Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Results of Operations for Properties

Results of operations for the properties that were sold or held for sale were as follows:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(In thousands)
Total oil and gas sales	$	6		$	2,644		$	392		$	6,551
Total operating expenses(1)		(265	)		(1,541	)		(771	)		(5,670	)
Operating income (loss)	$	(259	)	$	1,103		$	(379	)	$	881

(1) Includes direct operating expenses, depreciation, depletion and amortization and exploration expense.  Excludes interest expense, general and administrative expenses and depreciation, depletion and amortization expense subsequent to the date the assets were designated as held for sale.

Summary of Accrued Expenses

Accrued expenses at September 30, 2017 and December 31, 2016 consist of the following:

	As of September 30, 2017		As of December 31, 2016
	(In thousands)
Accrued drilling costs	$	4,834	$	7,498
Accrued interest payable		4,016		22,721
Accrued transportation costs		3,005		2,227
Accrued employee compensation		3,841		6,292
Accrued ad valorem taxes		2,700		—
Other		1,533		1,628
	$	19,929	$	40,366

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 nine months ended September 30, 2017 and 2016:

	Nine Months Ended September 30,
	2017			2016
	(In thousands)
Future abandonment costs — beginning of period	$	15,804		$	20,093
Accretion expense		645			716
New wells placed on production		5			2
Assets held for sale		—			(3,442	)
Liabilities settled and assets disposed of		(356	)		(1,217	)
Future abandonment costs — end of period	$	16,098		$	16,152

Summary of Outstanding Derivative Financial Instruments

The Company had the following outstanding derivative financial instruments used for oil and natural gas price risk management at September 30, 2017:

Commodity and Derivative Type	Weighted-Average Contract Price	Contract Volume (MMBtu)	Contract Period
Natural Gas Swap Agreements	$3.38 per MMBtu	11,655,000	October 2017 – March 2018

Consolidated Income Tax Provision (Benefit)

The following is an analysis of consolidated income tax provision (benefit):

	Three Months Ended  September 30,						Nine Months Ended  September 30,
	2017			2016			2017		2016
	(In thousands)
Current - State	$	18		$	7		$	115	$	36
- Federal		—			—			—		—
Deferred  - State		(87	)		(832	)		768		3,687
- Federal		—			—			—		—
	$	(69	)	$	(825	)	$	883	$	3,723

Difference Between Federal Statutory Rate and Effective Tax Rate on the Loss Before Income Taxes Due

The difference between the Company's effective tax rate and the 35% federal statutory rate is caused by valuation allowances on deferred taxes and state taxes. The impact of these items varies based upon the Company's projected full year loss and the jurisdictions that are expected to generate the projected losses. The difference between the federal statutory rate of 35% and the effective tax rate on the income (loss) before income taxes is due to the following:

	Three Months Ended  September 30,						Nine Months Ended  September 30,
	2017			2016			2017			2016
	(In thousands)
Tax at statutory rate		35.0	%		35.0	%		35.0	%		35.0	%
Tax effect of:
Valuation allowance on deferred tax assets		(37.8	)		(45.0	)		(39.2	)		(47.8	)
State income taxes, net of federal benefit		3.8			12.4			4.1			7.8
Nondeductible stock-based compensation		(0.7	)		0.4			(1.1	)		—
Other		—			0.1			(0.1	)		—
Effective tax rate		0.3	%		2.9	%		(1.3	)%		(5.0	)%

Summary of Financial Assets and Liabilities at Fair Value

The following table summarizes financial assets accounted for at fair value as of September 30, 2017:

	Carrying Value Measured at Fair Value at September 30, 2017		Level 1		Level 2
	(In thousands)
Assets measured at fair value on a recurring basis:
Cash and cash equivalents held in bank accounts	$	25,392	$	25,392	$	—
Derivative financial instruments		3,203		—		3,203
Total assets	$	28,595	$	25,392	$	3,203

Basic and Diluted Losses Per Share

Basic and diluted loss per share for the three months and nine months ended September 30, 2017 and 2016 were determined as follows:

	Three Months Ended September 30,
	2017								2016
	Loss			Shares		Per Share			Loss			Shares		Per Share
	(In thousands, except per share amounts)
Basic and diluted net loss attributable to common stock	$	(24,736	)		14,796	$	(1.67	)	$	(28,476	)		12,293	$	(2.32	)

	Nine Months ended September 30,
	2017								2016
	Loss			Shares		Per Share			Loss			Shares		Per Share
	(In thousands, except per share amounts)
Basic and diluted net loss attributable to common stock	$	(69,109	)		14,591	$	(4.74	)	$	(80,201	)		11,255	$	(7.13	)

Weighted Average Shares of Unvested Restricted Stock

Weighted average shares of unvested restricted stock outstanding during the three months and nine months ended September 30, 2017 and 2016 which were excluded from the computation of the loss per share were as follows:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2017		2016		2017		2016
	(In thousands)
Unvested restricted stock		666		355		612		340

Common Stock Stock Options and Convertible Stock Excluded as Anti-Dilutive from Determination of Diluted Earnings Per Share

For the three months ended September 30, 2017 and 2016, all stock options, unvested PSUs, common stock warrants and contingently issuable shares related to the convertible debt were anti-dilutive to earnings and excluded from weighted average shares used in the computation of earnings per share in all periods presented.  Options to purchase common stock, warrants exercisable into common stock, PSUs that were outstanding and contingently issuable shares related to the convertible debt that were excluded as anti-dilutive from the determination of diluted earnings per share are as follows:

	Three Months Ended  September 30,				Nine Months Ended  September 30,
	2017		2016		2017		2016
	(In thousands except per share/unit data)
Weighted average stock options		—		12		—		12
Weighted average exercise price per share	$	—	$	166.10	$	—	$	166.10
Weighted average warrants for common stock		415		377		479		127
Weighted average exercise price per share	$	0.01	$	0.01	$	0.01	$	0.01
Weighted average PSUs		303		135		281		137
Weighted average grant date fair value per unit	$	17.12	$	22.09	$	17.12	$	22.09
Weighted average contingently convertible shares		37,624		9,770		36,676		3,257
Weighted average conversion price per share	$	12.32	$	12.32	$	12.32	$	12.32

Cash Payments Made for Interest and Income Taxes

Cash payments made for interest and income taxes for the nine months ended September 30, 2017 and 2016, respectively, were as follows:

	Nine Months Ended September 30
	2017		2016
	(In thousands)
Interest payments	$	72,913	$	109,642
Income tax payments	$	3	$	—