Comstock Resources (NYSE: CRK) stock surged 5.19% in intraday trading, buoyed by the company's strong first-quarter 2025 results and the success of its Western Haynesville operations. The natural gas producer reported significant improvements in financial performance and provided updates on its strategic expansion efforts.

The company's Q1 2025 results showed substantial growth, with natural gas and oil sales reaching $405 million, up 21% from the previous year. Comstock generated $239 million in operating cash flow, or $0.81 per diluted share, and reported adjusted net income of $53.8 million, or $0.18 per diluted share. The improved financial performance was largely attributed to higher natural gas prices during the quarter.

Investors were particularly enthused by Comstock's success in its Western Haynesville operations. The company announced the results of its Olajuwon well in Freestone County, which was drilled 24.4 miles away from the nearest producing well. The Olajuwon well demonstrated an initial production rate of 41 million cubic feet per day, confirming the potential of Comstock's geologic work and potentially adding thousands of future drilling locations to the company's inventory. This strategic expansion in the Western Haynesville play is seen as a crucial step in positioning Comstock to benefit from the growing demand for natural gas, particularly for power generation, AI data centers, and LNG feedstock.