Comstock Resources (NYSE: CRK) stock soared 9.47% in pre-market trading on Thursday following the release of its better-than-expected first-quarter 2025 financial results and the announcement of a new carbon capture partnership.

The oil and gas company reported adjusted earnings of $0.18 per share for Q1 2025, surpassing the analyst consensus estimate of $0.16. This represents a significant improvement from the loss of $0.03 per share in the same quarter last year. Comstock's quarterly revenue also impressed, coming in at $512.85 million, beating the Street's forecast of $423.81 million and marking a 52.74% increase year-over-year.

Key highlights from Comstock's Q1 2025 results include: - Natural gas and oil sales, including realized hedging gains, of $405 million - Operating cash flow of $239 million, or $0.81 per diluted share - Adjusted EBITDAX of $293 million - Higher natural gas prices driving improved financial results, with an average realized price of $3.58 per Mcf before hedging

Adding to the positive sentiment, Comstock Resources announced a collaboration agreement with BKV Corporation to accelerate the deployment of carbon capture projects. The partnership aims to develop carbon capture, utilization, and sequestration (CCUS) projects at two of Comstock's natural gas processing facilities in its Western Haynesville operating area. This move aligns with growing demand for low-carbon energy solutions and demonstrates Comstock's commitment to sustainability in the oil and gas sector.

M. Jay Allison, CEO of Comstock Resources, commented on the partnership, stating, "We are excited about the opportunity to collaborate on carbon capture projects that align with Comstock's commitment to innovation and sustainability. BKV's leadership in carbon capture and storage innovation makes them the ideal partner for executing our vision."

The combination of strong financial performance and strategic initiatives in sustainable energy practices has fueled investor optimism, driving the significant pre-market rally in Comstock Resources' stock price.