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Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Summary of Unaudited Pro Forma Financial Information
Pro Forma
Three Months Ended
September 30, 2019		Nine Months Ended
September 30, 2019
(In thousands, except per share amounts)
Revenues:$247,192 $858,042 
Net Income$36,755 $201,338 
Net income per share:
Basic
$0.15 $0.93 
Diluted
$0.13 $0.72 
Schedule of Business Acquisitions, by Acquisition The following table summarizes the preliminary and final fair value allocations of the assets acquired and liabilities assumed in the Covey Park Acquisition:
Original AllocationMeasurement Period AdjustmentsFinal Allocation
(In thousands)
Consideration:
Cash Paid$700,000 $— $700,000 
Fair Value of Common Stock Issued167,808 — 167,808 
Fair Value of Series A Preferred Stock Issued200,000 — 200,000 
Total Consideration1,067,808 — 1,067,808 
Liabilities Assumed:
Accounts Payable and Accrued Liabilities129,622 — 129,622 
Derivative Financial Instruments388 — 388 
Other Current Liabilities9,930 706 10,636 
Long Term Debt826,625 — 826,625 
Covey Park Preferred Equity153,390 — 153,390 
Non-current Derivative Financial Instruments186 — 186 
Asset Retirement Obligations5,374 — 5,374 
Deferred Income Taxes23,466 (1,780)21,686 
Other Non-current Liabilities9,893 — 9,893 
Liabilities Assumed1,158,874 (1,074)1,157,800 
Total Consideration and Liabilities Assumed$2,226,682 $(1,074)$2,225,608 
Assets Acquired:
Cash and Cash Equivalents$6,131 $— $6,131 
Accounts Receivable86,285 — 86,285 
Current Derivative Financial Instruments51,004 — 51,004 
Other Current Assets5,511 (554)4,957 
Proved Oil and Natural Gas Properties1,818,413 (520)1,817,893 
Unproved Oil and Natural Gas Properties237,210 — 237,210 
Other Property, Plant and Equipment2,262 — 2,262 
Non-current Derivative Financial Instruments19,866 — 19,866 
Total Assets Acquired$2,226,682 $(1,074)$2,225,608 
Summary of Lease Cost Recognized
Lease costs recognized during the three months and nine months ended September 30, 2020 were as follows:
Three Months Ended
September 30, 2020		Nine Months Ended
September 30, 2020
(In thousands)
Operating lease cost included in general and administrative expense$422 $1,249 
Operating lease cost included in lease operating expense229 578 
Short-term lease cost (drilling rig costs included in proved oil and gas properties)7,324 26,605 
$7,975 $28,432 
Summary of Liabilities Under Contract Contain Operating Leases
As of September 30, 2020, expected future payments related to contracts that contain operating leases were as follows:
(In thousands)
October 1 to December 31, 2020$647 
20212,329 
2022529 
2023182 
Total lease payments
3,687 
Imputed interest(133)
Total lease liability$3,554 
Summary of Accrued Costs
Accrued costs at September 30, 2020 and December 31, 2019 consisted of the following:
As of September 30,
2020		As of December 31,
2019
(In thousands)
Accrued interest payable$38,910 $39,501 
Accrued transportation costs25,465 26,907 
Accrued capital expenditures25,422 42,193 
Accrued lease operating expenses11,817 4,990 
Accrued employee compensation6,508 8,653 
Other3,485 4,092 
Accrued transaction costs1,088 10,830 
$112,695 $137,166 
Summary of Changes in Reserve for Future Abandonment Costs The following table summarizes the changes in Comstock's total estimated liability for such obligations during the periods presented:
Nine Months Ended
September 30,
20202019
(In thousands)
Reserve for future abandonment costs at beginning of period$18,151 $5,136 
New wells placed on production
451 256 
     Wells acquired — 5,374 
Liabilities settled and assets disposed of
(80)(40)
Accretion expense
880 369 
Reserve for future abandonment costs at end of period$19,402 $11,095 
Schedule of Gas Derivative Contracts Volume and Prices
The Company had the following oil and natural gas price derivative financial instruments, excluding basis swaps which are discussed separately below, at September 30, 2020:
Future Production Period
Three Months Ending December 31, 2020Year Ending December 31, 2021Year Ending December 31, 2022Total
Natural Gas Swap Contracts:
Volume (MMBtu)
47,658,438 (1)142,633,140 (2)10,950,000 201,241,578 
Average Price per MMBtu
$2.63 (1)$2.55 (2)$2.53 $2.57 
Natural Gas 2-Way Collar Contracts:
Volume (MMBtu)
8,720,000 109,550,000 3,600,000 121,870,000 
Price per MMBtu:
Average Ceiling
$2.95 $2.93 $3.36 $2.94 
Average Floor
$2.43 $2.45 $2.50 $2.45 
Natural Gas 3-Way Collar Contracts:
Volume (MMBtu)
4,600,000 — — 4,600,000 
Price per MMBtu:
Average Ceiling
$2.99 — — $2.99 
Average Floor
$2.63 — — $2.63 
Average Put
$2.32 — — $2.32 
Natural Gas Swaptions Call Contracts:
Volume (MMBtu)
— 71,250,000 (3)49,200,000 (4)120,450,000 
Average Price per MMBtu
— $2.52 (3)$2.51 (4)$2.52 
Crude Oil Collar Contracts:
Volume (Barrels)
259,500 182,500 — 442,000 
Price per Barrel:
Average Ceiling
$63.83 $45.00 — $56.06 
Average Floor
$49.35 $40.00 — $45.49 
_____________________________
(1)For the three months ending December 31, 2020, natural gas price swap contracts include 19,320,000 MMBtu at an average price of $2.52 that are part of certain natural gas price swaption contracts which include a call to extend the price swap by the counterparty as described in (3) below.
(2)For the year ending December 31, 2021, natural gas price swap contracts include 23,650,000 MMBtu at an average price of $2.52 that are part of certain natural gas price swaption contracts which include a call to extend the price swap by the counterparty as described in (4) below.
(3)The counterparty has the right to exercise a call option to enter into a price swap with the Company on 71,250,000 MMBtu in 2021 at an average price of $2.52.  The call option expires for 47,450,000 MMBtu at an average price of $2.53 in October 2020; for 7,300,000 MMBtu at an average price of $2.50 in November 2020 and for 16,500,000 MMBtu at an average price of $2.50 in March 2021.
(4)The counterparty has the right to exercise a call option to enter into a price swap with the Company on 49,200,000 MMBtu in 2022 at an average price $2.51. The call option expires for 5,400,000 MMBtu at an average price of $2.50 in March 2021; for 36,500,000 MMBtu at an average price of $2.52 in October 2021 and 7,300,000 MMBtu at an average price of $2.50 in November 2021.
Schedule of Derivative Instruments The aggregate fair value of the Company's derivative instruments reported in the accompanying consolidated balance sheets by type, including the classification between assets and liabilities, consists of the following:
TypeConsolidated Balance Sheet LocationSeptember 30, 2020December 31, 2019
(in thousands)
Asset Derivative Financial Instruments:
Natural gas price derivativesDerivative Financial Instruments  – current$6,405 $75,123 
Oil price derivativesDerivative Financial Instruments  – current2,425 181 
$8,830 $75,304 
Natural gas price derivativesDerivative Financial Instruments  – long-term$1,185 $13,888 
Liability Derivative Financial Instruments:
   Natural gas price derivativesDerivative Financial Instruments  – current$62,652 $— 
   Oil price derivativesDerivative Financial Instruments  – current— 222 
   Interest rate derivativesDerivative Financial Instruments  – current943 — 
$63,595 $222 
   Natural gas price derivativesDerivative Financial Instruments  – long-term$64,814 $4,220 
Oil price derivativesDerivative Financial Instruments – long-term20 — 
   Interest rate derivativesDerivative Financial Instruments – long-term1,539 — 
$66,373 $4,220 
Schedule of Gains and Losses from Derivative Financial Instruments Assets (Liabilities) Gains and losses related to cash settlements and changes in the fair value recognized on the Company's derivative contracts recognized in the consolidated statement of operations were as follows:
Gain (Loss) on Derivatives
Recognized in Earnings		Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(In thousands)
Natural gas price derivatives$(120,706)$22,664 $(82,872)$37,722 
Oil price derivatives(989)2,194 13,529 (5,777)
Interest rate derivatives116 — (2,635)— 
$(121,579)$24,858 $(71,978)$31,945 
Consolidated Income Tax Provision
The following is an analysis of the consolidated income tax provision:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(In thousands)
Current - Federal$— $— $— $— 
Current - State67 72 216 (22)
Deferred - Federal(35,645)3,184 (37,662)13,959 
Deferred - State(10,545)591 (8,731)1,246 
$(46,123)$3,847 $(46,177)$15,183 
Difference Between Federal Statutory Rate and Effective Tax Rate The difference between the federal statutory rate of 21% and the effective tax rate is due to the following:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
Tax at statutory rate21.0 %21.0 %21.0 %21.0 %
Tax effect of:
Valuation allowance on deferred tax assets
1.5 4.5 1.0 2.3 
State income taxes, net of federal benefit
5.2 (1.8)4.3 — 
Nondeductible stock-based compensation
(1.0)1.2 (0.8)1.5 
Transaction costs— 8.6 — 1.9 
Other
— 2.7 0.1 — 
Effective tax rate26.7 %36.2 %25.6 %26.7 %
Reconciliation of Beginning and Ending Balances for Derivative Instruments The following is a reconciliation of the beginning and ending balances for derivative instrument assets (liabilities) classified as Level 3 in the fair value hierarchy:
Nine Months Ended
September 30, 2020
(In thousands)
Balance at beginning of year$4,351 
Total loss included in earnings
(27,450)
Settlements, net
(33,143)
Balance at end of period$(56,242)
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 September 30, 2020 and December 31, 2019:
September 30, 2020December 31, 2019
Carrying ValueFair ValueCarrying ValueFair Value
Assets:(In thousands)
Derivative financial instruments (1)
$10,015 $10,015 $89,192 $89,192 
Liabilities:
Derivative financial instruments (1)
$129,968 $129,968 $4,442 $4,442 
Bank credit facility (2)
$500,000 $500,000 $1,250,000 $1,250,000 
7½% senior notes due 2025 (3)
$467,917 $586,882 $455,768 $534,375 
9¾% senior notes due 2026 (3)
$1,575,554 $1,687,125 $820,057 $765,000 
______________
(1)The Company's natural gas price swaps and basis swap agreements, its interest rate swap agreements and its crude oil and natural gas price collars 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.  The Company's natural gas swaption contracts provide the counterparty the right, but not the obligation, to extend terms of an existing swap on predetermined dates. Due to subjectivity of the inputs used to value the counterparty rights in the contracts, these contracts are classified as Level 3 in the fair value hierarchy.
(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 September 30, 2020 and December 31, 2019, respectively, a Level 1 measurement.
Weighted Average Shares of Unvested Restricted Stock
Weighted average shares of unvested restricted stock outstanding were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(in thousands)
Unvested restricted stock1,285 758 1,185 539 
Common Stock and Convertible Stock Dilutive in Weighted average unearned PSUs outstanding
Weighted average unearned PSUs outstanding were as follows:
Three Months Ended
September 30,		Nine Months Ended
September 30,
2020201920202019
(In thousands, except per unit amounts)
Weighted average PSUs1,136 862 1,014 513 
Weighted average grant date fair value per unit$9.33 $9.60 $9.33 $9.60 
Basic and Diluted Income (Loss) Per Share
Basic and diluted income (loss) per share were determined as follows:
Three Months Ended September 30,
20202019
LossSharesPer ShareIncomeSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$(130,890)$(1,337)
Income allocable to unvested restricted shares— — 
Basic income (loss) attributable to common stock(130,890)231,223 $(0.57)(1,337)171,487 $(0.01)
Diluted income (loss) attributable to common stock$(130,890)231,223 $(0.57)$(1,337)171,487 $(0.01)

Nine Months Ended September 30,
20202019
LossSharesPer ShareIncomeSharesPer Share
(In thousands, except per share amounts)
Net income (loss) attributable to common stock$(160,936)$33,645 
Income allocable to unvested restricted shares— (141)
Basic income (loss) attributable to common stock(160,936)209,760 $(0.77)33,504 127,709 $0.26 
Diluted income (loss) attributable to common stock$(160,936)209,760 $(0.77)$33,504 127,709 $0.26 
Cash Payments Made for Interest and Income Taxes
Cash payments made for interest and income taxes and other non-cash investing and financing activities for the nine months ended September 30, 2020 and 2019, respectively, were as follows:
Nine Months Ended
September 30,
20202019
(In thousands)
Cash payments for:
Interest payments$143,942 $110,820 
Income tax payments$— $2 
Non-cash investing activities include:
Decrease in accrued capital expenditures$16,771 $46,918 
Non-cash investing activities related to the Covey Park Acquisition include:
Issuance of common stock$— $167,808 
Issuance of Series A Convertible Preferred Stock$— $200,000 
Assumed 7½% Senior Notes due 2025$— $446,625 
Acquired working capital$520 $41,624 
Non-cash financing activities include:
Retirement of debt in exchange for common stock$(4,151)$— 
Issuance of common stock in exchange for debt$5,012 $—