Comstock Resources, Inc. (CRK) Cash Flow Statement

The gap between net income and operating cash flow is consistently positive in recent quarters, with DD&A of $185.7M in 2026Q3 explaining much of the difference. Quarters with negative net income, such as 2024Q2 and 2025Q1, still produced positive operating cash flow, which appears to confirm that reported losses are largely non-cash. Investors should monitor whether this conversion holds once commodity prices normalize, since the ratio is flattered by depletion charges that will continue to accrue on a capital-intensive asset base.

Free cash flow has been negative in five of the last six quarters, with the sharpest deterioration in 2026Q2 and 2026Q3 as CapEx rose to $431.9M and $452.2M respectively. This pattern suggests the company is reinvesting well beyond what current operating cash generation supports. The trajectory warrants close attention because sustained negative FCF implies reliance on the balance sheet or external financing to fund the drilling program.

The rising CapEx intensity in 2026 points to an aggressive development program, likely in the Haynesville where long-lateral completions are expensive. It is difficult to separate maintenance from growth spending from the cash flow data alone, though the scale of spending relative to D&A of roughly $186M suggests a substantial growth component. Whether this investment generates adequate returns depends on future production and realized gas pricing, which the supplied data does not fully resolve.

Capital allocation has prioritized acquisitions and drilling over shareholder distributions, consistent with a growth-through-acquisition strategy. The $472.7M acquisition outlay in 2025Q4 is large relative to the company's cash generation and appears to have been funded partly by its balance sheet. Investors should monitor whether these acquired assets begin contributing to operating cash flow at a pace that justifies the deployment.