Comstock Resources (CRK) risk factors, FY2024 10-K

Other

1. 01An extended period of depressed natural gas prices would adversely affect our business, financial condition, cash flow, liquidity, results of operations and our ability to meet our capital expenditure obligations and financial commitments
2. 02overall U.S. and global economic and political conditions, including inflationary pressures, further increases in interest rates, a general economic slowdown or recession, political tensions and war (including future developments in the ongoing Russia-Ukraine and Israel-Hamas conflicts)
3. 03Our future production and revenues depend on our ability to replace our reserves
4. 04our ability to acquire, locate and produce new reserves
5. 05Our operations may incur substantial liabilities due to compliance with environmental laws and regulations
6. 06We may be subject to physical and financial risks associated with climate change
7. 07We pursue acquisitions as part of our growth strategy and there are risks associated with such acquisitions
8. 08potential environmental and other liabilities
9. 09Market conditions or operational impediments may hinder our access to natural gas markets or delay our production
10. 10We had $3.0 billion principal amount of debt as of December 31, 2024
11. 11our debt limits (i) our ability to capitalize on significant business opportunities, (ii) our flexibility in planning for or reacting to changes in market conditions, and (iii) our ability to withstand competitive pressures and economic downturns
12. 12Our business involves many uncertainties and operating risks that can prevent us from realizing profits and can cause substantial losses
13. 13If we experience any of the above operating risks, our well bores, gathering systems and processing facilities could be affected, which could adversely affect our ability to conduct operations
14. 14repairs to resume operations
15. 15Loss of our information and computer systems could adversely affect our business
16. 16Our business could be negatively impacted by security threats, including cybersecurity threats and other disruptions
17. 17We are subject to extensive governmental laws and regulations that may adversely affect the cost, manner or feasibility of doing business
18. 18governmental sanctions, such as fines and penalties
19. 19Our hedging transactions could result in financial losses or could reduce our income. To the extent we have hedged a significant portion of our expected production and our actual production is lower than we expected or the costs of goods and services increase, our profitability would be adversely affected