's estimates of undiscounted future net cash flows attributable to its natural gas and oil properties may change in the future. The primary factors that may affect estimates of future cash flows include future adjustments, both positive and negative, to proved and appropriate risk-adjusted probable natural gas and oil reserves, results of future drilling activities, future prices for natural gas and oil, and increases or decreases in production and capital costs. As a result of these changes, there may be future impairments in the carrying values of our natural gas and oil properties. Other property and equipment consists primarily of pipelines, natural gas treating plants, computer equipment, furniture and fixtures and an airplane which are depreciated over estimated useful lives ranging from three to 50 years on a straight-line basis. |
Goodwill | Goodwill The Company had goodwill of $ 335.9 million as of December 31, 2023 and 2022. Goodwill represents the excess of purchase price over fair value of net tangible and identifiable intangible assets in a business combination. The Company is required to conduct an annual review of goodwill for impairment and performs the assessment of goodwill on October 1st of each year. If the carrying value of goodwill exceeds the fair value, an impairment charge would be recorded for the difference between fair value and carrying value. The Company performed its quantitative assessment of goodwill as of October 1, 2023 and determined there was no indication of impairment. |
Leases | Leases The Company had right-of-use lease assets of $ 71.5 million and $ 90.7 million as of December 31, 2023 and 2022, respectively, related to its corporate office lease, certain office equipment, vehicles and drilling rigs with corresponding short-term and long-term liabilities. The value of the lease assets and liabilities are determined based upon discounted future minimum cash flows contained within each of the respective contracts, including the effects of early termination provisions. The Company determines if contracts contain a lease at inception of the contract. Since most of the Company's lease contracts do not provide an implicit discount rate, the Company uses its incremental borrowing rate at the commencement date of the lease. To the extent that contract terms representing a lease are identified, leases are identified as being either an operating lease or a finance-type lease. Comstock currently has no finance-type leases. Right-of-use lease assets representing the Company's right to use an underlying asset for the lease term and the related lease liabilities represent its obligation to make lease payments under the terms of the contracts. Short-term leases that have an initial term of one year or less are not capitalized; however, amounts paid for those leases are included as part of its lease cost disclosures. Short-term lease costs exclude expenses related to leases with a lease term of one month or less. Comstock contracts for a variety of equipment used in its natural gas and oil exploration and development operations. Contract terms for this equipment vary broadly, including the contract duration, pricing, scope of services included along with the equipment, cancellation terms, and rights of substitution, among others. The Company's drilling and completion operations routinely change due to changes in commodity prices, demand for natural gas and oil, and the overall operating and economic environment. Accordingly, Comstock manages the terms of its contracts for drilling rigs and completion equipment so as to allow for maximum flexibility in responding to these changing conditions. The Company has two drilling rig lease contracts with a three year term with options to extend the term by mutual agreement at mutually acceptable terms or terminate the contract at any time without default by the lessor. The Company's other drilling rig contracts are presently either for periods of less than one year, or they are on terms that provide for cancellation with 30 or 45 days advance notice without a specified expiration date. The Company had two hydraulic fracturing fleet completion contracts with three year terms but both contracts were terminated during 2023. The Company has elected not to recognize right-of-use lease assets for contracts less than one year. The costs associated with drilling and completion operations are accounted for under the successful efforts method, which require that these costs be capitalized as part of our proved natural gas and oil properties on our balance sheet unless they are incurred on exploration wells that are unsuccessful, in which case they are charged to exploration expense. For drilling rig leases, the Company has elected the practical expedient to not separate lease components from nonlease components in the determination of their lease asset and liability values. Lease costs recognized during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost included in general and administrative expense $ 1,768 $ 1,749 $ 1,732 Operating lease cost included in lease operating expense 2,060 1,383 879 Operating lease cost included in proved natural gas and oil properties 56,755 25,200 — Variable lease cost (drilling and completion costs included in proved natural gas and oil properties) 28,406 25,095 — Short-term lease cost (drilling rig costs included in proved natural gas and oil properties) 89,163 62,077 32,735 $ 178,152 $ 115,504 $ 35,346 Cash payments for operating leases associated with right-of-use assets included in cash provided by operating activities were $ 3.8 million , $ 3.1 million and $ 2.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Cash payments for operating leases associated with right-of-use assets included in cash used for investing activities were $ 174.3 million , $ 112.4 million and $ 32.7 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, the operating leases had a weighted average remaining term of 2.9 years and 2.2 years, respectively, and the weighted-average discount rate used to determine the present value of future operating lease payments was 7.2 % and 3.5 % , respectively. As of December 31, 2023, expected future payments related to contracts that contain operating leases were as follows: (In thousands) 2024 $ 28,173 2025 27,251 2026 21,181 2027 1,545 2028 1,560 Total lease payments 79,710 Imputed interest ( 8,203 ) Total lease liability $ 71,507 |
Reserve for Future Abandonment Costs | Reserve for Future Abandonment Costs The Company's asset retirement obligations relate to future plugging and abandonment costs of its natural gas and oil properties and related facilities disposal. The Company records a liability in the period in which an asset retirement obligation is incurred, in an amount equal to the estimated fair value of the obligation that is capitalized. Thereafter, this liability is accreted up to the final retirement cost. Accretion of the discount is included as part of depreciation, depletion and amortization in the accompanying consolidated statements of operations. The following table summarizes the changes in the Company's total estimated liability: Year Ended December 31, 2023 2022 (In thousands) Reserve for future abandonment costs at beginning of the year $ 29,114 $ 25,673 New wells placed on production 146 1,537 Acquisitions — 1,211 Changes in estimates and timing ( 122 ) 182 Liabilities settled ( 41 ) ( 80 ) Divestitures ( 1 ) ( 944 ) Accretion expense 1,677 1,535 Reserve for future abandonment costs at end of the year $ 30,773 $ 29,114 |
Stock-based Compensation | Stock-based Compensation The Company has stock-based employee compensation plans under which stock awards, comprised primarily of restricted stock and performance share units ("PSUs"), are issued to employees and non-employee directors. The Company follows the fair value-based method in accounting for equity-based compensation. Under the fair value based method, compensation cost is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the award vesting period. Forfeitures are recognized as they occur. |
Segment Reporting | Segment Reporting The Company presently operates in one business segment, the exploration and production of North American natural gas and oil. |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company accounts for derivative financial instruments (including derivative instruments embedded in other contracts) as either an asset or liability measured at its fair value. Changes in the fair value of derivatives are recognized currently in earnings and in net cash flows from operating activities. The fair value of derivative contracts that expire in less than one year are recognized as current assets or liabilities. Those that expire in more than one year are recognized as long-term assets or liabilities. |
Revenue Recognition and Gas Balancing | Revenue Recognition and Gas Balancing Comstock produces natural gas and oil and reports revenues separately for each of these two primary products in its statements of operations. Revenues are recognized upon the transfer of produced volumes to the Company's customers, who take control of the volumes and receive all the benefits of ownership upon delivery at designated sales points. Costs incurred to gather or transport each product prior to the transfer of control are recognized as operating expenses. Gas services revenues represent sales of natural gas purchased for resale from unaffiliated third parties and fees received for gathering and treating services for certain natural gas wells not operated by the Company. Revenues are recognized upon completion of the gathering and treating of contracted natural gas volumes and delivery of purchased natural gas volumes to the Company's customers. Profits and losses earned in the gathering and treating of natural gas produced by the Company's natural gas wells are eliminated in consolidation. Revenues and expenses associated with natural gas purchased for resale are presented on a gross basis in the Company's consolidated statements of operations as the Company acts as the principal in the transaction by assuming the risks and rewards from ownership of the natural gas volumes purchased and the responsibility to deliver the natural gas volumes to their sales point. All natural gas and oil and gas services revenues are subject to contracts that have commercial substance, contain specific pricing terms, and define the enforceable rights and obligations of both parties. These contracts typically provide for cash settlement within 25 days following each production month and are cancellable upon 30 days' notice by either party for oil and vary for natural gas based upon the terms set out in the confirmations between both parties. Prices for sales of natural gas and oil are generally based upon terms that are common in the natural gas and oil industry, including index or spot prices, location and quality differentials, as well as market supply and demand conditions. As a result, prices for natural gas and oil routinely fluctuate based on changes in these factors. Prices for gathering and treating services are generally fixed in nature but can vary due to the quality of the gas being treated. Each unit of production (thousand cubic feet of natural gas and barrel of crude oil ) represents a separate performance obligation under the Company's contracts since each unit has economic benefit on its own and each is priced separately according to the terms of the contracts. Comstock has elected to exclude all taxes from the measurement of transaction prices, and its natural gas and oil revenues are reported net of royalties and exclude revenue interests owned by others because the Company acts as an agent when selling natural gas and oil, on behalf of royalty owners and working interest owners. Natural gas and oil revenue is recorded in the month of production based on an estimate of the Company's share of volumes produced and prices realized. Gas services revenue is recorded in the month the services are performed or purchased gas is sold based on an estimate of natural gas volumes and contract prices. The Company recognizes any differences between estimates and actual amounts received in the month when payment is received. Historically, differences between estimated revenues and actual revenue received have not been significant. The amount of natural gas or oil sold may differ from the amount to which the Company is entitled based on its revenue interests in the properties. The Company did not have any significant imbalance positions at December 31, 2023 or 2022. The Company has recognized accounts receivable of $ 166.6 million and $ 415.1 million as of December 31, 2023 and 2022 , respectively, from customers for contracts where performance obligations have been satisfied and an unconditional right to consideration exists. |
General and Administrative Expenses | General and Administrative Expenses General and administrative expenses are reported net of reimbursements of overhead costs that are received from working interest owners of the natural gas and oil properties operated by the Company of $ 29.7 million , $ 27.5 million and $ 25.3 million for the years ended December 31, 2023, 2022 and 2021 , respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis, as well as the tax consequences attributable to the future utilization of existing net operating loss and other carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that the change in rate is enacted. |
Earnings Per Share | Earnings Per Share Unvested restricted stock containing non-forfeitable rights to dividends are included in common stock outstanding and are considered to be participating securities and included in the computation of basic and diluted earnings per share pursuant to the two-class method. At December 31, 2023 and 2022, 1,429,084 and 966,058 shares of restricted stock, respectively, are included in common stock outstanding as such shares have a non-forfeitable right to participate in any dividends that might be declared and have the right to vote on matters submitted to the Company's shareholders. Weighted average shares of unvested restricted stock outstanding were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Unvested restricted stock 1,248 926 1,057 PSUs represent the right to receive a number of shares of the Company's common stock that may range from zero to up to two times the number of PSUs granted on the award date based on the achievement of certain performance measures during a performance period. The number of potentially dilutive shares related to PSUs is based on the number of shares, if any, which would be issuable at the end of the respective period, assuming that date was the end of the performance period. The treasury stock method is used to measure the dilutive effect of PSUs. Year Ended December 31, 2023 2022 2021 (In thousands, except per unit amounts) Weighted average PSUs 662 925 1,146 Weighted average grant date fair value per unit $ 15.92 $ 15.11 $ 8.11 The Series B Convertible Preferred Stock was convertible into 43,750,000 shares of common stock. On November 30, 2022, all outstanding shares of the Series B Convertible preferred stock were converted into 43,750,000 shares of common stock. The dilutive effect of preferred stock is computed using the if-converted method as if conversion of the preferred shares had occurred at the earlier of the date of issuance or the beginning of the period. Weighted average shares of convertible preferred stock outstanding were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Weighted average convertible preferred stock — 40,034 43,750 None of the Company's participating securities participate in losses and as such are excluded from the computation of basic earnings per share during periods of net losses. For the year ended December 31, 2023, the weighted average shares of unvested restricted stock and PSUs were excluded from the computation of earnings per share because to include them would have been antidilutive to the calculation. Basic and diluted income (loss) per share were determined as follows: Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Net income (loss) available to common stockholders $ 211,894 $ 1,124,868 $ ( 259,225 ) Income allocable to unvested restricted stock ( 327 ) ( 4,278 ) — Basic net income (loss) available to common stockholders $ 211,567 $ 1,120,590 $ ( 259,225 ) Income allocable to convertible preferred stock — 16,014 — Income allocable to unvested restricted stock — 4,278 — Diluted net income (loss) available to common stockholders $ 211,567 $ 1,140,882 $ ( 259,225 ) Basic weighted average shares outstanding 276,806 236,045 231,633 Effect of dilutive securities: PSUs — 911 — Restricted stock — 475 — Convertible preferred stock — 40,034 — Diluted weighted average shares outstanding 276,806 277,465 231,633 Basic income (loss) per share $ 0.76 $ 4.75 $ ( 1.12 ) Diluted income (loss) per share $ 0.76 $ 4.11 $ ( 1.12 ) |
Supplementary Information With Respect to the Consolidated Statements of Cash Flows | Supplementary Information With Respect to the Consolidated Statements of Cash Flows For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash payments made for interest and income taxes and other non-cash investing and financing activities were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Cash payments for: Interest $ 161,009 $ 166,275 $ 203,742 Income tax payments $ 29,783 $ 16,524 $ 149 Non-cash investing activities include: Increase (decrease) in accrued capital expenditures $ ( 18,562 ) $ 34,443 $ ( 4,964 ) Liabilities assumed in exchange for right-of-use lease assets $ 195,402 $ 110,090 $ 5,847 Non-cash financing activities include: Conversion of preferred stock into common stock $ — $ 175,000 $ — |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2023, the FASB issued Accounting Standards Update ("ASU") 2023-07 "Segment Reporting–Improvements to Reportable Segment Disclosures". ASU 2023-07 requires additional disclosures about a public entity's reportable segments, including requiring all annual disclosures of reportable segment's profit or loss and assets during interim periods, identifying the title and position of an entity's chief operating decision maker ("CODM"), disclosing significant expenses regularly provided to the CODM that are included in each reported measure of segment profit or loss, and disclosing additional measures of profit or loss used by the CODM in deciding how to allocate resources. The update is effective for public entities for fiscal years beginning after December 15, 2023, and interim and fiscal years beginning after December 15, 2024. ASU 2023-07 will not have an impact on the Company's reported results of operations, financial position or liquidity but will have an impact on the Company's financial statement disclosures. In December 2023, the FASB issued ASU 2023-09 "Improvements to Income Tax Disclosures". ASU 2023-09 requires additional disclosures around effective tax rates and cash income taxes paid and is effective for public entities for annual periods beginning after December 15, 2024. ASU 2023-07 will not have an impact on the Company's reported results of operations, financial position or liquidity but will have an impact on the Company's financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Other Current Assets | Other current assets at December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 (In thousands) Prepaid drilling costs $ 70,124 $ 39,084 Income tax receivable 8,312 — Production tax refunds receivable 5,745 11,156 Prepaid expenses 2,438 2,455 Accrued proceeds from sale of natural gas and oil properties — 3,118 Other — 511 $ 86,619 $ 56,324 |
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 December 31, 2023 and 2022: As of December 31, 2023 2022 Carrying Value Fair Value Carrying Value Fair Value Assets: (In thousands) Commodity-based derivatives (1) $ 126,775 $ 126,775 $ 23,884 $ 23,884 Liabilities: Commodity-based derivatives (1) — — 4,420 4,420 Bank credit facility (2) 480,000 480,000 — — 6.75 % senior notes due 2029 (3) 1,229,018 1,138,208 1,229,836 1,129,029 5.875 % senior notes due 2030 (3) 965,000 849,200 965,000 846,788 (1) The Company's commodity-based derivatives are classified as Level 2 and measured at fair value using a market approach 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 December 31, 2023 and 2022 , respectively, a Level 1 measurement. |
Capitalized Exploratory Well Costs | The changes in capitalized exploratory well costs are as follows: Year Ended December 31, 2023 2022 (in thousands) Beginning capitalized exploratory project costs $ 867 $ 6,966 Additions to exploratory well costs pending the determination of proved reserves 244,129 63,520 Determined to have found proved reserves ( 148,763 ) ( 69,619 ) Ending capitalized exploratory well costs $ 96,233 $ 867 |
Summary of Lease Cost Recognized | Lease costs recognized during the years ended December 31, 2023, 2022 and 2021 were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Operating lease cost included in general and administrative expense $ 1,768 $ 1,749 $ 1,732 Operating lease cost included in lease operating expense 2,060 1,383 879 Operating lease cost included in proved natural gas and oil properties 56,755 25,200 — Variable lease cost (drilling and completion costs included in proved natural gas and oil properties) 28,406 25,095 — Short-term lease cost (drilling rig costs included in proved natural gas and oil properties) 89,163 62,077 32,735 $ 178,152 $ 115,504 $ 35,346 |
Summary of Liabilities Under Contracts Contain Operating Leases | As of December 31, 2023, expected future payments related to contracts that contain operating leases were as follows: (In thousands) 2024 $ 28,173 2025 27,251 2026 21,181 2027 1,545 2028 1,560 Total lease payments 79,710 Imputed interest ( 8,203 ) Total lease liability $ 71,507 |
Summary of Accrued Expenses | Accrued expenses at December 31, 2023 and 2022 consist of the following: As of December 31, 2023 2022 (In thousands) Accrued interest payable $ 54,912 $ 54,867 Accrued drilling costs 35,876 54,438 Accrued transportation costs 32,294 28,357 Accrued employee compensation 6,700 11,308 Accrued lease operating expenses 2,299 2,412 Accrued income and other taxes 1,894 31,256 Other 491 473 $ 134,466 $ 183,111 |
Summary of Changes in Total Estimated Asset Retirement Obligation Liability | The following table summarizes the changes in the Company's total estimated liability: Year Ended December 31, 2023 2022 (In thousands) Reserve for future abandonment costs at beginning of the year $ 29,114 $ 25,673 New wells placed on production 146 1,537 Acquisitions — 1,211 Changes in estimates and timing ( 122 ) 182 Liabilities settled ( 41 ) ( 80 ) Divestitures ( 1 ) ( 944 ) Accretion expense 1,677 1,535 Reserve for future abandonment costs at end of the year $ 30,773 $ 29,114 |
Weighted Average Shares of Unvested Restricted Stock | Weighted average shares of unvested restricted stock outstanding were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Unvested restricted stock 1,248 926 1,057 |
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. Year Ended December 31, 2023 2022 2021 (In thousands, except per unit amounts) Weighted average PSUs 662 925 1,146 Weighted average grant date fair value per unit $ 15.92 $ 15.11 $ 8.11 Year Ended December 31, 2023 2022 2021 (In thousands) Weighted average convertible preferred stock — 40,034 43,750 |
Schedule of Basic and Diluted Income (Loss) Per Share | Basic and diluted income (loss) per share were determined as follows: Year Ended December 31, 2023 2022 2021 (In thousands, except per share amounts) Net income (loss) available to common stockholders $ 211,894 $ 1,124,868 $ ( 259,225 ) Income allocable to unvested restricted stock ( 327 ) ( 4,278 ) — Basic net income (loss) available to common stockholders $ 211,567 $ 1,120,590 $ ( 259,225 ) Income allocable to convertible preferred stock — 16,014 — Income allocable to unvested restricted stock — 4,278 — Diluted net income (loss) available to common stockholders $ 211,567 $ 1,140,882 $ ( 259,225 ) Basic weighted average shares outstanding 276,806 236,045 231,633 Effect of dilutive securities: PSUs — 911 — Restricted stock — 475 — Convertible preferred stock — 40,034 — Diluted weighted average shares outstanding 276,806 277,465 231,633 Basic income (loss) per share $ 0.76 $ 4.75 $ ( 1.12 ) Diluted income (loss) per share $ 0.76 $ 4.11 $ ( 1.12 ) |
Cash Payments Made for Interest and Income Taxes | Cash payments made for interest and income taxes and other non-cash investing and financing activities were as follows: Year Ended December 31, 2023 2022 2021 (In thousands) Cash payments for: Interest $ 161,009 $ 166,275 $ 203,742 Income tax payments $ 29,783 $ 16,524 $ 149 Non-cash investing activities include: Increase (decrease) in accrued capital expenditures $ ( 18,562 ) $ 34,443 $ ( 4,964 ) Liabilities assumed in exchange for right-of-use lease assets $ 195,402 $ 110,090 $ 5,847 Non-cash financing activities include: Conversion of preferred stock into common stock $ — $ 175,000 $ — |
Natural Gas and Oil Producing_2
Natural Gas and Oil Producing Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | |
Capitalized Costs Related to Oil and Natural Gas Property Acquisition Exploration and Development Activities | Set forth below is certain information regarding the aggregate capitalized costs of natural gas and oil properties and costs incurred by the Company for its natural gas and oil property acquisition, development and exploration activities: Capitalized Costs As of December 31, 2023 2022 (In thousands) Proved properties: Leasehold costs $ 3,198,028 $ 3,117,028 Wells and related equipment and facilities 3,928,491 2,726,381 Accumulated depreciation depletion and amortization ( 2,144,084 ) ( 1,543,003 ) 4,982,435 4,300,406 Unproved properties 343,419 298,230 $ 5,325,854 $ 4,598,636 |
Costs Incurred Related to Oil and Natural Gas Property Acquisition Exploration and Development Activities | Costs Incurred Year Ended December 31, 2023 2022 2021 (In thousands) Property acquisitions: Proved property $ — $ 500 $ 21,781 Unproved property 98,553 54,120 35,871 Exploration and development: Developmental leasehold costs 27,905 13,727 12,953 Exploratory drilling and completion costs 244,129 63,520 6,966 Development drilling and completion costs 974,664 901,026 569,141 Other development costs 25,130 53,693 39,168 Asset retirement obligations ( 19 ) 686 5,608 Total capital expenditures $ 1,370,362 $ 1,087,272 $ 691,488 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term debt is comprised of the following: As of December 31, 2023 2022 (In thousands) Bank Credit Facility: Principal $ 480,000 $ — 6.75 % Senior Notes due 2029: Principal 1,223,880 1,223,880 Premium, net of amortization 5,138 5,956 5.875 % Senior Notes due 2030: Principal 965,000 965,000 Debt issuance costs, net of amortization ( 33,627 ) ( 42,265 ) $ 2,640,391 $ 2,152,571 |
Principal Amount of Debt by Year of Maturity | The following table summarizes Comstock's principal amount of debt as of December 31, 2023 by year of maturity: 2024 2025 2026 2027 2028 Thereafter Total (In thousands) Bank Credit Facility $ — $ — $ — $ 480,000 $ — $ — $ 480,000 6.75 % Senior Notes due 2029 — — — — — 1,223,880 1,223,880 5.875 % Senior Notes due 2030 — — — — — 965,000 965,000 $ — $ — $ — $ 480,000 $ — $ 2,188,880 $ 2,668,880 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Stock Activity | A summary of restricted stock activity is presented below: Number of Weighted Outstanding at January 1, 2023 966,058 $ 13.34 Granted 954,031 $ 9.80 Vested ( 419,964 ) $ 11.69 Forfeitures ( 71,041 ) $ 10.15 Outstanding at December 31, 2023 1,429,084 $ 11.62 Year Ended December 31, 2023 2022 2021 (In thousands, except per share data) Fair value of vested restricted stock $ 4,241 $ 11,080 $ 3,070 Grant date weighted average fair value $ 9.80 $ 17.70 $ 6.05 Compensation expense recognized for restricted stock grants $ 6,519 $ 4,171 $ 3,406 Unrecognized compensation expense related to unvested shares $ 12,411 Expected recognition period 2.0 years |
Summary of Significant Assumptions Used to Value PSUs | Significant assumptions used to value PSUs included: Year Ended December 31, 2023 2022 2021 Risk free interest rate 4.2 % 3.6 % 0.3 % Range of implied volatility: Minimum 38 % 50 % 37 % Maximum 68 % 83 % 83 % |
Summary of PSU Activity | A summary of PSU activity is presented below: Number of Weighted Outstanding at January 1, 2023 552,554 $ 15.11 Granted 391,281 $ 13.64 Earned ( 175,957 ) $ 8.11 Forfeitures ( 6,977 ) $ 28.24 Outstanding at December 31, 2023 760,901 $ 15.92 Year Ended December 31, 2023 2022 2021 (In thousands, except per unit data) Number of PSUs granted 391 237 221 Grant date fair value $ 4,906 $ 6,023 $ 1,891 Grant date fair value per unit $ 13.64 $ 25.92 $ 8.56 Compensation expense recognized for PSUs $ 3,348 $ 2,439 $ 3,392 Unrecognized compensation expense related to unvested shares $ 6,882 Expected recognition period 2.0 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Consolidated Income Tax Provision (Benefit) | The following is an analysis of the consolidated income tax provision (benefit): Year Ended December 31, 2023 2022 2021 (In thousands) Current - Federal $ ( 4,570 ) $ 40,445 $ — Current - State ( 4,636 ) ( 7,701 ) 14,968 Deferred - Federal 52,520 209,705 ( 16,721 ) Deferred - State ( 8,219 ) 18,612 13,156 $ 35,095 $ 261,061 $ 11,403 |
Tax Effects of Significant Temporary Differences Representing Net Deferred Tax Asset and Liability | The tax effects of significant temporary differences representing the net deferred tax liabilities were as follows: As of December 31, 2023 2022 (In thousands) Deferred tax assets: Interest expense limitation $ 168,604 $ 101,104 Net operating loss carryforwards 37,946 49,740 Unrealized hedging losses — — Asset retirement obligation 6,610 5,714 Other 3,784 4,932 216,944 161,490 Valuation allowance on deferred tax assets ( 1,169 ) ( 2,145 ) Deferred tax assets 215,775 159,345 Deferred tax liabilities: Property and equipment ( 653,369 ) ( 570,833 ) Unrealized hedging gains ( 26,623 ) ( 4,087 ) Amortization of debt issuance costs and bond discount — — Other ( 5,818 ) ( 10,162 ) Deferred tax liabilities ( 685,810 ) ( 585,082 ) Net deferred tax liability $ ( 470,035 ) $ ( 425,737 ) |
Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due | The difference between the customary rate of 21.0% and the effective tax rate on income (losses) is due to the following: Year Ended December 31, 2023 2022 2021 (In thousands) Tax at statutory rate $ 51,868 $ 294,408 $ ( 48,368 ) Tax effect of: Valuation allowance on deferred tax assets ( 2,307 ) ( 47,077 ) 30,504 State income taxes, net of federal benefit ( 10,542 ) 14,680 28,117 Other ( 3,924 ) ( 950 ) 1,150 Total $ 35,095 $ 261,061 $ 11,403 Year Ended December 31, 2023 2022 2021 Tax at statutory rate 21.0 % 21.0 % 21.0 % Tax effect of: Valuation allowance on deferred tax assets ( 0.9 ) ( 3.4 ) ( 13.3 ) State income taxes, net of federal benefit ( 4.3 ) 1.1 ( 12.2 ) Other ( 1.6 ) ( 0.1 ) ( 0.5 ) Effective tax rate 14.2 % 18.6 % ( 5.0 )% |
Carryforwards Available to Reduce Future Income Taxes | At December 31, 2023, Comstock had the following carryforwards available to reduce future income taxes: Types of Carryforward Years of Amount (In thousands) Net operating loss – U.S. federal 2024-2037 $ 740,631 Net operating loss – U.S. federal Unlimited $ 13,467 Net operating loss – state taxes Unlimited $ 1,745,991 Interest expense – U.S. federal Unlimited $ 629,212 Interest expense – state taxes Unlimited $ 615,527 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Gas Derivative Contracts Volume and Prices | The Company had the following outstanding natural gas price derivative financial instruments at December 31, 2023: Future Natural Gas Swap Contracts: Volume (MMBtu) 146,400,000 Average Price per MMBtu $ 3.55 |
Schedule of Derivative Instruments | The aggregate fair value of the Company's derivative financial 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 December 31, Type Consolidated Balance Sheet Location 2023 2022 (in thousands) Asset Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ 126,775 $ 23,884 Liability Derivative Financial Instruments: Natural gas price derivatives Derivative Financial Instruments – current $ — $ 4,420 |
Schedule of Gains and Losses from Derivative Financial Instruments | 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: Year Ended December 31, Gain/(Loss) Recognized in Earnings on Derivatives 2023 2022 2021 (In thousands) Natural gas price derivatives $ 187,639 $ ( 662,522 ) $ ( 555,636 ) Oil price derivatives — — ( 7,247 ) Interest rate derivatives — — 2,235 $ 187,639 $ ( 662,522 ) $ ( 560,648 ) |
Natural Gas and Oil Reserves _2
Natural Gas and Oil Reserves Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Extractive Industries [Abstract] | |
Summary of Changes in Net Quantities of Proved Natural Gas and Oil Reserves | Set forth below is a summary of the Company's proved natural gas and oil reserves: Year Ended December 31, 2023 2022 2021 Oil Natural Oil Natural Oil Natural Proved Reserves: Beginning of period 549 6,697,570 627 6,118,083 11,000 5,562,876 Revisions of previous estimates ( 47 ) ( 1,803,628 ) ( 61 ) ( 6,870 ) 145 88,546 Extensions and discoveries 116 570,751 137 1,090,420 — 797,198 Acquisitions of minerals in place — — 6 260 — 202,588 Sales of minerals in place — — ( 78 ) ( 3,707 ) ( 9,308 ) ( 43,851 ) Production ( 70 ) ( 524,467 ) ( 82 ) ( 500,616 ) ( 1,210 ) ( 489,274 ) End of period 548 4,940,226 549 6,697,570 627 6,118,083 Proved Developed Reserves: Beginning of period 480 2,531,462 627 2,245,660 11,000 1,967,288 End of period 548 2,734,175 480 2,531,462 627 2,245,660 Proved Undeveloped Reserves: Beginning of period 69 4,166,108 — 3,872,423 — 3,595,588 End of period — 2,206,051 69 4,166,108 — 3,872,423 |
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves | The following table sets forth the standardized measure of discounted future net cash flows relating to proved reserves: As of December 31, 2023 2022 2021 (In thousands) Cash Flows Relating to Proved Reserves: Future Cash Flows $ 11,829,623 $ 40,405,829 $ 20,396,381 Future Costs: Production ( 4,019,901 ) ( 5,473,650 ) ( 3,954,726 ) Development and Abandonment ( 2,285,853 ) ( 4,175,721 ) ( 2,752,603 ) Future Income Taxes ( 341,677 ) ( 5,741,914 ) ( 2,065,316 ) Future Net Cash Flows 5,182,192 25,014,544 11,623,736 10% Discount Factor ( 2,807,562 ) ( 12,404,908 ) ( 5,848,131 ) Standardized Measure of Discounted Future Net Cash Flows $ 2,374,630 $ 12,609,636 $ 5,775,605 |
Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves | The following table sets forth the changes in the standardized measure of discounted future net cash flows relating to proved reserves: Year Ended December 31, 2023 2022 2021 (In thousands) Standardized Measure, Beginning of Year $ 12,609,636 $ 5,775,605 $ 1,935,725 Net change in sales price, net of production costs ( 14,069,134 ) 8,600,315 5,012,696 Development costs incurred during the year which were previously estimated 1,004,650 788,450 502,674 Revisions of quantity estimates ( 1,583,876 ) ( 42,423 ) 119,200 Accretion of discount 1,551,704 680,010 199,124 Changes in future development and abandonment costs 1,095,844 ( 869,115 ) 1,505 Changes in timing and other ( 374,087 ) ( 113,744 ) ( 224,617 ) Extensions and discoveries 215,249 2,456,124 679,418 Acquisitions of minerals in place — 604 150,065 Sales of minerals in place — ( 3,313 ) ( 64,032 ) Sales, net of production costs ( 855,699 ) ( 2,779,960 ) ( 1,567,182 ) Net changes in income taxes 2,780,343 ( 1,882,917 ) ( 968,971 ) Standardized Measure, End of Year $ 2,374,630 $ 12,609,636 $ 5,775,605 |
Summary of Prices Used in Determining Natural Gas and Oil Reserves Quantities and Cash Flows | Prices used in determining natural gas and oil reserves quantities and cash flows are as follows: Year Ended December 31, 2023 2022 2021 Crude Oil: $/barrel $ 72.63 $ 91.21 $ 62.38 Natural Gas: $/Mcf $ 2.39 $ 6.03 $ 3.33 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Detail) | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) Segment Customer Contract Product shares | Dec. 31, 2022 USD ($) Customer shares | Dec. 31, 2021 USD ($) Customer | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | $ 0 | |
Goodwill | 335,897,000 | 335,897,000 | 335,897,000 | ||
Operating lease right-of-use assets | $ 71,462,000 | 71,462,000 | 90,716,000 | ||
Cash payments for operating leases associated with right-of-use assets | 3,800,000 | 3,100,000 | 2,600,000 | ||
Cash payments for operating leases associated with ROU assets used for investing activities | $ 174,300,000 | $ 112,400,000 | $ 32,700,000 | ||
Operating lease, weighted average remaining lease term | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 2 months 12 days | ||
Operating lease, weighted average discount rate, percent | 7.20% | 7.20% | 3.50% | ||
Number of operating segments | Segment | 1 | ||||
Number of major customer of oil and gas sales | Customer | 3 | 3 | 3 | ||
Number of primary products | Product | 2 | ||||
Contract cash settlement max days | 25 days | ||||
Contract cancellable notice term | 30 days | ||||
Natural gas and oil sales and gas services | $ 166,639,000 | $ 166,639,000 | $ 415,079,000 | ||
Reimbursements of overhead costs | $ 29,700,000 | $ 27,500,000 | $ 25,300,000 | ||
Performance multiplier, minimum | 0% | ||||
Performance multiplier, maximum | 200% | ||||
PGS | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Initially committed to contribute | $ 300,000,000 | $ 300,000,000 | |||
Dividend percentage | 12% | ||||
Distributions percentage | 80% | ||||
Reduction of ownership percentage | 30% | ||||
Property, plant and equipment, additions | $ 54,900,000 | ||||
Drilling Rig Contract [Member] | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease, term of contract | 3 years | 3 years | |||
Operating lease, number of contract | Contract | 2 | ||||
Restricted Stock | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Restricted stock (in shares) | shares | 1,429,084 | 1,429,084 | 966,058 | ||
Major Oil And Natural Gas Purchaser One | Revenue Benchmark | Customer Concentration Risk | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of total revenue | 20% | 27% | 22% | ||
Major Oil And Natural Gas Purchaser Two | Revenue Benchmark | Customer Concentration Risk | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of total revenue | 17% | 21% | 21% | ||
Major Oil And Natural Gas Purchaser Three | Revenue Benchmark | Customer Concentration Risk | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Percentage of total revenue | 10% | 12% | 13% | ||
Minimum | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | 3 years | |||
Prior advance notice period for cancellation of rig contracts | 30 days | ||||
Maximum | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, useful life | 50 years | 50 years | |||
Prior advance notice period for cancellation of rig contracts | 45 days | ||||
Series B Convertible Preferred Stock | |||||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||||
Aggregate common stock upon conversion (in shares) | shares | 43,750,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Other Current Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Prepaid drilling costs | $ 70,124 | $ 39,084 |
Income tax receivable | 8,312 | 0 |
Production tax refunds receivable | 5,745 | 11,156 |
Prepaid expenses | 2,438 | 2,455 |
Accrued proceeds from sale of natural gas and oil properties | 0 | 3,118 |
Other | 0 | 511 |
Other current assets | $ 86,619 | $ 56,324 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Derivative financial instruments | $ 126,775 | $ 23,884 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative financial instruments | $ 0 | 4,420 |
6.75% Senior Notes due 2029: | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate on debt instrument | 6.75% | |
5.875% Senior Notes due 2030: | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Interest rate on debt instrument | 5.875% | |
Bank Credit Facility: | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, carrying value | $ 480,000 | 0 |
Long-term debt, fair value | 480,000 | 0 |
Level 2 and Level 3 | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Derivative financial instruments | 126,775 | 23,884 |
Derivative financial asset, fair value | 126,775 | 23,884 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Derivative financial instruments | 0 | 4,420 |
Derivative financial liabilities, fair value | 0 | 4,420 |
Level 1 | 6.75% Senior Notes due 2029: | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, carrying value | 1,229,018 | 1,229,836 |
Long-term debt, fair value | 1,138,208 | 1,129,029 |
Level 1 | 5.875% Senior Notes due 2030: | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Long-term debt, carrying value | 965,000 | 965,000 |
Long-term debt, fair value | $ 849,200 | $ 846,788 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Exploratory Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Capitalized Exploratory Well Costs that are Pending Determination of Proved Reserves [Roll Forward] | ||
Beginning capitalized exploratory project costs | $ 867 | $ 6,966 |
Additions to exploratory well costs pending the determination of proved reserves | 244,129 | 63,520 |
Determined to have found proved reserves | (148,763) | (69,619) |
Ending capitalized exploratory well costs | $ 96,233 | $ 867 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Lease Cost Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease cost | $ 178,152 | $ 115,504 | $ 35,346 |
Operating lease cost included in general and administrative expense | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease cost | 1,768 | 1,749 | 1,732 |
Operating lease cost included in lease operating expense | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease cost | 2,060 | 1,383 | 879 |
Operating lease cost included in natural gas and oil properties | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease cost | 56,755 | 25,200 | 0 |
Variable lease cost drilling and completion costs included in natural gas and oil properties | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Variable lease cost | 28,406 | 25,095 | 0 |
Short-term lease cost drilling rig costs included in natural gas and oil properties | |||
Operations And Summary Of Significant Accounting Policies [Line Items] | |||
Operating lease cost | $ 89,163 | $ 62,077 | $ 32,735 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Summary of Liabilities Under Contract Contain Operating Leases (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Accounting Policies [Abstract] | |
2024 | $ 28,173 |
2025 | 27,251 |
2026 | 21,181 |
2027 | 1,545 |
2028 | 1,560 |
Total lease payments | 79,710 |
Imputed interest | (8,203) |
Total lease liability | $ 71,507 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Accrued interest payable | $ 54,912 | $ 54,867 |
Accrued drilling costs | 35,876 | 54,438 |
Accrued transportation costs | 32,294 | 28,357 |
Accrued employee compensation | 6,700 | 11,308 |
Accrued lease operating expenses | 2,299 | 2,412 |
Accrued income and other taxes | 1,894 | 31,256 |
Other | 491 | 473 |
Total accrued expenses | $ 134,466 | $ 183,111 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Summary of Changes in Reserve for Future Abandonment Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Reserve for future abandonment costs at beginning of the year | $ 29,114 | $ 25,673 |
New wells placed on production | 146 | 1,537 |
Acquisitions | 0 | 1,211 |
Changes in estimates and timing | (122) | 182 |
Liabilities settled | (41) | (80) |
Divestitures | (1) | (944) |
Accretion expense | 1,677 | 1,535 |
Reserve for future abandonment costs at end of the year | $ 30,773 | $ 29,114 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Weighted Average Shares of Unvested Restricted Stock (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Unvested restricted stock (in shares) | 1,248 | 926 | 1,057 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Common Stock and Convertible Stock Dilutive in Computation of Earning Per Share (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average convertible preferred stock (in shares) | 0 | 40,034 | 43,750 |
Performance Share Units (PSU) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average PSUs (in shares) | 662 | 925 | 1,146 |
Weighted average grant date fair value per unit (in dollars per share) | $ 15.92 | $ 15.11 | $ 8.11 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Basic and Diluted Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net income (loss) available to common stockholders | $ 211,894 | $ 1,124,868 | $ (259,225) |
Income allocable to unvested restricted stock | (327) | (4,278) | 0 |
Basic net income (loss) available to common stockholders | 211,567 | 1,120,590 | (259,225) |
Income allocable to convertible preferred stock | 0 | 16,014 | 0 |
Income allocable to unvested restricted stock | 0 | 4,278 | 0 |
Diluted net income (loss) available to common stockholders | $ 211,567 | $ 1,140,882 | $ (259,225) |
Basic weighted average shares outstanding (in shares) | 276,806 | 236,045 | 231,633 |
Effect of dilutive securities: | |||
Convertible preferred stock (in shares) | 0 | 40,034 | 0 |
Diluted weighted average shares outstanding | 276,806 | 277,465 | 231,633 |
Basic (in dollars per share) | $ 0.76 | $ 4.75 | $ (1.12) |
Diluted (in dollars per share) | $ 0.76 | $ 4.11 | $ (1.12) |
Performance Share Units (PSU) | |||
Effect of dilutive securities: | |||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 911 | 0 |
Restricted Stock | |||
Effect of dilutive securities: | |||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 475 | 0 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Supplementary Information of Consolidated Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash payments for: | |||
Interest | $ 161,009 | $ 166,275 | $ 203,742 |
Income tax payments | 29,783 | 16,524 | 149 |
Non-cash investing activities include: | |||
Increase (decrease) in accrued capital expenditures | (18,562) | 34,443 | (4,964) |
Liabilities assumed in exchange for right-of-use lease assets | 195,402 | 110,090 | 5,847 |
Non-cash financing activities include: | |||
Conversion of preferred stock into common stock | $ 0 | $ 175,000 | $ 0 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Natural Gas and Oil Properties - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2021 USD ($) | Dec. 31, 2023 USD ($) a | Dec. 31, 2022 USD ($) a MilePipeline | Dec. 31, 2021 USD ($) a Well | |
Disposal Group, Not Discontinued Operations | ||||
Business Acquisition [Line Items] | ||||
Proceeds from the sales of assets | $ 41.3 | $ 4.1 | ||
Disposal Group, Not Discontinued Operations | Bakken Shale | ||||
Business Acquisition [Line Items] | ||||
Proceeds from the sales of assets | $ 138.1 | |||
Loss on sale of oil and gas properties | $ 162.2 | |||
East Texas | ||||
Business Acquisition [Line Items] | ||||
Asset acquisition, consideration transferred | $ 34.7 | |||
Haynesville Shale | East Texas | ||||
Business Acquisition [Line Items] | ||||
Length of acquired pipeline | MilePipeline | 145 | |||
Oil and gas properties, net acres | a | 17,500 | |||
Asset acquisition, consideration transferred | $ 35.6 | |||
Property, plant and equipment, additions | 16.8 | |||
Asset acquisition, unproved property | $ 18.8 | |||
Producing natural gas wells, gross | Well | 37 | |||
Oil and Gas Properties | Western Haynesville | ||||
Business Acquisition [Line Items] | ||||
Oil and gas properties, net acres | a | 79,741 | 104,314 | 32,556 | |
Asset acquisition, consideration transferred | $ 98.6 | $ 54.4 | $ 22.9 | |
Oil and Gas Properties | Haynesville Shale | East Texas | ||||
Business Acquisition [Line Items] | ||||
Oil and gas properties, net acres | a | 68,000 |
Natural Gas and Oil Producing_3
Natural Gas and Oil Producing Activities - Capitalized Costs Related to Oil and Natural Gas Property Acquisition Exploration and Development Activities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Proved properties: | ||
Leasehold costs | $ 3,198,028 | $ 3,117,028 |
Wells and related equipment and facilities | 3,928,491 | 2,726,381 |
Accumulated depreciation depletion and amortization | (2,144,084) | (1,543,003) |
Proved properties | 4,982,435 | 4,300,406 |
Unproved properties | 343,419 | 298,230 |
Capitalized costs, oil and gas producing activities, net, total | $ 5,325,854 | $ 4,598,636 |
Natural Gas and Oil Producing_4
Natural Gas and Oil Producing Activities - Costs Incurred Related to Oil and Natural Gas Property Acquisition Exploration and Development Activities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property acquisitions: | |||
Proved property | $ 0 | $ 500 | $ 21,781 |
Unproved property | 98,553 | 54,120 | 35,871 |
Exploration and development: | |||
Developmental leasehold costs | 27,905 | 13,727 | 12,953 |
Exploratory drilling and completion costs | 244,129 | 63,520 | 6,966 |
Development drilling and completion costs | 974,664 | 901,026 | 569,141 |
Other development costs | 25,130 | 53,693 | 39,168 |
Asset retirement obligations | (19) | 686 | 5,608 |
Total capital expenditures | $ 1,370,362 | $ 1,087,272 | $ 691,488 |
Long-term Debt - Long-term Debt
Long-term Debt - Long-term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
Principal | $ 2,668,880 | ||
Debt issuance costs, net of amortization | (33,627) | $ (42,265) | |
Long-term debt | 2,640,391 | 2,152,571 | |
Bank Credit Facility: | |||
Debt Instrument [Line Items] | |||
Principal | 480,000 | ||
6.75% Senior Notes due 2029: | |||
Debt Instrument [Line Items] | |||
Principal | 1,223,880 | 1,223,880 | |
Premium, net of amortization | $ 5,138 | 5,956 | |
Interest rate on debt instrument | 6.75% | ||
5.875% Senior Notes due 2030: | |||
Debt Instrument [Line Items] | |||
Principal | $ 965,000 | $ 965,000 | $ 965,000 |
Interest rate on debt instrument | 5.875% |
Long-term Debt - Principal Amou
Long-term Debt - Principal Amount of Debt by Year of Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | |||
2024 | $ 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 480,000 | ||
2028 | 0 | ||
Thereafter | 2,188,880 | ||
Long-term debt, gross | 2,668,880 | ||
Bank Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | 480,000 | ||
2028 | 0 | ||
Thereafter | |||
Long-term debt, gross | 480,000 | ||
6.75% Senior Notes due 2029: | |||
Debt Instrument [Line Items] | |||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | |||
2028 | 0 | ||
Thereafter | 1,223,880 | ||
Long-term debt, gross | $ 1,223,880 | $ 1,223,880 | |
Interest rate on debt instrument | 6.75% | ||
5.875% Senior Notes due 2030: | |||
Debt Instrument [Line Items] | |||
2024 | $ 0 | ||
2025 | 0 | ||
2026 | 0 | ||
2027 | |||
2028 | 0 | ||
Thereafter | 965,000 | ||
Long-term debt, gross | $ 965,000 | $ 965,000 | $ 965,000 |
Interest rate on debt instrument | 5.875% |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||
May 31, 2022 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 2,668,880 | ||||
Repayments of senior debt | 0 | $ 273,920 | $ 2,210,626 | ||
Loss on early retirement of debt | 0 | 46,840 | 352,599 | ||
Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Borrowing base | 1,500,000 | ||||
Long-term debt, gross | $ 480,000 | ||||
Minimum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Commitment fee on unused borrowing base | 0.375% | ||||
Maximum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Commitment fee on unused borrowing base | 0.50% | ||||
Secured Overnight Financing Rate (SOFR) | Minimum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Spread rate for interest rate on credit facility | 1.75% | ||||
Secured Overnight Financing Rate (SOFR) | Maximum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Spread rate for interest rate on credit facility | 2.75% | ||||
Base Rate | Minimum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Spread rate for interest rate on credit facility | 0.75% | ||||
Base Rate | Maximum | Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Spread rate for interest rate on credit facility | 1.75% | ||||
Wells Fargo Credit Facility | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing base | $ 2,000,000 | ||||
Weighted average interest rate on borrowings | 7.33% | 3.61% | |||
Wells Fargo Credit Facility | Minimum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Current ratio | 1% | ||||
Wells Fargo Credit Facility | Maximum | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio | 3.50% | ||||
7.5% Senior Notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument | 7.50% | ||||
Long-term debt, gross | $ 244,400 | ||||
Repayments of senior debt | 258,100 | ||||
Premiums paid over face value | 4,500 | ||||
Payment of accrued interest | 9,200 | ||||
Loss on early retirement of debt | (47,800) | ||||
Unamortized discount | $ 43,300 | ||||
Repayments of long-term debt | 375,000 | ||||
6.75% Senior Notes due 2029: | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument | 6.75% | ||||
Long-term debt, gross | $ 1,223,880 | $ 1,223,880 | |||
Repayments of senior debt | $ 26,100 | ||||
Loss on early retirement of debt | (1,000) | ||||
Repayments of long-term debt | $ 24,900 | ||||
Proceeds of issued senior notes | $ 1,250,000 | ||||
9.75% Senior Notes Due 2026 | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument | 9.75% | ||||
Repayments of senior debt | $ 1,650,000 | ||||
5.875% Senior Notes due 2030: | |||||
Debt Instrument [Line Items] | |||||
Interest rate on debt instrument | 5.875% | ||||
Long-term debt, gross | $ 965,000 | $ 965,000 | $ 965,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Drillingrig | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments And Contingencies [Line Items] | ||||
Number of drilling rigs | Drillingrig | 3 | |||
Natural Gas Transportation and Gathering Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, to be paid, year one | $ 97.8 | |||
Other commitment, to be paid, year two | 89.6 | |||
Other commitment, to be paid, year three | 63.9 | |||
Other commitment, to be paid, year four | 62.7 | |||
Other commitment, to be paid, year five | 56.3 | |||
Other commitment, to be paid, after year five | 96.4 | |||
Purchase obligations expenditures | $ 96.5 | $ 50.1 | $ 24.4 | |
Drill and Rig Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, period | 3 years | |||
Minimum | Drill and Rig Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, to be paid, year one | $ 12.2 | 12.2 | ||
Other commitment, to be paid, year two | 12.2 | 12.2 | ||
Other commitment, to be paid, year three | $ 12.2 | $ 12.2 | ||
Minimum | Drilling Rig Short Term Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, period | 45 days | |||
Maximum | Drill and Rig Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, period | 3 years | |||
Maximum | Drilling Rig Short Term Contracts | ||||
Commitments And Contingencies [Line Items] | ||||
Other commitment, period | 6 months |
Convertible Preferred Stock - A
Convertible Preferred Stock - Additional Information (Detail) | Nov. 30, 2022 shares |
Series B Convertible Preferred Stock | |
Temporary Equity [Line Items] | |
Conversion of stock, shares converted (in shares) | 43,750,000 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 16, 2019 |
Equity [Abstract] | |||
Authorized capital stock (in shares) | 405,000,000 | ||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 | $ 0.5 |
Preferred stock, authorized capital stock (in shares) | 5,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 10 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Long-term incentive plan shares available for future awards of performance share units, restricted stock grants or other equity awards (in shares) | 3,262,987 | ||
Stock-based compensation expense recognized | $ 9,867 | $ 6,610 | $ 6,799 |
Minimum final number of shares of common stock issuable based on performance multiplier (in shares) | 0 | ||
Maximum final number of shares of common stock issuable based on performance multiplier (in shares) | 1,521,802 | ||
Performance multiplier, minimum | 0% | ||
Performance multiplier, maximum | 200% | ||
Performance Share Units (PSU) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortized vesting period of awards | 3 years | ||
Minimum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortized vesting period of awards | 1 year | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortized vesting period of awards | 3 years | ||
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 9,900 | $ 6,600 | $ 6,800 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Restricted Stock Activity (Detail) - Restricted Stock - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Beginning balance, shares outstanding (in shares) | 966,058 | ||
Number of shares, granted (in shares) | 954,031 | ||
Earned (in shares) | (419,964) | ||
Forfeitures (in shares) | (71,041) | ||
Ending balance, shares outstanding (in shares) | 1,429,084 | 966,058 | |
Weighted-Average | |||
Beginning balance, weighted average grant price, outstanding (in dollars per share) | $ 13.34 | ||
Granted (in dollars per share) | 9.80 | $ 17.70 | $ 6.05 |
Earned (in dollars per share) | 11.69 | ||
Forfeitures (in dollars per share) | 10.15 | ||
Ending balance, weighted average grant price, outstanding (in dollars per share) | $ 11.62 | $ 13.34 | |
Fair value of vested restricted stock | $ 4,241 | $ 11,080 | $ 3,070 |
Per share weighted average fair value (in dollars per share) | $ 9.80 | $ 17.70 | $ 6.05 |
Compensation expense recognized for restricted stock grants | $ 6,519 | $ 4,171 | $ 3,406 |
Unrecognized compensation expense related to unvested shares | $ 12,411 | ||
Expected recognition period | 2 years |
Stock-based Compensation - Su_2
Stock-based Compensation - Summary of Significant Assumptions Used to Value PSUs (Detail) - Performance Share Units (PSU) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate | 4.20% | 3.60% | 0.30% |
Minimum | 38% | 50% | 37% |
Maximum | 68% | 83% | 83% |
Stock-based Compensation - Su_3
Stock-based Compensation - Summary of PSU Activity (Detail) (Potential Performance Shares (PSU)) - Performance Share Units (PSU) | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Beginning balance, shares outstanding (in shares) | shares | 552,554 |
Granted (in shares) | shares | 391,281 |
Earned (in shares) | shares | (175,957) |
Forfeitures (in shares) | shares | (6,977) |
Ending balance, shares outstanding (in shares) | shares | 760,901 |
Weighted-Average | |
Beginning balance, weighted average grant price, outstanding (in dollars per share) | $ / shares | $ 15.11 |
Granted (in dollars per share) | $ / shares | 13.64 |
Earned (in dollars per share) | $ / shares | 8.11 |
Forfeitures (in dollars per share) | $ / shares | 28.24 |
Ending balance, weighted average grant price, outstanding (in dollars per share) | $ / shares | $ 15.92 |
Stock-based Compensation - Su_4
Stock-based Compensation - Summary of PSU Activity (Detail) - Performance Share Units (PSU) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of PSUs granted (in shares) | 391 | 237 | 221 |
Grant date fair value | $ 4,906 | $ 6,023 | $ 1,891 |
Grant date fair value (in dollars per share) | $ 13.64 | $ 25.92 | $ 8.56 |
Compensation expense recognized for PSUs | $ 3,348 | $ 2,439 | $ 3,392 |
Unrecognized compensation expense related to unvested shares | $ 6,882 | ||
Expected recognition period | 2 years |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Matching contributions to the plan | $ 1.9 | $ 1.5 | $ 1.3 |
Income Taxes - Consolidated Inc
Income Taxes - Consolidated Income Tax Provision (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current - Federal | $ (4,570) | $ 40,445 | $ 0 |
Current - State | (4,636) | (7,701) | 14,968 |
Deferred - Federal | 52,520 | 209,705 | (16,721) |
Deferred - State | (8,219) | 18,612 | 13,156 |
Total | $ 35,095 | $ 261,061 | $ 11,403 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Taxes [Line Items] | |
Net operating loss expiration period | 20 years |
U.S. Federal | |
Income Taxes [Line Items] | |
Estimated NOL carryforwards to expire unused | $ 740.6 |
State Taxes | |
Income Taxes [Line Items] | |
Estimated NOL carryforwards to expire unused | $ 1,200 |
Income Taxes - Tax Effects of S
Income Taxes - Tax Effects of Significant Temporary Differences Representing Net Deferred Tax Asset and Liability (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Interest expense limitation | $ 168,604 | $ 101,104 |
Net operating loss carryforwards | 37,946 | 49,740 |
Unrealized hedging losses | 0 | 0 |
Asset retirement obligation | 6,610 | 5,714 |
Other | 3,784 | 4,932 |
Noncurrent deferred tax assets | 216,944 | 161,490 |
Valuation allowance on deferred tax assets | (1,169) | (2,145) |
Deferred tax assets | 215,775 | 159,345 |
Deferred tax liabilities: | ||
Property and equipment | (653,369) | (570,833) |
Unrealized hedging gains | (26,623) | (4,087) |
Amortization of debt issuance costs and bond discount | 0 | 0 |
Other | (5,818) | (10,162) |
Deferred tax liabilities | (685,810) | (585,082) |
Net deferred tax liability | $ (470,035) | $ (425,737) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense Benefit Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | $ 51,868 | $ 294,408 | $ (48,368) |
Tax effect of: | |||
Valuation allowance on deferred tax assets | (2,307) | (47,077) | 30,504 |
State income taxes, net of federal benefit | (10,542) | 14,680 | 28,117 |
Other | (3,924) | (950) | 1,150 |
Total | $ 35,095 | $ 261,061 | $ 11,403 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Customary Rate and Effective Tax Rate on Income Before Income Taxes Due (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax at statutory rate | 21% | 21% | 21% |
Tax effect of: | |||
Valuation allowance on deferred tax assets | (0.90%) | (3.40%) | (13.30%) |
State income taxes, net of federal benefit | (4.30%) | 1.10% | (12.20%) |
Other | (1.60%) | (0.10%) | (0.50%) |
Effective tax rate | 14.20% | 18.60% | (5.00%) |
Income Taxes - Carryforwards Av
Income Taxes - Carryforwards Available to Reduce Future Income Taxes (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
U.S. Federal | |
Carryforward Available To Reduce Future Income Taxes [Line Items] | |
Net operating loss, tax credit carryforward, amount | $ 740,631 |
State Taxes | |
Carryforward Available To Reduce Future Income Taxes [Line Items] | |
Net operating loss, tax credit carryforward, amount | 1,745,991 |
Interest expense, tax credit carryforward, amount | 615,527 |
Years Of Expiration Carryforward Unlimited | |
Carryforward Available To Reduce Future Income Taxes [Line Items] | |
Net operating loss, tax credit carryforward, amount | 13,467 |
Interest expense, tax credit carryforward, amount | $ 629,212 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Contracts Volume and Prices (Detail) - Natural Gas Swap Contracts - Swap Contract for Year One | 12 Months Ended |
Dec. 31, 2023 MMBTU $ / Mcf | |
Derivative [Line Items] | |
Volume (in MMBTU) | MMBTU | 146,400,000 |
Average Price per MMBtu | $ / Mcf | 3.55 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities - Schedule of Derivative Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivative [Line Items] | ||
Derivative asset, current | $ 126,775 | $ 23,884 |
Derivative liability, current | 0 | 4,420 |
Natural gas price derivatives | ||
Derivative [Line Items] | ||
Derivative asset, current | 126,775 | 23,884 |
Derivative liability, current | $ 4,420 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities - Schedule of Gains and Losses from Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | |||
Gain (loss) from derivative financial instruments | $ 187,639 | $ (662,522) | $ (560,648) |
Gain (Loss) from Derivative Financial Instruments | |||
Derivative [Line Items] | |||
Gain (loss) from derivative financial instruments | 187,639 | (662,522) | (560,648) |
Gain (Loss) from Derivative Financial Instruments | Natural gas price derivatives | |||
Derivative [Line Items] | |||
Gain (loss) from derivative financial instruments | 187,639 | (662,522) | (555,636) |
Gain (Loss) from Derivative Financial Instruments | Oil price derivatives | |||
Derivative [Line Items] | |||
Gain (loss) from derivative financial instruments | (7,247) | ||
Gain (Loss) from Derivative Financial Instruments | Interest rate derivatives | |||
Derivative [Line Items] | |||
Gain (loss) from derivative financial instruments | $ 2,235 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / Mcf | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) a Well | |
Related Party Transaction [Line Items] | |||
Revenues | $ 1,565,109 | $ 3,628,057 | $ 1,850,730 |
From affiliates | $ 16,087 | 18,527 | |
Haynesville Shale | East Texas | |||
Related Party Transaction [Line Items] | |||
Oil and gas properties, net acres | a | 17,500 | ||
Producing natural gas wells, gross | Well | 37 | ||
Partnerships owned by majority stockholder | |||
Related Party Transaction [Line Items] | |||
Related party revenue, fee (in USD per Mcf) | $ / Mcf | 0.02 | ||
From affiliates | $ 16,100 | 18,500 | |
Partnerships owned by majority stockholder | Partnership costs to drill and operating wells and overhead fees | |||
Related Party Transaction [Line Items] | |||
Revenues | $ 1,300 | $ 900 | $ 1,400 |
Natural Gas and Oil Reserves _3
Natural Gas and Oil Reserves Information (Unaudited) - Summary of Changes in Net Quantities of Natural Gas and Crude Oil Reserves (Detail) | 12 Months Ended | |||
Dec. 31, 2023 MMBbls MMcf | Dec. 31, 2022 MMcf MMBbls | Dec. 31, 2021 MMBbls MMcf | Dec. 31, 2020 MMcf MMBbls | |
Oil (MBbls) | ||||
Proved Reserves: | ||||
Beginning of period | MMBbls | 549 | 627 | 11,000 | |
Revisions of previous estimates | MMBbls | (47) | (61) | 145 | |
Extensions and discoveries | MMBbls | 116 | 137 | 0 | |
Acquisitions of minerals in place | MMBbls | 0 | 6 | 0 | |
Sales of minerals in place | MMBbls | 0 | (78) | (9,308) | |
Production | MMBbls | (70) | (82) | (1,210) | |
End of period | MMBbls | 548 | 549 | 627 | |
Proved Developed Reserves: | ||||
Proved developed reserves | MMBbls | 548 | 480 | 627 | 11,000 |
Proved Undeveloped Reserves: | ||||
Proved undeveloped reserves | MMBbls | 0 | 69 | 0 | 0 |
Natural Gas (MMcf) | ||||
Proved Reserves: | ||||
Beginning of period | MMcf | 6,697,570 | 6,118,083 | 5,562,876 | |
Revisions of previous estimates | MMcf | (1,803,628) | (6,870) | 88,546 | |
Extensions and discoveries | MMcf | 570,751 | 1,090,420 | 797,198 | |
Acquisitions of minerals in place | MMcf | 0 | 260 | 202,588 | |
Sales of minerals in place | MMcf | 0 | (3,707) | (43,851) | |
Production | MMcf | (524,467) | (500,616) | (489,274) | |
End of period | MMcf | 4,940,226 | 6,697,570 | 6,118,083 | |
Proved Developed Reserves: | ||||
Proved developed reserves | MMcf | 2,734,175 | 2,531,462 | 2,245,660 | 1,967,288 |
Proved Undeveloped Reserves: | ||||
Proved undeveloped reserves | MMcf | 2,206,051 | 4,166,108 | 3,872,423 | 3,595,588 |
Natural Gas and Oil Reserves _4
Natural Gas and Oil Reserves Information (Unaudited) - Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash Flows Relating to Proved Reserves: | ||||
Future Cash Flows | $ 11,829,623 | $ 40,405,829 | $ 20,396,381 | |
Future Costs: | ||||
Production | (4,019,901) | (5,473,650) | (3,954,726) | |
Development and Abandonment | (2,285,853) | (4,175,721) | (2,752,603) | |
Future Income Taxes | (341,677) | (5,741,914) | (2,065,316) | |
Future Net Cash Flows | 5,182,192 | 25,014,544 | 11,623,736 | |
10% Discount Factor | (2,807,562) | (12,404,908) | (5,848,131) | |
Standardized Measure of Discounted Future Net Cash Flows | $ 2,374,630 | $ 12,609,636 | $ 5,775,605 | $ 1,935,725 |
Natural Gas and Oil Reserves _5
Natural Gas and Oil Reserves Information (Unaudited) - Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Reserves (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease) in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Roll Forward] | |||
Standardized Measure, Beginning of Year | $ 12,609,636 | $ 5,775,605 | $ 1,935,725 |
Net change in sales price, net of production costs | (14,069,134) | 8,600,315 | 5,012,696 |
Development costs incurred during the year which were previously estimated | 1,004,650 | 788,450 | 502,674 |
Revisions of quantity estimates | (1,583,876) | (42,423) | 119,200 |
Accretion of discount | 1,551,704 | 680,010 | 199,124 |
Changes in future development and abandonment costs | 1,095,844 | (869,115) | 1,505 |
Changes in timing and other | (374,087) | (113,744) | (224,617) |
Extensions and discoveries | 215,249 | 2,456,124 | 679,418 |
Acquisitions of minerals in place | 0 | 604 | 150,065 |
Sales of minerals in place | 0 | (3,313) | (64,032) |
Sales, net of production costs | (855,699) | (2,779,960) | (1,567,182) |
Net changes in income taxes | 2,780,343 | (1,882,917) | (968,971) |
Standardized Measure, End of Year | $ 2,374,630 | $ 12,609,636 | $ 5,775,605 |
Natural Gas and Oil Reserves _6
Natural Gas and Oil Reserves Information (Unaudited) - Summary of Prices Used in Determining Natural Gas and Oiil Reserves Quantities and Cash Flows (Detail) | 12 Months Ended | ||
Dec. 31, 2023 $ / Mcf $ / bbl | Dec. 31, 2022 $ / bbl $ / Mcf | Dec. 31, 2021 $ / Mcf $ / bbl | |
Crude Oil and NGL Per Barrel | |||
Oil and Gas, Average Sale Price and Production Cost Per Unit [Line Items] | |||
Average sales prices | $ / bbl | 72.63 | 91.21 | 62.38 |
Natural Gas Per Thousand Cubic Feet | |||
Oil and Gas, Average Sale Price and Production Cost Per Unit [Line Items] | |||
Average sales prices | $ / Mcf | 2.39 | 6.03 | 3.33 |