(5) SUBSEQUENT EVENTS

On November 4, 2026, the Company entered into a definitive purchase and sale agreement with the State Oil Company of the Azerbaijan Republic ("SOCAR") to sell a non-operated working interest in 15% of Comstock's interest in its Western Haynesville upstream assets, 15% of the Company's interest in PGS and a non-operated working interest in 20% of the Company's interest in all of its other upstream assets for an aggregate cash purchase price of $1.65 billion, subject to customary purchase price adjustments. SOCAR's interest in the Western Haynesville upstream assets will reduce to 7.5% after five years and after SOCAR has achieved a 15% return on investment in those assets. The effective date of the transaction is July 1, 2026 and is expected to close by the end of 2026, subject to customary closing conditions, including any required government approvals. The Company expects to recognize a gain on the sale between $150 million and $250 million upon closing.

On November 4, 2026, Comstock amended its $1.5 billion upstream bank credit facility to extend the maturity date to November 15, 2028 and to further extend maturity date to November 15, 2031 upon the closing of the SOCAR transaction and the repayment of debt using the proceeds from the SOCAR transaction. Aggregate commitments under the new bank credit facility will continue to be $1.5 billion while borrowings will be subject to a borrowing base initially set at $1.6 billion.