Comstock Resources (CRK) presents a deeply negative liquidation posture as of March 31, 2026. MFFAIS-computed CLV of negative $3.68B and LLV of negative $3.56B are consistent with the balance sheet mechanics: total liabilities of $4.17B at face value against a heavily haircut asset base dominated by illiquid E&P properties. The primary driver of negative recovery is the $2.95B of long-term debt (net of issuance costs) against proved oil and gas properties carrying $9.33B gross cost with $3.69B accumulated DD&A — net book value of approximately $5.64B on the E&P asset base. Under a 50-60% liquidation haircut on upstream PP&E, recoverable value from proved properties would approximate $2.8B–$3.4B, well below the $2.95B senior debt stack alone, before accounting for $712M in current liabilities, $449M in deferred tax liabilities, $21M in ARO, and $40M in non-current operating lease obligations. The debt stack consists of $1.62B at 6.75% senior notes due 2029, $965M at 5.875% senior notes due 2030, and $397M drawn on bank credit facilities ($350M Comstock, $47M PGS), with the Comstock revolver maturing November 2027 — the nearest material maturity. Goodwill of $336M receives a zero recovery haircut and represents a direct subtraction from equity. The $335M noncontrolling interest (PGS midstream JV) complicates recovery waterfall in liquidation. Cash of $14.8M is the only near-full-recovery asset. AR of $126M (90-95% recovery) and derivative assets of $89M current/non-current are partially recoverable but immaterial relative to the liability stack. Compared to the prior annual filing (10-K, December 31, 2025), the Q1 2026 10-Q shows net income of $112.5M, operating cash flow of $272M, and a net borrowing increase of $137M on credit facilities during the quarter, modestly widening total debt. The bank facility leverage covenant (less than 3.5x) is stated as in compliance. The PGS credit facility ($150M capacity, $47M drawn) is new as of March 26, 2026 — filed as Exhibit 10.1 — and adds an incremental claim on PGS assets not available to Comstock's senior creditors. Capital expenditures of $405M in Q1 alone versus $272M operating cash flow signals continued outspend, financed by revolving credit draws, which incrementally erodes liquidation recovery margin. The $82.8M operating lease liability (ASC 842) and $404M in capitalized exploratory well costs pending reserve determination are additional subordinated-recovery concerns. Filing discusses $1.5B and $1.9B in federal and state NOL carryforwards respectively in MD&A but does not separately XBRL-tag the deferred tax asset gross components — those are discussed only in narrative and are not in TAG_CONTEXT.
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